Trade Relationship Between Thailand and China

Topics: International trade, Free trade, Export Pages: 15 (4985 words) Published: October 24, 2011
Term Paper Title Page for Postgraduate Program

上海大学2010~2011学年春季学期研究生课程考试 Spring Term, Academic Year 2010-2011, Shanghai University
课程名称/Course Name: International Trade Theory and Policy  
论文题目/Paper Title: Trade Relationship between Thailand and China  
研究生姓名/Name: Ms. Thip Koo-akarakul 学号/Student ID: 10760002

研究生班级/Class: 2010

论文评语/Reviewer’s Remark:


成 绩/Score: 任课教师/Reviewer:  
评阅日期/Review Date:


The objective of this paper is to study the relationship of the trade between Thailand and China and its impact after open China ASEAN free trade area. Thailand and China have a limited agreement which eliminated tariffs on some 116 agricultural items (in HS 01–08 categories) by October 2003. This is an ‘earlier-harvest’ than the early-harvest package in the ASEAN-China FTA, which eliminated tariffs in the same categories for all ASEAN countries. In particular, the paper analyzes the trade structure, its current situation and problems, the effects of the trade, and the implication to the policy. The results of the paper highlight that this agreement has little aggregate impact, but within the sectors concerned the effects have been noticeable. This trade policy is to create the business partners and alliances among the region and reductions in the non-tariff barriers tend have significant positive impact on the trade performance of ASEAN countries.

JEL classification: F13

Key words
Thailand trade, China trade, Free trade, ASEAN, ACFTA

Table of Contents
Abstract 2
Table of Contents3
I. Introduction4
II. Literature review5
III. Overview the trade relationship between Thailand and China5 IV. ASEAN - China Free Trade Agreement’s Background9
V. Current Situations 12
VI. Thailand’s Trade Policy toward China 13
VII. Problems of Bilateral Trade Negotiation 16
VIII. Implications to the policy 17
IX. Conclusion 18
References 19

Trade Relationship between Thailand and China

I. Introduction
The relationship between Thailand and China has been positive and constructive since diplomatic ties between our two countries were established 30 years ago. It has entered into a whole new era in 2003, when the China-ASEAN FTA was signed. This agreement has enormous implications for Thailand’s economic future. Under this Agreement, China and Thailand agreed to rapidly eliminate tariffs on fruit, vegetables and other agricultural products over a two-year period. This process had begun in January 2004 and by January of this year; tariffs on these products had been totally eliminated.

Now its impact has been for almost 8 years, it is timely to consider the influence that FTA has had on trade between our two countries.

II. Literature review
Thailand and China official established the diplomatic relations since 1 July 1975. Later on, in 1976, Thailand and China began their official economics relations. All along China is one of the most important trading partners, by the last year, China is Thailand’s second most trading partner after Japan. China is Thailand’s the top export market and is the second large import source. Meanwhile, Thailand is the 15th of China’s trading partners by being the 21st of export market and the 10th of import source. The economics relationship of Thailand – China has been intensively developed since 2003. According to statistics from Department of Trade Negotiations, Ministry of Commerce of Thailand revealed China is the third large of import source and the forth large of export market. Association of Southeast Asian Nations established the ASEAN free trade area - AFTA in 1992 as well as always promotes china to attend the ASEAN - China free trade Area. Presently, AFTA consists of 10 countries; Singapore, Malaysia, The...
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