Thailand to benefit from US GSP
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The Commerce Ministry is confident in its export-growth target of 1.2 per cent for this year now that the United States is again granting tax privileges to 127 countries including Thailand under its extension of the Generalised System of Preferences.
"Even though Greece’s debt crisis could cause lower import demand from the European Union, the regaining of GSP should help promote Thai shipments, as the US accounts for 11.1 per cent of the country’s total exports,” Commerce Minister Chatchai Sarikulya said yesterday.
Many Thai products should benefit from the privileges and that should help enhance Thailand’s competitiveness in the US market.
The US is Thailand’s second-largest export market after Asean. The value of Thai shipments to the US expanded 5 per cent year on year in the first five months of 2015 to US$9.86 billion (Bt333 billion). The ministry will next week call a meeting of suppliers to the US to draw up a marketing plan to promote more trade with this key market.
Washington on Monday agreed to offer
tax privileges for 3,400 items for four years
and five months, starting from July 2013 and ending in December 2017. Thailand is the
second country after India to benefit the most from the US GSP scheme.
Besides India and Thailand, the other countries that have regained GSP privileges are Brazil, Indonesia and South Africa.
As a result of the backdating of the GSP breaks, Thai exporters can request refunds of about $200 million in taxes paid since August 1, 2013.
The products eligible for tax refunds include cooked foods (Bt390 million), air-conditioners (Bt200 million), rubber gloves (Bt160 million), electrical harnesses for vehicles (Bt130 million), ceramic products for sanitary-ware products (Bt130 million) and car keys (Bt100 million).
