Beware of non-tariff barriers, exporters told
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The Foreign Trade Department has warned Thai exporters to become more aware of rising non-tariff barriers (NTBs) due to slowing economic growth of trading partner countries, mainly the United States, the European Union, China, and India.
It warned that products that will be hardest hit from rising NTBs are foods and toys as each country will raise awareness about food safety concerns and try to reduce its trade deficit by promoting a buy home-made goods campaign.
Surasak Riengkrul, deputy director-general of the department, said that the global economic slowdown this year would continue to affect trade growth of the Kingdom.
“The slowdown in the global economy will not only encourage developed countries to focus more on protectionism, but also other emerging economies, including BRIC nations [Brazil, Russia, India, and China] as their economies will show a slower growth this year,” said Surasak.
NTB measures that should be closely monitored are the American Economic Recovery and Reinvestment Act resulting in a Buy American campaign, the US Department of Homeland Security’s move to restrict imports as it wanted the property industry to use domestic raw materials.
The EU has recently imposed stringent control measures for foods and toys imports. France has forbidden the use of Biphenol A (BPA) substance in food products, while Denmark has increased import tariff for products that have high percentage of triglyceride.
Brazil has offered privileges to its people for buying eco-cars that have been assembled in the country.
In Asia, China has launched a “Buy Chinese” campaign, while Japan has imposed the Food Action Nippon to promote the agricultural sector in the domestic market. India has stringently monitored import of sensitive goods such as steel. Indonesia has strict import regulations for 500 products, including garments, textiles, machines, electronic, toys, footwear, food and beverage. Imported goods such as helmets, LPG gas tank, water pumping, and tiles must get a ‘Bahasa Indonesia’ labelling.
Meanwhile, Vietnam has imposed measures to restrict the import of particular goods to limited ports, while Malaysia has stringent inspections of meat imports.
