With the aim of expanding Thai exports to Shenzhen by 5%, the Ministry of Commerce of Thailand has signed a Memorandum of Understanding to establish a mini Free Trade Agreement (FTA) with the Chinese metropolis.
Thailand’s export growth plan is currently focused on growing trade with secondary cities in partner countries using mini FTAs, often known as little free trade agreements.
These agreements, which have previously been signed with two Chinese provinces, have demonstrated to greatly increase bilateral trade.
The trade value with Hainan has increased almost two-fold just a year after the respective Mini FTA came into effect. The commerce ministry is now seeking to expand on the agreement to grow bilateral trade even further.
Thailand is scheduled to sign similar pacts with Yunnan province in southwest China in April, and later with five states in India: the nation already has seven mini-FTAs, namely with Hainan, China; Kofu, Japan; Telangana, India; Gansu, China; Busan and Gyeonggi, South Korea; and the latest with Shenzhen.
Shenzhen is the heart of the Greater Bay Area, an area that mixes new businesses, innovation, technology, and industrial sectors in China. It serves as a vital hub connecting Guangdong province, Hong Kong, and Macau.
About the author
Bangkok Correspondent for Siam News Network. Editor at Thailand Business News
