Against this backdrop, it can be expected that Thailand will receive all the cooperation it needs from China. During last year's Sino-Thai trade negotiations over Beijing's WTO membership, China proposed tariff reductions for Thailand on 136 items, a decrease in the average rate from 30.2 percent to 13.1 percent (by simple average).
China’s WTO membership, then, will affect the expansion of the quotas for agricultural products until they are eliminated, as well as the liberalization of trade in goods and services, especially in hotel and restaurant businesses, where Thailand is particularly competitive.
Although Thai-Chinese trade will continue to rise with further economic recovery - to the point that Thailand will be in surplus, Thailand’s trade volume in the overall Chinese market remains very low. China's imports from Thailand rank 11th, with a market share of 1.97 percent, a slight increase over the previous year's (2000) figure of 1.89 percent.
In terms of the structure of agricultural goods and industry, China and Thailand are rivals. Hence, to successfully improve trade cooperation with China, Thailand should urgently improve its competitiveness. The Thai private sector should participate in China’s economic growth as a partner for progress, and not as a rival. This involves more targeted investment in China, becoming a bigger and more influential trading partner, and in enhancing tourism cooperation.
In order to increase Thailand's market share in China some barriers need to be overcome, including the uniqueness of Chinese laws, differences across the Chinese provinces, and an underdeveloped banking system.
China’s WTO membership, then, will affect the expansion of the quotas for agricultural products until they are eliminated, as well as the liberalization of trade in goods and services, especially in hotel and restaurant businesses, where Thailand is particularly competitive.
Although Thai-Chinese trade will continue to rise with further economic recovery - to the point that Thailand will be in surplus, Thailand’s trade volume in the overall Chinese market remains very low. China's imports from Thailand rank 11th, with a market share of 1.97 percent, a slight increase over the previous year's (2000) figure of 1.89 percent.
In terms of the structure of agricultural goods and industry, China and Thailand are rivals. Hence, to successfully improve trade cooperation with China, Thailand should urgently improve its competitiveness. The Thai private sector should participate in China’s economic growth as a partner for progress, and not as a rival. This involves more targeted investment in China, becoming a bigger and more influential trading partner, and in enhancing tourism cooperation.
In order to increase Thailand's market share in China some barriers need to be overcome, including the uniqueness of Chinese laws, differences across the Chinese provinces, and an underdeveloped banking system.
All roads lead to China
Professor Dr Kriengsak Chareonwongsak
Executive Director, Institute of Future Studies for Development (IFD)
kriengsak@kriengsak.com, http://www.ifd.or.th
Professor Dr Kriengsak Chareonwongsak
Executive Director, Institute of Future Studies for Development (IFD)
kriengsak@kriengsak.com, http://www.ifd.or.th
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