Thai exporters could lose US
Thailand risks losing export privileges from the United States, mainly on zip-lock plastic bags, silver jewellery, rubber gloves, and air-conditioner parts because of strong export growth.
The Kingdom’s commercial ambassador in Washington, Kessiri Siripakorn, said Thailand would face tougher competition from export rivals, mainly China and other countries in Asean, if the US cuts Generalised System of Preferences privileges for those products at the end of this month. A decision on GSP revisions is due tomorrow.
“If Thailand still receives the GSP, it will be able to save at least US$70 million a year in tax value. However, if it loses the GSP, each product will face a higher tariff, averaging 3-5 per cent per item,” she said.
Kessiri said the US government was carefully considering whether to continue granting GSP for Thai products, as local manufacturers in that country have called for protection of their businesses from high amounts of imports from Thailand and other countries.
Thai products of greatest risk of losing tariff privileges are silver jewellery and air-con parts, as their import value has increased continuously, as has market share.
However, she expects the US will still grant GSP for rubber gloves, as Thailand has raised the concern that this industry involves small enterprises and farmers. Cutting the GSP could hurt them.
