US Targets Thai Products for Stringent Origin Verification Amid Trade Concerns

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Finance Minister Pichai Chunhavajira at the the 2024 Outstanding State Enterprise Award Ceremony | Photo via Royal Government House

 

The United States has earmarked 50 to 60 Thai products for stringent origin verification to curb false origin claims in exports, Finance Minister Pichai Chunhavajira announced. This move aims to prevent the circumvention of trade regulations and misuse of trade privileges granted to Thailand.

 

To address the issue, the Thai government has established three key measures:

 

1. Targeted Inspections: Identify specific products and conduct on-site inspections at the factories producing these goods to ensure compliance.
2. Cost and Origin Evaluation: Assess production costs by scrutinising certificates of origin (C/O) to verify the percentage of domestically sourced materials and adherence to C/O criteria.
3. Centralised Issuance: Designate the Commerce Ministry as the exclusive authority for issuing C/Os, enhancing control and eliminating the current involvement of the Federation of Thai Industries and the Thai Chamber of Commerce.

 

Additionally, Thai officials are investigating whether the US requires product origin verification at the sub-code level for each item to ensure compliance.

 

An anonymous Finance Ministry source highlighted that Thailand's trade surplus with the US has grown significantly over the past few years, potentially due to exports with falsely claimed Thai origin. Reports suggest some Chinese products use Thailand as a production base for re-export, leveraging the Thailand-China free trade agreement that eliminates import tariffs.

 

The Finance Minister's planned trade negotiation visit to Washington on April 23 was postponed at the US's request, as they asked Thailand to review proposed trade measures beforehand.

 

Prime Minister Paetongtarn Shinawatra stressed the importance of negotiations based on mutual benefit, asserting that every country is significant and Thailand should enter talks with clarity about what each side should offer. "We are not going to accept any offer. That’s not acceptable. Every country matters. We must enter negotiations knowing what we are prepared to offer and what they should offer us," she emphasised.

 

These measures aim to maintain fair trade practices and strengthen the integrity of Thailand's export operations, balancing international relations while protecting its trade interests.

 

  Adapted by ASEAN Now from The Thaiger 2025-04-28