Thailand could benefit from TPP

New Zealand has suggested that Thailand should consider joining TPP during the public scrutiny process by member states, saying that the partnership will be world’s largest trade agreement. NZ’s ambassador to Thailand said that since Thailand was a strong trading nation and heavily reliant on exports, which accounts for 70% of its GDP, joining TPP would increase trade opportunity and ensure the country’s future growth.

Thailand is moving forward to membership of Regional Comprehensive Economic Partnership (RCEP) which has 16 countries – 10 Asean members, but RCEP can’t compensate for non partnership in TPP, whose market size and larger GDP is much larger.

Thailand should consider joining every trade agreement possible as it is important to benefit from the different angles offered by each pact, and it would help open up opportunity for the Kingdom to increase market access to all. Following the TPP’s implementation, the combined trade of its member economies will double.

For instance, New Zealand has strengths in service businesses such as education and IT, and cooperation under the TPP should help promote those sectors’ growth into other markets while other service businesses will need more investment from other countries to help develop their growth. Meanwhile in regard to bilateral trade between Thailand and New Zealand, Levermore said that almost 10 years from the implementation of their free-trade agreement, he expected there would be a revision of the FTA to promote more trade and investment growth on both sides as well as leveraging closer cooperation in many sectors.

New Zealand’s special agricultural trade envoy, Mike Petersen, said that under the bilateral FTA he expected that Thailand and New Zealand would tighten their cooperation in many sectors, particularly in agriculture as New Zealand has high expertise in the industry. Since New Zealand has high expertise in five key agricultural sectors – dairy products, beef, sheep, farming and wine – the country foresees closer cooperation with Thailand as well as more trade and investment for both sides.

New Zealand could also help transfer technology and know-how in quality agricultural production and improve capacity for Thai farmers which would in turn increase consumer satisfaction according to Petersen. Bilateral trade amounted to about Bhat 60 billion last year.

Full report: http://www.nationmultimedia.com/business/TPP-could-benefit-Thailand-30271118.html

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