The Export Promotion Department has set a preemptive strategy to cushion Thai exports from the European Union's economic stagnation.
"Nobody knows how the European countries will affect the global economy and Thai export growth. However, the department has divided the impact of this crisis into three levels from high, medium to low on global and Thai exports," directorgeneral Srirat Rastapana said yesterday.
The department would seek measures to maintain demand for Thai products, mainly chicken, processed food, farm food and gar¬ments. It will also shift its focus to other markets, including Asean and newly emerging nations.
The department has instructed Thai trade representatives in Europe and nearby countries to closely mon¬itor the financial crisis on the conti¬nent.
According to the department, exports to Eastern Europe were worth only US$763 million (Bt24.8 billion) in the first quarter, or 1.7 per cent of the total. However, that rep¬resented a 39.9percent increase year on year.
Europe's 15 countries accounted for 12 per cent of total exports. Exports to the market were up 20.14 per cent to $5.8 billion in the first four months of this year.
The department will work close¬ly with exporters to seek new ways to promote Thai products in European countries.
Sukit Kongpiyacharn, president of the Thai Garment Manufacturers Association, said the European financial crunch is expected to dampen Thai exports next year, as European consumers would spend their money more carefully.
The euro's weakening against baht will also create difficulties for exporters, he said.