Sanan Angubolkul, chairman of the Thai Board of Trade, says it is premature to draw conclusions on the potential impact of the Uyghur issue on trade negotiations.
The board encourages businesses to swiftly adjust their strategies, maximise the benefits offered by existing free trade agreements (FTAs), manage costs effectively, leverage technology and innovation for cost reduction, and seek out new markets to minimise reliance on markets that carry potential risks.
Thailand has 16 FTAs with 23 countries or economic groups.
He said accelerating the expansion of FTAs is crucial for attracting foreign direct investment (FDI) to the country. Mr Sanan cited Vietnam as a successful case study, as it effectively utilised FTAs to enhance its investment appeal.
The board advocates the strategic use of FTAs to enhance FDI flows and to explore FTA negotiations with other markets.
He said potential markets such as the EU (which is discussing an FTA with Thailand), the Middle East and South America (where there is rising demand for Thai goods) are at the forefront of this initiative, promising to unlock new opportunities for local exports.
In terms of export performance, the first two months of this year Thailand recorded significant growth, with the value tallying US$52 billion (1.76 trillion baht), up 13.8% year-on-year. This marks the eighth consecutive month of growth, fuelled by robust demand from major markets such as Switzerland (+236%), India (+157%), China (+22.4%) and the US (+18.2%).
Government support, particularly from the Commerce Ministry, was essential in promoting exports and assisting Thai businesses in adapting through innovations and improved competitiveness, keeping Thai products appealing globally, said Mr Sanan.
However, despite the positive export performance, some sectors such as agricultural products contracted by 1.6%, while mineral and fuel products declined 11.5%.
He said uncertainties stemming from US trade policies could influence Thailand's export outlook, particularly for electrical and electronics equipment, automobiles, machinery, agriculture and food, steel and aluminium.
The US is expected to make another tariff announcement on April 2, though no definitive measures aimed at Thailand have been enacted yet.
