KResearch is of view that aside from the EU, US and Japan export markets, ASEAN is fast becoming an important market for Thai fruit juice products, because consignments to ASEAN have shown signs of promising growth. In 1H10, our fruit juice exports to ASEAN surged to USD23.5 billion, up 57.7 percent YoY, thanks to economic recoveries seen within the bloc. Another contributor has been the reduction in export costs as a result of the ASEAN Free Trade Agreement with Thailand had entered with other members – especially the new ones: Laos, Myanmar, Vietnam and Cambodia – to gradually reduce import tariffs as of January 1, 2010.
Given this, Thai fruit juice exporters are advised to make greater inroads into ASEAN through expanded fruit juice exports of mixed fruit juice products, orange juice and other varieties of orange juices.
Meanwhile, the value of Thai fruit juice imports from ASEAN nations was relatively low at only USD0.8 million in 1H10, but that was up 33.3 percent YoY. As a result, Thailand still managed a trade surplus of USD22.7 million, up 58.7 percent YoY, on this category during the period. However, Thai fruit juice processors are warned to beware of an influx of low-cost fruit juice products from non-ASEAN member nations, e.g., China that will likely optimize privileges afforded them per the ASEAN-China Free Trade agreement to gain greater access into the Thai market. This may adversely affect the Kingdom’s overall trade balance.
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