Slight impact from lost GSP privileges: central bank
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Thai exporters should witness a limited impact from the disappearance of Generalised System of Preferences (GSP) privileges in the European Union, said the central bank spokesman.
Chirathep Senivongs Na Ayudhya said today that only 4 per cent of Thai exports is destined to the European Union. Meanwhile, import duties on Thai products to the bloc are raised by only 2-6 per cent on average - except canned pineapple and processed seafood which are subjected to a sharp increase in import duties.
He noted that auto parts, engines and some electrical appliances made in Thailand are still enjoying brisk demand in the EU.
However, he noted that the European Union's decision to axe the privileges since January 1 would hurt Thailand's competitive advantage against the countries which are still enjoying the privileges like Vietnam and Indonesia. Another disadvantage is Thailand has no free trade agreement with the European Union, through which exporters can enjoy lower tariffs. Exporters in Malaysia and Brazil are protected by FTAs though losing GSP privileges.
