Suphajee: 14th Plan Must Support Balance, Growth, and Distribution, Driving Thai Trade to Embrace a Multipolar World
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Deputy Prime Minister and Minister of Commerce Suphajee Suthumpun said at the NESDC seminar "Plan 14: Transforming Thailand to Go Further — THAILAND'S NEXT AGENDA," organized by the National Economic and Social Development Council, that the 14th Plan must give priority to creating balance. From the Commerce Ministry's perspective, balance in trade and services must cover both growth and distribution together, under a world fragmenting into multiple poles, or fragmentation, in which each country is turning to non-tariff measures and placing importance on adjusting supply chains to reduce over-reliance on any single country. Thailand must therefore position itself as a Trusted Partner that trading partners can trust, looking at mutual benefit, and build a Co-Creation model instead of the old buyer-seller relationship. Suphajee stated that Thailand depends on the United States market for more than 20% and on China for more than 10%, together about one-third of total exports. The United States had previously set a tariff rate for Thailand at 36% before negotiations reduced it to 19.9%, and most recently Thailand has agreed in principle with the United States and is negotiating the finer details, with a conclusion expected in the near future. On China, Thailand has discussed establishing a Joint Trade Committee to adjust supply chains, proposing a pilot project for a food processing industry jointly with China using Thai raw materials and labor, as well as cooperation on pharmaceuticals, herbal medicine, and wellness, while asking China to open its market wider to Thai goods. Meanwhile, Thailand-EU FTA negotiations have run for nine rounds, closing about two-thirds of the issues, with the 10th round held in Phuket province, where both sides aim to make it the final round as much as possible. As for India, Thailand runs a trade surplus of about 11 billion US dollars, and both sides spent 45 days discussing a cooperation model, with India stating that if a conclusion is reached, it can move forward to close an FTA with Thailand within 90 days. Suphajee also noted that about 30% of Thai workers are in the agricultural sector but generate only 8-9% of GDP, while SMEs, including the agricultural sector, account for about 70-72% of the total workforce but generate only 34-35% of the country's income. It is therefore necessary to upgrade skills, create a fair business environment, and give SMEs greater access to funding sources. Currently, exporting SMEs number more than 30,000.