Struggling with free trade
As Thailand continues to negotiate more free trade agreements, local businesses often struggle to reap the rewards of lower or zero tariffs offered for shipments. The Commerce Ministry reported exporters took advantage of US$52.5 billion worth of FTA preferences and lower tariffs allowed by the Generalised System of Preferences scheme last year, a rise of 3.82% from 2015. But FTA preferential utilisation rates were still relatively low, averaging 56.7% of total export values for goods entitled to the preferences, said the ministry. Aat Pisanwanich, director of the Center for International Trade Studies at the University of the Thai Chamber of Commerce, said a number of Thai businesses have yet to fully understand how to use the tariff preferences provided by FTAs, particularly the rules of origin.
