Thai Cabinet to discuss response to cushion Greek financial crisis effects

BANGKOK, May 10 (TNA) – Thailand’s Ministry of Commerce will discuss the impact of the ongoing Greek financial crisis on the country at the Cabinet’s weekly meeting Tuesday to find short, medium, and long-term measures in preparation for the Thai economy to cope with any fallout effects.

Deputy Commerce Minister Alongkorn Ponlaboot said the ministry is now closely monitoring the crisis as it could spread to other members of the European Union (EU). Concerned Thai ministries will jointly estimate the Greek impacts on Thailand and the Commerce Ministry will finalise the projected impacts, suggestions and responses before proposing them for Cabinet consideration.

According to Mr Alongkorn, the Greek financial crisis must be monitored on a day-to-day basis.

Although trade values between Thailand and Greece amount only to US$240 million, or around 0.08 per cent of total Thai trade values, possible financial effects from Greece to other countries in the EU can indirectly impact Thailand’s trades and exports with the bloc.

The European Union market is the country’s second largest export market, following the Association of Southeast Asian Nations (ASEAN). Thai trade values to the EU amount to US$30 billion annually, or 11.91 per cent. Due to the economic meltdown which impacts the EU member countries together with the weakened currency of the Euros of about 10-13 per cent, Thailand’s export ratio to the bloc has drop to 11.68 per cent, affecting business of automobiles and spare parts, air-conditioners, jewellery and accessories as well as frozen food.

However, the deputy commerce minister said a study on a free-trade area between Thailand and the European Union continued, and Trade Negotiations Department was assigned to further study the issue.

The Department is also to quickly study the details and effects of the liberalisation of investment and service sectors within the ASEAN nations, which in 2010 aims to allow its member countries to invest businesses or hold 51 per cent shares in another nation in the group for 80 from 128 types of services businesses.

The commerce ministry also seeks urgent negotiations to expand ASEAN’s market to China and India, including to other potential emerging economies such as in middle-eastern and latin-american countries. (TNA)