At present, Thai exporters are having great difficulty negotiating the prices of their shipments to Japan, because the baht has soared 20 per cent against the yen.

Board of Trade of Thailand vice chairman Chatchai Bunyarat said good export figures in January and February were the result of orders placed before the baht began to appreciate. However, figures for last month and onwards will definitely be down.

Exports are unlikely to grow 12 per cent this year as targeted by the Commerce Ministry unless the baht weakens from its current level back to 36 to the US dollar, Chatchai said.

Most Thai exporters cannot settle prices with potential buyers abroad. "For example, the baht has strengthened 16 per cent [against the dollar], and the yen has weakened against the dollar. In total, the baht has strengthened 20 per cent against the yen," Chatchai said. "It's impossible for any buyer to accept a 20-per-cent rise in product prices. Exporters have to find other ways out, such as cutting costs."

Pramon Sutivong, chairman of both the Board of Trade and the Thai Chamber of Commerce, said the board was setting up a committee to monitor the impact of the recently signed Japan-Thailand Economic Partnership Agreement.

The objective is to promote the use of trade privileges to help expand businesses and exports, to reduce export obstacles and to persuade Japanese companies to invest more in Thailand.

The Board of Trade will urge Japan to establish a similar committee to study the trade effects in that country. Both parties will meet once a year to allow businesspeople from Thailand and Japan to discuss reductions in export obstacles and promote trade between the two countries.