On October 13, 2019, China and Thailand signed the Protocol to Amend the Framework Agreement on Comprehensive Economic Cooperation Between China and Thailand. The agreement aims to boost bilateral trade and investment between the two countries.
Under the agreement, China will reduce tariffs on 854 products, while Thailand will reduce tariffs on 122 products. The two countries have also agreed to cooperate in areas such as e-commerce, trade in services, and intellectual property.
The trade agreement between China and Thailand is significant as it strengthens the economic ties between the two countries. China is Thailand`s largest trading partner, accounting for about 14% of Thailand`s total trade. In 2018, bilateral trade between China and Thailand reached $84.6 billion, a 4.2% increase from the previous year.
The trade agreement also benefits both countries in terms of market access. China`s reduction of tariffs on more than 800 products will make it easier for Thai businesses to export goods to China. Meanwhile, Thailand`s reduction of tariffs on 122 products will make Chinese products cheaper for Thai consumers.
The agreement is also important for the region as a whole. China is a major economic power in Asia, and its economic ties with Thailand can provide a boost to other countries in the region. Moreover, the agreement can help to accelerate the development of the ASEAN-China Free Trade Area, which aims to create a free trade area between the ten ASEAN member countries and China.
Overall, the trade agreement between China and Thailand is a positive development for both countries. It promotes closer economic ties between two important players in the region, and can help to boost trade and investment between them.