FTA and GSP usage drops with exports

FTA and GSP usage drops with exports

The use of free trade agreement (FTA) privileges and the Generalized System of Preferences (GSP) by Thai exporters fell by 12.6% year-on-year in January, in line with the country's overall lower exports.

The Foreign Trade Department yesterday said the use of privileges under FTAs and the GSP by Thai exporters totalled US$5.04 billion in the first month of 2020.

FTA privilege use alone contributed $4.59 billion, down 13.6% year-on-year from January 2019, and shipments under the GSP made up $452 million, down 0.4%.

Keerati Rushchano, the department's director-general, said the drop stemmed largely from the global economic slowdown, the continued trade war and the pandemic. These factors affected not only trade, but also tourism and the overall global economy.

The department advised businesses that want to export to Asean to request a certificate of origin electronically (e-Form D).

As the chairman of Asean last year, Thailand succeeded in convincing Brunei, Cambodia, Myanmar, Laos and the Philippines to connect their e-Form D to the Asean Single Window (ASW) systems, which have been effective since Jan 20 this year, Mr Keerati said.

Asean members can use e-Form D to request a deduction or exemption from import tariffs for trade in Asean.

Mr Keerati said the top five export markets with the highest use of FTA privileges were Asean, China, Japan, Australia and India.

The Thai-Asean FTA continued to see the highest volume with $1.72 billion in January, as the Thai-China FTA totalled $1.04 billion. Thai-Japan privileges were worth $652 million.

The values for the Thai-Australia and Thai-India FTAs were $531 million and $348 billion, respectively.

The top five items making use of FTA privileges were trucks, natural rubber mixed with synthetic rubber products, longan, rambutan, and petroleum and bitumen-based fuel.

Thailand has 12 FTAs in place, excluding the Thailand-New Zealand FTA that requires self-declaration for proof of origin.

Mr Keerati said the US retained the highest rate of GSP use, making up $418 million, followed by Switzerland ($19.3 million), Russia ($12.6 million) and Norway at ($1.71 million).

The GSP is used for trade with the US, Switzerland, Russia and Norway. Japan removed preferential tariffs for Thai products on March 31 last year.

Products that saw the highest application of GSP privileges were rubber gloves, drinks, air conditioner parts and electric transformers.

Do you like the content of this article?

Foreign visitors to Japan drop 99.9% in June for 3rd straight month

Japan received an estimated 2,600 foreign travellers in June, down 99.9% from a year earlier for the third consecutive monthly decline amid the coronavirus pandemic, government data showed Wednesday.


Thai wine sisters take aim at booze monopoly

Sisters Mimi and Nikki have battled Thailand's tropical climate, chased off elephants from their vineyards and won over a sceptical public to their award-winning wine. Now they're taking on the "unfair" booze laws critics say benefit the kingdom's billionaire booze monopolies.


Little contact

Testing continues, but the chief of disease control says there is slight chance anyone in Rayong was infected by the visiting Egyptian soldier found to have coronavirus disease,