NZ-Thailand trade deal under study

By BRIAN FALLOW

New Zealand and Thailand are studying the feasibility of a bilateral trade deal.

Australia and Thailand have already advanced to the next step, negotiation of a closer economic partnership agreement.

In the year to April, Thailand was the 13th largest source of imports, worth $551 million.

It was New Zealand's 19th largest export market, worth $346 million.

Trade Minister Jim Sutton said that depending on how the Australian-Thai talks turned out they could displace some of New Zealand's trade with Thailand, especially in dairy products.

"Thailand has 70 million people and a growing economy.

"It's a not insignificant market for dairy products now and although they have a dairy industry of their own, which they have carefully nurtured for years, there is no real prospect of Thailand becoming self-sufficient in dairy products," Sutton said.

"Thailand has significant tariff barriers, and quantitative restrictions on dairy imports.

"There is a complex bureaucratic structure in its customs procedures one would hope would be able to be streamlined if negotiations proceed."

Services exporters and suppliers of food processing technology could also benefit from an agreement with Thailand, he said.

He expects the scoping study to take about six months.