Thailand’s Commerce Ministry on Thursday signed a memorandum of understanding (MoU) to form deeper trade partnerships through a mini free trade agreement (mini-FTA) between Thailand and Yunnan province in southwest China.
The MoU was signed by Phusit Rattanakul Sereeruengrit, director-general at Thailand’s Department of International Trade Promotion and Mr Li Chenyang, Director General of the Commerce Department of Yunnan Province, China at Kunming of Yunnan province.
This is Thailand’s 8th mini-FTA and the country is eying more trade cooperations with minor cities after the previous mini-FTAs resulted in a significant growth of Thai exports. Thailand currently has seven mini-FTAs in place, with Hainan, China; Kofu, Japan; Telangana, India; Gansu, China; Busan and Gyeonggi, South Korea; and Shenzhen of China.
Mr Phusit said that Yunnan is China’s closest province to Thailand with 4-5 hours by car. Its distinctive geographical location makes it a logistics centre and a Thai distribution centre to connect with other regions in China.
Trade volume between Thailand and Yunnan in 2022 amounted to US$2.349 billion, up by 17.94 per cent increased from a year before. (TNA)