Thailand’s Banana Exports to Japan
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Abstract
Japan is the top banana importing country in the world. Thailand and Japan have signed the Thailand-Japan Economic Partnership Agreement (Japan-Thailand Economic Partnership Agreement: JTEPA) since 2007. However, Thailand has not been able to export bananas to Japan in accordance with the tariff quota received since JTEPA came into force, despite Japan's continuous increase in banana imports. This research finds that Thailand’s actual exports of bananas to Japan are less than the potential exports, which results from 2 factors. First, the actual demand for bananas is less than the potential demand for bananas, reflecting the problem of demand-driven forces. Second, the actual supply of bananas is less than the potential supply of bananas, reflecting the problem of supply inefficiency. The Thai government could implement demand-side and supply-side measures to increase the actual banana exports closer to the potential banana exports. Also, these measures could help Thailand reduce trade deficit with Japan.
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