Thailand wants to sign mini-free trade agreements (mini-FTAs) with the Chinese city of Shenzhen and the province of Yunnan in March and April, respectively, after the mini-FTA with Hainan resulted in a significant growth of Thai exports.
Commerce Minister Jurin Laksanawisit said that after discussions in Bangkok with Shen Danyang, the executive vice-governor of China's Hainan province, Thailand urged Hainan to continue to support trade negotiations, seminars, and business matchings under the mini-FTA.
Thailand signed the mini-FTA with Hainan in August last year.
Under the partnership deal, Thailand-Hainan collaboration covers five main areas.
These areas comprise: cooperation on information exchange and measures to support small and medium-sized enterprises (SMEs), such as investment and establishment of trade representatives; business linkage promotion and enhancing creativity and innovation of SMEs via product development and expanding opportunities in third markets; facilitation of trade activities through seminars, trade shows, business matching and trade delegations; expansion of trade volume for agricultural, food and industrial products; and promotion of e-commerce and online business matching.
Thanks to the partnership, bilateral trade between Thailand and Hainan has risen by 91.9% to US$520 million. Exports from Thailand accounted for $299 million, up by 66.8% from a year before, with imports from China rising by 140% to $220 million.
Important export products include rubber, fruit, chemicals and minerals.
According to Mr Jurin, Thailand has proposed that trade negotiations and exchange visits be held more often, while asking Hainan to help facilitate the sale of Thai products at Hainan duty-free shops such as fashion products, garments, and daily-use products.
Mr Jurin on Monday also invited Hainan businesses to join Thailand's international trade fairs such as STYLE Bangkok (March 22-26), Thailand International Auto Parts & Accessories Show 2023 (April 5-8), THAIFEX-ANUGA ASIA (May 23-27), TILOG–LogistiX (Aug 17-19), and Bangkok Gems & Jewelry Fair (Sept 6-10).
According to Mr Jurin, Thailand has also proposed linking information between the Thai RCEP Center and the Hainan Business Service Center to exchange information to increase bilateral trade.
"China remains an important market for Thailand and we have to have a special focus, despite export frictions under the global economic slowdown driven by the Russia-Ukraine war and rising inflation. China is an important trading partner, while Thailand has set a target for export growth in China at 1% this year," said Mr Jurin.
Thailand currently has six mini-FTAs in place, with Hainan, Kofu of Japan, Telangana of India, Gansu of China, and Busan and Gyeonggi of South Korea.
The Commerce Ministry is now in mini-FTA talks with a number of Indian states such as Karnataka, Maharashtra, Assam, and Gujarat.
Meanwhile, Mr Shen on Monday invited Thai delegates to attend the Hainan Expo, to be held between April 11-15, and proposed the establishment of a Thai trade office in Hainan to promote Thai products.
