• 
• 

The move came after Asean members agreed to increase flexibility on rules of origin, so that Asean exporters can reap higher benefits from the agreement.

Exporters that use more than 40 per cent of content sourced in Asean countries or fit the new harmonising system can enjoy tax cuts, starting August 1.

"Thai exporters should focus more on using the benefits of the free-trade pact to increase exports to Asean countries, as the market has strong potential to grow due to the rising population and low trade barriers under the pact," said Apiradi Tantraporn, director-general of the Trade Negotiations Department.

The department reported that only 23 per cent - US$7.8 billion (Bt260 billion) - of exports from Thailand to other Asean members had taken advantage of tariff reductions under the Afta agreement. Thai exports to Asean were valued at $32.5 billion last year.

Asean is Thailand's largest export market, followed by the European Union, the United States and Japan.

Export products that capture the highest benefits of the Afta agreement include automobiles and parts, air-conditioners, refrigerators, washing machines, processed food, tapioca starch, corn, oil palm and fresh fruits.

Apiradi urged Thai exporters to take greater advantage of the benefits of the tariff reductions to Asean countries, in particular to Cambodia, Laos, Burma and Vietnam, as they have high demand for many necessary goods imported from Thailand.

Those countries are also a good source of raw material imports with the low import tariffs under Afta.