Clashes: impact on trade with VN, Laos adds to FTI concern
April 26, 2011
By Petchanet Pratruangkrai
The Nation
Today's meeting of the Federation of Thai Industries (FTI) will discuss the Thai-Cambodian border clashes, which have been added as an urgent agenda item amid concern that the fighting is not only harming trade between the two nations but also damaging commerce with Vietnam and Laos.
Meanwhile, the Bank of England yesterday said it expected only a minimal impact on Thailand's overall trade, due to the relatively small value of exports to Cambodia.
"Several million baht have been lost a day since the clashes first erupted," said FTI vice chairman Thanit Sorat.
"Thai exports to Vietnam and Laos have been affected, as some shipments have to pass through Route No 48, which connects Thailand, Cambodia and the southern part of Laos and Vietnam."
Normally, Thailand exports fresh fruits, flour and foods through Route No 48. Investment has also dropped considerably since the conflict started, he said.
The FTI will today call for an urgent meeting with the Foreign Ministry, the Trade Negotiations Department and the Thai Chamber of Commerce to address the economic losses and seek solutions for trading amid the political conflict with Cambodia, he added.
The federation was originally scheduled to meet to establish a Business Council between Thailand and Cambodia, but the dispute has been included as an urgent agenda item after the rising border tension.
Mathee Supapongse, senior director for the central bank's Domestic Economy Department, said there had been little impact to date on Thai-Cambodian trade after the fighting over the countries' disputed border.
If the situation were to get even worse, there should still be relatively little effect, as Thai-Cambodian trade is not high, he said.
"To my understanding, both countries' checkpoints have not yet been closed.
"Moreover, we have faced this kind of situation many times before.
"Therefore, it should not have much of an impact on bilateral trade," he added.
Overall Thai exports totalled about US$200 billion (Bt6 trillion) last year, according to the central bank.
Less than 1 per cent went to Cambodia.
April 26, 2011
By Petchanet Pratruangkrai
The Nation
Today's meeting of the Federation of Thai Industries (FTI) will discuss the Thai-Cambodian border clashes, which have been added as an urgent agenda item amid concern that the fighting is not only harming trade between the two nations but also damaging commerce with Vietnam and Laos.
Meanwhile, the Bank of England yesterday said it expected only a minimal impact on Thailand's overall trade, due to the relatively small value of exports to Cambodia.
"Several million baht have been lost a day since the clashes first erupted," said FTI vice chairman Thanit Sorat.
"Thai exports to Vietnam and Laos have been affected, as some shipments have to pass through Route No 48, which connects Thailand, Cambodia and the southern part of Laos and Vietnam."
Normally, Thailand exports fresh fruits, flour and foods through Route No 48. Investment has also dropped considerably since the conflict started, he said.
The FTI will today call for an urgent meeting with the Foreign Ministry, the Trade Negotiations Department and the Thai Chamber of Commerce to address the economic losses and seek solutions for trading amid the political conflict with Cambodia, he added.
The federation was originally scheduled to meet to establish a Business Council between Thailand and Cambodia, but the dispute has been included as an urgent agenda item after the rising border tension.
Mathee Supapongse, senior director for the central bank's Domestic Economy Department, said there had been little impact to date on Thai-Cambodian trade after the fighting over the countries' disputed border.
If the situation were to get even worse, there should still be relatively little effect, as Thai-Cambodian trade is not high, he said.
"To my understanding, both countries' checkpoints have not yet been closed.
"Moreover, we have faced this kind of situation many times before.
"Therefore, it should not have much of an impact on bilateral trade," he added.
Overall Thai exports totalled about US$200 billion (Bt6 trillion) last year, according to the central bank.
Less than 1 per cent went to Cambodia.
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