Royi Sal Jewelry is a leading manufacturer and exporter of high-quality jewelry based in Bangkok, Thailand. With over two decades of experience, the company has established itself as a reliable source of unique and stylish designs. One market that Royi Sal Jewelry can tap into is to expand its customer base in South America, which offers significant growth potential for the company.
And with the Thailand-South America Free Trade Agreement (TSAFTA), the company can benefit from a range of special benefits and advantages when exporting to the region.
What is the TSAFTA?
The TSAFTA is a comprehensive trade agreement that covers trade in goods, services, and investment between Thailand and the member countries of the South American trade bloc, Mercosur. Mercosur is comprised of Argentina, Brazil, Paraguay, and Uruguay, which together form a market of over 290 million people. The TSAFTA was signed in 2009 and came into effect in 2015. The main aim of the agreement is to increase trade and investment between the two regions by eliminating tariffs and non-tariff barriers to trade.
Benefits of the TSAFTA for Royi Sal Jewelry
Royi Sal Jewelry can benefit from the TSAFTA in several ways. Firstly, the agreement eliminates tariffs on many of the products that the company exports to South America. This means that Royi Sal Jewelry’s products will be more competitively priced in the South American market, giving the company a better chance of winning market share. Moreover, the competitive pricing can help the company differentiate itself from other jewelry manufacturers in the region and offer unique and high-quality designs at affordable prices.
Secondly, the TSAFTA can help Royi Sal Jewelry overcome the non-tariff barriers to trade that exist in the South American market. The agreement includes provisions that address technical barriers to trade, such as different product standards and regulations. By aligning its products with South American standards, Royi Sal Jewelry can avoid delays and additional costs associated with complying with different regulations. This can give the company a competitive advantage in the market, where many businesses struggle with the complexity of the regulatory environment.
Thirdly, the TSAFTA can help Royi Sal Jewelry increase its access to the South American market. The agreement includes provisions that make it easier for Thai businesses to invest in South America and for South American businesses to invest in Thailand. By investing in South America, Royi Sal Jewelry can establish a local presence, which can help the company better understand the market and meet the needs of South American customers. Additionally, by partnering with local businesses, the company can leverage local expertise and contacts to expand its customer base.
Fourthly, the TSAFTA can help Royi Sal Jewelry benefit from the growing demand for high-quality, unique jewelry in South America. With a growing middle class in the region, there is a significant opportunity for companies like Royi Sal Jewelry that offer high-end products at competitive prices. The agreement allows the company to enter the market without facing the same level of competition as it would otherwise, given the advantages of the trade agreement.
Finally, the TSAFTA can help Royi Sal Jewelry streamline its export processes, reducing costs and increasing efficiency. By eliminating tariffs and other trade barriers, the agreement makes it easier for the company to export to South America. Moreover, the agreement includes provisions on customs procedures, sanitary and phytosanitary measures, and intellectual property rights, which can help the company avoid unnecessary delays and costs when exporting to the region.
For more information: https://www.trade.gov/country-commercial-guides/thailand-trade-agreements
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