Amid the Covid-19 pandemic where the global economy is at a severe crisis, there is still some good news for Thailand, especially, the Thai exporters. As of January 1, 2021, UK is officially no longer part of the European Union (EU), pressuring the country to change its tariff, taxes and regulations to trade, bringing new trade opportunities for Thai exporters.
Brexit paves the way for Thai entrepreneurs a free trade deal where exports could be made directly between Thailand and UK.
As a result, 1) the cost of Thai exporting goods will be cheaper and 2) the increment in competitiveness, particularly in terms of price.
It expects that the number of goods exempted from duty or eligible for tax exemption will increase to 1,524. Products that would be benefited such as processed chicken, rubber gloves, auto parts and equipment, jewelery, seasoning sauce, animal feed, etc.
Therefore, companies that may benefit from UK new custom regulations are Charoen Pokphand Foods Public Company Limited (CPF), GFPT Public Company Limited (GFPT), Sri Trang Gloves (Thailand) Public Company Limited (STGT), Thai Rubber Latex Group Public Company Limited (TRUBB), Exotic Food Public Company Limited (XO) and Thai Union Group Public Company Limited (TU)
Moreover, rumor has it that the Ministry of Commerce has a plan to negotiate free trade agreements (FTA) with UK, and if the negotiation succeeded, Thai goods will be able to be more competitive in the UK market, especially agricultural and processed agricultural products, jewelery, silver, clothing, automotive parts, tires and electrical appliances.