In a bid to protect Thailand's export privileges, the Foreign Trade Department will closely monitor goods imported from neighbouring countries.

It is concerned that some countries are taking advantage of Thailand's status as a country granted the Generalised System of Preferences (GSP) by the United States.

The US grants tax privileges to developing countries to strengthen their export competitiveness in the US market and as a temporary bridge to ease developing countries into the global trading system.

Thailand is among the 136 developing nations enjoying low tariffs under the GSP.

But concern is growing that some countries that have lost export privileges are seeking to get round the problem by re-exporting their products from Thailand.

They include countries that have lost GSP status or face anti-dumping charges. Thailand is now a target for such countries because it has a number of free-trade agreements (FTAs) that allow low import tariffs as well as continued GSP programmes granted by trading partners.

Nuntawan Sakuntanaga, deputy director-general of the department, said a special task force would be set up to monitor some products imported from neighbouring countries, as well as Thailand's exports, in an attempt to clamp down on re-exporting.

"Such illegal practices will cause genuine Thai goods to face export problems, such as GSP being cut or anti-dumping charges, if our exports grow higher than limits," she said.

Priority products to be monitored for the circumvention practice are garments, steel, shoes and ceramics.

 Most of these products come from neighbouring countries that enjoy lower costs for logistics and labour.

Many products from China will be monitored because China's exports benefit from low tariffs because of its FTA with Thailand.

Circumvented products are mainly exported to the US, the Kingdom's major export market.

The US will consider whether to cut GSP on Thai goods by late this year.

The US is also considering whether to revise its GSP programme from a four-year system to a year-by-year basis. It wants to reduce high spending on the programme.

The US has delayed its decision about revising the privilege to the developing countries, but Thailand is at particular risk because it is in the top four countries on the highest level of GSP. The others are Brazil, Angola and India.

"We have to concentrate on export volume and value in order to maintain GSP," said Nuntawan.

Thailand's exports under the GSP jumped 31 per cent to US$1.32 billion (Bt49.9 billion) during the first four months of the year, though this might have been partly caused by circumvention on textiles, ceramics and shoes.

Meanwhile, the department is considering whether to increase or continue collecting anti-dumping duties against trading partners whose products have been sold in Thailand at lower prices than in their own countries.

For instance, China has faced anti-dumping duties for steel exports to Thailand for the last four years.

The recent collapse of World Trade Organisation negotiations aimed at enabling poorer countries to benefit from globalisation has prompted members to look instead for bilateral trade deals. Thailand has to consider ways to protect domestic manufacturers from cheap imported goods.

Petchanet Pratruangkrai

The Nation