Recent reports have confirmed the intention of the Thai authorities to increase the volume of trade with Mongolia. This is part of a long-term plan for bilateral trade between countries to reach up to US $ 100 million (3.1 billion baht) over the next two years.
All meeting details
This information was released following a meeting between Thai Minister of Commerce Jurin Laksanawisit and Tumur Amarsanaa, who is Mongolian Ambassador to Thailand. Both sides are keen to find new ways to boost trade between them and increase economic relations.
It was the first time that a Thai trade minister had participated in discussions like this with a Mongolian ambassador since the opening of the Mongolian embassy in Bangkok in 2000.
It is part of a five-year cooperation plan that began in 2019 and runs until 2023. The general idea is to increase the level of cooperation, investment and bilateral trade between the two countries.
What products could be more traded?
Among the products expected to be exported to Mongolia are rice and rubber, with Thailand, the world’s leading exporter of the latter in 2019. The amount of safe and quality food produced in Thailand means Mongolia could become an important market. It is also hoped that medical tourism in Thailand will become more popular among Mongolians through this agreement.
Other products that Thailand could send to Mongolia include paper and automotive products. From Mongolia, Thailand could import animals, textiles and metal ores. The annual average trade value between Thailand and Mongolia over the past five years is $ 49.8 million.
Currently, Mongolia ranks sixth among Thailand’s most important trading partners in East Asia. On a global basis, it is down to 126e place, however. Over the past five years, the average annual trade figure between countries is just under $ 50 million, and in 2020 it was less than $ 37 million.
How could this affect national currencies and commodity prices?
Ideally, this new plan for economic cooperation will help both countries prosper. One of the effects that trade deals like this can have is on the national currency. The right balance of imports and exports helps any country maintain a strong currency, while too many imports can lead to its devaluation.
Changes like this can be of interest to traders who trading CFDs on different commodities or currencies. This type of investment involves speculating on future prices without actually buying the asset. In this way, traders use leverage to potentially earn profits even on relatively small price changes.
When natural resources such as food and minerals become more in demand due to new or growing markets, it can cause their prices to increase accordingly. The Mongolian market may not be big enough to have a significant impact on the Baht or Thailand’s top exports, but it’s definitely worth keeping an eye out for new markets like opening up.
All of this means that the new approach to doing business between Thailand and Mongolia could benefit a wide range of people, from business owners to consumers and traders.