Thailand will have to prepare for more challenges that will impact the Kingdom’s export sector, said Commerce Minister Jurin Laksanawisit.
His comment was heard at a recent seminar “Thailand’s Strategy: Creating Sustainability in the Global Stage.” He said that currently there are two major global factors affecting the export sector in Thailand.
The first factor is the political divide and geopolitical issues that force countries to choose sides. This is becoming more apparent after the armed conflict between Russia and Ukraine.
Minister Jurin noted that two highly populated nations China and India will likely play a more crucial economic role in the future. It is necessary for Thailand to be able to navigate carefully in the new era, and continue to work with allies in the ASEAN bloc to improve its bargaining power.
The second factor is non-tariff trade barriers such as international regulations on greenhouse gas emissions and the European Green Deal. These policies created the Carbon Border Adjustment Mechanism (CBAM) and economies that wish to do business with the EU must conform to it.
Furthermore, both the EU and the U.S. are planning to collect carbon taxes on several products, forcing Thai exporters to plan their moves carefully.
Thailand has plans to achieve carbon neutrality by 2050 and net-zero emission by 2065. (NNT)