This agreement went into force on January 1, 2020, with the aim of expanding trade between the two countries as well as control their total exports.
“Most products from Thailand can still compete with those sold in the US and Japan,” Pimchanok said. “However, we may face some pressure in exporting industrial products to the US, since we have no agreements.”
TPSO estimates that Thai products have a larger market share in Japan compared to the US, because many products from Thailand such as sausages, frozen vegetables, juice, wax, sauces etc are under great demand.
Tax privileges under the Japan-Thailand Economic Partnership Agreement is also helping Thailand’s market share in Japan compared to the US.
However, in terms of some products, such as flowers, air conditioners and mirrors, Thailand is still leading the market in the US.
Pimchanok said Thai exporters should shift their focus to the US and Japan in order to expand or preserve the country’s market share in both countries.