RCEP agreement enhances trade ties between China, Thailand
(MENAFN) Thailand's coconut, renowned for its rich and sweet flavor profile, has experienced a surge in demand within the Chinese market. Over recent years, it has become a staple ingredient in a wide array of Chinese culinary offerings, including cakes, coffee blends, and even hot pot dishes. This trend has notably intensified following the implementation of the Regional Comprehensive Economic Partnership (RCEP) agreement.
The RCEP, which officially took effect on January 1, 2022, encompasses 15 Asia-Pacific nations, comprising the 10 ASEAN member states along with their five trading partners: China, Japan, South Korea, Australia, and New Zealand. Since its enactment, numerous sectors in Thailand, spanning agriculture, textiles, and automotive industries, have reaped substantial benefits from the agreement. Tariff reductions facilitated by the RCEP have notably spurred trade and investment activities among member countries. In 2022 alone, Thailand's trade with fellow RCEP members witnessed a notable 7.11 percent year-on-year increase, reaching a total value of 300 billion U.S. dollars.
Moreover, the RCEP has served to strengthen trade ties between China and Thailand significantly. According to Han Zhiqiang, the Chinese Ambassador to Thailand, bilateral trade between the two nations soared to 105.1 billion dollars in the first ten months of 2023. China has consistently remained Thailand's largest trading partner for the 11th consecutive year and continues to represent the primary destination for Thailand's agricultural exports. Notably, tropical fruits, with Thai durian leading the pack, have emerged as highly sought-after products in the Chinese market.
Chinese consumers exhibit a distinct preference for Thai fruits, a trend further bolstered by the Chinese government's support for Thai agricultural exports to China. This collaborative effort has propelled Thai durian from a niche delicacy to a mainstream favorite among Chinese consumers, underscoring the mutually beneficial nature of trade relations between the two countries within the RCEP framework.
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