The Problems Of Thailand’s Palm Oil Export Trade And The Countermeasures

Under the background of the era of economic globalization, in many countries and regions, the expansion of the foreign trade export becomes the direct driving force of the economy. Exports can help enterprises which have a comparative advantage breaking capacity limits in the domestic market and to achieve economies of scale in the international market. They can also learn the more advanced technology and management system, at the same time get enough foreign exchange earnings. Thailand is also a country that implements export-oriented economic policies, with the development of economy, foreign trade occupies a more and more important position in Thailand’s economy, the data shows that in the mid- 1980- s Thailand’s merchandise exports less than $10 billion, by the end of 2014, Thailand’s merchandise exports reached $227.5 billion, we can see that Thailand attaches great importance to developing export trade in recent years.Thailand is a country with extremely rich natural resources, it has traditional agricultural economy, and it’s one of the five major agricultural exporter in the world. In addition to,Thailand is the biggest producer of natural rubber, and is rich in rice, corn, cassava, crops such as palm oil, natural agricultural products become the one of the major sources of foreign exchange income in Thailand. At present, palm oil is one of the largest varieties of vegetable oil consumption and trade in the world. Palm oil, the main economic crops in Thailand, it can provide a stable source of food and energy. Thailand has established palm industrial zone since 2005 which can integrate palm upstream and downstream industry chain enterprises. They help fully tap potential of palm oil industry, so as to expand exports and improve competitivenes of Thai exports of palm oil in the international market, especially in the competitiveness of Asean. As the members of the association of southeast Asian nations, Indonesia and Malaysia is the world’s first two major producer of palm oil, and palm oil production in Thailand is far less than they are. At the same time, because of the geographical position, the quality of Thai palm oil is poor than other major producers, which makes the export competitiveness of Thai palm oil be greatly reduced. Palm oil in Thailand is temporary duty-free account goods, so domestic producers also face competition pressure that brings from low-cost import palm oil. In short, Thailand’s palm oil industry is faced with the plight of many aspets such as production and export. It is necessary to summarize the existing problems when Thai palm oil exports, and put forward feasible suggestions and solutions. Further more, we will help promote exports of Thai palm oil and help palm oil industry which has great potential to gain better and faster development.This paper first describes the Thailand palm oil production process, the existing main items and the way the palm oil export status and price; The following summarizes the main problems in the palm oil exports. They include domestic production, competitive pressures that trading partners-Indonesia and Malaysia bring,and export problems that bring from protective trade policy in Thailand; Finally, we put forward some rationalization proposals aiming at the above problems. We will list specific solutions in such aspects as production, sales market and government policy.