1. Cross- Border Agricultural Trade in the GMS Dr. Suthiporn Chirapanda Thailand Tapioca Development Institute March 2010 1

2. Year 2009 All commodities Baht 870,755 million Major groups of commodities: Agricultural 13.0 % Agro- industrial 5.9 % Industrial 71.0 % Minerals and fuels 10.1 % Thailand exports toGMS 2

3. Major agricultural products: Baht million Rubber 56,136 Cassava26,970 Fruits (fresh, chilled, frozen and dried) 7,751 Rice 7,724 Maize 3,681 Animals and animal products 2,743 Fish (fresh, chilled and frozen) 2,229 Exports 3

4. Baht 758,452 million Major groups of commodities: Fuels14.6% Capital goods36.5% Raw materials and semi-processed28.6% Consumers goods18.5% Year 2009 All commodities Thailand imports from GMS 4

5. Imports Major Agricultural Products and Inputs: Baht million Fruits, vegetables14,105 Fertilizers, pesticides12,959 Crops 7,196 Yarn and fibre 6,870 Wood and wood products 6,380 5

6. Agricultural Trade with Cambodia Exports Sugar Other livestock products Animal feed Fruits (fresh, chilled and frozen) Imports Crops Fruits, vegetables Paper pulp Wood and wood products 6

7. Agricultural Trade with China Exports Rubber Cassava Rice Fruits (fresh, chilled and frozen) Imports Fertilisers and pesticides Fruits, vegetables Yarn and fibre Crops 7

8. Agricultural Trade with Lao PDR Exports Animals and animal products Rice Fruits Rubber Imports Wood and wood products Crops Fruits, vegetables Tobacco 8

9. Agricultural Trade with Myanmar Exports Animals and animal products Herbs and spices Fruits Pork (fresh, chilled and frozen) Imports Edible meat Wood and wood products Fruits, vegetables Aquatic products (fresh, chilled and frozen) 9

10. Agricultural Trade with Vietnam Exports Maize Rubber Chicken Shrimps and prawns Imports Yarn and fibre Aquatic products (fresh, chilled and frozen) Fruits, vegetables Animals and animal products 10

11. Trade Balance between Thailand and GMS Year 2009 SurplusDeficit Cambodia China Lao PDRMyanmar Vietnam 11

12. Trend- Case of Thailand 1.Total trade between Thailand and GMS has increased 4 ½ times from B 359 billion to B 1,619 billion during 2000-2009 2.Both exports and imports have increased at about the same rate. 3.For some years, trade was in deficit. For others, it was in surplus. 12

13. 4. Examples: CambodiaTrade has increased nearly 4 times, while imports into Thailand have shot up 8 times. China Trade deficit with China for every year during 2000-2009. Rate of growth in exports is higher that the case of imports. 5. Future trend is on the increase and trade gap is narrowing, with smaller countries gaining more ground. 13

14. Factors Contributing to Successes in Agricultural Trade in GMS 1.Free trade and FTA 2.Transportation network (e.g. East-West Corridor, North-South Corridor) 3.IT 4.Trade facilitation (e.g. goods in transit) 5.Foreign investment (e.g. cane sugar, pulp) 6.Contract farming (e.g. maize, asparagus, baby corn) 14

15. Constraints to Agriculture Trade in GMS 1. Infrastructural development 2. Skilled labour 3. Political considerations (e.g. border dispute, hilltribe warlords, drug trafficking) 4. Government intervention (e.g.price and income support programmes) 6. SPS measures 15

16. Factors Affecting Agribusiness Development in GMS 1.Supply chain (e.g. from raw material to processed products) 2.Logistics (e.g. electricity supplies, refrigeration, roads, warehouses, clean water) 3.Preferential treatment (MFN status for developing countries) 16