
Thai companies want the government to step up efforts to shield local producers from a potential influx of cheap goods following the imposition of new tariffs on Chinese imports by the United States.
If Prime Minister Paetongtarn Shinawatra’s government fails to act, the number of industries hit hard by cheap imports may swell to 30 from 23 last year, Kriengkrai Thiennukul, chairman of the Federation of Thai Industries, told a briefing in Bangkok on Wednesday.
The industries already bearing the brunt of the flood of imports are steel, plastics, electrical appliances and clothing, he said.
The plea for increased protection comes amid fears that Chinese exporters will flood neighbouring countries with products that they are unable to ship to the US. Thai authorities are also preparing to avert any punitive tariffs on Thai exports to the US with which it posted a $35-billion trade surplus last year.
Unabated imports of cheap products also threaten to further hurt Thailand’s manufacturing sector, where average capacity utilisation at factories has been driven down to about 56%. Thailand’s factory output fell for a fifth straight month in December with automobile sales tumbling amid weak demand.
The Joint Standing Committee on Commerce, Industry and Banking also urged the government to include its representatives in a so-called war room to quickly devise strategies to deal with US President Donald Trump’s trade policies.
Mr Kriengkrai said the government should hire lobbyists to deal with the US, while also courting China to set up joint ventures with Thai companies to manufacture products to avoid US curbs.
Thai officials have said they will offer incentives to global companies seeking to minimise the hit from the US-China trade war. Commerce Minister Pichai Naripthaphan is in the US this week and is expected to meet with American trade officials in a bid to head off any tensions.
The buysiness group has maintained its economic growth forecast of 2.4% to 2.9% for this year, saying Southeast Asia’s second-largest economy faced many risks, including an intensifying trade war and a strong local currency.