Thailand eyes FTA establishment with Eurasian countries

[webfact]

Thailand eyes FTA establishment with Eurasian countries

NONTHABURI, 24 May 2016 (NNT) – Thailand aims to extend the Free Trade Area agreement with Eurasian countries to raise the country’s trade value, says Minister of Commerce.

Minister of Commerce Apiradi Tantraporn has revealed that Thailand and Russia have agreed during the Thai Prime Minister’s official visit to Russia on the trade and investment cooperation that different trade models among both sides can support one another.

Thailand plans to raise its trade value with Eurasian countries in 5 years starting from the Free Trade Area negotiations with Belarus, Kazakhstan, Kyrgyzstan, Armenia, and Russia, with the aim to export more automobile parts, jewelry, canned foods, rice, rubber, and rubber products. Russia is more interested in purchasing fruit exports from Thailand.

Thailand's private companies have also met with the Chamber of Commerce and Industry of the Russian Federation to get acquainted with Russian private companies, who are interested in importing food products such as chicken, tuna, and sugar from Thailand, as well as inviting Thai businesspersons to invest in the spa and hotel industries in Russia.

The current trade value between Thailand and Russia is at a moderate level but has the potential to expand even further according to the Ministry of Commerce's evaluation.


-- NNT 2016-05-24

[VN4now]

As Vietnam realigns with US, All-seeing Thai leaders joins Russia.

[tuanku]

A good market because these countries don't worry about human rights or democracy.

Edited May 24, 2016 by tuanku

[seahorse]

A good market because these countries don't worry about human rights or democracy.

It's becoming increasingly clear which way Thailand is headed.

[skildpadden]

Perhaps somebody can explain - I see them mentioning jewelry (and ornaments) all the time when speaking of exports.

I understand export opportunities on rubber, automotive parts, processed goods etc., but even though e.g. Pandora is producing here, is jewelry really such a big export business for Thailand?

[VN4now]

I understand export opportunities on rubber, automotive parts, processed goods etc., but even though e.g. Pandora is producing here, is jewelry really such a big export business for Thailand?

Thai baht gold from Farang to Bar Girl, sorry new wife, for Sin Sod

[Eric Loh]

So now Prayuth new BFF is Russia after last year romance with China. What can the Eurasian countries offer to Thailand in terms of trade when these countries are poorer than Thailand and Russia is an economic mess. Very little of offer with the exception of arms and probably his way to get back at our traditional richer friends. The corner that the junta has pushed Thailand towards will harm the economy badly for years to come. Obama is in Vietnam and Kerry in Mynmar and announcing lifting of trade sanctions. All positives for both countries to attract foreign direct investments and more trade. Meanwhile we moving towards more unknown future politically and off the investors radar screens and losing trade opportunities with the richer free nations.

[marcusd]

Well the Ruskies will teach the Thai businessmen a thing or two about real CORRUPTION

Putin said foreigners can invest here at their peril. BP and Conoco Philips and Wallmart learned that the hard way like US$30 billions worth!

What does Putin want here? Nothing at all except a base to annoy the west = The USA. Prayuth is now a puppet - hahahah bloody ha!

Thailand knows free trade as this We sell you no tax and we import from you at BIG BIG tax. Look at the Australia free trade agreement and the price of goods from Aus to here - cant afford the bastard items! And what makes you think Vodka will decrease in price or Beluga caviar? That just about sums up Russian exports to what Thailand would want.

Cars are already made in Russia so no need for Thai ones. And the other countries mentioned are OIL commodity producers so they wont have a dime for years to come.

Thailand is killing itself more day by day

[Srikcir]

Perhaps somebody can explain - I see them mentioning jewelry (and ornaments) all the time when speaking of exports.

I understand export opportunities on rubber, automotive parts, processed goods etc., but even though e.g. Pandora is producing here, is jewelry really such a big export business for Thailand?

Export of gemstones might be more accurate.

[Redline]

EU plus USA population is about 830 million.

GDP of EU and USA is about 35 trillion dollars

Population combined~Belarus, Kazakhstan, Kyrgyzstan, Armenia, and Russia 182 million

Combined GDP is a bit less than 2 trillion

For comparison:

The GDP for the state of California last year was 2 trillion 464 billion or $2,464 billion

California's economy is is over 20 percent larger that all of these Eurasian countries combined.

Pretty amazing, and doesn't say much for this agreement

[Winniedapu]

As Vietnam realigns with US, All-seeing Thai leaders joins Russia.

Can't win fer losing.

Can't get it right fer fracking it up.

Hey ho. Listen carefully, the chickens are coming home to roost.

Winnie

[phoenixdoglover]

This Eurasian alignment is a recently announced strategy.

Here is the Nominal GDP per IMF data (2015, Billion USD), for the countries mentioned:

Belarus, $55

Kazakhstan, $173

Kyrgyzstan, $7

Armenia $11

Russia $1,325

TOTAL Eurasian = $1, 571

By way of comparison, here are the larger ASEAN countries, plus China.

China $10,982

Malaysia $296

Cambodia $18

Vietnam $191

Philippines $292

Singapore $293

TOTAL ASEAN + C = $ 12072

I'm guessing not much will come of this initiative. Perhaps the PM feels the need to burnish his image. I can't imagine the business interests in Thailand are all that pleased.

[Srikcir]

This Eurasian alignment is a recently announced strategy.

Here is the Nominal GDP per IMF data (2015, Billion USD), for the countries mentioned:

Belarus, $55

Kazakhstan, $173

Kyrgyzstan, $7

Armenia $11

Russia $1,325

TOTAL Eurasian = $1, 571

By way of comparison, here are the larger ASEAN countries, plus China.

China $10,982

Malaysia $296

Cambodia $18

Vietnam $191

Philippines $292

Singapore $293

TOTAL ASEAN + C = $ 12072

I'm guessing not much will come of this initiative. Perhaps the PM feels the need to burnish his image. I can't imagine the business interests in Thailand are all that pleased.

I can't imagine the business interests in Thailand are all that pleased.

By another way of comparison, Prayut continues has continued to delay joining the US-initiated Trans-Pacific Partnership. Instead he has chosen to pursue commodity-based low-hanging fruit trade agreements that pose no risk to current Thai technology, business practices and standards, and avoids having to meet international competitiveness, ie., through high technology and innovation (ironic):

TPP market

11% of total world population

38% of global GDP - $28.3 trillion a year

40% share of global trade - US$295 trillion a year

45% of Thailand's overall foreign direct investment (2014)

If Thailand does not join the partnership, its GDP could fall by 0.4-0.6% while Asian TPP members would see GDP increases.

- Deputy Prime Minister for Economic Affairs Somkid recommends Thailand join TPP.

- President of the Thai National Shippers' Council Nopporn Thepsithar, recommends join TPP.

- The Thai Chamber of Commerce, the Federation of Thai Industries and the Thai Bankers’ Association (aka the Joint Standing Committee on Commerce, Industry and Banking) support Thailand to enter the TPP.

- Adviser to the Board of Trade of Thailand Pornsilp Patchrintanakul said that the country should not turn away from TPP.

So why the delay? Prayut may feel cornered by his political dalliances with the Russian and China who may not appreciate a Thai shift towards any USA-led global trade initiative.

[Tomtomtom69]

Well the Ruskies will teach the Thai businessmen a thing or two about real CORRUPTION

Putin said foreigners can invest here at their peril. BP and Conoco Philips and Wallmart learned that the hard way like US$30 billions worth!

What does Putin want here? Nothing at all except a base to annoy the west = The USA. Prayuth is now a puppet - hahahah bloody ha!

Thailand knows free trade as this We sell you no tax and we import from you at BIG BIG tax. Look at the Australia free trade agreement and the price of goods from Aus to here - cant afford the bastard items! And what makes you think Vodka will decrease in price or Beluga caviar? That just about sums up Russian exports to what Thailand would want.

Cars are already made in Russia so no need for Thai ones. And the other countries mentioned are OIL commodity producers so they wont have a dime for years to come.

Thailand is killing itself more day by day

True although to be fair, most Aussie made goods are already expensive back home, thanks to some of the highest wages in the world. Bega cheese is like 240 Baht in the supermarket here, compared to only 170-190 for New Zealand produced mainland cheese of the same quantity (both 250g). Can someone explain why NZ cheese, which comes from further away is so much cheaper than Aussie cheese, maybe it's because NZ wages are lower? Mainland cheese can also be found in virtually every supermarket, including Tesco Lotus, whereas Bega is only found in the more expat oriented ones like Tops, Foodland and Big C extra at Mega Bang Na.

How much does Coles and Woollies charge for a 250g block of Bega cheese? If it's A$7, then 240 Baht is no ripoff considering freight costs, supermarket fixed costs and markup. If it's only A$3, then you have a point.

For the most part, only Aussie cars were ever taxed very unfairly coming into Thailand but with only 100 sold a year, meanwhile almost 200,000 Thai made cars going in the other direction, there's no point even talking about that. Besides, from next year onwards Australia will no longer even have a car industry anymore anyway.

True, Russia doesn't need Thai cars I think it already produces as many or more than Thailand does. And they're LHD, while Thai cars are RHD. I realize that Thailand has a LHD assembly line, but likely these cars cost more to produce than the mostly RHD ones it churns out for it's own market, as well as Malaysia/Indonesia/Australia and NZ, Thailand's main export markets.

Thailand's CP has recently made a US$1bn investment in the poultry sector in Russia. I know the Thai lady who heads the HR team there. She lives in Xi'an (China) but is likely to be transferred to Russia to oversee the project more closely. Previously she had been working for the company on various CP projects in China, hence why she lives there and not in Thailand.

​But yeah, apart from that, I don't see a whole lot for Russia and the CIS countries to trade with Thailand. Oil perhaps, natural gas it is already receiving from Myanmar. Tourism cooperation, yes.