Thailand seeks to reach a $2 billion trade target soon as both Bangladesh and the Southeast Asian country continue to curb the spread of the Covid-19 pandemic.
Khemathat Archawathamrong, Thai trade counselor in Dhaka expressed this view while talking to Dhaka Tribune recently.
Emphasizing increasing trade between the two countries, Khemathat said that prior to the Covid-19 pandemic, both sides had set a target of $2 billion for 2020 during their joint trade commission (JTC) meeting held in Bangkok earlier that year.
A 2021 meeting between two countries was slated for December last year, but later got postponed, with no new dates so far.
Bilateral trade between the two countries stood at $1,280.24 million in 2021 as against $910.05 million in 2020, clocking over 40% growth.
Trade deficit between the two countries was recorded at $1,171.57 million in 2021.
Thai exports to Bangladesh stood at $1,225.91 million, while Bangladesh’s export to Thailand was only $54.34 million.
The bilateral trade between two countries stood at $1,067.90 million in 2019, which dropped to $910.05 million in 2020. The growth was 40% in 2021 and negative 14.78% in 2020.
Asking about reducing the deficit, the Thai trade counselor said that Bangladesh should diversify its export basket.
Bangladesh export basket is heavily dependent on readymade garments sharing over 80% of the country’s export earnings.
Thailand exports refined fuels, polymers of ethylene, propylene in primary forms, cement, woven fabrics, chemical products, yarn and man-made filaments, motor cars, parts and accessories, synthetic filament and staple fibres, iron and steel products and rubber products.
Bangladesh’s export to Thailand is heavily dependent on readymade garments ($30.5 million) and other items include meat, scientific, medical, testing appliances, textile products, fresh aquatic animals, vegetables and vegetable products.
While sharing the success of medical tourism in Thailand, Khemathat Archawathamrong said that Bangladesh can also be successful in the sector through improving nursing and ensuring dedication of its physicians towards their patients.
Maritime connectivity
Meanwhile, Bangladesh and Thailand in December 2021 signed a memorandum of understanding (MoU) to facilitate trade by enhancing maritime connectivity between the two countries.
The MoU is part of the greater vision of Bangladesh to enhance connectivity with its neighbours including those in the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) region, said Khemathat Archawathamrong.
Additionally, both the port authorities would be benefited through the exchange of information and cooperation in port management, operations, information technology, communication, port connectivity, coastal shipping, port-related industry, and investment promotion.
The coastal shipping, under the MoU, between the Ranong port and the Chattogram port will help boost bilateral trade through reducing the transportation time between Thailand and Bangladesh.
At present, 12-15 days are required to send cargoes from Chittagong to Thailand which can be lowered to only four days with a direct shipping service.
The transportation cost will also be halved as vessels will have to spend one-third of the current time requirement.
Additionally, instead of going through the rough sea, the direct vessels will run through coastal routes, thus even small vessels will be able to transport cargoes to Ranong Port, the closest Thai port to Chittagong.
FTA
Earlier, Thailand has shown interest in inking a free trade agreement (FTA) with Bangladesh to increase bilateral trade as tariff and non-tariff barriers stand in the way of promoting business potentials between the two countries, the Thai trade counselor said.
Khemathat said that high tariffs on Thai products are stifling exports to Bangladesh to the desired level in spite of high demand.
Citing high tariff and non-tariff barrier (NTB) as bottlenecks in promoting trade, the Thai Minister Counselor (Commercial) demanded removal of both the predicaments.
Meanwhile, Foreign Minister of Bangladesh Dr AK Abdul Momen and his Thai counterpart Don Pramudwinai in a telephone conversation have pledged to raise bilateral ties to a newer height through further intensifying trade and investment relations between the two countries.
During the phone call, Dr Momen and Pramudwinai, who is also deputy prime minister of Thailand, agreed to jointly celebrate the Golden Jubilee of diplomatic ties in a befitting manner.
The Bangladeshi foreign minister emphasized enhanced connectivity between Dhaka and Bangkok for further strengthening bilateral and regional trade relations by joining the proposed India-Myanmar-Thailand trilateral highway.
Momen applauded the Thai Government’s offer of DFQF scheme to the Bangladeshi products in its market till 2026.
The Bangladesh foreign minister encouraged more investment from Thai investors in various sectors, particularly in the agro-processing industries.