Somkid lobbies the US to extend GSP
Caretaker Deputy Prime Minister Somkid Jatusripitak urged the US Trade Representative and the country's Commerce Department to consider extending preferential tariffs on Thai imports to ensure the continuos flow of trade between the two countries.
Somkid called on the two agencies to review benefits granted to Thai imports under the generalised system of preferences, or GSP, which is due to expire this year, the Thai News Agency said. Somkid met Carlos Gutierrez, secretary of commerce, and US Trade Representative Susan Schwab in Washington on Monday. He described the issue as "imperative". Somkid was leading a 60-member business delegation to the US, during which he met a number of senior US economic officials as well as business leaders. Somkid told US officials that Thai exporters remain very much in need of GSP benefits because Thailand remains a developing country. The US grants GSP benefits to developing countries to draw them into the global trading system. "The GSP is a separate issue from bilateral free-trade talks. Government agencies should take a special look at this," Somkid said. His said that he received a positive response to his request for a review of GSP benefits. Every year US$3.6 billion worth of Thai exports receive GSP benefits. Exports that would affected a loss of GSP benefits include jewellery and ornaments, television sets, plastic containers and pellets, auto parts and rubber products. Somkid said if US officials used national economic data to determine whether Thai products were eligible for GSP benefits, they might consider cutting the benefits on a number of Thai export items. However, he pointed out that a great number of Thais live under the poverty line and numerous small and medium-sized enterprises still need assistance. Besides protecting GSP benefits, the Thai government is also eager to promote trade and investment with the US. Bangkok has been active in promoting economic ties with China and Japan over the past few years. Total US investment in Thailand remains high, however. It totals US$25 billion (Bt944 billion), second only to Japanese investment. The government is urging US business to play a more active role in Thailand. "If we are not active in getting the attention of the US, other countries like Vietnam, Malaysia, Singapore and South Korea may lure US investment to their countries," Somkid said.
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