Customs worries Asean-China free trade will trigger influx of Chinese goods
The Customs Department will hold talk with its Chinese counterpart over the impact of a new free trade agreement between Asean and China that will come into effect in January next year, of the department director general, Kulit Sombatsiri, said on Monday.
Under the new free-trade agreement Thailand has to lower tariff rates from the current 20-30 per cent to 5 per cent or alternatively exempt some items from taxes. The tariff cut covers about 700 items.
The department expects more Chinese goods would enter Thai market next year and it that could adversely impact the local manufacturing sector, especially electronics, microwave ovens, TV sets, electric irons and other home appliances.
Farmers who grow tomatoes and wheat would also be affected, Kulit said.
Should importers fully utilize tariff cuts, it would make reduce Customs revenues by over Bt800 million, said Kulit.
He did not reveal what he will discuss with Chinese officials.
The department has set a target of Bt110 billion in tariff revenue next year. This fiscal year it collected Bt104.78 billion, beating its budget of Bt104 billion.
