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Published on September 19, 2007

At a seminar entitled "US Trade Policy: Implication for Thai Exports", Foreign Trade Department director-general Apiradi Tantraporn said that Thai exporters should use the GSP to increase exports to the US.

"Although Thailand is one of the three countries making the best use of the GSP privilege, exports have focused on particular products," she said, adding that food and agriculture were the key sectors that should apply for more GSP privileges.

The US Commercial Affairs Department said 4,600 products from 131 developing countries were listed for GSP privileges. Thailand used 1,218 tariff lines worth US$4.25 billion (Bt146 billion) last year, accounting for only 13 per cent of total GSP benefits. Angola and India are the two countries that have reaped the highest benefits under the GSP.

Also, Apiradi suggested exporters study US trade polices, because Washington had many regulations for protecting its market, including tariffs, anti-dumping duties, countervailing duties and high sanitary standards. A sound knowledge of these issues would help Thai exports avoid facing double tariffs or other trade barriers.

The US almost doubled its investigations into anti-dumping cases last year to 30, from 17 the year before. Seven Thai products - canned pineapple, butt-weld pipe fittings, carbon-steel pipes and tubes, hot-rolled steel, prestressed concrete steel wire and strand, polyethylene retail carriers bags and frozen shrimp - have faced anti-dumping duties.

Manufacturers and exporters were also advised to increase their IP-rights standards, in order to ensure higher benefits for the US.

"Thailand is stepping into an industries-based country, and so must increase value added to innovative goods," she said.

Apiradi said Thailand would try to regain its export privileges from the US in November's annual GSP revision. The US will announce its GSP revision again in the middle of next year.

Kessiri Siripakorn, minister of the Commercial Affairs Office at the Thai Embassy in Washington, said Thailand would ask for the return of its export privileges from the US for some products, including colour television and PET resins.

However, she warned that Thailand may lose export privilege in some new products, including silver jewellery, because of high exports.

Kessiri explained that this year's slowdown in Thai exports to the US was not due mainly to the sub-prime crisis there, but rather was more a result of intense competition.

Thailand's major competitors in the US market are China and Vietnam, which showed significant export growth of 16 per cent and 22 per cent, respectively. Thai products that have been affected by competition from those two countries are wood furniture, garments and jewellery.

Jean Kelly, Thailand desk officer at the US Commerce Department's International Trade Administration, told the seminar that to increase export opportunities in the US, Thailand must develop its system of IP-rights laws and enforcement thereof, improve Thai customs practices and promote transparency in the customs regime.

US Pacific Basin Office director Juliet Bender said that Washington expects to restart free-trade-agreement (FTA) negotiations with Thailand and Malaysia next year.

This will increase trade opportunities for both sides. Washington has concluded 15 FTAs with 20 countries worldwide, with implementation pending for Costa Rica, Oman and South Korea.

Petchanet Pratruangkrai

 The Nation