New Thai ExportNew Thai Export

China-Thailand China-Thailand

Free Trade area agreementFree Trade area agreement

New Thai Export PactNew Thai Export Pact

China-Thailand recently signed a memorandam.China-Thailand recently signed a memorandam. Rice – signedRice – signed 5 deals for 145,000 tonnes 5 deals for 145,000 tonnes

Tapioca – agreed to sell 4 million tonnes of tapioca Tapioca – agreed to sell 4 million tonnes of tapioca chips chips

Rubber – agreed to supply 100,000 tonnes of rubber Rubber – agreed to supply 100,000 tonnes of rubber worth 5.5 billion worth 5.5 billion

fresh fruits – setting up a distribution network for fresh fruits – setting up a distribution network for 15,000 tonnes of fresh fruit a year15,000 tonnes of fresh fruit a year

gems and jewellery – signed an agreement to expand gems and jewellery – signed an agreement to expand co-operation in gems and jewellery co-operation in gems and jewellery

This pact is worth about 36 billion baht.This pact is worth about 36 billion baht.

Gem-JewelryGem-Jewelry

Thailand is currently the world's key Thailand is currently the world's key production source of coloured stones production source of coloured stones China is not China is not

China's consumption of gems and China's consumption of gems and jewellery robust growth over the past three jewellery robust growth over the past three yearsyears

The ASEAN-China Free Trade The ASEAN-China Free Trade Area Area

Thailand-China shall eliminate tariffs on all Thailand-China shall eliminate tariffs on all vegetable and fruit products vegetable and fruit products

Early harvest products (vegetable & fruits)Early harvest products (vegetable & fruits) Reduce to 0% tariffs in 10 yearsReduce to 0% tariffs in 10 years ExceptExcept : sensitive list product : sensitive list product

Fertilizers, coffee, cars, papers, rubbers, ect.Fertilizers, coffee, cars, papers, rubbers, ect.

RiceRice

In 2008 Thailand exported 0.29 million ton In 2008 Thailand exported 0.29 million ton of jasmine rice, worth 189 million dollarsof jasmine rice, worth 189 million dollars However, we exported 0.462 million ton of However, we exported 0.462 million ton of

jasmine rice in 2007jasmine rice in 2007

The major factors that China imported The major factors that China imported less:less: World price of rice tended to increaseWorld price of rice tended to increase World economy was slow downWorld economy was slow down

Rubber and TapiocaRubber and Tapioca

RubberRubber Thailand exported rubber worth 1396 million Thailand exported rubber worth 1396 million

of dollarsof dollars

TapiocaTapioca In 2008, Thailand was the biggest Tapioca In 2008, Thailand was the biggest Tapioca

exporter to Chinaexporter to China 11stst and 2 and 2ndnd quarters of 2009, Vietnam is quarters of 2009, Vietnam is

currently the biggest exporter currently the biggest exporter

Fresh FruitsFresh Fruits

Durian was the most fruit exported to Durian was the most fruit exported to China, worth more than 1215 million bahtChina, worth more than 1215 million baht

Lumyai was sold more than 832 million Lumyai was sold more than 832 million bahtbaht

Ect.Ect.

China is the biggest fresh fruits importer of China is the biggest fresh fruits importer of ThailandThailand

Gems and JewelryGems and Jewelry

Diamond and Gold are exempted from TaxDiamond and Gold are exempted from Tax

Color stones – 3%Color stones – 3%

Pearl – 21%Pearl – 21%

Authentic ornament – 0-20%Authentic ornament – 0-20%

All will be exempted from tax by 2012All will be exempted from tax by 2012

However, VAT is not part of FTAHowever, VAT is not part of FTA

Ricardian ModelRicardian Model

ReferenceReference

http://www.cnwinenews.com/html/200906/29/20090629104220.htm

- New Thai export pact- New Thai export pact

By PHUSADEE ARUNMAS 2009-6-29 10:42:20By PHUSADEE ARUNMAS 2009-6-29 10:42:20

http://www.ftamonitoring.org/data/Dec20/ASCH%20AgreementMemo.pdf

http://www.measwatch.org/autopage/show_page.php?http://www.measwatch.org/autopage/show_page.php?t=27&s_id=346&d_id=344t=27&s_id=346&d_id=344

Thank YouThank You