US rejects Thai request, GSP suspension takes effect

[webfact]

US rejects Thai request, GSP suspension takes effect

By THE NATION

 

 

The United States suspended tariff privileges under the Generalised System of Preferences (GSP) on 573 Thai products from April 25 as originally scheduled despite Thailand’s attempt to appeal to the United States Trade Representative (USTR), Foreign Trade Department director-general Keerati Ratchano said on Monday (April 27).

 

“A few weeks ago Deputy PM and Commerce Minister Jurin Laksanawisit wrote to the USTR and President [Donald] Trump asking to postpone the suspension as Thailand, like most countries, has been heavily affected by the Covid-19 outbreak,” he said. “They rejected our appeal and proceeded on April 25 with their original plan, resulting in 573 Thai products now having no GSP privilege and now being subject to an average 4.7 per cent of tariffs instead of 0 per cent.”

 

Keerati said that being suspended from the GSP does not mean Thailand will lose US$40 billion (Bt1.3 trillion) of trade with the US. “It only means we will have to pay tariffs at a normal rate as other countries do. By the Commerce Ministry’s estimation, the increased tariffs should amount to Bt1.5 billion to Bt1.8 billion.”

 

Last year Thailand’s total exports to the US amounted to $31.19 billion, comprising products that were under the GSP as well as those that were not. Of the 573 products that will no longer have GSP privilege, Thailand exports only 315 of them to the US, amounting to $1.5 billion. They include instant foods, electrical appliances and ceramicware.

 

Source: https://www.nationthailand.com/news/30386896

 

-- © Copyright The Nation Thailand 2020-04-28

 

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[johng]

6 minutes ago, webfact said:

“They rejected our appeal and proceeded on April 25 with their original plan, resulting in 573 Thai products now having no GSP privilege and now being subject to an average 4.7 per cent of tariffs instead of 0 per cent.”

Good,  free trade is supposed to work  in both directions  Thailand can  scrap its  taxes on "luxury" items

30% on shoes !    200% on vehicles  wine, beer ?% etc  then maybe other countries will reciprocate.

[4MyEgo]

Good on the US for holding up its threat, as little impact as it will have, but Thailand won't budge on giving migrants better wages, working conditions or access to unions, more needs to be done to put pressure on Thailand to comply with basic human rights.

 

Perhaps raising the tariffs to 50% would show that the US is seriously serious and not just doing this to appease some.

[ravip]

Yes, we all know about GSP!

That's the way to keep the poor nations on a leash and make them behave like good children.

Makes me think of... long, long time ago, I have read stories and seem films, where there were some people called slaves and  others called Masters.

[fruitman]

Well done mr Trump!

[mfd101]

4 minutes ago, ravip said:

Makes me think of... long, long time ago, I have read stories and seem films, where there were some people called slaves and  others called Masters.

The difference is that, in this country, the Masters are all central and Sino- Thais, and the slaves are the rest, including of course from neighbouring countries.

[meechai]

Fair is fair.....Want privileges to sell Thai products at X price in USA without import taxes applied? Then do the same for US products sent to Thailand

[ravip]

2 minutes ago, mfd101 said:

The difference is that, in this country, the Masters are all central and Sino- Thais, and the slaves are the rest, including of course from neighbouring countries.

It's another type of global pandemic that has existed for centuries which can morph very cleverly to changing environments - in a few words... 'very diplomatic'.

[Grumpy John]

20 minutes ago, ravip said:

Yes, we all know about GSP!

That's the way to keep the poor nations on a leash and make them behave like good children.

Makes me think of... long, long time ago, I have read stories and seem films, where there were some people called slaves and  others called Masters.

So that's A Story about Thai rice growers and the Bangkok elite.  I think I know how that turns out!  ????

[chrisandsu]

50-100% tariffs on Thai goods would be fairer . 

[ravip]

6 minutes ago, chrisandsu said:

50-100% tariffs on Thai goods would be fairer . 

Better if banned 100%

 

[DLock]

1 hour ago, ravip said:

Yes, we all know about GSP!

That's the way to keep the poor nations on a leash and make them behave like good children.

Makes me think of... long, long time ago, I have read stories and seem films, where there were some people called slaves and  others called Masters.

 

Except in this case, the US is reacting to the Masters in Thailand not providing decent conditions, pay and protection for their Slaves...

 

I hope the US raise tariffs for Thai products to "motivate" the Thai Masters and Puppets to do the right thing.

[Kullstar]

Will the Teflon Baht wobble here? 

 

[holy cow cm]

1 hour ago, ravip said:

Yes, we all know about GSP!

That's the way to keep the poor nations on a leash and make them behave like good children.

Makes me think of... long, long time ago, I have read stories and seem films, where there were some people called slaves and  others called Masters.

GSP is a good thing. Most countries without it could never compete with China's government subsidized products. On a leash? That is exactly what china is doing to every country stupid enough to court them.

[monkfish]

Last time I ordered products from the US i paid something like 18% import duty so 5% ain't so bad.

Edited April 28, 2020 by monkfish

[Rookiescot]

Good grief I find myself agreeing with President Trump.

Has the world gone mad?

Or is it just me. 

[yellowboat]

Duty bring things into this country is ridiculously costly, hurting the average Thai.   Asking any country for a break on duty is shameless, but the rich in Thailand do not know the meaning of the word.    

[Misterwhisper]

5 hours ago, webfact said:

“It only means we will have to pay tariffs at a normal rate as other countries do."

Well observed, Mr. Keerati. Thus... welcome to the club of "other countries". You know, those that do not constantly think - nay, demand! - that they are entitled to preferential treatment.

 

And you are actually still rather lucky that the tariffs aren't much higher. I mean like the - depending on the type of merchandise - 60 to 600% tariffs YOUR country routinely slaps on imports from the U.S., the EU and elsewhere.

 

So, just suck it up, Keerati!   

[ravip]

9 minutes ago, Misterwhisper said:

Well observed, Mr. Keerati. Thus... welcome to the club of "other countries". You know, those that do not constantly think - nay, demand! - that they are entitled to preferential treatment.

 

And you are actually still rather lucky that the tariffs aren't much higher. I mean like the - depending on the type of merchandise - 60 to 600% tariffs YOUR country routinely slaps on imports from the U.S., the EU and elsewhere.

 

So, just suck it up, Keerati!   

Just to help suck the whole thing up, what are the merchandise that qualify for a 600% tariff please?

[Jessi]

Its a two way street.!!!!!

 

Back in 2003 I had to check on import duty on powdered milk from Australia for a Thai client

at the time it was 550% when I asked why so high, because they want to protect their dairy industry. What dairy industry? 

Its all one way with the Thais, except now some country's are fed up with their B/S.

[transam]

20 minutes ago, ravip said:

Just to help suck the whole thing up, what are the merchandise that qualify for a 600% tariff please?

Fink it's HP sauce.............????

[Yankeesvsredsox]

5 hours ago, fruitman said:

Well done mr Trump!

Gazillion billion whatever debt, the USA is clawing back monies squandered by past administrations stupidity, in this particular case ,kindness,finally!  

Globally ,the children countries ,must learn to be fiscally responsible !

It's the Covid Era!

 

[tso310]

3 hours ago, Rookiescot said:

Good grief I find myself agreeing with President Trump.

Has the world gone mad?

Or is it just me. 

Lay off the disinfectant is my advice.

[phkauf]

When a box of Cheerios cost the equivalent of $12, I think perhaps Thailand needs some perspective on tariffs. Thailand has been flying below the radar for a long time and now they cry when they finally get noticed. 

[grumpy 4680]

       Thailands  economy is built on import taxes, so i guess this will be another push towards China. 

[Cake Monster]

Thailands protectionist policy is starting to turn around and bite them on the A##.

They are unable to hide behind the " we are only a poor developing Nation " rhetoric any longer, and Governments across the Globe are waking up to the fact that Thailand is rated 21st richest Country on the Planet.

 

[Redline]

The USA should match tariffs equal to Thailand 

[GinBoy2]

Classic tale of chickens coming home to roost!

[Srikcir]

7 hours ago, webfact said:

“It only means we will have to pay tariffs at a normal rate as other countries do. By the Commerce Ministry’s estimation, the increased tariffs should amount to Bt1.5 billion to Bt1.8 billion.”

Americans pay the import tariff to the extent that American importers, distributors and retailers choose to pass the tariff through to consumers.

Trump has been asked by US consumers to temporarily lift various import tariffs, ie., on Chinese imports, but Trump responds that the US federal government is benefiting from these import tariffs - they're like an informal tax on Americans not requiring an act of Congress. 

[ukrules]

The next step should be to increase tariffs for everything depending on how fairly each country treats imports from the US.

 

It shouldn't matter if they (the Thai) tax every country 100% on some goods, if they tax the US 100% on something then they should be severely punished. I'd like to see more countries doing this including my own.