Bid to boost trade with neighbours to life exports

Commerce Minister Pornthiva Nakasai said last week that promoting cross-border trade is one of the easiest ways to expand exports, with its low costs and short distances for transport. However, it still accounts for only a small proportion of total trade.

The government will facilitate cross-border trade by focusing on cooperation with the private sector and on implementation of the economic corridor strategy, which assists Thai businesses to invest and trade in neighbouring countries.

The ministry will also support contract farming, where Thai investors develop other countries as production bases to support Thai exports.

The ministry also plans to boost exports through trade cooperation under the Ayeyawady, Chao Phya, Mekong Economic Cooperation, Greater Mekong Subregion Economic Cooperation, and Indonesia-Malaysia-Thailand Growth Triangle initiatives.

Other plans to foster trade growth include developing specific provinces for cross-border trade, eliminating duplicate customs procedures, lowering import duties on certain goods, and increasing infrastructure, such as cold storage for fresh-fruit exports, in each targeted province.

Cross-border trade covers Burma, Laos, Cambodia and Malaysia.

According to the Foreign Trade Department, in the first 11 months of last year, total trade with the four countries grew 30.4 per cent to Bt661.2 billion, of which exports accounted for Bt382.1 billion and imports Bt279.07 billion, leaving Thailand with a trade surplus of Bt103.06 billion.