EU cuts Thailand's GSP privileges due to trade policy changes

[webfact]

EU cuts GSP privileges due to trade policy changes
By Digital Content



BANGKOK, Jan 7 -- The Ministry of Foreign Affairs has explained that the European Union now excludes Thailand from its Generalized System of Preferences (GSP) because of changes in its trade policies.

The European Union stopped all GSP privileges for Thailand, China, Ecuador and the Maldives on Jan 1.

Some privileges for Thailand ended earlier, but this time severe restrictions also impact the export of shrimp and squid.

The Department of Foreign Trade at the Ministry of Commerce estimates that the GSP exclusion may cause Bt30 billion in damage, nearly 4 per cent of the value of Thai exports to the EU or 0.3 per cent of the total value of Thai exports.

The GSP was introduced in the form of tariff reduction in 1971 to allow developing countries to sell their products to the EU to improve their economies.

The EU now excludes Thailand, China, Ecuador and the Maldives from its GSP because the World Bank has defined them as upper-middle income countries from 2011 to 2013.

The European Union informed Thailand and other trading parties of the decision in December 2012 and had Thailand adjust for the change last year.

The Ministry of Foreign Affairs stated that the GSP exclusion of Thailand had nothing to do with any political situation in the country or with bilateral relations between Thailand and the EU and EU countries. It said that the relations and cooperation on economic affairs, trade, education, tourism, research and development continued as usual.

Since being informed of the EU’s decision, the Ministry of Foreign Affairs warned the Thai private sector of the exclusion and led the Thai business community to other countries to find new markets instead of Europe. (MCOT online news)


-- TNA 2015-01-07

[englishoak]

Im sure its all been factored in expected by Thailand having 2 years notice.

This wont impact Thailand at all im sure, its economy wont miss whatever miniscule benefit has been lost.

[MaxLee]

Thai way of business.... No more trading with Falang, only China....

[hupaknomore]

Just met a man,who retired in Panama together with his wife. I was astound by his story, about the retirement preferences in Panama,compared to Thailand.

First, he and his wife own a big lot of land and do farming in Panama, LEGALLY.

Second, as per him, any expat gets 25% discount on any airfare or visit to a doctor... etc.

Third, exchange rate is the same for any dollar bills: either it's $1 or $100.

No one charges you extra fees for visiting a museum or National Park,if you are a foreigner.

And so on .....

Either Thai Government implements drastic changes or they will start losing even more foreigners due to a ridiculous attitude toward them

[brucec64]

What is not mentioned in yhe OP is that a Free Trade Agreement was being negotiated to offset the loss of GSP. This has been postponed due to the coup and the result is thai exporters no longer enjoy reduced EU tariffs.

[ikke]

Since being informed of the EU’s decision, the Ministry of Foreign Affairs warned the Thai private sector of the exclusion and led the Thai business community to other countries to find new markets instead of Europe. (MCOT online news)

Typical Thainess, in stead of following the path of bilateral agreements and lower the import tax on goods imported from the EU.

Its also better for Thai companies who rely on 100% export to the EU, to move to Vietnam or Myanmar to do business , ones you have the market you dont need to look for new markets, but move to more interesting production and export country.

[noitom]

This restriction of GSP privileges for Thailand shrimp and squid is well justified and good news. Well done EU.

[Lupatria]

This is what you get if a country is runned (ruined?) by arrogance, greed and incompetence justified under the term 'Thainess'.

In ten years the kids will still learn in school: our country has never been colonized. Most probably with the appendix- but somehow we belong to China now...

[Briggsy]

Repackage as Cambodian, Burmese even landlocked Laotian. Sorted.

[Tatsujin]

This is what you get if a country is runned (ruined?) by arrogance, greed and incompetence justified under the term 'Thainess'.

In ten years the kids will still learn in school: our country has never been colonized. Most probably with the appendix- but somehow we belong to China now...

I've talked about the Thailand/China thing for some time now ... I get the impression that the Thai's seem to think they're going to be able to do whatever they want and that China will have their backs, which they will, but it's going to cost the Thai's far more than they realize.

Their is a definite shift away from the USA/EU countries for Thai exports and I'm assuming the Thai's are going to switch over to the huge China market as a replacement, but I really don't think they appreciate the ramifications of this in any way, shape or form.

[chainarong]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Just met a man,who retired in Panama together with his wife. I was astound by his story, about the retirement preferences in Panama,compared to Thailand.

First, he and his wife own a big lot of land and do farming in Panama, LEGALLY.

Second, as per him, any expat gets 25% discount on any airfare or visit to a doctor... etc.

Third, exchange rate is the same for any dollar bills: either it's $1 or $100.

No one charges you extra fees for visiting a museum or National Park,if you are a foreigner.

And so on .....

Either Thai Government implements drastic changes or they will start losing even more foreigners due to a ridiculous attitude toward them

Granada (Not Spain) U.K. controlled, check that one out, far superior for cheap places to live than Thailand. I only use Thailand because it is convenient no other reason.

[mango66]

great market for Thailand in china !

No strict controls of food like in EU,

just table money leaded,

and lead back in the shrimps for better weight !

Compensates all loss from US and EU,

Just sadly to loose by this way the complete country to Chea.. Chi... !!

[spartanmatt]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Just met a man,who retired in Panama together with his wife. I was astound by his story, about the retirement preferences in Panama,compared to Thailand.

First, he and his wife own a big lot of land and do farming in Panama, LEGALLY.

Second, as per him, any expat gets 25% discount on any airfare or visit to a doctor... etc.

Third, exchange rate is the same for any dollar bills: either it's $1 or $100.

No one charges you extra fees for visiting a museum or National Park,if you are a foreigner.

And so on .....

Either Thai Government implements drastic changes or they will start losing even more foreigners due to a ridiculous attitude toward them

Granada (Not Spain) U.K. controlled, check that one out, far superior for cheap places to live than Thailand. I only use Thailand because it is convenient no other reason.

I agree on both places for retirement and costs of living, there are countries that are cheaper even if same costs far mre friendly for retirement or long stay visitors. I mean imigration laws prizes and much more. Latly i read thailand is best place for retirement in 2015 tottaly disagree. and i think and hope more and more people will realize that then maybe but just maybe Thai goverment might do something about all that visa mess they making now. Not to mention jacking prizes up just couse u not local.

U come to retire not to spend your time in offices of imigration for hours at a time but to relax and spend good time in hot climate.

[webfact]

Private sector says export outlook won't meet target after GSP cuts



BANGKOK: -- The private sector has voiced concern over the country's export outlook for 2015 after the lifting of its GSP privileges by the European Union as export figure released for the beginning of the year has fallen by 0.2%.

Chairman of the Thai National Shippers Council Nopporn Thepsithar said that the export numbers for the country fell by 0.2% which correlates with earlier projections.

The most prevailing are export figures for the agricultural sector such as rubber and frozen seafood products, which experienced a drop of 2.8%.

However, electronic components, electrical appliances, automobiles, polymers (low density polyethylene), rice and tapioca all experienced a growth in exports.

He stated that the export outlook for 2015 overall, will witness a growth of at least 2.5% which falls short of the 4% projected by the Ministry of Commerce.

Border trade as well as trade with other Asean nations is expected to grow by 5.4% followed by exports to the US growing by 3.1% and finally 1.3% percent for exports to the EU.

The slowdown in trade with Japan and China remains a concern however and shows no signs of improving this year.

But Mr Nopporn did voice his concern for the export situation for the first half of the year following the lifting of Thailand’s GSP privileges by the EU.

He stated that this will directly affect the agricultural sector especially agribusiness and agro-processing which in the past had 18 items qualifying for the highest GSP privileges.

For example, rubber gloves, frozen squid and motorcycles with capacities between 250 – 500 cc enjoyed these privileges but now do not qualify.

Meanwhile a cabinet meeting Tuesday acknowledged the GSP privileges lifted by the EU from January 1st 2015.

The reason behind the forfeiture was that Thailand has experienced a strong growth in middle-class income earnings for the past three consecutive years which negated the privileges.

The cabinet concluded that the general effects should be minimal as other competing countries have also had their privileges forfeited.

Furthermore, it says that the private sector has known well in advance of forfeiture and have made preparations accordingly.

The cabinet however assigned the relevant ministries to look into ways for improving the country’s export sector such as finding new markets to compensate for the shortfall as well as hastening free-trade negotiations between Thailand and the EU.

(Photo : ThaiPBS file)

Source: http://englishnews.thaipbs.or.th/private-sector-says-export-outlook-wont-meet-target-gsp-cuts


-- Thai PBS 2015-01-07

[NeverSure]

The Thai mentality is too amazing to even try to describe.

[Baerboxer]

Just met a man,who retired in Panama together with his wife. I was astound by his story, about the retirement preferences in Panama,compared to Thailand.

First, he and his wife own a big lot of land and do farming in Panama, LEGALLY.

Second, as per him, any expat gets 25% discount on any airfare or visit to a doctor... etc.

Third, exchange rate is the same for any dollar bills: either it's $1 or $100.

No one charges you extra fees for visiting a museum or National Park,if you are a foreigner.

And so on .....

Either Thai Government implements drastic changes or they will start losing even more foreigners due to a ridiculous attitude toward them

Nice story - are you off to Panama then?

And how exactly does this fit in with a topic about the EU adjusting its GSP for some countries based on Wold Bank rankings?

[Baerboxer]

This restriction of GSP privileges for Thailand shrimp and squid is well justified and good news. Well done EU.

The reduction in GSP is for several countries based on their moving up the rankings produced by the World Bank.

Why are you congratulating the EU for following their process?

[chotthee]

To return happiness to thai people, the junta should send some generals to EU to explain the Thai situation to Farang.

Thailand is now not in a normal situation, has EU must undertand the Thais.

[brucec64]

This restriction of GSP privileges for Thailand shrimp and squid is well justified and good news. Well done EU.

The reduction in GSP is for several countries based on their moving up the rankings produced by the World Bank.

Why are you congratulating the EU for following their process?

This will further the economic damage done by the coup. (Estmated at almost 500 billion baht, so far!)

According to the SCB bank analysts, the Free Trade Agreement would have replaced the GSP, but was negotiations were suspended until "there are reliable and accelerated the plans to return constitutional authority and hold elections".

https://www.scbeic.com/ENG/document/note_20140708_export_en/

This will result in damage to the Thai economy and loss of competitiveness with competing nations.

EIC estimates that the damage to the Thai economy will be at least USD 47 million.

Thailand's exposure to higher tax rates will inevitably lower the nation's price-competitiveness. Furthermore, rival countries with similar export market structures that still receiving GSP and FTA benefits, such as Indonesia, Vietnam, Malaysia, and Mexico, will make inroads into Thailand's existing markets.

[jpeg]

The Thais who run the show, also truly believe they are the center of the Universe and the majority of their 'subjects' aka fellow Thai citizens (understand that despite the glitter, this is a predominantly agrarian country) believe anything and everything their circus masters, of any stripe, say is true. This also goes for the citizens who are still labouring under the delusion that Taksin will save them. None of these morons will.

Edited January 7, 2015 by jpeg

[khunsiam]

This is what you get if a country is runned (ruined?) by arrogance, greed and incompetence justified under the term 'Thainess'.

In ten years the kids will still learn in school: our country has never been colonized. Most probably with the appendix- but somehow we belong to China now...

siam never been colonized, just lost big parts to the french colonizers, Laos. :-)

[Thai at Heart]

If this coup has caused things like shrimp to lose gsp privilege, I absolutely expect CP to get itself a different type of junta.

What a complete horse ass of an outcome.

[maidee]

and i tought they were talking about UFC legend GEORGE SAINT PIERRE, known as GSP

lol

[rubl]

Even before the coup the FTA negotiations already suggested deep differences

current status: on hold

2014-05-11

"Dr. Olarn, Thailand’s chief negotiator, stated that the position on TRIPS+, ISDS, investment protection and health concerns have not changed from previous positions. In regard to the duty-drawback clause, the DTN informed that the EU has claimed that it is a standard clause; however, the Thai position is firm that it cannot accept it. The FTI says that the impact of the duty-drawback clause on the automotive supply chain would be enormous. "

http://www.thaieuro.biz/news_detail.php?id=149

2013-09-16 - 20 ChiangMai 2nd round of EU-TH FTA negotiations

2013-09-12

"Thailand’s Poor will Suffer - Academics want Free Trade Agreement Negotiations Postponed for 5 Years"

http://www.chiangmaicitynews.com/news.php?id=2332

[Thai at Heart]

Even before the coup the FTA negotiations already suggested deep differences

current status: on hold

2014-05-11

"Dr. Olarn, Thailands chief negotiator, stated that the position on TRIPS+, ISDS, investment protection and health concerns have not changed from previous positions. In regard to the duty-drawback clause, the DTN informed that the EU has claimed that it is a standard clause; however, the Thai position is firm that it cannot accept it. The FTI says that the impact of the duty-drawback clause on the automotive supply chain would be enormous. "

http://www.thaieuro.biz/news_detail.php?id=149

2013-09-16 - 20 ChiangMai 2nd round of EU-TH FTA negotiations

2013-09-12

"Thailands Poor will Suffer - Academics want Free Trade Agreement Negotiations Postponed for 5 Years"

http://www.chiangmaicitynews.com/news.php?id=2332

His objection is about booze and fags. Complete protectionist nonsense helping ttm and singha and other. The poor will suffer from better fags and red wine than ttm and lao kao. Lol

What is the issue about car parts.

[rubl]

Even before the coup the FTA negotiations already suggested deep differences

current status: on hold

2014-05-11

"Dr. Olarn, Thailands chief negotiator, stated that the position on TRIPS+, ISDS, investment protection and health concerns have not changed from previous positions. In regard to the duty-drawback clause, the DTN informed that the EU has claimed that it is a standard clause; however, the Thai position is firm that it cannot accept it. The FTI says that the impact of the duty-drawback clause on the automotive supply chain would be enormous. "

http://www.thaieuro.biz/news_detail.php?id=149

2013-09-16 - 20 ChiangMai 2nd round of EU-TH FTA negotiations

2013-09-12

"Thailands Poor will Suffer - Academics want Free Trade Agreement Negotiations Postponed for 5 Years"

http://www.chiangmaicitynews.com/news.php?id=2332

His objection is about booze and fags. Complete protectionist nonsense helping ttm and singha and other. The poor will suffer from better fags and red wine than ttm and lao kao. Lol

What is the issue about car parts.

Ms. Yingluck appointed him as chief negotiator. Maybe because as advisor to her he had proven his knowledge, capabilities and potential.

2011-09-16

"Olarn Chaipravat, an adviser to Prime Minister Yingluck Shinawatra, has dismissed economist Ammar Siamwalla's criticism that the rice-pledging scheme would hurt consumers and taxpayers while benefiting Vietnam, insisting that the price of Thai rice exports would rise in the global market."

http://www.nationmultimedia.com/business/Olarn-confident-rice-price-will-rise-under-govt-pl-30165404.html

[bapoboy]

Eu the union without democrazy.... rubbish eu

[tonbridgebrit]

I think the EU is doing this to try and reduce it's large trade deficit. Cheap goods entering into Europe is causing the deficit. However, Europe is stuck.

Europe is addicted to the cheap imports. A tiny reduction in cheap imports is only cosmetic. Creating (actually, re-creating) industries in Europe to produce goods for Europe's internal market will increase prices for consumers. And consumers are not going to want to pay the higher prices.