The decision by the U.S. to suspend Generalized System of Preferences (GSP) treatment to Thailand, requiring all Thai exports to the U.S. to be subject to duties, has raised confusion among many sectors in Thailand.
Once trade preferences for Thai products are removed, Mr Jurin said that those products become subject to taxation of between 4% and 5%, making such products more expensive in the US market.
He said that, in the past, whenever trade benefits for Thai products exported to the US were suspended, Thailand appealed to the US adding, however, that it was at the US’s discretion whether to reconsider the suspension.
He played down the impacts of the US move, however, saying that, although US$1.8 billion worth of Thai exports were granted trade preferences by the US each year, only about US$1.3 billion worth of Thai exports actually applied for the benefits.
Mr Jurin said that, due to the taxation resulting from the removal of GSP privileges, Thai exporters will face costs, estimated at between ฿1.5 billion and ฿1.8 billion baht annually, should they wish to maintain the pre-change prices of its products in the US market.
A major issue for Thai exports
The Thai’s chief strategist Khunying Sudarat Keyuraphan, however, said that the suspension of trade benefits was a major issue which will heavily impact Thai exports to the US at a time when exports are already declining due US-China trade tensions and the strong baht currency.
She urged the Thai government to hold immediate talks with the US and to ascertain the actual reason for the US action against Thai exporters, while predicting unemployment in Thailand will increase, with as many as 500,000 Thai workers being laid off.
The Minister of Labour has called an urgent meeting to address the labour concerns cited by the U.S. as a factor in the decision to revoke trade preferences.
Thailand to increase rice exports to 6 million tons this year
BANGKOK (NNT) – The Commerce Ministry has launched measures to increase rice exports to 6 million tons this year, valued at around 150 billion baht, with Indonesia, China, Bangladesh and Iraq set to be the main markets under government-to-government (G2G) deals.
UK exporters’ use of Singapore as ASEAN’s supply chain gateway boosted by new bilateral trade agreement
Singapore’s role as a hub for UK companies, whether as exporters or investors accessing Southeast Asia’s and broader Asian dynamic economies, was elevated by the new UK-Singapore trade agreement (UKSTA) which came into effect on 1st January 2021.
Cross-border trade is expected to grow up to 3-6%
BANGKOK (NNT) – Thailand’s cross-border trade is expected to recover to growth of 3-6% this year, helped by COVID-19 vaccine distribution and the global economic recovery.
Foreign Trade Department Director-General Keerati Rushchano said cross-border trade, which includes transit trade, is likely to generate 1.36 to 1.40 trillion baht, up from 1.31 trillion baht in 2020.
According to Mr Keerati, the key risk factor that may derail border trade growth is the political chaos in Myanmar that will weaken purchasing power there and cause a delay in goods transport.
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