Fresh talks set with USTR

Fresh talks set with USTR

New markets sought for tariff-hit goods

Thailand is scheduled to have a new round of talks with the US Trade Representative (USTR) on Nov 20 about the US decision to end preferential trade privileges for a range of Thai exports.

Commerce Minister Jurin Laksanawisit said the Thai side will be led by Thailand's ambassador to the US, together with commercial and labour counsellors.

On Oct 25, the US announced the removal of US$1.3 billion (39.2 billion baht) in trade preferences for Thailand under the Generalized System of Preferences (GSP), effective April 25, 2020.

Citing inadequate protection of internationally recognised labour rights, particularly in the seafood and shipping industries, the USTR said the US would suspend trade preferences for 573 categories of Thai exports, which could face import tariffs of up to 5% relative to their current duty-free status.

The Commerce Ministry estimates that a higher import tariff of 4.5% on average will reduce US-bound exports by $28.8-32.8 million next year, or 0.01% of overall exports.

Mr Jurin said Boonyarit Kalayanamit, the commerce permanent secretary, already told the private sector to prepare for higher duties and began working on solutions for exporters likely to be hit by the GSP withdrawal.

"No matter the outcome of the negotiation, the ministry plans to beef up shipments to new export markets," Mr Jurin said. The ministry and Thai companies have planned roadshows in China, the US and Europe and organised business matching events to boost exports.

Somdet Susomboon, acting director-general of the International Trade Promotion Department, said US importers have been revving up their purchase orders from Thailand to raise their stocks before the tariff hike takes effect.

The department is looking for new markets for the affected products, with India, Bahrain, Qatar, South Africa, Japan, Britain, the EU and Russia among the potential targets.

Mr Somdet said last month that the department was preparing seven measures to mitigate the impact of the GSP removal, with the first priority to increase exports to the US over the next six months before the cuts take effect.

Other measures include more trade roadshows and export promotion activities.

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