Issue 43

Thailand and Chile share a long history of cooperation and the recently-signed free trade agreement (FTA) promises even greater collaboration for both countries.

The free trade agreement signed by Thailand and Chile in November 2015 will contribute to the economic growth of both countries, states Javier Becker, the Chilean Ambassador to Thailand.

“The FTA does not only facilitate trade and business related activities between Thailand and Chile but it will also drive innovation through diversity and provide competitive advantages to importers and exporters of both countries,” says Becker.

In 2016, both countries will start implementing all the rules and regulations of the FTA.

“I believe this will enhance the competitiveness of Chilean products [coming] into Thailand, leveling the market conditions with other countries such as Australia, New Zealand, the US and the EU,” says Becker. “The FTA will also allow the introduction of new products and services, increase intra-regional distribution channels and offer competitive prices, which will satisfy customer or market demand in the long run.”

The ambassador is planning to host some seminars for the Thai business community upon how to conduct businesses with Chile. “Another major plan is to set up a Thai-Chilean Chamber of Commerce to build a long-lasting trade relationship with Thailand,” he says.

The FTA is the latest episode in a long history of diplomacy between the two countries, which commenced in 1962. From 1967-1970, Chile had a chargé d’ affaires with residence in Bangkok. “Later on our representative was the Ambassador with residence in Tokyo until the opening of the Embassy in 1981,” Becker says.

The two countries signed a bilateral agreement in 1981, and formed, the Chilean Export Promotion institution (ProChile) in 2012. “ProChile has a very active role in facilitating the entrance of new Chilean export companies into the kingdom,” Becker says.

According to ambassador Thailand has been the destination for the largest Chilean investment in Southeast Asia. In July 2012, Magotteaux, a subsidiary of Chile’s Sigdo Koppers Group, officially opened its second factory in Saraburi province to be its regional production base. This was followed by a third factory in 2014, and it is now the company’s manufacturing and logistics hub in Asia.

“The kingdom has many favorable conditions for business opportunities due to its location, infrastructure and resources,” Becker adds.

Nonetheless, he admits that promoting relationships between both countries is rather challenging due to their geographical distance.

“Our main focus is to promote knowledge through food, culture and people,” he says, adding that Thailand has received much coverage in Chilean media over the last few years. “This has created interest and provided better understanding about Thailand. Every year, approximately 15,000 Chilean citizens visit Thailand and we are happy to see that our nationals have a lot of interest in this country.”

Words by Manisa Maini