Post by account_disabled on Jan 1, 2024 5:48:34 GMT
Director of the Office of Trade Policy and Strategy (O.C.), Ministry of Commerce Clarifying the case when the United States announced that it would cut off trade customs duty benefits or GSP (GSP) that had been granted to Thailand on some items. on October 25, 2019 that Thai exports will be affected by approximately 0.01% of the total annual average Thai exports. But there will be some products that use a lot of rights and may be affected more than others. On October 25, 2019, the United States announced that it would cut Thailand's GSP rights for 573 items (40% from the number of products that Thailand used rights for in 2018, totaling 1,485 items), effective April 25, 2020, and rights were returned to Thailand for 7 items.
In 2018, Thailand used only 355 GSP rights (out of 573 items) worth USD 1,279.8 million. and has an Country Email List average exercise rate of 66.7%, such as processed seafood Pasta dishes Nuts, fruit jams, fruit juices, soy sauce, chemicals, kitchen equipment and household items, electric motors, sheet metal and stainless steel, musical instruments, and fishing equipment. Ms. Pimchanok added that GSP rights were cut off. As a result, Thai export costs will increase by approximately 50.33 million dollars because this group of Thai products will be subject to an average higher import tax of 4.5%. It has a limited impact on Thai exports. Higher tariffs could hurt the value of exports to the United States. For products in the group whose rights were cut in 2020 when the measure came into effect, the value decreased by 28.8-32.8 million US dollars. or equivalent to 0.01 percent of Thailand's total export value.
In this regard, Thai exports are featured in the distribution of new product groups that are likely to continue expanding well in the future, such as motorcycle clothing and components. furniture and parts and tableware, kitchenware, and household items. It will continue to support Thai exports in the US market, but the GSP cut will cause the tax cost advantage to disappear and Thailand will face more competition. Maintaining product quality and standards is important. Exporters should continually strengthen relationships with allied importers. together with export promotion and aggressive marketing to maintain market share For product groups that are expected to be most affected which are more than 50 percent dependent on GSP rights and have a market share of less than 10 percent, include consoles, tables and other bases.
In 2018, Thailand used only 355 GSP rights (out of 573 items) worth USD 1,279.8 million. and has an Country Email List average exercise rate of 66.7%, such as processed seafood Pasta dishes Nuts, fruit jams, fruit juices, soy sauce, chemicals, kitchen equipment and household items, electric motors, sheet metal and stainless steel, musical instruments, and fishing equipment. Ms. Pimchanok added that GSP rights were cut off. As a result, Thai export costs will increase by approximately 50.33 million dollars because this group of Thai products will be subject to an average higher import tax of 4.5%. It has a limited impact on Thai exports. Higher tariffs could hurt the value of exports to the United States. For products in the group whose rights were cut in 2020 when the measure came into effect, the value decreased by 28.8-32.8 million US dollars. or equivalent to 0.01 percent of Thailand's total export value.
In this regard, Thai exports are featured in the distribution of new product groups that are likely to continue expanding well in the future, such as motorcycle clothing and components. furniture and parts and tableware, kitchenware, and household items. It will continue to support Thai exports in the US market, but the GSP cut will cause the tax cost advantage to disappear and Thailand will face more competition. Maintaining product quality and standards is important. Exporters should continually strengthen relationships with allied importers. together with export promotion and aggressive marketing to maintain market share For product groups that are expected to be most affected which are more than 50 percent dependent on GSP rights and have a market share of less than 10 percent, include consoles, tables and other bases.