Thailand’s export promotion strategy is currently focused on expanding trade toward secondary cities in partner economies. This is accomplished by the enactment of Mini free trade agreements or Mini FTAs. Two such agreements have already been rectified with two provinces in China and have proven to contribute significantly to bilateral trade. The trade value with Hainan has increased almost two-fold just a year after the respective Mini FTA came into effect. The commerce ministry is now seeking to expand on the agreement to grow bilateral trade even further.
Minister of Commerce Jurin Laksanawisit welcomed Hainan Province Vice Governor Shen Danyang and his delegation on their visit to Thailand. Mr. Juring and Mr. Shen exchanged their views on export promotion and bilateral trade.
The Thai side asked for the Thai-Hainan Mini FTA, which was enacted in August 2021, to be expanded. The Mini FTA had yielded successes in negotiations over the sales of goods and joint training sessions for business operators from Thailand and Hunan. This resulted in the bilateral trade value rising by 91.9% in 2022 to 18.2 billion baht. Thailand exported 10.465 billion baht worth of goods to Hainan – an increase of 66.8%. Key products included rubber, fruit, chemical products, and minerals. The Thai party proposed organizing more negotiations for product buying and selling and holding exchange visits. The Thai side also asked Hainan’s delegation to facilitate the sale of Thai products in duty-free shops in Hainan. Thailand’s delegates invited businesspersons from Hainan to partake in Thai products exhibitions such as STYLE Bangkok, THAIFEX-ANUGA ASIA, and the Bangkok Gems & Jewelry Fair.
Hainan’s representatives invited Thai businesspersons to the 3rd China International Consumer Products Expo, also known as Hainan Expo. Thailand will be sending representatives from at least 20 businesses to partake in the expo in April.
The Hainan provincial government also invited Thailand’s Ministry of Commerce to set up a trade office in Hainan to promote Thai products. This would complement Hainan’s vision of becoming a “free trade port” or a special economic zone in the future.
Thailand currently has Mini FTAs with China’s Hainan and Gansu provinces. It aims to sign similar pacts with Shenzhen city and Yunnan province in the near future. (NNT)
