19-8-2023 (BANGKOK) Thailand has secured a deeper trade partnership with China’s Yunnan province via a mini-free trade agreement (mini-FTA), ushering in a new era of collaboration across various industries, including logistics and cross-border e-commerce.
The mini-FTA was formally inked during the GMS Governors Forum in Yunnan, China, signifying a significant milestone in Thailand’s trade relations with its Chinese counterparts. Phusit Ratanakul Sereroengrit, the director-general of Thailand’s International Trade Promotion Department, and Li Chenyang, director-general of the Yunnan Commerce Department, sealed the pact on Thursday.
This landmark agreement holds considerable promise for Thailand, particularly as a prominent global exporter of agricultural products and essential food items. Mr. Phusit expressed optimism about the deal’s potential to spur increased exports of fruits and processed fruit products to the expansive Chinese market.
Mr. Phusit underscored that the agreement underscores the commitment of both the Thai and Chinese governments to fostering economic development and mutually beneficial trade relations.
Thailand has been actively pursuing mini-FTAs with various regions, including Hainan, Gansu, Shenzhen, and Yunnan in China; Kofu in Japan; Telangana in India; and Busan and Gyeonggi in South Korea. These agreements signify a concerted effort to enhance trade and economic cooperation on multiple fronts.
In addition to government-level agreements, Thai private sector entities have also embraced collaboration opportunities with their counterparts in Yunnan, reflecting the robust readiness of both countries’ private sectors to engage in productive partnerships.
One notable development includes a cooperation agreement between Thailand’s Far-E Logistics Co and Yunnan Mengzi ChangMeng Industry Co, a state-owned enterprise affiliated with the Yunnan Youth Entrepreneurs Association. This partnership is focused on bolstering cross-border e-commerce, with the aim of facilitating Thai products’ entry into the vast Chinese market.
Furthermore, Udon Thani Industrial City Co, an industrial estate in Thailand, signed a cooperation agreement with Yunnan Tengjin Logistics Co, a prominent state-owned logistics enterprise. Their collaboration is geared towards expanding logistical cooperation, particularly in connecting Thailand and China via rail transport along the China-Laos high-speed railway route.
Yunnan, with a GDP totaling 2.89 trillion yuan in the previous year, witnessed a growth rate of 4.3% from 2021. Situated as the closest Chinese province to Thailand, it plays a pivotal role as a gateway linking western China to the East Asia, Southeast Asia, and South Asia regions. This strategic positioning aligns with China’s “One Belt One Road” policy, emphasizing comprehensive logistics and transport development, encompassing land, water, air, and rail routes.
The mini-FTA is expected to serve as a catalyst for facilitating trade between Thailand and China. In 2022, trade between Thailand and Yunnan reached a total of $2.34 billion, reflecting an impressive growth rate of 17.9% compared to the preceding year.
