Thai exporters told to adapt models ahead of EU's cancellation of GSP
The Foreign Trade Department has suggested Thai exporters adapt their export model and adjust their manufacturing costs in the wake of the cancellation of the GSP by the European Union from 1st January 2015.
Supavadee Chaiyanukulkitti, director of the Trade Preference Division, recently said the European Union (EU) will cancel the Generalised Scheme of Preferences (GSP) with Thailand on January 1, as Thailand's per capita income now exceeds the GSP rate.
She said that this would cause up to 6,200 export items, from both the industrial sector and the agricultural sector, to face higher taxes. It is expected that shrimp products, automobiles, eyeglass lenses, and air conditioners will be most affected, as these items rely on 90-100 percent of the GSP.
She mentioned however that Thai exporters can still take advantage of the GSP until the end of this year.
Her department has been advising Thai entrepreneurs to adapt themselves by finding new markets outside Europe, relocating production bases to countries where the GSP is still valid to reduce the exporting costs, or negotiating a Free Trade Area with the EU to extend a method of tax-exemption for these products, said the director.
