U.S. GSP cut to cost less than US$1.3bn - Commerce Min

[webfact]

U.S. GSP cut to cost less than US$1.3bn - Commerce Min

 

   

BANGKOK (NNT) - The United States recently announced the cancellation of Generalized System of Preferences benefits, which used to allow 573 items exported from Thailand to the US to be exempt of import duties. The Ministry of Commerce yesterday announced that the lack of this duty-free status will cost less than 1.3 billion US dollars, with some time available to negotiate for reconsideration by the U.S. after the ASEAN Summit in early November.

 

The Ministry of Commerce’s Inspector General Keerati Rushchano, serving as acting director general for the Department of Foreign Trade (DFT), said the GSP cut is not immediately effective, allowing Thailand to pursue further negotiations with the U.S. to ask them to consider restoring the preferences. Thailand is hoping to hold talks on this matter after the ASEAN Summit in early November, and to hold negotiations based on the Thailand-U.S. trade and investment agreement.

 

He said all 573 items can still be exported to the U.S., however they will no longer enjoy special tax preferences.

 

The acting DFT chief admitted that one of the reasons for this cut is related to worker welfare, which is a separate topic from trafficking in humans, for which Thailand’s status has already improved to Tier 2 on the U.S. Department of State watchlist. The cut is, however, a result of complaints made by the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) since 2013, adding that the DFT is aware that these complaints will be considered by the U.S. when renewing the GSP.

 

In an attempt to remedy the issue, the DFT chief said there is still sufficient time to hold talks with the U.S. in an attempt to convince them to restore the GSP privileges.

 

Thai businesses also have other markets as alternatives through FTA agreements, market expansion in CLMV countries and the Mekong region and new-emerging markets such as Brazil, Russia, India and China. As alternatives, Thai investors may extend their investments to countries enjoying GSP from the U.S., including neighboring countries. The DFT there are still 6 months time to make necessary changes.

 

-- © Copyright NNT 2019-10-30

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[PatOngo]

11 minutes ago, webfact said:

U.S. GSP cut to cost less than US$1.3bn

Easy, that will be covered by 235.7 Chinese tourists spending for 1 month!

[Mavideol]

20 minutes ago, webfact said:

The Ministry of Commerce yesterday announced that the lack of this duty-free status will cost less than 1.3 billion US dollars,

nothing to worry here, $1.3 billion it's small change for them

[IAMHERE]

Thailand doesn't lose, it just cost 6% to import those items now. Practically anything Thailand sells to America the average Joe is willing to pay and extra 6% or even better is if the importer is willing to eat that 6% and still make a bundle of money. 

[hotchilli]

18 hours ago, webfact said:

In an attempt to remedy the issue, the DFT chief said there is still sufficient time to hold talks with the U.S. in an attempt to convince them to restore the GSP privileges.

Talk talk talk but no action... until Trumps says enough is enough.

[worgeordie]

If the US learns that the 1.3 Billion $, is not really a problem 

for Thailand,they will increase it,so better to say this is serious

or at least say nothing at all.

 

regards  worgeordie

[mikebell]

19 hours ago, Mavideol said:

nothing to worry here, $1.3 billion it's small change for them

BKK Post says 'US-bound exports to drop by an estimated $28.8-32.8 million next year'.  Just cancel a submarine.

[Cadbury]

1 hour ago, hotchilli said:

Talk talk talk but no action... until Trumps says enough is enough.

Exactly! And this is the message Trump is trying to get through. 

"Slavery in the Thai Fishing Industry"

The world is a wake up to what cruelty goes on in the Thai fishing industry. This petty military underling is just rattling on with the usual Prayut style lip homage to this serious human rights issue. Thai military men have no heart or soul.

These bozos just don't seem to be getting the message. The sooner Trump hits them with some heavy duty penalties on their shrimp exports then they might start to listen.
https://harvardpolitics.com/world/saltwater-empires-slavery-in-the-thai-fishing-industry/

[saengd]

I don't believe the GSP cut is because of human rights issues in the fishing industry, I'm pretty certain this results from the proposed ban on glyosphate. The GSP subsidy is due to expire very soon anyway, all Trump has done is pulled it forward a little bit.