Thai exporters urged to gear for US policy changes
THAI TRADE with the US is unlikely to be impacted this year, but Thai enterprises should prepare for a policy of protectionism and stringent regulations expected to come into force next year.
Commerce Minister Apiradi Tantraporn said Thailand’s trade with the US this year was expected to grow by about one per cent, worth US$25 billion, while next year is expected to see higher growth at 3 per cent. However, Thailand needs to closely monitor new president Donald Trump’s policies because if they are too stringent, the US economy could experience a slowdown.
Apiradi said that Trump’s policies could have a positive and negative impact on global trading. On the positive side, the policy to lower the corporate tax and personal income tax would lead to more disposable income, while his pledge to boost gross domestic product growth to 3.5 per cent annually should stimulate domestic and international trade.
However, any protectionist policy could cause difficulties for trading. He said trading partners, including Thailand, may need to make adjustments and be prepared to face non-tariff barriers and stringent intellectual property rights protection.
However, the Thai ministry does not foresee the US imposing non-tariff barriers that could harm global trading, as it would be in breach of World Trade Organisation regulations.
Amid expected stringent intellectual property rules (IPR), Thailand will continue to raise its IP standard and improve development of IPR protection under the digital and creative economy, she added
Despite uncertainty over the fate of the Trans-Pacific Partnership (TPP) following Trump’s victory, Thailand would continue to study the impact and benefits of the TPP and consider carefully whether to join the pact in the future.
Thailand will continue its trade policies through strategic partnership, as it is highly flexible and has high efficiency to promote not only trade, but other forms of cooperation and investment growth.
Malee Choklumlerd, director-general at the International Trade Promotion Department, said the US is unlikely to impose higher tariffs on Thai products, especially food, as it is reliant largely on food imports. For instance, Americans consume a lot of tuna and shrimp each year, while their production is very small and not capable of meeting domestic demand.
The US closed down two tuna factories last year, while there is also high demand for tuna.
The US remains Thailand’s largest export market, excluding Asean. Last year, shipments to the US were worth $24.05 billion, accounting for 11.2 per cent of total export value. Major export products to the US are computers and parts, rubber products, jewellery and ornaments, electric appliances, vehicles and parts, garment, seafood, canned and processed fruits.
