Development of BIMSTEC Free Trade Area for Thailand in Indo-Pacific

Abstract

To develop a policy for creation of economic value and utilise the development of Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) free trade area for Thailand, two research tools are adopted in this article. The first one is based on the Global Trade Analysis Project (GTAP) model, adopted as a tool to explore quantitative impacts from the implementation of free trade area. Due to the limitations of the model, however, we have adopted a complementing qualitative analytical framework to ensure that the research must be as comprehensive as possible in every aspect. The qualitative analytical framework chosen in this article is called PEST analysis. Having completed field research, in-depth interviews, focus group meetings and model studies, this article concludes that BIMSTEC is a large-scale market with high purchasing power and growth rate as well as a great source of vast natural and human resources. It is situated not far from Thailand, and at the same time, its social and cultural conditions are very close to those of Thailand’s. It concludes that a stronger BIMSTEC is an essential foundation of Indo-Pacific. JEL Codes: F13, F 15