Thailand's FTA deficit $7.4 bn

The country recorded an increased trade deficit with Japan worth $5.52 billion in the first five months, compared with $3.7 billion during the same period last year, due to demand for the import of capital goods after tariff reductions became effective under the free-trade agreement.

Chutima Bunyapraphasara, director-general of the department, said that despite the larger trade deficit with some partners, the country's exports had increased significantly because of the FTAs.

"Exports to all FTA partners have surged considerably because of lower trade barriers following trade liberalisation. Despite some effects from liberalisation, the FTAs increased trade between nations," said Chutima.

Exports to Japan increased 12.8 per cent to $8.12 billion in the first five months, while imports grew 24.6 per cent to $13.6 billion.

Major import goods from Japan are machinery and parts, steel, electronic machines, electrical circuits, chemical products and automobile parts.

The Thailand-China FTA has resulted in a $1.2-billion bilateral trade deficit in the first five months, while FTA pacts with European countries and New Zealand caused trade deficits of $12.8 million and $713 million.