Thailand seeks restart of trade negotiations with EU

[webfact]

Thailand seeks restart of trade negotiations with EU

By PHUWIT LIMVIPHUWAT 
THE NATION

 

Auramon Supthaweethum, director-general of the Commerce Ministry’s Department of Trade Negotiations (DTN)

 

THAILAND is ready to resume negotiations for a free-trade agreement (FTA) with the European Union (EU) once the new government is established, as officials seek to offset the decline in global trade, according to a leading trade official.

 

Thai trade officials have been juggling for a negotiating slot with the EU, after talks for a Thai-EU FTA were halted back in 2014 following the military coup.

 

Thai and EU trade officials will meet today in Brussels, Belgium to discuss the possibility of revitalising the talks. However, as Thailand is in the process of forming a new government, specific details related to a potential trade deal will not be discussed at the upcoming meeting, said Auramon Supthaweethum, director-general of the Commerce Ministry’s Department of Trade Negotiations (DTN).

 

Thailand is preparing for official negotiations to begin in the second half of this year, she said.

 

Meanwhile, the ongoing US-China trade tensions have caused a slowdown and decline in global trade since mid-2018. This was reflected in Thai-EU trade, which grew year on year by a mere 6 per cent in 2018 compared to the 10.8 per cent growth in 2017. The trend came into sharp relief in the first quarter of 2019, which saw Thai-EU trade decline of up to 11 per cent compared to the same period of last year.

 

In the first four months of this year, Thai-EU trade was valued at US$13.4 billion (Bt420.3 billion), with Thai exports valuing at $7 billion (Bt219.6 billion) and imports at $6 billion (Bt188.2 billion). This marked a significant decline in bilateral trade between the trade partners, which stood at $15.1 billion (Bt473.7 billion) in the first quarter of 2018. 

 

Thai-EU trade will continue to decline in the second half of this year, with dim prospects in the next decades if the Kingdom is unable to swiftly act to negotiate a trade deal with the European bloc, warned Aat Pisanwanich, director of the University of the Thai Chamber of Commerce’s Centre for International Trade Studies (CITS).

 

“This is due to the fact that Vietnam, a key competitor of Thailand in terms of exports, has established an FTA with the EU that will become active in the third quarter of this year,” he said. 

 

Vietnamese goods that compete with Thai goods, Aat said, such as electrical appliances, rice and fruit, will become even more competitive due to the lower tariffs in place after the FTA is activated. This would reduce Thailand’s market share of goods in the EU and lead to long-term negative impacts on Thai exports unless a Thai-EU trade agreement is soon put in place.

 

Research from the CITS suggested that after the Vietnam-EU FTA kicks in, Vietnamese exports to the EU would increase from $50 billion to $70 billion annually. This will reduce Thai exports by $20 billion in the second quarter of this year, and $40 billion in the next two years.

 

Source: http://www.nationmultimedia.com/detail/Economy/30370853

 

-- © Copyright The Nation 2019-06-11

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[Cadbury]

1 hour ago, webfact said:

THAILAND is ready to resume negotiations for a free-trade agreement (FTA) with the European Union (EU) once the new government is established

Jolly good news that the newly elected "democratic" military government is ready to resume talks. Whether the EU has the same enthusiasm is another matter.

For all they are the EU is not stupid and they would have been watching this junta orchestrated election circus with the PM himself appointing his mates and old deadhead military farts to fill the 250 Senate seats. 

For the last 5 years PM Prayut has led Thailand into the economic doldrums and it is surely only going to get worse. All his efforts have gone into maintaining the wealth for his elite business friends for they are the ones who keep him where he is.

Thankfully there are now some members in parliament to call him to account and expose his deficiencies.

[Lungstib]

Now we'll see if the 'courtesy' visit by the EU was as positive as Thai news made it sound. Surely the EU needs to extend its tough stance on Thai fishing to the simple matters of free speech, free and fair elections, intimidation of opposition by unjust laws and the disappearing of dissenters. Lets hope the courtesy is all over and Thailand is made to face up to its international responsibilities. 

[boonrawdcnx]

Thailand has missed the train again Vietnam is pulling ahead full steam and rightly so. Thailand is no trading partner.
Thailand only wants to take - opportunistic protectionists never make a good trading partner. Just look at the ridiculous import tax and duties - all to protect the conglomerates that own the country and pay off politicians to keep the country in the dark ages and their monopolies in place. Take Germany - similar in size and population and their rapid development from the ashes of WWII to a major industrial player on the world stage in a 20-30 year time period.
In comparison Thailand seems to be a developing nation forever nothing really ever develops here - I have been watching advances over the last 30+ years here - they are ridiculous and all based on bought-in foreign technology. The country has been taken to the cleaners by consecutive corrupt governments and the so called elite and everything is mediocre and substandard here. Always behind the rest of the world and yet at price tags of the developed world or well above. Or why would a (substandard) car with less extras cost considerable more here than in Europe or the US? Just look at the Hopewell saga and the latest refusal to pay up - who wants to do business with a country like this?

Thailand has fooled the world for a while - but the shine is fading and others start to realize that the emperor has no cloth.
In the meantime Prayuth’s sell out to the Chinese continues because nobody else wants to to business with him and his corrupt cronies.

These years and decades of plunder and missed opportunities will come back to bite Thailand big time and of course they will only realize when it’s to late - as always.


Sent from my iPhone using Thaivisa Connect

[alant]

2 hours ago, Cadbury said:

Jolly good news that the newly elected "democratic" military government is ready to resume talks. Whether the EU has the same enthusiasm is another matter.

For all they are the EU is not stupid and they would have been watching this junta orchestrated election circus with the PM himself appointing his mates and old deadhead military farts to fill the 250 Senate seats. 

For the last 5 years PM Prayut has led Thailand into the economic doldrums and it is surely only going to get worse. All his efforts have gone into maintaining the wealth for his elite business friends for they are the ones who keep him where he is.

Thankfully there are now some members in parliament to call him to account and expose his deficiencies.

Unfortunately I would disagree with you on the EU is not stupid reasoning. I think he EU is self interested, this was demonstrated during the seafood yellow card situation. A supply for prawn sandwiches outranked all. I hope you are right but if it was legal to bet, I would be prepared to have a small wager on what happens.

[Sonhia]

Trade restrictions should remain or be implemented on any country practising forced marshall rule under dictatorship that has a smoke screen, questionable, human plus animal rights track record.

 

 

 

 

 

 

 

 

[DPKANKAN]

1 hour ago, boonrawdcnx said:

Thailand has missed the train again Vietnam is pulling ahead full steam and rightly so. Thailand is no trading partner.
Thailand only wants to take - opportunistic protectionists never make a good trading partner. Just look at the ridiculous import tax and duties - all to protect the conglomerates that own the country and pay off politicians to keep the country in the dark ages and their monopolies in place. Take Germany - similar in size and population and their rapid development from the ashes of WWII to a major industrial player on the world stage in a 20-30 year time period.
In comparison Thailand seems to be a developing nation forever nothing really ever develops here - I have been watching advances over the last 30+ years here - they are ridiculous and all based on bought-in foreign technology. The country has been taken to the cleaners by consecutive corrupt governments and the so called elite and everything is mediocre and substandard here. Always behind the rest of the world and yet at price tags of the developed world or well above. Or why would a (substandard) car with less extras cost considerable more here than in Europe or the US? Just look at the Hopewell saga and the latest refusal to pay up - who wants to do business with a country like this?

Thailand has fooled the world for a while - but the shine is fading and others start to realize that the emperor has no cloth.
In the meantime Prayuth’s sell out to the Chinese continues because nobody else wants to to business with him and his corrupt cronies.

These years and decades of plunder and missed opportunities will come back to bite Thailand big time and of course they will only realize when it’s to late - as always.


Sent from my iPhone using Thaivisa Connect

Indeed! That is why I have stopped learning Thai and now am having Chinese lessons!!????????????

[realfunster]

I do believe this is concrete evidence of Thailand slipping behind neighbours. I hadn’t heard Vietnam had closed their FTA but this clearly puts them at an economic advantage. It took them 6 years to negotiate their deal, so on a similar timeline, Thailand may have something in place by 2025. 

 

That is also on the assumption of something resembling political stability to ensure consistent negotiations for that entire period....

[Baerboxer]

4 hours ago, Cadbury said:

Jolly good news that the newly elected "democratic" military government is ready to resume talks. Whether the EU has the same enthusiasm is another matter.

For all they are the EU is not stupid and they would have been watching this junta orchestrated election circus with the PM himself appointing his mates and old deadhead military farts to fill the 250 Senate seats. 

For the last 5 years PM Prayut has led Thailand into the economic doldrums and it is surely only going to get worse. All his efforts have gone into maintaining the wealth for his elite business friends for they are the ones who keep him where he is.

Thankfully there are now some members in parliament to call him to account and expose his deficiencies.

 

Depends who's doing what in the EU now. Whilst we had some stupid veteran left wing MEP muppets thinking Yingluck was similar to themselves and therefore showing an interest, that seems to have died.

 

EU member states, significant ones too, have continued individually developing trade with Thailand during the period in question. Signing and progressing MOU's at government level and allowing and facilitating their businesses investing and developing.

 

The usual hypocrisy of the EU.

[Jumbo1968]

I have read of various countries getting involved with the Chinese, the Chinese are willing to lend them money but the country then defaults on the loans and the Chinese move in and take control.

Its interesting that here in Thailand most major projects are Chinese funded, could the same thing happen to Thailand ?

[Denim]

6 hours ago, webfact said:

Thai trade officials have been juggling for a negotiating slot with the EU, after talks for a Thai-EU FTA were halted back in 2014 following the military coup.

 

Make that .............ongoing military coup.

[yokat]

I am sure EU will want to look into the current baht valuation before agreeing to any EU-Thai FTA.

[TheHangingJudge]

5 hours ago, boonrawdcnx said:

Thailand has missed the train again Vietnam is pulling ahead full steam and rightly so. Thailand is no trading partner.
Thailand only wants to take - opportunistic protectionists never make a good trading partner. Just look at the ridiculous import tax and duties - all to protect the conglomerates that own the country and pay off politicians to keep the country in the dark ages and their monopolies in place. Take Germany - similar in size and population and their rapid development from the ashes of WWII to a major industrial player on the world stage in a 20-30 year time period.
In comparison Thailand seems to be a developing nation forever nothing really ever develops here - I have been watching advances over the last 30+ years here - they are ridiculous and all based on bought-in foreign technology. The country has been taken to the cleaners by consecutive corrupt governments and the so called elite and everything is mediocre and substandard here. Always behind the rest of the world and yet at price tags of the developed world or well above. Or why would a (substandard) car with less extras cost considerable more here than in Europe or the US? Just look at the Hopewell saga and the latest refusal to pay up - who wants to do business with a country like this?

Thailand has fooled the world for a while - but the shine is fading and others start to realize that the emperor has no cloth.
In the meantime Prayuth’s sell out to the Chinese continues because nobody else wants to to business with him and his corrupt cronies.

These years and decades of plunder and missed opportunities will come back to bite Thailand big time and of course they will only realize when it’s to late - as always.


Sent from my iPhone using Thaivisa Connect

I agree with your comments but take Japan for instance they copy goods as Thailand does but with a massive difference Japan makes exceptional products Thailand does not.Cheers.

[hugh2121]

Hmmm, would this mean the removal of the 100% import tax on lots of goods?

 

[the guest]

Thailand have lost a lot of ground to Vietnam, who are making significant moves to fill the gap. In the EU, there is a lot of produce now coming in (and indeed replacing) Thai products. I not sure if the EU has the appetite to engage with a country that constantly makes false promises, and manipulates their currency.

 

Seems that Thailand likes to play the game to their favor. For example; the so-called FTA with Australia doesn't seem to be reciprocal, when you take a look at the prices in Thailand for Australian products are way over the mark, which is strange given the strength of the baht. But then the country will always penalize products which are in direct competition with their own.