Thailand had a trade surplus of about US$1.12 billion (Bt39.11 billion) in February, thanks to continuing robust export growth despite a firmer baht, says the Commerce Ministry.

Preliminarily figures show exports surging 18.4 per cent year on year to $11.23 billion in February, while imports edged up 3.13 per cent to $10.1 billion, Commerce Minister Krirk-krai Jirapaet said yesterday.

In February 2006, the country saw a trade deficit of $316 million.

In January of this year, customs-based exports expanded 17.7 per cent to $10.49 billion, while imports rose 2.4 per cent to $9.61 billion, with a trade surplus of $880 million.

The Bank of Thailand will release official trade figures for February at the end of this

month.

The Kingdom's total export value jumped 18.7 per cent to $21.7 billion during the first two months the year. In the same period, import value rose only 2.79 per cent to $19.7 billion, resulting in the trade deficit plunging 355 per cent year on year.

 "The figure shows the country's export efficiency. The ministry stands by its export-growth target of 12.5 per cent, or $145 billion, this year," Krirk-krai said.

Economists said the export sector had not yet felt the pinch from the strong baht.

Fiscal Research Policy Institute director Kanit Sangsubhan told The Nation that the impact from the strong baht would be felt from last month onwards, when export income in baht terms would show a much smaller growth rate than income denominated in US dollars.

Meanwhile, in a meeting yesterday between the ministry and the Joint Public-Private Committee, officials from the private sector continued to express concern about the strengthening baht, saying they wanted to see baht stability.

 To smooth exports, the committee has set up a joint working group to monitor the baht closely.

The working group will also focus on finding ways to reduce the impact from a stronger baht and strengthen the Kingdom's export competitiveness.

 "The private sector is still worried about the baht's value and wants to have measures to maintain export competitiveness," an exporter said.

 Committee members also share the view that Thailand should maximise its exports under the Japan-Thailand Economic Partnership Agreement.

The two countries will set up a joint committee to consider how to benefit from the pact within 30 days of its signing.