new gateway to Latin America
Professor Dr. Kriengsak Chareonwongsak
Executive Director, Institute of Future Studies for Development (IFD)
kriengsak@kriengsak.com, http://www.ifd.or.th
This article was first published in the Bangkok Post on June 24, 2001 during the period when the government was trying to seek new export markets to decrease dependency on existing major markets . After this article was published, the government initiated negotiations on a bilateral free trade agreement with Peru during the APEC meeting in Thailand in October 2003 in order to make Peru a gateway for exports to the Andean Nations and Latin America.
Trade between Thailand and South America is still quite limited, accounting for less than 1% of Thailand’s international trade value. Factors such as lack of information, distance, and language difficulties contribute to Thailand’s lack of ties with this region. Even so, new trade opportunities continue to grow between the two regions, providing Thailand with a natural segue for new markets in this region.
Because ties between Thailand and Latin America are minimal, one of the best strategies for accessing these new markets would be to establish strong relationships with one nation that could act as a centralized trading hub and regional distribution center, saving Thailand per unit costs for transportation across the continent. I suggest that Thailand take a serious look at the advantages Peru could offer as a regional trading hub, at least for one section of the region.
Professor Dr. Kriengsak Chareonwongsak
Executive Director, Institute of Future Studies for Development (IFD)
kriengsak@kriengsak.com, http://www.ifd.or.th
This article was first published in the Bangkok Post on June 24, 2001 during the period when the government was trying to seek new export markets to decrease dependency on existing major markets . After this article was published, the government initiated negotiations on a bilateral free trade agreement with Peru during the APEC meeting in Thailand in October 2003 in order to make Peru a gateway for exports to the Andean Nations and Latin America.
Trade between Thailand and South America is still quite limited, accounting for less than 1% of Thailand’s international trade value. Factors such as lack of information, distance, and language difficulties contribute to Thailand’s lack of ties with this region. Even so, new trade opportunities continue to grow between the two regions, providing Thailand with a natural segue for new markets in this region.
Because ties between Thailand and Latin America are minimal, one of the best strategies for accessing these new markets would be to establish strong relationships with one nation that could act as a centralized trading hub and regional distribution center, saving Thailand per unit costs for transportation across the continent. I suggest that Thailand take a serious look at the advantages Peru could offer as a regional trading hub, at least for one section of the region.
No comments:
Post a Comment