The Board of Trade of Thailand indicated it expects the recent collapses of US banks to have effects on Thai exporters. Meanwhile, it is urging the government to quickly make progress in FTA negotiations to stave off the impacts.


Sanan Angubolkul, Chairman of the Board of Trade of Thailand, acknowledged that Thai exports will be impacted by the banking crisis in the United States, as the matter is related to US buyers’ confidence. He said exports to Europe, which is another large market, must be followed up on.


Mr. Sanan said Thai private sector representatives are urging the government to quickly conclude the Thai-US FTA agreement. Meanwhile, FTA negotiations with EU states are expected to conclude in 2 years, paving the way for Thai exporters to grow their markets into the EU.


Meanwhile, the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) expects the growth of exports to be negative for most months in the first half of this year. It expects the situation to improve in the latter half and growth to improve to minus 1% or 0% by the end of the year.


Mr. Sanan indicated the private sector and the commerce ministry have set up a war room to address the export decline by reaching into new markets such as Saudi Arabia and China. Thai businesses will soon hold a roadshow in China to boost exports, especially fruit exports.


The head of the Board of Trade noted that inflation is not expected to be elevated this year and is believed to stay in the range of 2-3%. Meanwhile, the collapse of banks in the US will likely prompt the Federal Reserve to consider toning down its forceful raising of the interest rate. This would, in turn, convince other countries to refrain from rapid interest rate hikes.


Mr. Sanan said he hoped Thailand’s Monetary Policy Committee would raise interest gradually. He also believed interest hikes would slow down in this year’s latter half and the baht’s value would remain within the current range.

Board of Trade expects US bank collapses to impact Thai exports