Ministry of Commerce sees opportunities in US-China trade war

 

 

BANGKOK, 10th April 2018 (NNT) – The Ministry of Commerce is looking for ways to handle an escalating trade dispute between the United States and China, which have spurred fears of a trade war between the two economic giants. 

Minister of Commerce Sonthirat Sonthijirawong, has disclosed that Deputy Prime Minister for Economic Affairs Somkid Jatusripitak, recently called a meeting of the government’s economic team, comprised of the Ministries of Finance and Commerce, the Bank of Thailand and the Stock Exchange of Thailand, to discuss the effects of the US-China situation. 

At the meeting, the Ministry of Commerce emphasised that the situation poses both risks and opportunities for Thailand. Risks outlined were mostly to do with the impact on Thai products used in supply chains in China, but the ministry noted its confidence that Thai exports would still see growth of no less than 8 percent this year.

 

The office claimed it has already brought up the US’ adjustment to its tax ceiling for metals and aluminum with the Thai-US Trade and Investment Framework Agreement Joint Council (TIFA JC), urging tax waivers for Thai products. 

As for opportunities, the ministry believes Thai exporters will find more markets in the two countries and has already set up a study team looking into market penetration strategies. It is believed Thailand can increase its market share by 300 million to 1 billion USD in the United States and by over 300 million USD in China. 

Nevertheless, the ministry acknowledged that if trade negotiations don't bear fruit it will have to implement measures to protect Thai businesses. In milder cases the ministry may approach the World Trade Organization for assistance while more severe cases would require further consideration.

 

-- nnt 2018-04-10

2 hours ago, webfact said:

It is believed Thailand can increase its market share by 300 million to 1 billion USD in the United States and by over 300 million USD in China.

There's a lot of rotten rice and antibiotic shrimps on the shelves to chose from.

Wrong !  Chinese loans will be easier to pay back if they are in Yuan.  China is thinking about devaluing its currency as part of its retaliation. 

 

Some spare auto parts and food stuffs is about it. 

3 hours ago, yellowboat said:

China is thinking about devaluing its currency as part of its retaliation. 

That may backfire on China (at least in the short term).

"A weaker yuan in the current climate of falling stocks and surging volatility will no doubt be unforgiving for Chinese stocks: the Hang Seng China Enterprises Index has been among the world's worst-performing benchmarks in the current global sell-off." (February 9, 2018)

https://www.bloomberg.com/gadfly/articles/2018-02-09/china-plays-yuan-to-demand-a-powell-put