How The Trade Flourished
Thailand is a Southeast Asian nation which shares boundaries with different places. Burma is situated both on the west and Northwest, Laos on the east and northeast, Cambodia on the southeast and Malaysia on the south. The name Thailand was only coined after 1939 since it was previously called as Siam. It was never found under any European colonization thus the meaning of its name is said to be "land of the free." Agriculture forms one-fourth of the Asian country's Gross National Product (GNP). Rice is its principal crop and leads the products exported to other nations. Rubber ranks next to the crop and is produced primarily in the southern portion of the country. Manufacturing is vital in its economy as well with 20% contribution to the GNP. Major industries are composed of rice milling, tapioca clipping, tin and petroleum refining and jute sacking. Other important manufactures include cotton, textiles, footwear, clothing, refined sugar, cement and tobacco. Furthermore, silk articles, carved wood items, jewelry and cigarettes are produced in both cities and villages in the country. Its trade relations with the United States started as early as 1833 and just recently, the ties were affirmed with the celebration of the 175th anniversary of the business alliance. The traces of World War II made the foundation of the friendship even closer as bilateral treaties started to be signed by the governments of these remarkable countries. Spearheading the list is the Treaty of Amity and Economic Relations. In their efforts to help other nations as well, both US and Thailand played a major role in the signing of the Manila Pact of 1954. This was done for the former Southeast Asia Treaty Organization (SEATO). As part of this treaty, countries involved in the pact shall act to meet the common danger in accordance with constitutional laws in the event of armed attacks to their fellow member nations. Despite the SEATO's dissolution in 1977, the pact remains in force. The US Agency for International Development (USAID) helped in Thailand's economic stability. While the program had to end in 1995, there are several assistance schemes which led to the prosperous relationship of the two nations. The programs primarily focused on HIV/AIDS, refugee and trafficking in individuals. Major Exports and Imports Between US and Thailand The prime commodities exported by Thailand to other nations in global trade include textiles, footwear, rice, rubber, fishery products, automobiles, jewelry, electrical appliances and computers. Its imports from other countries include capital and intermediate goods, consumer goods, raw materials and fuel. Its major export partners are US, Japan, China, Singapore, Hong Kong and Malaysia while its major suppliers are Japan, China, US, Malaysia, UAE and Singapore. With the data collected by the US Census Bureau for the ten-month period beginning January 2008 to October 2008, total US exports to Thailand is approximately at $7.80 billion. The imports of the former from the latter were estimated at $20 billion for the said period. In 2007, the following records evidenced the trade balances between these two nations:
To be able to attain a very good stature in each other's economy, trade agreements were made. The said treaties helped stabilize their trading relationship as well as provide a basis for rules, regulations, standards and policies that will govern their foreign businesses. Included in the list of trade agreements signed by the officials of both nations are:
Issues were connected to the Free Trade Agreement with the two nations. The Coalition of Service Industries wrote on March 30, 2004, a testimony on the US-Thailand FTA for the Trade Policy Staff Committee under the US Trade Representative. The companies represented the various sectors in business with the following as focal points to tackle:
Since the US-Thailand FTA are still on the works, it is important that US shall focus on issues that Thailand wants settled when it comes to market access. Thailand is willing to open its market only if the disputes and other issues will be settled. The US government is advised to focus on eliminating the tedious, lengthy and complicated requirements in getting licenses for commerce. For assets management, the condition is for US to grant permission for pension plans to invest in foreign securities. Banking concerns are also vital. For Thailand's participation in future trade opportunities, it is important that its government will focus on the elimination of restrictions on the formation of establishments especially that the Cabinet's approval is needed for a foreign establishment to enter in Thai's jurisdiction. Issues on intellectual property rights need to be resolved as well since Thailand has no concrete provisions on piracy. Insurance practices should also be addressed since there are no procedures to ensure the creditworthiness of insurance companies. Should all Thailand and US concerns be addressed, the FTA will be realized for good. US-Thailand References
|
Note: Trade statistics, industry links, economic projections and global business resources on this page have been compiled from hundreds of trade related websites, government guides and resources on the Internet. We provide this valuable information for industrial suppliers, manufacturers, exporters and importers seeking to enter or expland business opportunities in Thailand.
Market Research
Primary Trading Partners
Major Goods Exported
Major Goods Imported
Industrial Outlook
Thailand's major industries textiles and garments, agricultural processing, beverages, tobacco, cement, light
manufacturing, such as jewelry; electric appliances and components, computers and parts, integrated circuits,
furniture, plastics and tourism.
News, Business and Culture
Government Links
Import Export & Industrial Resources