Ministry: Exports may be hit by Gulf tensions

Escalating tensions in the Persian Gulf may affect Thai exports to an extent, said the Commerce Ministry.

Arab nations led by Saudi Arabia cut links with Qatar on Monday, accusing the country of supporting terrorism. They include Egypt, the United Arab Emirates, Bahrain, Yemen and the Maldives.

Qatar is the third largest market for Thai products in the Gulf Cooperation Council (GCC) countries.

Although the Dubai-Qatar road link is no longer available, Thai goods can still be shipped by Qatar Airways, which operates Bangkok-Doha direct flights, said Malee Choklumlerd, director-general of the International Trade Promotion Department.

"If the situation drags on, Thai exports to Qatar has to go through Doha ports instead of Dubai," she said.

The most vulnerable Thai products are those normally shipped through Dubai -- automobiles, air conditioners and refrigerators. The unaffected exports are jewellery and fresh fruit and vegetables, which are normally shipped by air.

"As Dubai-GCC transshipment trade figures are not available, it's difficult to estimate the value of Thai transshipment goods across the border," she said.

GCC comprises the United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait and Yemen.

From January to April this year, Thai exports to Qatar were worth $102.2 million, down 21.4%. The top five exports are gems and jewellery ($27.8 million), automobiles ($24.8 million), air conditioners ($16.2 million), canned seafood ($3.5 million) and refrigerators (3.2 million).

Pimchanok Vonkorpon , director-general of the Trade Policy and Strategy Office and spokeswoman of commerce ministry, said the sanctions were unlikely to affect world oil prices since Qatar made up 1.9% of all Opec production.

"The US steadily increasing output is the key factor pushing down world oil prices, which may dip below the estimated $50-$60 a barrel," she said.

Qatar's economy will be hit by the sanctions as 40% of its food come through neighbouring countries. As the No.1 exporter of liquefied natural gas, its output might be hard hit as well. The scenario will affect its ability to buy Thai products, she said.