ID :
137324
Thu, 08/12/2010 - 19:43
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http://m.oananews.org//node/137324
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Border trade expected to reach targeted Bt700 billion: KRC
BANGKOK, Aug 12 - The Kasikorn Research Center (KRC) forecast that Thailand's border trade with neighbouring countries will reach its 2010 target of Bt700 billion (about US$21 billion) due to its steady growth in the second half of this year.
According to the research center, interdependency on border trade between neighbouring countries and the steady economic growth help support exports to those countries.
A major favourable factor is tax reduction or exemption under the Association of Southeast Asian Nations (ASEAN) Free Trade Area (AFTA) which benefits Thailand with zero tariff with Malaysia and tax cut to 0-5 per cent with Myanmar, Laos and Cambodia since the beginning of 2010.
Tax reductions under AFTA is a major driving force for Thai exports to neighbouring countries and also an impetus for Thai imports of raw materials and intermediate goods from those countries, Kasikorn said.
Lower prices of imported raw materials benefit Thai businesses which have lower production costs.
The value of border trade with neighbouring countries in 2010 is projected to close to the government’s target at Bt700 billion after reaching Bt388 billion (US$12 billion) in the first half of this year or 55 per cent of the whole year target.
Challenges of Thai border trade include the Mae Sot-Myawaddy border closure by the Myanmar authorities but the centre said it is unlikely to last long as it can affect Myanmar businesses and locals with higher goods prices.
Moreover, the Thai-Cambodian border dispute may also pressure trade and the situation must be closely monitored, KRC said. (MCOT online news)
According to the research center, interdependency on border trade between neighbouring countries and the steady economic growth help support exports to those countries.
A major favourable factor is tax reduction or exemption under the Association of Southeast Asian Nations (ASEAN) Free Trade Area (AFTA) which benefits Thailand with zero tariff with Malaysia and tax cut to 0-5 per cent with Myanmar, Laos and Cambodia since the beginning of 2010.
Tax reductions under AFTA is a major driving force for Thai exports to neighbouring countries and also an impetus for Thai imports of raw materials and intermediate goods from those countries, Kasikorn said.
Lower prices of imported raw materials benefit Thai businesses which have lower production costs.
The value of border trade with neighbouring countries in 2010 is projected to close to the government’s target at Bt700 billion after reaching Bt388 billion (US$12 billion) in the first half of this year or 55 per cent of the whole year target.
Challenges of Thai border trade include the Mae Sot-Myawaddy border closure by the Myanmar authorities but the centre said it is unlikely to last long as it can affect Myanmar businesses and locals with higher goods prices.
Moreover, the Thai-Cambodian border dispute may also pressure trade and the situation must be closely monitored, KRC said. (MCOT online news)
