As we can see on the table, most of the ten highest RCA for Thailand’s export to China is from agriculture, forestry and fishing sector which is HS code 07, 11, 08, 10, 06. Then, we know that Thailand’s agriculture product has more competitiveness than other countries that export the same product to china. The competitiveness of Thailand’s agriculture product related to Policy of Thailand government in agriculture sector and also related to trade agreement between Thailand and China in Agriculture sector.
Thailand and China was set up trade agreement under the ASEAN-China free trade agreement and also the Thailand-China agreement. Under the agreement between ASEAN and China, participating countries agreed to reduce tariffs on imports of agricultural products. Besides, Thailand and China also signed the Closer Economic relations Agreement under the Early Harvest Program(EHP). This program employs mainly of tariff elimination on vegetables and fruit.
Then, before agreed in bilateral free trade agreements, Thai Government developed the pre-conditions in the agricultural sector to maximize the benefit of trade agreements. That pre-conditions are done by improve the availability of good quality seeds, agricultural research and development. Thai Government has worked hard to reinvent and improve technology in agricultural sector.