Thai exporters told to make better use of free trade deals

Caretaker commerce minister Suphajee Suthumpun is urging Thai exporters to make fuller use of free trade agreements (FTAs) to unlock untapped trade potential, after finding that 54% of eligible companies currently utilise FTA privileges.

A total of 193 out of 357 export-oriented companies listed on the Stock Exchange of Thailand (SET) ship products overseas under FTA frameworks. The low utilisation rate raises concerns, as Thailand has 14 FTAs signed, with 13 ready for use.

"We encourage listed exporters to make greater use of FTAs. The Commerce Ministry stands ready to provide support and facilitation to help increase export capacity and competitiveness," Mrs Suphajee told a forum co-hosted by the SET on Wednesday.

She said the ministry is also accelerating efforts to diversify export markets away from the US, with India and other emerging markets identified as key strategic alternatives. Given India's vast market size, Thailand is pursuing engagement through the Asean framework, emphasising strategic cooperation, mutual support, and long-term economic resilience.

Thailand exports around UScopy4 billion worth of goods to India, and imports $4 billion worth of Indian goods here.

Joint efforts, particularly with the Bureau of Indian Standards (BIS), could significantly expand trade volumes.

One focus is addressing non-tariff barriers, especially the BIS product certification process, which has historically been complex and time-consuming.

"If certification procedures can be streamlined while maintaining standards, export values could increase meaningfully," Mrs Suphajee said.

The longer-term objective is to establish a mutual recognition agreement, allowing Thai products certified by domestic authorities to enter the Indian market without redundant inspections. This move would likely benefit exports of construction materials, auto parts and industrial goods, sectors currently subject to stringent BIS requirements, she said.

The Thailand Environment Institute and India's Confederation of Indian Industry signed a cooperation agreement on Jan 8 in Mumbai, stressing the need to accelerate implementation and build mutual confidence.

Regarding trade negotiations with the US, Mrs Suphajee said Thailand received approval for a tariff rate of around 19%, broadly in line with neighbouring countries. The issue remains critical, as exports contribute 10-20% of Thai GDP.

Last year exports surged as companies rushed shipments ahead of final tariff determinations.

However, uncertainty remains on US President Donald Trump's trade stance, citing South Korea as an example, where an initial tariff agreement of 15% was later revised upwards.

"Even if Trump faces legal rulings requiring tariff compensation, trade pressure could persist through sector-specific protectionist measures. The global trade landscape is no longer predictable. We do not know which direction it will take," she said.

"Thailand must engage with all partners, prioritise mutual benefits, and maintain continuity in trade strategy. Above all, we must build confidence with trading partners, position ourselves correctly in timing and negotiations, and fully leverage trade and tariff advantages."

Source: Bangkok Post