Trade and economic relations between Ukraine and the Kingdom of Thailand

18 February 2013 16:33

Exporters and Investors Council

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Taking into account the Thailand's huge nominal GDP, local income growth and a stable socio-economic situation in the country, Thailand remains the key partner of Ukraine among the countries of the Southeast Asia region for the long-term. Ukraine considers the development of the multifaceted relations with the Kingdom of Thailand in trade and economy as one of the main priorities of its foreign policy in South-East Asia. In its turn, the Ukrainian State with its economic, scientific, industrial and agricultural potential and also geographic location may be important partner for Thailand as a gateway to the markets of the European Union countries.

In 2022, Thailand's GDP growth reached 2.6%, driven by exports of goods, private consumption and investment. The country is one of the largest exporters of rice and sugar in the world.

The past years have demonstrated that Ukraine and the Kingdom of Thailand posses a significant potential for further development of the bilateral relations, particularly, in the trade and economy sphere.

In 2021, the volume of exports of Ukrainian goods due to restrictions caused by Covid-19 pandemic, reached a relatively low level - 224,886 million USD. However, an increase of 36.7% was recorded compared to the indicators for the same period in 2020. Imports from Thailand increased by 30.1%. In 2021, ferrous metals became the main commodity item, although the share of agricultural exports in the total volume of exports of Ukraine to the Kingdom of Thailand dominated and amounted to 71.9%. The export of grain crops decreased by 27.1% and amounted to 354,000 tons of grain. Ukraine's share in Thailand's imports was 0.05%.

The structure of Ukrainian exports in 2021: 1) ferrous metals - 46.3% or 104.206 million USD; 2) grain crops - 35.3% or 79.349 million USD; 3) residues and waste of the food industry - 5.1% or 11.573 million dollars. USD; 4) ats and oils of animal or vegetable origin - 3.1%, or 6.899 million USD; 5) aluminum and products thereof - 1.6%, or 3.617 million USD; 6) products of flour milling and grain industry - 1.6%, or 3,600 million USD.

The structure of Ukrainian imports from Thailand in 2021: 1) nuclear reactors, boilers, machines - 23.1% or 58.205 million USD; 2) electric machines - 14.7% or 37.163 million USD; 3) land transport, except for railway - 14.4% or 36.268 million USD; 4) rubber - 13.5% or 34.175 million USD; 5) other means of land transport - 10.2% or 19.779 million dollars. USA; 6) processing products - 6.4%, or 16.213 million USd; 7) plastics, polymer materials – 5.2% or 13.071 million USD.

According to the data of the State Customs Service of Ukraine, in 2022 trade turnover between Ukraine and Thailand reached 197,671 million USD (export – 35,22 million USD, import – 162,451 million USD) with a negative trade balance of 127,231 million USD. During the period from January to May in 2023 trade turnover between Ukraine and Thailand amounted to 98,425 million USD (export – 24,876 million USD, import – 73,549 million USD). The negative trade balance reached 48,673 million USD.

For January-May 2023, the turnover between Ukraine and Thailand amounted to 98.425 million USD (export - 24.876 million USD, import - 73.549 million USD). The negative balance was 48.673 million USD.

Trade between Ukraine and the Kingdom of Thailand in 2016 – 2022 (mln. USD)

	2016	2017	2018	2019	2020	2021	2022
Trade turnover	608,9	463,469	456,668	572,083	358,628	477,391	197,671
Export	432,14	265,194	248,067	344,131	164,537	224,886	35,22
Import	176,77	201,465	208,601	227,952	194,09	252,505	162,451
Trade balance	+255,37	+63,729	+39,466	+116,179	-29,552	-27,619	-127,231

The Ukrainian Side is now paying more attention to the diversification of foreign trade and involvement of foreign investments in new areas of cooperation as well as the participation in the perspective mega-projects, proposed by the Government of Thailand.

In recent years the cooperation between the Chambers of Commerce and Industry of Ukraine and Thailand has been actively developing. On July 20, 2021, was held a joint meeting of the leadership of the Chamber of Commerce and Industry of Ukraine and the Thai Chamber of Commerce - Board of Trade of Thailand, where the parties discussed the possibility of arranging a business forum on the basis of the Chamber of Commerce and Industry of Ukraine with the participation of the business circles of both countries, the organization of thematic bilateral meetings that would cover issues of development of inter-branch contacts, attraction of investments, taxation, etc. Also, in order to support Ukrainian business activities in Thailand, the presidium of the Chamber of Commerce and Industry of Ukraine appointed a representative of the Chamber of Commerce of Ukraine in the Kingdom of Thailand on September 22, 2021.

By creating the further favorable conditions for bilateral trade, on December 16, 2021 in Bangkok was signed a Memorandum of Understanding between the Council of Exporters and Investors under the Ministry of Foreign Affairs of Ukraine and the Board od Trade of Thailand.

On February 17, 2022, in cooperation with the Export Promotion Office and the COIN company, was organized the Go Asia webinar with the aim to expand the presence of Ukrainian food products on the markets of Thailand, Singapore and Vietnam.

Therefore, in the context of boosting bilateral trade and economic cooperation, primary attention is given to the issue of holding the inaugural meeting of the Joint Trade Commission between the Government of Ukraine and the Government of the Kingdom of Thailand, in accordance with the provisions of the Trade Agreement between Ukraine and the Kingdom of Thailand, which was signed in June 2017.