Page 39 - Bullion World Issue 3 July 2021

Bullion World | Issue 03 | July 2021

Thailand has free trade agreements Naturally, goods and services flow to
with two of the largest precious metals locations where they are most welcome
consumers in the world, which are and freely traded. In this way, both India
both India and China. In some ways, and China can still trade with each other,
Thailand serves as the middle grounds via Thailand, in order to benefit from the
where the two countries can trade as trade agreements which, exist bilaterally.
an intermediary, where some form of As China looks to regions which comply
value added processing is conducted. In with its sourcing initiatives, it will in turn
essence India can send precious bearing drive demand to procure materials from
materials to Thailand and Thailand can the ASEAN and APEC region. With flows
provide a value added process to the coming to and from India into the Thai
materials, then re-export the refined market, it is certain that those materials
materials as a “Made in Thailand” in some format will end up in the China
product. The Thai origin products can market as Thai products.
then flow into China under the various
China-Thai FTA agreements which
enable trade to be done effectively.

Tariff elimination applied since 2004 -2005 for 50%, then 75% from 2005 – 2006,
then 100% tariff reduction in 2006

HS Code: 711319 include a definition for precious metals

Reserve bank of India trade statistics indicating size of trade with Thailand in shown in
Rupees

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