Thailand’s sugar exports to China surge due to ACFTA

The ASEAN-China Free Trade Agreement (ACFTA) has substantially boosted Thai exports to China, particularly in processed sugar products such as syrup, artificial honey, and different sweeteners. Thailand has become the primary supplier in China’s import market, securing the top position with a total value of $854 million (29.8 billion baht), constituting 86.9% of China’s imports. Imports from Thailand to China experienced a remarkable 103% year-on-year growth in volume. This surge in trade reflects high demand in the Chinese market of Thailand’s processed sugar products.

A key factor contributing to Thailand’s export dominance in the category is utilization of trade benefits under ACFTA. ACFTA bestows preferential treatment upon Thailand with the exemption from import taxes for processed sugar upon presentation of a certificate of origin (Form E) issued by the Foreign Trade Department. In absence of the benefits provided by the ACFTA, Thailand would be subject to the standard import customs duty at the rate of 30%.