In trade between Thailand and Peru, we are mutually dependent and there is no direct competition between two trade partners. Thailand manufactures and exports finished goods, while Peru exports raw materials, such as zinc, tin, gemstones, as well as forestry and fishery products. KResearch thus expects that the Thailand-Peru FTA pact that will likely become effective in 1Q11 will help boost both trade and investment on both sides. Thai exports that would immediately benefit from duty-free status include cars, accessories and parts, washing machines and parts, and rubber products.
As for imports, Thai importers will gain lower prices for products from Peru, thanks to lower import tariffs. In addition, we could use Peru as a production base, or become investment partners, sending exports to major markets there. Thai industries that have the potential for investment there include furniture manufacturing, mining and fisheries.
However, Thai businesses should put some effort into studying that market, as well as local regulations, to gain the highest benefits from the new trade privileges. Also, they should continue to improve product quality and design to meet market demand, thus enhancing Thai trade and investment opportunities in Peru. Previously, the trade relationship between Thailand and Peru has not been close because of the rather extreme distance between two countries. But with the average economic growth of Peru at around 6.8 percent per year over the last five years, plus the possibility that they may grow up to 8.3 percent in 2010 and previous trade statistics, it seems possible that the trade relationship between us will likely expand in the future, helping to lead the way for exports entering other countries in Latin America that are trade partners with Peru (the number of consumers in their region is around 382 million people, with a total trade value of USD4.204 billion that is rising). As a result, Latin America could be a quite interesting emerging market amid the fragile economic situation in traditional key export markets, e.g., America, EU and Japan.
Annotation
This research paper is published for general public. It is made up of various sources. Trustworthy, but the company can not authenticate. reliability The information may be changed at any time without prior notice. Data users need to be careful about the use of information. The Company will not be liable to any user or person for any damages arising from such use. The information in this report does not constitute an offer. Or advice on business decisions Anyhow.