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SURF THE AEC

per year worth of trade at the Mae Sot- Myawaddy border, which is 12,917.47. Thai important exports are Polyethylene Resins (plastic
twice as much as before, considering this is the border with the most beads), chemicals, auto parts, jewelries, air conditioning equipments,
vigorous trade of Myanmar. Recently, Thai government approved machinery, radio, television, iron, copper, and computer. It should
THB 1.8 billion budget to help Myanmar develop a 68 kilometer road, be noted that India’s middle class has been growing remarkably fast
connecting Kawkareik to Hpa-an and Bago (or formerly known as that domestic production has been struggling and lagging to cope
Hanthawaddy), especially to accommodate Thai traders. with, giving many of Thai goods a chance to enter the market, e.g.
India is also especially enthusiastic in making this project plastic and melamine products, cars, natural rubber tools, tires, and
happening because: air conditioners. Major imports are machineries, crude oil, electrical
1. It is part of India’s Prime Minister Narendra Modi’s Act East appliances, chemicals, jewelries, and auto parts and equipments.
Policy to connect ASEAN and China The expansion of this bilateral trade consequently led to the need for
2. The northeastern region is the poorest part in all of India-- a better logistics system and a better, safer and faster trade route,
connectivity with ASEAN will significantly help develop the region’s making the IMT Trilateral Highway the most fitting answer-- and it
economy. surely will be one of the busiest routes in all of Asia.
3. With China’s new commercial and economic initiatives in Tourism is also another main focal point of this cooperation
expanding the Silk Road to ASEAN and Thailand to enhance its’ as natural resources for eco-tourism in these countries are still
role in the region under the One Belt One Road project, India saw abundant and in great condition. Also, it has been continually
no other alternative but to assert itself more aggressively into the in high demand both from domestic and inbound nature-loving
region too-- to balance out with the Chinese. tourists. Though nature-loving in character, this group of eco-pro
This benefits Thailand in stepping up as the center of the region’s tourists craves convenience and comfort of the 4-5 star hotels and
and global economic and trade, making Thailand a true portal into accommodations-- Maldives tourism being a good example-- which
enormous markets: India (1.3 billion people), China (1.4 billion) and posted a good opportunity for Thai goods and services to penetrate
ASEAN (600 million), as well as drawing more investment into the Myanmar’s and India’s market sectors like tourism and hotel,
country. So, it came as no surprise that Thailand’s Eastern Economic construction and construction materials/equipments.
Corridor (EEC) has attracted much attention from investors from This economic cooperation and connectivity among the three
Japan, China, Hong Kong, Russia and Singapore. The direction of countries came to serve the interests of all participants. Thailand
development coincided with the study of the Asian Development is now progressing beyond the 3.0 era, or the heavy industrial era-
Bank (ADB) that indicated the moving dynamic of global economy -where the main focus is on manufacturing goods with borrowed
towards Asia with China and India as the main driving gears. technologies, such as steels, refined oil products, cars, construction
Furthermore, the ASEAN-India Free Trade Agreement (AIFTA), when materials and cement—into the 4.0 era, where economy is driven
finalized, will help expand trades between the partners exponentially. by innovation. Myanmar and the northeastern India, though, are still
The Thai-Indian trade in the first ten month of 2017 (January- in the progress of moving from the 1.0 era or the agricultural age
October) amounted to USD 377,765.99 million, increasing by 11.75 towards the 2.0 era of light industry which entails the need to import
percent compared to the same period of 2016. Thai exports to India many tools and equipments for manufacturing units in various sectors
in this period reached USD 195,341.73, while imports amounted e.g. garment, bags and processed agricultural products. Demands for
to USD 182,424.26, with the surplus in Thailand’s part worth USD imported production materials are rising, and naturally goods flows

58 FOOD FOCUS THAILAND JUL 2018