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Published on March 10, 2008

The Bush government has to tackle its trade deficit, which is estimated to be US$790.9 billion (Bt25 trillion) for last year.

US growth slowed sharply to a 0.6-per-cent annualised pace in the fourth quarter of last year, compared with 4.9 per cent the prior quarter.

Thai exports to the US may drop again this year amid contracting US demand and a drop in the dollar's value against global currencies, including the baht. The result can cause some difficulty for local firms, as the food category accounts for 12 per cent of US import value. The US is also the largest exporter of food, which accounts for more than 20 per cent of its exports.

The Export Promotion Department said exports to the US should grow 5 per cent to $19.8 billion this year. Global Thai food exports rose 12.7 per cent to $10.75 billion in 2007.

It is estimated export growth this year will slow to 6.2 per cent due to tougher competitiveness and stringent import conditions, particularly in the US and European Union.

Firms should raise production standards and ensure safety and sanitary levels are observed.

Chantira Jimreivatvivatrat, senior director of Thai Trade Centre in Los Angeles, said although the new regulations make it tougher for exporters, Thai firms must adapt to the changes to beat the competition.

Petchanet Pratruangkrai

The Nation