Somkiat Anuras, vice-chairman of the Thai Chamber of Commerce (TCC) said that Brazil along with other Latin American countries offered Thailand great potential, its vast population and resources as well as high purchasing power. Anuras who travelled with a trade delegation led by Thailand Trade Representative Vachara Panchet last month to Brazil and Panama added that most Thai exporters still remained reluctant to tap into the region despite immense opportunities.

The chamber has recently modified it projections on Thai exports to the Latin America region by $7.5bn for this year from $5bn. While the earlier forecast between this year and 2015 was $10bn but latest release says those figures could go up to $15bn per annum in the coming years.

The TCC vice chairman said as the world was eager to trade with Brazil owing to its growing economic status, the chamber was not far behind to take stock of the situation. While Brazil, South America’s biggest economy and the world’s eighth largest, commences work on 2014 World Cup and the 2016 Olympics, the chamber regards that it may provide opportunities for Thai contractors and souvenir producers.

Anuras opines that the Thai investors must forge joint ventures with the Brazilian infrastructure developers to derive infrastructure building opportunities which will be surfacing with the preparation of two mega sporting events. Brazil is expected to spend billions of dollars for add on construction of basic infrastructure, buildings, offices and residences as well as sports arenas, hospitals, hotels and shopping complexes.

Last year, Thailand exported chiefly, automobiles and parts, rubber and machinery to Brazil US$1.22bn worth goods. Although the bilateral trade accrued a trade deficit of $880mn against Thailand due to imports totaling $2.1bn, Brazil still remains the largest trade partner of Thailand in the region.

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Martinelli will assume office on July 1 as the President of the country for a five-year term. His primary focus would be to bring down the crime rate as it was regarded as the most important issue at the moment, according to several opinion polls. Besides, he will have to quickly work towards his campaign promises of flat taxes, infrastructural development and tourism promotion since it is projected that the economy would grow below 4 percent down from close to 9.2 percent last year, the highest in the region. The $5.25bn expansion of the canal to increase its capacity to accommodate larger ships and maintaining the economic growth will be his other major challenges once he takes office this July.

The flat tax rate is expected to be between 12 and 15 percent for individuals and full waiver of taxes to citizens below a certain financial category. Although the country’s economy grew at a rate of 8.7 percent in the last five years and unemployment dropped from 12 percent to half of it, more than 30 percent of the 3.4mn population still live under poverty. Under the flat tax scheme even the corporate tax is likely to be slashed by over 10 percent from its current 30 percent levels.

Martinelli’s victory and margin despite strong economic growth means that people are keeping high hopes on him who has contested on ‘change’ plank. Martinelli is a self-made businessman and the former minister of Panama Canal affairs. He owns Panama’s largest supermarket chain, Super 99 and founded CD ten years ago. His family hails from the Tuscan town of Lucca in Italy, is one of the richest men in Panama.

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