Connect with us

Trade

Thailand to ask US for a review of GSP decision

Thailand is to ask the United States to reconsider the removal of trade preferences for Thai exports under the Generalized System of Preferences, Commerce Jurin Laksanavisit said.

Published

on

iStock-1144933955.jpg

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.

Source link

Business

Pandemic drives sea freight prices to record high

The Covid-19 pandemic, which initially brought global shipping to a virtual standstill, did not bode well for the industry and led to “an unprecedented drop in demand”

Published

on

UTCC: Thai export sector to be affected by US-China trade war

Container shipping prices have reached record highs some 18 months after the outbreak of the coronavirus pandemic which disrupted maritime logistics chains and drove demand sky-high.

(more…)
Continue Reading

Trade

Thailand and EU resume FTA negotiations

Thailand and the European Union (EU) are now back in talks to establish a Free Trade Agreement (FTA), for the first time since the initiative was put on hold in 2014.

Published

on

BANGKOK (NNT) – Thailand and the European Union (EU) are now back in talks to establish a Free Trade Agreement (FTA), for the first time since the initiative was put on hold in 2014.

(more…)
Continue Reading
Wise

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 14,153 other subscribers

Recent