The US has targeted 50-60 products for strict origin verification to prevent the circumvention of trade rules through false claims of origin for exports to the US, according to Finance Minister Pichai Chunhavajira.
He said the US paid special attention to the issuance of certificates of origin (C/O) to prevent the circumvention of trade rules, specifically the misuse of trade privileges granted to Thailand to export goods to the US that do not meet the required origin criteria.
Mr Pichai said the Thai government will implement three measures to address the improper issuance of C/O documents.
First, it will identify 50-60 targeted products designated by the US and conduct on-site inspections of factories producing those goods. Second, the government will assess the production cost of goods by requesting a C/O to determine what percentage of materials are sourced domestically and whether it complies with the criteria for issuing a C/O, he said.
Third, the Commerce Ministry will be assigned as the sole authority responsible for issuing C/Os, replacing the current system where the Federation of Thai Industries and the Thai Chamber of Commerce also have issuance authorisation. This change aims to ensure greater control and accountability.
Mr Pichai said Thai authorities are also examining whether the US wants product origin verification to include checking the sub-code level of each item.
A source from the Finance Ministry who requested anonymity said over the past 3-5 years, Thailand's trade surplus with the US has increased rapidly, likely because some exports falsely claim Thai origin for shipments to the US.
The source said some Chinese products use Thailand as a production base for re-export to third countries because of the Thailand-China free trade agreement, which eliminated import tariffs. As a result, many Chinese manufacturers set up production bases in Thailand for export to third countries, while using a very low proportion of locally sourced materials.
Mr Pichai was scheduled to lead Thailand's trade negotiation team to visit Washington for talks with the US on April 23. However, the trip was postponed as the US asked Thailand to review its proposed trade measures before the meeting.
Prime Minister Paetongtarn Shinawatra said although Thailand is a small country, negotiations must be based on mutual benefit.
"We are not going to accept any offer. That's not acceptable. Every country matters," she said. "We must enter negotiations knowing what we are prepared to offer and what they should offer us."