Thailand signed a memorandum of understanding (MoU) on July 12 to form a "mini-FTA" with Kofu city in central Japan.

At the signing ceremony of the MoU (Source: NNT)

Thai Commerce Minister Jurin Laksanawisit, who presided over the MoU signing ceremony, said the government is also pursuing similar mini-FTAs with other places including Gyeonggi province in the Republic of Korea. He said mini FTAs are a key policy the ministry is pursuing to boost trade, investment and economic cooperation.

According to Jurin, the deeper trade partnerships at the city or state level will help boost trade and investment in targeted industries. The MoU signing with Kofu city is expected to bring about several mutual benefits to Thailand and Japan, whether it involves manufacturing, joint marketing or technology transfers, he said.

This deeper cooperation is estimated to increase the trade value in gems and jewellery between Thailand and Japan by 5 percent to not less than 15.5 billion THB this year.

A similar pact with Telangana state in India was scheduled to take place in January this year but was postponed.

Two-way trade between Thailand and Japan totalled 50.5 billion USD last year, with exports from Thailand accounting for 22.8 billion USD and imports worth 27.7 billion USD. Thailand aims for a 4 percent increase in exports to Japan this year.

Source: VNA