Thailand FTA picks exporter interest

Towards the latter part of next month, the Regional Comprehensive Economy Partnership (RCEP) will be considering Sri Lanka's application to be included in the association, top officials said.

“We sent a letter of intent to RCEP about four months ago. They are taking up this application somewhere towards the end of March,” K. J. Weerasinghe, Chief negotiator, Office for International Trade said. Sri Lanka is the first country to send a letter of intent in this regard, he told the Business Times.

With the Thailand-Sri Lanka Free Trade Agreement (FTA) coming to life, many inquiries were made by businessmen attending the Sri Lanka Thailand FTA Spotlight, an awareness session, organised by the Ceylon Chamber of Commerce on Thursday where Mr. Weerasinghe delivered his address. Sri Lanka exports mainly tea and precious stones to Thailand and imports electronic equipment, food, rubber, plastics and pharmaceuticals.

Officials also said that Thai investors were also inquiring and showing interest, in investing in Sri Lanka.

In 2021, the bilateral trade between these two countries was worth US$ 460 million, according to Central Bank data. With this new agreement signed early this month,

Sri Lankan exports to Thailand will be increased by at least 30 per cent, Dr. Asanka Wijesinghe, Research Fellow, Institute of Policy Studies, said. “With this FTA, Sri Lanka has the option to integrate into the ASEAN markets,” he said.

Economists said that this latest agreement has allowed Sri Lanka to move away from traditional markets and can tap into the emerging activity in the ASEAN region. The ASEAN region is experiencing rapid economic growth and has emerged as a dynamic and vibrant market. By tapping into this emerging activity, Sri Lanka can benefit from increased trade and investment opportunities, as well as access to larger consumer markets. This can potentially boost Sri Lanka's exports and strengthen its economy.

Deshal de Mel, Head of Services, Chapter Advisor, Ministry of Finance noted that by signing the RCEP, Sri Lanka also needs to sign separate agreements with each bilateral partner in this partnership. RCEP will also allow Sri Lanka to integrate into regional value chains, he added.