Thailand is accelerating discussions with the United States, aiming to reinstate the Generalized System of Preferences (GSP) and eliminate its place on the intellectual property assets watch list.

 

The kingdom is urging the US to expedite the restoration of the GSP programme, which concluded in 2020, to safeguard the benefits of Thai exporters and US importers and give protection to international trade.

 

Rachavitch Piyapramote, the deputy director-general of the Department of Trade Negotiations, spearheaded the Thai delegation for a meeting with senior officials at the Office of the United States Trade Representative (USTR) in Washington. Sarah Bianchi, Deputy USTR, chaired the gathering.

 

Rachavitch explained that the meeting presented a golden opportunity to reinvigorate the trade relations between both countries following a standstill of over four years due to the pandemic.

The US office informed the Department of Trade Negotiations that they are in the process of proposing legislation to the US Congress to reintroduce the GSP programme. 

 

by Neill Fronde

Picture courtesy of Bangkok Post

 

Full story: The Thaiger 2023-09-18

 

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3 hours ago, webfact said:

The kingdom is urging the US to expedite the restoration of the GSP programme, which concluded in 2020, to safeguard the benefits of Thai exporters and US importers and give protection to international trade.

When are you going to drop the "luxury tax on imports"?

56 minutes ago, hotchilli said:

When are you going to drop the "luxury tax on imports"?

Is it a Rolex or a Porsche you fancy?

Too bad GSP doesn't apply to USA wine. I'd like an affordable bottle of two buck chuck or even Sutter Home. A ten dollar bottle of wine costs thirty or more bucks in Thailand.

 

The GSP is all one way as I see it. A bribe to Thailand that gets nothing for the USA. 

US status as of Jan. 21, 2021:

"...the GSP program will likely face new priorities before renewal and there is the possibility that the old program may simply be replaced with an entirely new and 'modernized' 2021 GSP program."

"There will be likely changes made to GSP program ... to reflect the changing priorities of the new administration."

https://www.commercethaiusa.org/oca/u-s-gsp

 

Keep in mind the US House of Congress GOP wants to impeach POTUS Biden, shut down government over funding priorities, and it was POTUS Trump who originally suspended GSP privileges - now the possible GOP candidate for POTUS in 2024.

So US GSP program revisions may delay until after the 2024 elections.

 

Thailand might in the interim consider a limited expedited free trade agreement with the US to fill some export gaps.

But with Thailand's main exports to the US (2021) being Office Machine Parts, Broadcasting Equipment and Rubber Tires,* how much focus can be made for other critical Thai products, ie., agriculture, clothing, electronics, etc.?

* https://oecworld

2 hours ago, jacko45k said:

Is it a Rolex or a Porsche you fancy?

A fair priced libation from Islay

3 hours ago, hotchilli said:

When are you going to drop the "luxury tax on imports"?

There is huge problem with dropping the luxury tax. Suppose you are the proud owner of a Bentley or a Porsche and paid 30 million for the Bentley and 15 million for the Porsche, then the government drops the luxury tax and you can buy the Bentley for 8 million and the Porsche for 6. What is going to happen to resale prices of your expensive assets? The prices will drop like stones, and all of these owners are rich and influential. I doubt that the such a plan would pass.

Just now, retarius said:

There is huge problem with dropping the luxury tax. Suppose you are the proud owner of a Bentley or a Porsche and paid 30 million for the Bentley and 15 million for the Porsche, then the government drops the luxury tax and you can buy the Bentley for 8 million and the Porsche for 6. What is going to happen to resale prices of your expensive assets? The prices will drop like stones, and all of these owners are rich and influential. I doubt that the such a plan would pass.

Don't most of them get smashed up and written off by the 17 yo kid though?

 

12 minutes ago, jacko45k said:

Don't most of them get smashed up and written off by the 17 yo kid though?

 

 

It's difficult to remove the blood of law enforcement from the front end bodywork.

 

 

Protectionism will work for a while then others will add more barriers. 

Thailand does not enjoy playing on an even playing field. They want the benefits, without having to make any sacrifices. 

 

Lowering luxury taxes to a more reasonable 20% would be a good place to start. And lowering wine taxes to 50%? Maybe then you would see a vibrant wine industry here that sells good wine, wine events at the 5 stars, rather than an industry focused on very low end, cheap swill. And you might see some actual customers in the luxury boutiques. 

 

A sacrifice. What is that? 

Personally i'd add a 50% tariff on all Thai exports for Thailand buying Chinese subs (if they ever arrive).  Selling goods to the yanks and then buying from the opposition seems a mad idea when they are doing military exercises with them !