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Published on March 22, 2008

"Cross-border trade is one of the easiest ways to promote exports, with its low costs and short distances for transport, but it still accounts for only a small proportion of total trade. The government will focus on facilitating cross-border trade," he said.

To promote cross-border trade, Wiroon has instructed the Foreign Trade Department to draft a plan to facilitate exports. The plan is to develop specific provinces for cross-border trade, eliminate duplicate customs procedures, lower tariffs on certain goods, have the Government Saving Bank support enterprises and develop infrastructure, such as cold storage for fresh-fruit exports, to facilitate traders and buyers in each targeted province.

Cross-border trade involves trade with Burma, Laos, Cambodia and Malaysia. Exports to the four countries together accounted for only 4.2 per cent of the total export value of US$152 billion (Bt4.76 trillion) last year. But the ministry expects cross-border trade to grow sharply if it receives strong government support.

As a pilot project, Wiroon will soon lead a group of businessmen and government officials to Satun province to determine the feasibility of a deep-sea port to facilitate trade with Malaysia and Indonesia.

In addition, the government this year will support contract farming of 10 products, focusing on fuel crops, in Laos, Cambodia and Burma, to decrease large volumes of fuel imports from other countries. Ten products under the contract-farming plan are eucalyptus, maize, corn, peanuts, sesame, green beans, soybean, Job's tears, castor and cotton.

Petchanet Pratruangkrai

The Nation