A study conducted by Thailand’s Department of Trade Negotiations found that joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), would boost Thailand’s gross domestic product (GDP) by 0.12%, or THB 13.3 billion, and increase investment and exports by 5.14% and 3.47%. If Thailand doesn’t join the CPTPP, its economy will lose THB 26.6 billion or 0.25% of GDP, with investment and exports down by 0.49% and 0.19% respectively.
The CPTPP is a free trade agreement involving Canada and 10 other countries in the Asia-Pacific region, namely Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Once fully implemented, the 11 countries will form a trading bloc representing 495 million consumers and 13.5% of global GDP. If Thailand stays outside of the CPTPP, it will face intensified competition from regional rivals such as Malaysia and Vietnam in areas like electronics and agriculture.
The findings of the study will be presented to the cabinet to decide whether Thailand will join the CPTPP. If Thailand decides to join, a committee will be formed to negotiate rules and conditions. The decision would require approval from Thailand’s parliament. Opposition parties and certain business groups oppose Thailand’s membership in the CPTPP.
(Source: Bangkok Post)