Exporters unfazed at likelihood of losing US tariff privilege for parboiled rice

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Exporters unfazed at likelihood of losing US tariff privilege for parboiled rice

By The Nation

 

 

Thailand's export of parboiled rice to the US may fall, as the United States Trade Representative (USTR) is considering a proposal by USA Rice Federation to suspend tariff privileges under the Generalised System of Preferences (GSP) on six rice products.

 

But Thai exporters are not worried as the quantity of parboiled rice sales to the US is quite low.

 

However, the USTR would return tariff privileges on four fresh cut roses as proposed by Society of American Florists.

 

Thai Foreign Trade Department director-general Keerati Ratchano said that recently the department had asked the US to lift suspension of privileges on frozen fish and orchids to help Thai farmers.

 

“Previously, we had asked them to lift suspension of privileges on 23 other products, such as mackerel, lychee, longan, processed papaya, and processed sweet corn,” he said. “We expect the USTR to announce the results by November this year.”

 

He said that Thailand would not be affected by the suspension of tariff privileges on six rice products because the country used GSP privilege only on parboiled rice, adding that the export volume and value of parboiled rice was very low.

 

“Rice exporters said that this suspension of tariff privileges would not impact them because even if the USTR suspended tariff privileges on parboiled rice, they will have to pay a tax of only 11.2 per cent,” he said.

 

“Each year, Thailand exported approximately 500,000 tonnes of rice to the US of which 90 per cent was jasmine rice, 9 per cent sticky rice and 1 per cent parboiled rice.”

 

Meanwhile, Chukiat Opaswong, honorary president of the Thai Rice Exporters Association, said that Thailand would not be affected by the suspension of tariff privileges because Thailand exported only 200 tonnes of parboiled rice to the US each year.

 

“We understand that the USTR wants to help American rice farmers and manufacturers because they export parboiled rice to the Middle East,” he said.

 

He said that the export price of Thai rice in May had dropped slightly from the previous months after Vietnam resumed exports and many countries slowed down imports.

 

“The price of 5 per cent white rice has dropped by US$50 (Bt1,600) to $500 per tonne, while the price of jasmine rice has dropped by $100-$150 to $900-$950 per tonne,” he added.

 

Source: https://www.nationthailand.com/news/30387980

 

-- © Copyright The Nation Thailand 2020-05-18

 

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[Isaan sailor]

Loss of parboiled rice sales won’t hurt rice exporters, I agree.  What will kill all exporters, though—the resurgent Baht.  Devalue the Baht now.

[Lemonltr]

22 minutes ago, Isaan sailor said:

Loss of parboiled rice sales won’t hurt rice exporters, I agree.  What will kill all exporters, though—the resurgent Baht.  Devalue the Baht now.

Are you proposing that Thailand reverts to fixed exchange rates? 

[fulhamster]

11 minutes ago, Lemonltr said:

Are you proposing that Thailand reverts to fixed exchange rates? 

Reverts ???

[Isaan sailor]

16 minutes ago, Lemonltr said:

Are you proposing that Thailand reverts to fixed exchange rates? 

I don’t give a damn how they accomplish it, as long as the Baht goes down?  What’s your problem?

[JackThompson]

As long as the trade is balanced - in terms of $$ - AND employment is not negatively-affected in either country - AND both countries do not depend on the other for critical goods - then a bi-lateral trade-deal would be a good idea.