Kasikorn Think Tank: Negative factors impacting Thai exports to EU this year

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Kasikorn Think Tank: Negative factors impacting Thai exports to EU this year
By Digital Content



BANGKOK, Jan 8 -- The Kasikorn Research Centre warns of many negative factors impacting Thai exports to the European Union (EU) this year, especially being excluded from the EU's Generalized System of Preferences (GSP), ending Thailand's tariff privileges worth US$252 million.

The think tank warned that the economic recovery of the EU remained uncertain, and the baht is stronger against the euro, especially when being compared with Vietnam's dong and the Indonesian rupiah on top of the GSP exclusion.

The growth rate of Thai exports to the EU may fall to between 0.5 to 3.5 per cent this year instead of last year's 4.6 per cent, if the EU economy expands by 1.1 per cent this year.

If the expansion rate is lower, Thai exports to Europe may shrink, the Kasikorn Research Centre stated.

The centre advises Thai operators to maintain product quality to retain their EU markets.

It warns that the EU may order basic raw materials from Thailand's neighbors.

Such products include natural rubber, rubber products, processed chicken, gems, jewelry, chemical products and seafood.

Exporters with large-scale production should better cope as they have flexibility in cost management.

The Kasikorn study also considers manufacturers of computers, computer parts, automobiles, air-conditioners and electrical appliances. (MCOT online news)


-- TNA 2015-01-08

[clockman]

The golden days of Teflon Thailand. Are over.

[Commerce]

Thainess?

[fobuff]

Kasikorn Think Tank: Negative factors impacting Thai exports to EU this year: Coup, martial law, military junta, great leader, NLA, no elections for the forseable future if ever, hmmmm i wonder what the problem is

[Gunna]

Kasikorn Think Tank: Negative factors impacting Thai exports to EU this year: Coup, martial law, military junta, great leader, NLA, no elections for the forseable future if ever, hmmmm i wonder what the problem is

Why did you mention only some of the good things that have happened recently in Thailand. Why not add trying to stop corruption, Arresting corrupt Police, charging corrupt Politicians, Stopping the rice scam.

The baht is gaining strength against the euro as it is pegged against USD which is gaing against Euro, where as some of Thailand's competitors currencies have devalued either because they are properly floated or by Government devaluation.

Another problem with EU is turning a blind eye to human trafficking and virtual slavery on fishing trawlers.

But if the EU economy is stagnant how can Thailands exports expect to increase business

[Tomtomtom69]

About time the EU end it's favourable tariff policy for Thai exports. Thailand doesn't give EU exporters any preferences, so why the EU didn't end this ridiculous scheme for Thailand years ago is something that has left me scratching my head.

Laos, Myanmar, Cambodia, Bangladesh, those sorts of countries deserve tariff advantages but not Thailand.

[NeverSure]

Thailand wants it one way. It wants free access to sell to markets in the EU, Canada, US, etc. and yet it puts very high tariffs on anything it imports.

Its business laws are archaic and draconian for foreigners.

Its minimum wage is higher than most surrounding countries.

It uses slave labor in at least the fishing industry and then expects first world countries to buy those products.

Yet it doesn't seem to have a clue.

Edited January 8, 2015 by NeverSure

[rickirs]

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Kasikorn Think Tank: Negative factors impacting Thai exports to EU this year: Coup, martial law, military junta, great leader, NLA, no elections for the forseable future if ever, hmmmm i wonder what the problem is

Why did you mention only some of the good things that have happened recently in Thailand. Why not add trying to stop corruption, Arresting corrupt Police, charging corrupt Politicians, Stopping the rice scam.

The baht is gaining strength against the euro as it is pegged against USD which is gaing against Euro, where as some of Thailand's competitors currencies have devalued either because they are properly floated or by Government devaluation.

Another problem with EU is turning a blind eye to human trafficking and virtual slavery on fishing trawlers.

But if the EU economy is stagnant how can Thailands exports expect to increase business

No one denies "stop corruption, Arresting corrupt Police, charging corrupt Politicians, Stopping the rice scam" are good domestic activities. But with regard to exports, these actions are meaningless.

The EU has indicated that despite a slowing economy that it was interested in maintaining trade with Thailand but that with the forewarned expiration of GSP the nation needs to negotiate separate trade agreements with EU members to make up the potential loss in exports to the EU. The Yingluck administration was doing just that until the anti-government protests and subsequent coup stopped that process. Now having an anti-democratic military junta running the nation, the EU may not feel too touchy about losing Thailand as a trade partner, especially with Thailand's recent economic tilt towards Russia. Meanwhile the junta has virtually ignored the EU and the USA as trade partners and placed its export future with China and maybe now North Korea.

[marcusd]

Kasokorn must have a teeny weeny think tank to evaluate this.

[Thai at Heart]

Thailand wants it one way. It wants free access to sell to markets in the EU, Canada, US, etc. and yet it puts very high tariffs on anything it imports.

Its business laws are archaic and draconian for foreigners.

Its minimum wage is higher than most surrounding countries.

It uses slave labor in at least the fishing industry and then expects first world countries to buy those products.

Yet it doesn't seem to have a clue.

They are killing FDI and have lost premium place for buyers. This is a very very bad situation.

They desperatelt need to reform the Fba to get foreign investment growing again because by definition FDI tends to grow exports.

No FDI, no exports. Simple.