Thailand, Chile sign free trade agreement
Thailand and Chile on October 4 in Bangkok signed a free trade agreement (FTA) to pave the way to eliminate tariffs on 90 per cent of their products. With the agreement, Thailand should be able to penetrate not only the Chilean market, but also that country’s 60 bilateral trade partners, according to the Trade Negotiations Department.
It is Thailand’s second bilateral FTA with a Latin American country after Peru and the seventh overall. The pact is projected to be implemented early in 2014, when tariffs for more than 90 per cent of trade in goods will be cut to zero immediately.
Jintana Chaiyawonnagal, deputy director-general of the Trade Negotiations Department, said the FTA would help promote growth in both countries.
“This FTA is a strategic tool for the Kingdom to penetrate the Latin American region, and Chile’s trading partners. Chile has more than 60 bilateral trade pacts with countries worldwide,” she said.
Thailand should gain a better competitive edge after signing this FTA. If it had not signed the pact, it would have lost out to other countries, including Singapore, Vietnam, Malaysia, Japan and China, as Chile already had FTAs with them.
She suggested that Thai businesses and investors urgently explore this market, as Chile is rich in natural resources and is a trading center in South America.
Investment in Chile is expected to grow significantly, as it will allow Thai enterprises up to 100-per-cent ownership in the service sector. Chile has urged Thai investors to tap opportunities in many different sectors, especially food processing, salmon, fruits and wineries.
Thai goods with high export potential are pickup trucks, cement, electrical appliances, plastic pellets, rubber products, and canned and processed foods. Services and investment with opportunities to grow in Chile are engineering, logistics, energy, mining and retail.
Thai rice should also get a big boost after the FTA’s implementation, as Chile has committed to cut tariffs for that commodity to zero in the fifth year of the pact.
Chile is Thailand’s third-largest trading partner in Latin America, after Brazil and Argentina, while Thailand is Chile’s largest trading partner among ASEAN countries. Trade between Thailand and Chile was worth $978.43 million in 2012, with Thailand enjoying a trade surplus of $278.07 million.
Thailand and Chile on October 4 in Bangkok signed a free trade agreement (FTA) to pave the way to eliminate tariffs on 90 per cent of their products. With the agreement, Thailand should be able to penetrate not only the Chilean market, but also that country's 60 bilateral trade partners, according to the Trade Negotiations Department. It is Thailand's second bilateral FTA with a Latin American country after Peru and the seventh overall. The pact is projected to be implemented early in 2014, when tariffs for more than 90 per cent of trade in goods will be cut to zero...
Thailand and Chile on October 4 in Bangkok signed a free trade agreement (FTA) to pave the way to eliminate tariffs on 90 per cent of their products. With the agreement, Thailand should be able to penetrate not only the Chilean market, but also that country’s 60 bilateral trade partners, according to the Trade Negotiations Department.
It is Thailand’s second bilateral FTA with a Latin American country after Peru and the seventh overall. The pact is projected to be implemented early in 2014, when tariffs for more than 90 per cent of trade in goods will be cut to zero immediately.
Jintana Chaiyawonnagal, deputy director-general of the Trade Negotiations Department, said the FTA would help promote growth in both countries.
“This FTA is a strategic tool for the Kingdom to penetrate the Latin American region, and Chile’s trading partners. Chile has more than 60 bilateral trade pacts with countries worldwide,” she said.
Thailand should gain a better competitive edge after signing this FTA. If it had not signed the pact, it would have lost out to other countries, including Singapore, Vietnam, Malaysia, Japan and China, as Chile already had FTAs with them.
She suggested that Thai businesses and investors urgently explore this market, as Chile is rich in natural resources and is a trading center in South America.
Investment in Chile is expected to grow significantly, as it will allow Thai enterprises up to 100-per-cent ownership in the service sector. Chile has urged Thai investors to tap opportunities in many different sectors, especially food processing, salmon, fruits and wineries.
Thai goods with high export potential are pickup trucks, cement, electrical appliances, plastic pellets, rubber products, and canned and processed foods. Services and investment with opportunities to grow in Chile are engineering, logistics, energy, mining and retail.
Thai rice should also get a big boost after the FTA’s implementation, as Chile has committed to cut tariffs for that commodity to zero in the fifth year of the pact.
Chile is Thailand’s third-largest trading partner in Latin America, after Brazil and Argentina, while Thailand is Chile’s largest trading partner among ASEAN countries. Trade between Thailand and Chile was worth $978.43 million in 2012, with Thailand enjoying a trade surplus of $278.07 million.
