Thailand is the second-biggest economy in Southeast Asia and trade between the UK and Thailand is already worth £5.9 billion a year….reports Asian Lite News
The UK and Thailand inked an Enhanced Trade Partnership to boost trade and investment between the two countries. Trade Minister Douglas Alexander signed the pact alongside Thai Commerce Minister Pichai Naripthaphan in Bangkok as part of his first visit to Asia since being appointed in July.
Thailand is the second-biggest economy in Southeast Asia and trade between the UK and Thailand is already worth £5.9 billion a year. The Thai economy is rapidly growing and its middle class is expected to more than double to almost 14 million by 2030, creating huge opportunities for UK businesses to tap into.
The new partnership signed today is designed to help the Government achieve its driving mission to grow the economy by boosting sales and investment in priority sectors such as automotive, tourism, investment, digital trade, financial services, education, and many more. The pact also commits both sides to identifying opportunities that could be delivered through a potential future UK-Thailand Free Trade Agreement.
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Following the signing, Minister of State for Trade Policy Douglas Alexander said, “Thailand’s growth is something the UK can and should be capitalising on. This Partnership will bring our two countries closer together and help British businesses sell to Thailand, supporting jobs and growth around the country.”
It follows a string of changes which have made it easier for UK companies to sell to the Thai market. This includes an agreement on vehicle emissions testing which saw Thailand accept the UK’s testing standards and waive the need for cars to be re-tested at Thai standards. Re-testing was time-consuming and expensive and its removal could save UK car manufacturers millions of pounds. A similar agreement is now being progressed for British motorbike manufacturers.
The UK and Thailand also recently also made it much simpler for Thai companies to import UK food and drink – from chocolate and cheese to soft drinks and frozen foods. They can now submit conformity documentation by email instead of the time-consuming process of getting paperwork physically stamped by the British Embassy. Removing this barrier will be worth around £40m-£70m to UK businesses over five years.
During his first visit to the region, Minister Alexander will also travel to Laos to attend the 56th ASEAN Economic Ministers Meeting. He will use the visit to speak to partners from across the region about the new government’s plans for trade and how this will support the government’s mission to drive growth throughout the economy.
Surendra Rosha, Group Executive of the HSBC Group and Co-Chief Executive of HSBC Asia-Pacific, said, “The growing trade and investment synergies between the United Kingdom and the Association of Southeast Asian Nations are drawing increased interest from the global investment community. As one of ASEAN’s largest international banks, with a footprint in the UK and six ASEAN member markets, HSBC is committed to supporting His Majesty’s Government in working with ASEAN governments to enhance economic integration and upgrade financial services.”
Debra Crew, Chief Executive, Diageo PLC, said, “ASEAN is one of the world’s most vibrant and dynamic regions, full of opportunity for Scotch Whisky. We warmly welcome the UK’s participation in the Asian Economic Dialogue and the new Enhanced Trade Partnership with Thailand which will boost trade and investment in this important region. We hope this enhanced partnership will be the first step towards resolving costly trade barriers, such as those affecting Scotch Whisky.”
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