Study identifies pros and cons of Thai-EU free trade deal

[webfact]

Study identifies pros and cons of Thai-EU free trade deal

By The Nation

 

Director-general Auramon Supthaweethum

 

Entering a free trade agreement (FTA) with the European Union would boost revenue from some Thai exports but at the cost of Thailand having to import more products from the EU, according to a study.

 

The findings of the study, conducted by the Institute of Future Studies for Development, will be presented at a Department of Trade Negotiations' seminar in Bangkok next Tuesday, said the department’s director general Auramon Supthaweethum.

 

The preliminary study on the pros and cons of a Thai-EU free trade pact found it would expand Thai exports of auto parts, electronic equipment, food, rubber and plastic to the EU.

 

But in exchange, Thailand would have to import more dairy products, oil seeds and technology products from the EU.

 

The EU has already forged free trade deals with Singapore and Vietnam and is in talks for a deal with Indonesia. It has suspended talks with Thailand, Malaysia and the Philippines. Talks with Thailand that began in 2013 were suspended in 2014.

 

Thailand has so far signed 13 free trade accords with 18 countries. These consist of Asean partner countries, China, Japan, South Korea, India, Australia, New Zealand, Chile and Peru.

 

Trade with these 18 countries last year accounted for 62.8 per cent of Thailand’s total trade with global partners. That figure would rise to 70.7 per cent if Thailand forged a free-trade deal with the EU, Auramon added.

 

The EU is currently Thailand’s fifth largest trading partner, after Asean, China, Japan and the US. It is the fifth largest investor in Thailand after Japan, China, Asean, and Taiwan.

 

Soure: https://www.nationthailand.com/business/30394785

 

-- © Copyright The Nation Thailand 2020-09-21

 

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[ukrules]

6 minutes ago, webfact said:

Entering a free trade agreement (FTA) with the European Union would boost revenue from some Thai exports but at the cost of Thailand having to import more products from the EU, according to a study.

Wow, it must have took a long time to figure this out. That's some advanced research going on here.

 

[RichardColeman]

Maybe there should be some caveat in these agreements with Thailand, that if they fail to buy an agreed financial amount, a tax equal to the difference will be added to all Thai products for the following year and so on to ensure they comply

[HiSoLowSoNoSo]

EU don't need any Thai products, can find them cheaper in Vietnam today.

[rkidlad]

6 hours ago, webfact said:

Entering a free trade agreement (FTA) with the European Union would boost revenue from some Thai exports but at the cost of Thailand having to import more products from the EU, according to a study.

Well, you could always tax the s*** out of the items coming in from the EU.

 

Nothing like seeing a bottle of French wine for 650 baht and knowing the box version of it (3 litres) goes for about the equivalent of 250 baht in France. 

[hotchilli]

6 hours ago, webfact said:

Entering a free trade agreement (FTA) with the European Union would boost revenue from some Thai exports but at the cost of Thailand having to import more products from the EU, according to a study.

Always a catch, but Thailand gets around that by introducing "luxury taxes" on imported good just to make sure they don't stop domestic products from being sold and having to face any challenges.

[Baerboxer]

25 minutes ago, hotchilli said:

Always a catch, but Thailand gets around that by introducing "luxury taxes" on imported good just to make sure they don't stop domestic products from being sold and having to face any challenges.

 

Under a free trade agreement they wouldn't be able to continue to do that.

 

EU member state produced beer, wines, spirits, cheese, meat and other food products - competing without the restrictive 100% PLUS luxury goods taxes. No protection for local businesses.

 

Will never fly!

[Srikcir]

For almost five years the Prayut government has debated about joining the TPP (now CPTPP) that currently includes 11 signatories representing the third largest free-trade block in the world after NAFTA and the European Single Market. TNSC and JSCCIB support government negotiations for TPP.

Problem for the government is that Thailand would have to become more competitive and innovative.

No different with a Thai-EU FTA other than much less in economic scope and risk. And still the government hesitates. One would think that competiveness and innovation would be ingrained in a hardcore military-based government.

But the PM seems to think otherwise. Maybe it's hard to retreat after charging ahead and failing. The latter of which the government seems more experienced. Better to fall back on its lower risk EEC where risk is controlled entirely by the government.

[AbeNormal]

Thais don't like fair competition 

 

They prefer to have everything their way and at the same time shoot themselves in the foot

 

simple minded protectionism and control, they can't think outside the box

[Okis]

Keep dreaming.  Wont happen for the same reason it wont happen for Cambodia. 

[DaftToPutRealName]

Will this be like the other FTAs where they throw in 500 requirements for import documentation and you somehow always end up having to jump through hoops to actually get the "free" part of the trade agreement when bringing goods into Thailand, or have they sorted it out?

[hotchilli]

2 hours ago, Baerboxer said:

 

Under a free trade agreement they wouldn't be able to continue to do that.

 

EU member state produced beer, wines, spirits, cheese, meat and other food products - competing without the restrictive 100% PLUS luxury goods taxes. No protection for local businesses.

 

Will never fly!

And who would be over here doing checks in the outlets to make sure this wouldn't happen?

Just interested as to how it would be monitored.

[Golden Triangle]

And there was me, so looking forward to a nice French, Australian or Californian wine (other producers are also available) ???? Or an extremely tasty extra mature Cheddar or creamy Stilton or Camembert, all with reasonably priced crackers and stuff, sadly as baerboxer states, it'll never fly. ????

 

After so many years you would have thought I had got used to being ripped off ????????

[BritManToo]

11 hours ago, webfact said:

The EU has already forged free trade deals with Singapore and Vietnam and is in talks for a deal with Indonesia. It has suspended talks with Thailand, Malaysia and the Philippines. Talks with Thailand that began in 2013 were suspended in 2014.

Odd the EU won't sign a free trade deal with the UK then.

[PETERTHEEATER]

Boost, boost, hub, hub......Let's  go for it!

[DrTuner]

EU should be checking how it's going with Ausralian wines here. Free trade means nada if there are excessive taxes still.

Edited September 21, 2020 by DrTuner

[hotchilli]

1 hour ago, Golden Triangle said:

And there was me, so looking forward to a nice French, Australian or Californian wine (other producers are also available) ???? Or an extremely tasty extra mature Cheddar or creamy Stilton or Camembert, all with reasonably priced crackers and stuff, sadly as baerboxer states, it'll never fly. ????

Ohhh the memories come flooding back...

[Golden Triangle]

9 minutes ago, hotchilli said:

Ohhh the memories come flooding back...

I had a family member visit back in February this year, prior to their visit they proudly showed me the TWO 1/2 kilo blocks of cheese that they were bringing for us, I have not bothered with the many expletives that issued forth from my tongue, needless to say that when they did arrive the 2 blocks had become a veritable delight of English cheeses, 10 large varied packs in total, absolute heaven. ????????????

[JonnyF]

Thailand should be very careful. The EU will be slipping in sneaky clauses that are later used to threaten businesses in Chiang Mai that they will no longer be allowed to sell to businesses in Phuket. Then they'll want full access to Thai fishing waters, and a level playing field to make sure Thailand becomes un-competitive.

 

All of this with the European Court of Justice as the dispute mechanism ????.

 

Thailand would be well advised to stay well away from the slimy tentacles of the corrupt EU.

 

 

 

 

 

[hotchilli]

2 hours ago, Golden Triangle said:

I had a family member visit back in February this year, prior to their visit they proudly showed me the TWO 1/2 kilo blocks of cheese that they were bringing for us, I have not bothered with the many expletives that issued forth from my tongue, needless to say that when they did arrive the 2 blocks had become a veritable delight of English cheeses, 10 large varied packs in total, absolute heaven. ????????????

Damn you... ????

[from the home of CC]

6 hours ago, AbeNormal said:

Thais don't like fair competition 

 

They prefer to have everything their way and at the same time shoot themselves in the foot

 

simple minded protectionism and control, they can't think outside the box

sounds like another nation in the news..

[Redline]

On 9/21/2020 at 2:04 AM, webfact said:

Thailand has so far signed 13 free trade accords with 18 countries. These consist of Asean partner countries, China, Japan, South Korea, India, Australia, New Zealand, Chile and Peru.

Then why are items from Australia and New Zealand so expensive in Thailand then?  They seem comparable to prices of goods from the EU and the USA 

[Fex Bluse]

On 9/21/2020 at 3:04 AM, webfact said:

Entering a free trade agreement (FTA) with the European Union would boost revenue from some Thai exports but at the cost of Thailand having to import more products from the EU, according to a study.

The use of "but" multiple times could be a sign that the Thais are surprised that they have to give something in the trade relationship, rather than simply ripping off the Farangs, I mean EU. 

[jabis]

2 hours ago, Fex Bluse said:

The use of "but" multiple times could be a sign that the Thais are surprised that they have to give something in the trade relationship, rather than simply ripping off the Farangs, I mean EU. 

And this comes as a surprise to you? ????

[Starmocihc]

All current matters considered, I'd take whatever is on the table, you've not a bright future in regards to trade and GDP. Best get in the life raft.