Thailand is a key player in the global economy and is known as an important hub for trade in Southeast Asia. One of the ways the country has strengthened its economic position is by signing various free trade agreements (FTAs) with countries around the world. In this article, we’ll take a closer look at Thailand’s free trade agreements statistics to better understand the country’s trade relations and what it means for businesses.
To start off, let’s define what a free trade agreement is. A free trade agreement is a pact between two or more countries that eliminates tariffs, quotas, and other trade barriers between them. FTAs enable countries to increase their exports, attract foreign investment, and create jobs.
Thailand has signed many free trade agreements with various countries and regions around the world, including:
– ASEAN Free Trade Area (AFTA)
– Australia
– Bahrain
– Canada
– Chile
– China
– European Union (EU)
– India
– Japan
– New Zealand
– Peru
– South Korea
– United States
As of 2021, Thailand has a total of 14 free trade agreements in force. These agreements cover a diverse range of sectors, including agriculture, manufacturing, automotive, and services. Additionally, Thailand is currently negotiating free trade agreements with countries such as the United Kingdom and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) countries.
One of the key benefits of Thailand’s FTAs is increased trade and investment flows. For example, Thailand’s exports to FTA partners have grown significantly over the years. In 2020, Thailand’s exports to FTA partners accounted for 64.8% of its total exports, valued at 9.9 trillion baht (USD 322 billion). Meanwhile, Thailand’s imports from FTA partners accounted for 59.3% of its total imports, valued at 9.3 trillion baht (USD 303 billion). These figures demonstrate the importance of FTAs in facilitating trade and investment flows in Thailand.
Another benefit of FTAs is increased foreign investment. Thailand has seen an influx of foreign investment from FTA partners. In 2020, Thailand recorded net foreign direct investment (FDI) inflows from FTA partners totaling 288 billion baht (USD 9.4 billion), representing 39% of total FDI inflows. This highlights the attractiveness of Thailand as an investment destination for FTA partners.
In conclusion, Thailand’s free trade agreements statistics demonstrate the country’s commitment to promoting trade and investment. By signing FTAs with various countries around the world, Thailand has been able to increase its exports, attract foreign investment, and create jobs. As businesses look to expand their global presence, understanding Thailand’s FTAs can help them navigate the country’s trade relations and identify new opportunities.