Thai business operators urged to utilize FTAs, boost border trade

BANGKOK, July 31 (TNA) - Bangkok-based University of the Thai Chamber of Commerce (UTCC) has encouraged local business operators to increasingly utilize free trade agreements (FTA) privileges and to boost border trade in order to cushion Thai exports in the second half of this year. Aat Pisanwanich, Director of the Center for International Trade Studies at the University of the Thai Chamber of Commerce, pointed out Tuesday that local business operators have, for instance, exercised only some 60 per cent of the FTA privileges in the 10-member Association of Southeast Asian Nations (ASEAN). Aat also suggested that local business operators turn to border trade and adjust positions and prices of their products, as people's purchasing power is declining in many countries now affected by economic problems, urging as well that the Thai government help reduce production costs of the business operators; so, they can cut their product prices. Aat assessed that the ongoing debt crisis in the eurozone, especially Greece and Spain, should worsen and have direct and indirect negative impacts on several countries which are Thailand's trading partners, including China, the United States, India, Japan and other ASEAN member countries, and are also the markets of more than 50 per cent of Thai exports, with the adverse impacts likely to further expand worldwide. Under the circumstance, Aat said that goods prices are dropping throughout the world and the farm product price index is, therefore, expected to drop by 7.8 per cent worldwide this year. According to the director, Thailand's export growth rate should also drop to 5.8 per cent this year, its lowest increment in three years, with its total value estimated at 242.18 billion US dollars and heaviest impacts lying on Thai exports to debt-ridden Europe, anticipated to contract by 4.5 per cent compared with a 12 per cent increment last year. Aat foresaw a slowdown in Thai exports to other overseas markets in 2012 as well, namely other ASEAN countries, which should grow by only 10.3 per cent compared with 21.1 per cent last year, to China, which should expand by only 8.3 per cent compared with 27.6 per cent last year, and to India, which should expand only 4.4 per cent compared with 17.9 per cent last year. Aat noted that in order to reach the government's export growth target at 15 per cent this year, the value of Thai exports in the second half of this year is to reach at least 25.15 billion US dollars monthly. (TNA)