The government plans to upgrade Thailand as a raw material procurement centre for export, starting with textiles where Thailand has both upstream and downstream industries.

The plan depends on the government fully utilising lower tariffs or tariff waivers under the ASEAN Free Trade Area (AFTA) and pacts with China, India, Japan, Australia, New Zealand and South Korea, said Srirat Rastapana, director-general of the Export Promotion Department.

The department plans roadshows in these countries in the second quarter to better promote the products demanded by each nation.

The department is also seeking to expand border trade and promote new exporters from each region of the country through co-operation with its provincial offices in Chiang Mai, Chanthaburi, Surat Thani, Hat Yai, and Khon Kaen.

Despite Thailand's numerous free trade agreements, local businesses have yet to make good use of the deals.

Kiat Sittheeamorn, president of the Thailand Trade Representative Office (TTR), said last week that Thailand has benefited from most free trade agreements except those with China, New Zealand and India.

In 2009, Thailand posted trade deficits of 3.8 billion baht with New Zealand and 3.6 billion with India against surpluses of 6.1 billion to 8.9 billion in previous years.

According to estimates by the Export Promotion Department and the private sector, exports of rice and food products are expected to grow by about 5-10% this year from $19.56 billion in 2009, with fashion and textile shipments rising 9-13% from $17.62 billion. The increases would reflect recovering purchase orders from the United States and European Union and the 2010 World Cup in South Africa.

Exports of electrical appliances are expected to grow 5% from $15.53 billion, with electronics to grow by 8% from $27.02 billion driven by growing demand for hard disk drives.

Increases are also expected for construction materials, plastic pellets and products, rubber, machinery, petrochemicals, publishing and packaging.