Bangkok, July 11, 2024 – In a significant economic development, Thailand has successfully signed a lucrative rice trade agreement with the Philippines, valued at 2.8 billion baht. This strategic move is expected to enhance Thailand’s economic standing and agricultural exports significantly.
The deal, formalized through nine memorandums of understanding (MoUs), encompasses the export of 130,000 tonnes of Thai rice to the Philippines. The signing ceremony, held from July 3-4, was spearheaded by Ronnarong Phoolpipat, director-general of the Foreign Trade Department, alongside Charoen Laothamatas, president of the Thai Rice Exporters Association.
This agreement marks a critical expansion of Thailand’s market share in the Philippines, a country anticipated to import 4.1 million tonnes of rice this year due to lower domestic production. The increase in import demand is attributed to insufficient local supply, exacerbated by recent agricultural challenges.
“The department and commercial attaches in the Philippines have been instructed to expand the market for Thai rice,” said Mr. Ronnarong. He noted that the Philippines’ government has also reduced import tariffs on rice from 35% to 15% until 2028, further boosting Thailand’s export potential.
In a bid to fortify this relationship, the Thai delegation engaged in extensive discussions with the National Food Authority (NFA) of the Philippines, ensuring that Thailand’s rice exports would play a pivotal role in supporting the Philippines’ food security. This collaboration underscores Thailand’s commitment to being a reliable partner in addressing regional food supply challenges.
The Thai Trade Center in Manila, in collaboration with the Foreign Trade Department, organized a promotional event on July 4, themed “Premium Thai Rice with Authentic Thai Food.” The event, held at the award-winning Mango Tree restaurant, aimed to highlight the quality and authenticity of Thai rice, enhancing its appeal among Philippine importers and consumers.
The impact of these efforts is already visible, with rice exports to the Philippines increasing by 382% year-on-year in the first half of 2024. This surge underscores the effectiveness of Thailand’s strategic market expansion and the growing demand for its agricultural products.
Looking ahead, this deal is poised to strengthen Thailand’s economic ties with the Philippines, paving the way for increased trade and cooperation. The reduction in import tariffs and the anticipated growth in rice imports highlight the mutually beneficial nature of this agreement.
In conclusion, Thailand’s ability to secure such a substantial deal reflects its strategic prowess in international trade. By capitalizing on opportunities and forging strong alliances, Thailand is ensuring its position as a key player in the global agricultural market. The coming years will likely see further growth and collaboration, reinforcing Thailand’s economic resilience and diplomatic strength.