Thailand’s sugar exports to China surge thanks to ACFTA

Thai exports to China, particularly of processed sugar items including syrup, artificial honey, and various sweeteners, have seen a significant surge, thanks to the ASEAN-China Free Trade Agreement (ACFTA).

Ronnarong Phoolpipat, director-general of the Thai Foreign Trade Department, shared that China is the primary export market for Thai agricultural products, accounting for 42% of the overall shipments. High-demand products include processed sugar such as syrup, artificial honey, caramel, and other sweeteners that find use in food, beverages, and pharmaceuticals.

In 2023, China imported processed sugar worth 983 million USD (31.4 billion THB). Thailand held a dominant position in China’s market, with a total value of 854 million USD or 86.9% of China’s imports. The import volume from Thailand to China saw a year-on-year growth of 103%.

According to Ronnarong, the trade benefits under ACFTA, including zero import taxes for processed sugar when certified with a certificate of origin (Form E) issued by the department, have been key contributors to Thailand’s export dominance in this category. Without the ACFTA, the normal import customs duty, also known as the ‘most-favoured nation rate’, would stand at 30%.

Ronnarong positioned processed sugar as a high-potential product for Thai exporters, who can leverage benefits from free trade agreements to expand their global market presence.

In addition to the Chinese market, ASEAN is a high-potential market for Thai processed sugar as its population exceeds 600 million. Thai processed sugar is in high demand, particularly in the food and beverage industry./.

Source:Vietnamplus