Reflections on the Human Condition - Api-fellowships.org

Table 2: Thailand Trade Value of Agricultural
Products by Groups (Millions of Baht).
Exports Imports Exchange Rate
Food Beverage Food Beverage Baht/1USD
1990 166,311 2,291 33,562 5,481 25.59
1991 192,016 3,401 41,914 5,623 25.52
1992 210,961 4,494 44,824 5,378 25.40
1993 201,576 3,858 42,372 6,139 25.32
1994 235,506 4,156 45,394 6,048 25.15
1995 268,072 3,577 51,371 6,543 24.92
1996 274,340 5,330 56,682 7,101 25.34
1997 325,638 6,422 64,012 6,463 31.36
1998 393,087 6,408 73,369 6,178 41.36
1999 370,435 6,040 67,839 7,422 37.81
2000 392,161 6,907 73,649 9,154 40.11
2001 433,942 7,592 95,215 9,694 44.50
2002 416,500 7,528 95,550 9,548 43.00
2003 457,410 8,303 102,085 9,867 41.50
Source: Bank of Thailand, 2004.
In some agricultural products, Thailand has been
in the top five exporters in the world. For instance,
in sugar export, Thailand was in fifth among world
producers, after Brazil, India, China and Mexico. On
the export of shrimp and chicken, Thailand was in the
top five exporters in the world. Then, this country is
the world's largest exporter of rice among other world
major exporters such as India, Vietnam and the US.
According to the export destinations of some major
Thai agricultural products, the three biggest markets of
Thai shrimp in 2001 were the US, Japan and Canada.
These three countries absorbed this product by 77.24%
of Thai total exports. The Thai rice was destined mostly
to African countries, Asian countries and Middle East.
In exporting those kinds of agricultural products, Thai
exporters still face the difficulties in term of tariff and
non-tariff barriers from the partner countries. According
to the New Generalized System of Preferences (GSP) 14
in the EU countries, Thailand has not been classified as
a developing country. The consequence of this rule is
that Thailand will lose its preferential position on tariff,
Table 3: Selected Thai Agricultural Products (Rice, Maize, Soybean and Sugar).
THE STATE, DEVELOPMENT AND GLOBALIZATION
Rice Maize S oybean
S ugar
In million metric tons 2001/02 2002/03 2003/04 2001/02 2002/03 2003/04 2001/02 2002/03 2003/04 2001/02 2002/03 2003/04
Beginning Stocks 3.553 3.447 3.566 - - - - - - - - -
Production (Paddy) 26.523 26.057 26.841 4.462 4.23 4.119 0.261 0.262 0.27 6.18 7.3 6.98
Production (milled rice) 17.505 17.198 17.715 - - - - - - - - -
Import - - - 0.006 0.005 0.012 1.528 1.689 1.8 - - -
Total Supply 21.058 20.645 21.281 4.472 4.235 4.131 1.789 1.951 2.07 6.18 7.3 6.98
Domestic Use 9.932 10.123 10.26 4.263 4.151 4 1.788 1.95 2.069 1.85 1.9 1.92
Export 7.68 6.955 8 0.275 0.163 0.343 0.81 0.57 0.07 4.02 5.4 5.06
Ending Stock 3.447 3.566 3.022 - - - - - - - - -
Source: Office of Agricultural Economics, Thailand, 2004.
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which means higher import taxes will be imposed to
Thai agricultural products. In addition, other developed
countries such as the US, Australia and Japan have
applied other non-tariff barriers such as food safety and
sanitary reason. For Thai producers, those requirements
could adversely affect product quality, and cost of
production would be increase as more processing time,
labour and the new technology are required. On these
problems, the Thai government must be in the intensive
talks with those respecting countries (to make sure
that Thai products fulfil the food safety and sanitary
requirements) 15 and manage the trade negotiations well
before entering the free trade agreements.
THE BEHAVIOR OF THAILAND IN
RESPONDING TO THE EMERGENCE OF FTA
Thailand has been the most attractive nation in Asia to
involve in the FTA, among other Asian countries such as
Singapore and Malaysia, since this country was suffered
from the crisis in 1997. Now, Thailand concerns to
increase the competitive advantage of its agricultural
products in international market. This effort has been on
the way by gradually reducing import tariffs, increasing
poverty alleviation, education, health and social welfare
in both urban and rural areas. Under the Thaksin
government, it is argued that this open country could
not wait any longer for the WTO, 16 it should go ahead
to gain from FTAs by intensively negotiating with the
potential partners. These actions have been believed to
broaden the international markets of Thai agricultural
products. (The Nation, 2004b)
In terms of its concept, FTA could give benefits to
participating countries, but it would be different if
the participating countries are different in the stage of
development. There has been a sense of uncertainty of
whether developing countries would stand up to gain
Ref lections on the Human Condition: Change, Conflict and Modernity
The Work of the 2004/2005 API Fellows