Commerce Min hopes lifting of sanctions on Iran will boost Thai export

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EXPORT
Commerce Ministry hopes lifting of sanctions will boost Thai export
Petchanet Pratruangkrai
The Nation

BANGKOK: -- The cancellation of international sanctions on Iran should boost Thai exports to that country, traditionally a major importer of many products from here, the Commerce Ministry anticipates.

The ministry's permanent secretary Chutima Boonyapraphasara said she had high expectations that the recent agreement on Iran's nuclear programme and lifting of sanctions would be a boon to the world economy and trade.

"With Iran's more open economic policy, the country should import more products from Thailand, particularly pickup trucks and rice. Iran has slowed its imports of pickups and rice from Thailand since it has been under sanctions. The lifting off the trading ban should encourage Iran to engage in more international trade and import many products from Thailand," Chutima said.

She said that since Iran had high demand for many products, it should help Thailand achieve its 1.2-per-cent export-growth target this year. However, this could depend on how fast the sanctions are withdrawn and take effect, which is expected to be around September.

Duangkamol Jiambutr, spokeswoman and inspector-general of the ministry, said trade between Thailand and Iran had been small since the sanctions were imposed, and while the country has imposed high import tariffs.

To get around the harsh economic sanctions, which were imposed primarily by Western countries in an effort to make sure Tehran was not trying to produce nuclear weapons, Thailand has been exporting to Iran through the United Arab Emirates.

Under the ministry's strategies to promote more exports to Iran and elsewhere in the Middle East, its International Trade Promotion Department will join many trade fairs in Dubai, such as SEAFEX, the Big 5 Show, GULFOOD, Beautyworld Middle East, and Automechanika, she said.

In Iran itself, the department will organise "Thailand Week 2015".

The ministry will also organise a trade mission for senior officials and private enterprises to Iran, and will invite a delegation from Iran to Thailand to tighten trade and economic cooperation.

Thailand should also have a brighter investment future in Iran, which provides many tariff privileges for investors, as well as offering low-cost utilities and good basic infrastructure.

Several major Thai companies are already doing business in Iran. PTT has invested in oil exploration, SCG Chemicals has a plastic-pellet plant there, while Prantalay has a joint venture with an Iranian company for shrimp and fishery farming in this country.

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According to the ministry, Iran is Thailand's 11th-largest trading partner in the Middle East. Trade between Thailand and Iran was worth US$357.17 million (Bt12.216 billion) last year, and was valued at $139.4 million in the first five months of 2015, up by 28.58 per cent year on year.

Export from Thailand to Iran in the first five months was worth $88.94 million, down by 14.71 per cent year on year, while imports from Iran increased significantly, by 1,123 per cent, to $50.45 million.

Last year, export from Thailand to Iran was worth $322.16 million, while imports were worth $35 million.

Export from Thailand to Iran is projected to grow by 1 per cent this year.

Major export products from Thailand to Iran include wood and products, canned and processed fruits, rubber products and rubber, frozen and dried vegetables, beverages, automobiles and parts, and batteries and parts.

Major import products are steel and iron, chemical products, fruits and vegetables, frozen and processed aquaculture products, medical products, plants, fuel, and ore.

Source: http://www.nationmultimedia.com/business/Commerce-Ministry-hopes-lifting-of-sanctions-will--30264596.html


-- The Nation 2015-07-17

[Somtamnication]

So Thailand was exporting during the West-led idiotic sanctions? Why would the exports increase now and why only 1%?

Iranian rice is better, anyways!

[Manbing]

Now America has taken a stance against the current regime, its time to exploit all those newly available trade options.

Its an easy list to compile.

• Anywhere the USA is warring with, has ongoing deep rooted conflicts with
• Muslim states (all 50+ of them)
• Anyone the USA has ever upset
• Any country suffering under US led trade embargoes

[dageurreotype]

So Thailand was exporting during the West-led idiotic sanctions? Why would the exports increase now and why only 1%?

Iranian rice is better, anyways!

Exactly. I've completely given up on Thai rice and now buy 5 kilo bags of Basmati from my local Makro. The difference! I did once buy a bag of Hom Mali from a local supermarket and it had lived up to it's reputation. However that was ten years ago and never had the same again. I'm wondering if they sell the good stuff overseas and keep the crap for domestic consumption, rather alike India and their tea.

[Lupatria]

Must be sad for Iran to be considered a customer of rotten rice.

[bassman]

So Thailand was exporting during the West-led idiotic sanctions? Why would the exports increase now and why only 1%?

Iranian rice is better, anyways!

Because when they open the oil/gas to Europe will bring in money to spend. The 1% increase is on Thailand total exports, not just Iran. However the sanctions will be removed over time, don't think they it will save Thai exports this year.

But I believe Iran got stung by one of Thaksin's milling buddies so don't know how soon they will be running back.

[Fat Haggis]

Maybe Thailand is assuming too much, and Iran might not be interested in anything Thailand has to offer? for Thailand to sell rice to Iran, they'd have to offer something better than their nearest rivals? Cheap rotten rice?

The Iranians have been stung already on that front.

[wabothai]

I hope there are enough planes worldwide to accomodate all the salespeople descending on Iran.