The Federation of Thai Industries (FTI) is concerned that the Public Health Ministry's new regulation to ban the production, import and distribution of food containing trans fats will increase costs for food operators, mainly small and medium-sized enterprises (SMEs).
The prohibition was issued on July 13 and will become effective 180 days after its publication in the Royal Gazette.
The ministry cited scientific evidence that trans fatty acids from partially hydrogenated oils increase the risk of heart disease and stroke. The oils are also associated with a higher risk of developing type 2 diabetes.
Common foods that contain trans fats include cakes, pies and cookies, margarine, crackers, microwave popcorn, cream-filled candies, doughnuts, breakfast sandwiches, fried fast foods and frozen pizza.
Suphan Mongkolsuthree, chairman of the FTI, said that while business operators agree with the government's policy, manufacturing costs for food and bakery SMEs will increase significantly.
"The FTI forecasts that this impact will be short-term because SMEs must have a 'Plan B' for this issue," Mr Suphan said. "The FTI will not ignore this new regulation. It wants to find a new solution to support local SMEs using other raw materials."
He said government policy entails raising food and bakery product quality to meet global standards.
The FTI also plans to propose new measures to promote the use of Thai-made products under the "Made in Thailand" scheme.
"We will propose this plan directly to Prime Minister Prayut Chan-o-cha to push forward the measures, and we believe it will benefit local producers in the long run because the plan will provide a market channel for them," Mr Suphan said.
He said the FTI has set up a new committee under the industrial excellence centre to conduct a feasibility study on the Made in Thailand project.
The project must not conflict with the World Trade Organization's rules of trading between nations.
"The FTI hopes the government will agree with this idea, aimed at protecting the country's industrial sector," Mr Suphan said.
The federation is also calling for the government to require that each state agency purchase Thai-made products, following the Government Procurement and Supplies Management Act, while also providing incentives for business operators to buy local products.
Thai-made products have a reputation for quality and meet global standards, so they should be protected from the effect of the China-US trade war, Mr Suphan said.
Thailand is a global production base for many important industries, he said.