Japan pact producing trade benefits

EXPORTS

Japan pact producing trade benefits

PHUSADEE ARUNMAS

The Thailand-Japan free trade agreement that took effect on Nov 1 has helped increase Thailand's exports by more than 10 billion baht, according to Apiradee Tantraporn, director-general of the Foreign Trade Department.

She said the department had approved 7,000 requests for rule-of-origin certification of Thai products bound for Japan under the agreement, formally known as the Japan-Thailand Economic Partnership Agreement (JTEPA).

The goods certified were worth US$323 million, or about 10.6 billion baht, Ms Apiradee said.

Export products that are benefiting from the reduction or elimination of tariffs under the pact include processed shrimp, textiles and processed tapioca starch.

Japan eliminated the 5% import tariff on Thai shrimp, textiles and processed tapioca starch after the JTEPA took effect on Nov 1.

Exports of textiles and garments in particular are projected to reach US$7.68 billion in 2008, up 8% from this year, thanks to higher demand from Japan.

The total export value of Thai textiles and garments to Japan dropped from $429.7 million in 2004 to $412.5 million 2005 and $415 million in 2006. In the first 10 months of this year, exports declined to $308.8 million _ an 8.64% drop year-on-year.

In 2008, the Office of Industrial Economics (OIE) and the Thai Textile Institute project that the JTEPA would help exports from the sector rebound.

The deal would enhance the competitiveness of Thai products in Japan against those from Bangladesh, Cambodia, China, India and Vietnam.

For the first 11 months, Thailand's exports to Japan were worth US$16.60 billion, a rise of 10.6%, representing about 11.9% of Thailand's total exports.