Thailand
Summary
Overall, around 38% of the exporters in Thailand are affected by burdensome regulations, which is one of the lowest rates among countries surveyed by ITC since 2009. However, important differences exist across sectors: more agro-food exporters face difficulties with NTMs compared to exporters from the manufacturing sector. This is consistent with the fact that countries often regulate agro-food product more vigilantly for reasons of consumer and environmental protection. Similarly, the direction of trade matters: compared to exporters, the share of importers affected by burdensome NTMs is much lower (~25%).
Across partner countries, regional differences are evident. The EU, in particular, appears to be a relatively difficult market to access for Thai exporters. Nearly a quarter of the reported problems relate to EU regulations, while the EU imports only 11% of Thai exports. Similarly, despite the regional economic integration among ASEAN countries, relatively many trade impediments (21% or reported cases) concern ASEAN trading partners, particularly Malaysia and Indonesia.
With regard to the types of regulatory obstacles faced by exporters, 45% of the reported cases relate to technical requirements, i.e. product specifications that exported products need to comply with (including sanitary and phytosanitary [SPS] measures), as well as ‘conformity assessment’ procedures such as certification which provide proof of compliance with the underlying technical requirements. The majority of these cases include high standards requirement by the EU and the cost of certification. Strict fumigation requirement of Australia is also a widely reported problem by exporters.
Exporters of manufactured products described facing problems in ASEAN countries with the recognition of product quality tests and certifications issued in Thailand. As a result companies face higher cost and delays linked to sending product samples abroad for testing and inspection or having foreign inspections travel to Thailand.
While exporters do not face much difficulties with Thai regulations, they have experienced some procedural hindrances like delays, administrative hurdles and high fees which make complying with a given regulations difficult. Obtaining certificates of origin, in particular, is reportedly difficult for exporters due to large documentation requirement and inconsistencies in product classification.
The results of the NTM survey in Thailand highlight the potential for further improvements in the domestic trade environment, particularly at the procedural level, as important trade impediments persist. The relatively low incidence of burdensome NTMs and the types of problems reported however also demonstrate that Thailand has already undertaken considerable efforts to facilitate trade.
The survey results will contribute to optimizing existing policies and processes, in particular with a view to support the deeper regional integration within ASEAN. As such, they are a meaningful complement to similar NTM studies carried out in Cambodia, Indonesia and the Philippines.
Background
The NTM Survey in Thailand was carried out upon request of the Ministry of Commerce of Thailand and as part of the ITC programme on NTMs. The survey was conducted over a period of one year between August 2013 and July 2014. A total of 1,067 companies, from all sectors except minerals, petroleum and arms, were interviewed.
The national stakeholder meeting on NTMs on 29 October 2014 in Bangkok with representatives of the Thai public sector, the business community and other stakeholders focused on validating the survey results as well as identifying necessary measures to address the problems faced by Thai companies. The insights and recommendations of the meeting will be incorporated in the final NTM country report on Thailand, which will be published as part of the ITC series on NTMs.
Resources
What can be done to encourage Thai SMEs to Export? | NTMs Related Difficulties Faced by Thai Fresh Food Exporters |
Executive Summary (draft): Thailand: Company Perspectives (in English)
Executive Summary (draft): Thailand: Company Perspectives (in Thai)
Presentation: Stakeholder meeting on non-tariff measures applied on Thai exports and imports