Tai Chi Free Trade Agreement Will Benefit Greatly If The Spinning And Weaving Industry Is Signed.

Chile is a trading partner who should import high-quality natural resources such as copper and ore as raw materials and Thailand enterprises interested in expanding the Latin American market.

Chile's economic growth is strong and its purchasing power is high. The government of Chile implements goods and services.

In particular, once the Thailand Chile Free Trade Agreement is signed, Thailand commodities will enter the Chilean and Latin American market more conveniently and cost less, thus strengthening the competitiveness of Thailand in the market.

The Kai Tai Research Center believes that Thailand's export commodities that can benefit from the free trade agreement include pickup trucks, household appliances, cement, plastic pellets, rubber products, canned goods, etc.

And ready to eat food, and agricultural products.

It is expected that the entry into force of the Thailand Chile Free Trade Agreement will increase the total value of bilateral trade by 20-30%.

Although Chile's most favored nation tax rate (MFNRate) is at a low level (averaging 6%), the Thailand Chile Free Trade Agreement may not be very effective in reducing the export cost of Thailand to Chile. However, compared with other Asian countries (China, Japan, Korea and Malaysia) that have signed FTA with Chile, the Thailand Chile free trade agreement still has important significance for Thailand's competitiveness and market share in South America.

Because Thailand exporters can expand the market of other countries in the region through Chile.

Although Thailand's exports to Latin America now occupy Thailand.

The proportion is not high (2% in 2011), but because Thailand's main trading partners, such as the United States, Europe and China, are slowing down, expanding the market in other regions will help Thailand operators to reduce their dependence on market demand in a single country to diversify their risks.

Kai Tai research center recommends that Thailand operators wishing to enter the Chilean market should have an in-depth understanding of the country's culture, consumer behavior, market strategy and entry timing, so as to accurately grasp the target customers.

In terms of culture and consumer behavior, Chilean people are easy-going and optimistic, like big families like Latin Americans. In January and February, Chilean holidays should be avoided, and business activities should be avoided during this period.

In terms of market strategy, entering the market through joint ventures or finding agents can help reduce the time needed to operate locally.

Although these are minor matters, they are also factors that determine the success or failure of enterprises.