SET slumps after US move to suspend GSP
The Stock Exchange of Thailand Index opened at 1,591.64 on Monday morning, decreasing 1.64 points, or 0.1 per cent, and subsequently slumping 14.15 points, or 0.88 per cent.
The most-sold stocks were Charoen Pokphand Group (CPF) and Thai Union Group (TU), with a 4 per cent decrease.
TU president and CEO Thiraphong Chansiri said the company has not felt any negative impact from the United States suspending some trade preferences for Thailand. This included cancelling acceptability of some seafood products covered by the Generalised System of Preferences (GSP). TU’s seafood exports are not under the GSP, Thiraphong added.
Asia Plus Securities said only 573 export products were on the suspended GSP list, so this might affect just 0.01 per cent of total exports. However, amid a weak economic situation, the government needs to issue stimulus measures continually, it added.
The GSP suspension will take effect on April 25, 2020, after the US on Friday suspended preferred treatment for Thai products worth around US$1.3 billion (Bt39.2 billion), citing the kingdom’s failure to improve its labour rights to meet international standards.
The Trade Policy and Strategy Office estimates the costs of exports and imports will increase by 4.5 per cent, while products which will not continue to receive GSP privilege will see a loss of $30 million – 0.1 per cent of export value to the US, or 0.01 per cent of Thailand’s total international exports.
European countries had suspended GSP status for Thai goods in 2015. However, exports that year remained the same, at $23 billion, and now currently stand at $28 billion in 2019.
