Three products stand to regain GSP tax privileges

Three Thai products - cereals, plastic pellets and ceramic and wall tiles - could regain export tax privileges under the US Generalised System of Preferences (GSP).

This hope was expressed after the Kingdom's falling exports amid the global financial crisis was brought to Washington's attention.

After meeting with Assistant US Trade Representative Barbara Wiesel, Deputy Commerce Minister Alongkorn Ponlaboot expressed confidence the three products would regain export privileges.

Exports of all three products combined were worth US$5.23 million (Bt189 million) last year.

Alongkorn said the return of the GSP privileges would strengthen local exporters' competitiveness.

"The tax privileges will ensure that Thai exports to the US grow smoothly and increase our competitiveness," he said.

If the tax privileges are returned, they will take effect on July 1. The US is one of Thailand's top three markets, accounting for 11.4 per cent of the Kingdom's exports last year.

Total export value to the US grew 4.4 per cent to $20.27 billion last year, of which $3.7 billion were due to GSP privileges.

Thailand is the second-largest country using the US tax privileges, after India. The Kingdom now enjoys tax waivers for more than 3,400 types of products.

Alongkorn said Wiesel would lead an official USTR team to Thailand and other Asean countries this month, in order to tighten cooperation on trade and intellectual-property (IP) cooperation and protection.

Alongkorn said Washington had expressed strong interest in improving IP rights protection and piracy suppression in Thailand.

"Speaking directly with the USTR allows us to show our real intention to improve Thailand's IP protection system by cooperating with them in many ways," Alongkorn said.

Alongkorn also tried to convince the US to upgrade Thailand's trade status, because the country had shown improvement in IP rights protection and awareness through promoting industry development.

To boost trade growth and cooperation among Asean countries, the USTR is also interested in increasing trade-logistics cooperation in Indochina.

Asked about the possibility of a free-trade agreement between the two countries, the USTR is waiting for its new representative, Ron Kirk, to give a mandate for it.

Meanwhile, influential US Representative Jim McDermott said Thailand had the potential to be removed from the Priority Watch List, due to its strong efforts to increase IP rights protection.

McDermott also reaffirmed along with Alongkorn that the "Buy American" policy of the US would not harm Thailand's exports, because it was focused on particular projects involving government procurement.

To document the Thai government's efficiency in increasing IP rights protection, the Intellectual Property Department will send regular updates to key US congressmen who are responsible for trade and IP rights, including McDermott.