The tariff privilege, effective from July 1, should double export growth for those goods, according to a source in the Foreign Trade Department.

The source said the US Trade Representative's office had announced on its website lists of products that would gain and lose privileges and that US consumer demand for the lucky nine Thai products had outstripped supply.

The products are fresh durians, dried papayas, dried tamarind, rice flour, candied fruit and nuts, preserved papayas, oil cake, CRT and VCR colour televisions, and jewellery and non-electrical ornaments, all of which had high market share but low import volume.

Products under GSP are limited to a market share of 50 per cent and an import value of US$120 million (Bt4.6 billion).

The US Trade Representative reported that market share of the nine exceeded 50 per cent but import value was lower than $10 million.

Rice flour was worth $3.16 million at 50.7 per cent, colour TVs $9.39 million at 80 per cent and fresh durians $1.5 million at 100 per cent.

The US on July 1 withdrew tax breaks on Thai cereals, canned lychees and longans, aluminium products and plastic goods because their value exceeded the limit.

The source added that the European Union was expected to announce soon new Rules of Origin (ROO) for GSP imports allowing partial instead of total local content, thus facilitating Thai exports.

Thai fish-canners for instance will be able to process foreign catches, disbarred under the current ROO.

Petchanet Pratruangkrai

The Nation