Trade Between Thailand - New Zealand Reinforced After FTA Goes Into Effect

[Jai Dee]

Trade between Thailand - New Zealand reinforced after FTA goes into effect

The Ministry of Agriculture and Cooperatives (MOAC) has requested New Zealand to import three more Thai agricultural produce into the country. MOAC said that after the effect of the Thai-New Zealand Free Trade Agreement (FTA), trade between the two countries have since been very active.

"According to the discussion with Minister of Agriculture and Cooperatives Thira Sutabutra (ธีระ สูตะบุตร)and the Ambassador Extraordinary and Plenipotentiary of New Zealand Mr. Brook Barrington, the value of export to New Zealand last year was recorded at 2,195 million baht, a 10 percent increase, comparing to the export value of 2,003 million baht last year," stated Deputy-spokesperson of MOAC Mr.Phinit Korsriporn (พินิจ กอศรีพร).

Milk powder has topped the export list to New Zealand. The value was set at 4,710 million baht. At the same time, goods imported to Thailand from from New Zealand has increased to 25 percent.

At the same development, Thailand had also asked New Zealand to buy three types of produce---asparagus, coconut and sugar pea. The export is expected to increase by another 3-5 percent.

Thailand has been exporting five agricultural produce from New Zealand for a number of years. They are lychee, longan, mangosteen, ginger and durian.

The bilateral FTA agreement between Thailand and New Zealand officially came into effect on 1 July 2005. In the initial stage of the bilateral FTA deal, Wellington will reduce import tariffs on first categories of Thai products to 0-5 percent. They include canned tuna, frozen shrimps, processed cereal products, cosmetics, electrical appliances, glass products, plastic materials, pick-up trucks and machinery. In return Bangkok will cut its import tariffs to 0-5 percent on specific New Zealand products, including infant milk formula, cereal products and wooden goods.

The two countries have agreed to completely liberalise bilateral trade over the next 10 years.

Source: Thai National News Bureau Public Relations Department - 02 February 2007

[Jai Dee]

Thai-NZ trade strategy includes technical aid

New Zealand has agreed to facilitate more imports of Thai produce and provide technical assistance to the local dairy industry, an agriculture ministry spokesman said Thursday.

Pinit Korsriporn, deputy spokesman at the Ministry of Agriculture and Cooperatives, told reporters that Wellington has finalised food safety standards for five items of fresh fruit and vegetable from Thailand namely lychee, longan, mangosteen, ginger and durian.

Three more items were proposed during a meeting Thursday between Agriculture Minister Thira Sutabutr and New Zealand ambassador to Thailand Brook Barrington. They were asparagus, young coconuts and peas.

Guidelines on import health standards helped speed up port clearance procedures, the official said, adding that the new items should be issued with new import health standards within this month.

New Zealand has one of the world's highest standard for agricultural imports.

Many have warned that Thai farm traders might not benefit from the free trade agreement as much as they had hoped, due to the strict sanitary standards set by the New Zealand customs authorities.

Under the free trade agreement which came into effect on July 1, 2005, both sides have set up a joint working group on sanitary and phyto-sanitary standards to handle food safety, as well as animal and plant health.

Mr. Pinit said that trade was largely in New Zealand's favour. While Thailand's exports grew from about US$2 billion to US2.2 billion, imports jumped from US$4 billion to US$4.7 billion in the first year since the free trade deal was enacted.

New Zealand also agreed to extend technical assistance to the Thai dairy industry, which has been seriously affected by the influx of cheap and high quality products from down under.

Source: TNA - 2 February 2007