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Published on September 14, 2007

Rachane Potjanasuntorn, director-general of the Export Promotion Department, said yesterday the two countries had agreed on the proposed date, which would help drive exports for the final two months of the year.

The political uncertainties in both countries would not affect the implementation, as the bilateral free-trade agreement has been endorsed by both parliaments.

Implementation will promptly eliminate import tariffs on major Thai export goods, including foods, textiles and clothing, gems and jewellery and also lift the import quota of some Thai fruits and farm crops.

Commerce Minister Krirk-krai Jirapaet will lead a trade mission to Japan from September 21-30 to promote Thai goods and services. More than 10 leading exporters and manufacturers in high-potential sectors will participate.

"We hope to see significant deals signed during the trip, as some leading Thai companies are working closely with big Japanese companies to form business cooperation or to place orders with Thailand," Rachane said.

He said that if successful, the mission would benefit both Thai and Japanese companies with immediate zero tariffs after Jtepa's implementation.

Japan is one of Thailand's top three export markets, together with the US and the EU. Exports previously relied mainly on the US, followed by the EU. However, the uncertain economy and unexpected factors, particularly in the US, has prompted the ministry to concentrate more on other markets.

Thailand's export value to the US accounts for 12.9 per cent of overall exports, the EU for 13.4 per cent and Japan 12.4 per cent. The Kingdom's total export value reached US$83.41 billion (Bt2.87 trillion) in the first seven months of the year.

In same period, exports to China also significantly increased, accounting for 9.3 per cent, and the Middle East 5.3 per cent of total export value.

Rachane added that not only did textiles and garments, gems and jewellery and foods have great export potential, but also other services such as Thai restaurants, medical tourism as well as content and entertainment.

A Thai restaurant in Japan, "Keaw Jai", has joined with Suan Dusit Rajabhat University to open a culinary school in Tokyo. The school targets more Thai and Japanese people who are interested in opening Thai restaurants. Students will learn to cook authentic Thai foods.

The rising number of Japanese tourists in Thailand, reaching 1.3 million per year, has created a great business opportunity in the service sector. The Thai government has worked closely with Japanese government agencies responsible for social welfare in considering reimbursement of expenses for Japanese people who want medical treatment in Thailand.

Krirk-krai will also meet Japan's minister for economy, trade and industry during the trade mission.

The Export Promotion Department does not expect the free-trade agreement with Japan to lift the country's exports beyond the projected 12.5-per-cent growth to $145 billion this year.

Achara Pongvutitham, The Nation