Thai govt readies for US deal

[webfact]

Govt readies for US deal
By THE NATION

 

 

Trump’s trade talk causes Thailand to brace for ‘worst-case scenario’

 

BANGKOK: -- COMMERCE MINISTER Apiradi Tantraporn yesterday said problems between Thailand and the United States could be thrashed out in ongoing negotiations on a trade and investment partnership known as the Trade and Investment Framework Agreement (TIFA). 

 

She said senior officials from the two sides had held a meeting in Bangkok yesterday. 

 

Her comments came after US President Donald Trump on Friday sought to push his crusade for fair trade and reclaiming manufacturing jobs for the US by ordering a study into the causes of US trade deficits with 16 trade partners, including Thailand. 

 

Pimchanok Wonkhorporn, director of the Trade Policy and Strategy Office, said the Commerce Ministry was reviewing sensitive areas of trade issues with the US, including “intellectual property, tax incentives and non-tariff barriers”.

 

Trump directed the Commerce Department and US trade representative to conduct a 90-day review of the causes of massive US trade deficits. The review will study the effects of abuses, such as the dumping of products below cost, unfair subsidies, manipulation of currencies and non-reciprocal trade practices. 

 

Apiradi said she would hold discussions with the Thai and American business communities in Bangkok soon in order to prepare for trade negotiations with the Trump administration. 

 

Thailand and the US agreed to start free-trade talks under the TIFA at the Asia-Pacific Economic Cooperation trade ministers’ meeting in 2002, but negotiations made little progress.

 

Meanwhile, Nopporn Thepsitha, president of the Thai National Shippers’ Council, expressed concern about the impact of Trump’s trade policy on Thai exports. He said the government and exporters would have to prepare to explain Thai trade issues to the US. 

 

“What concerned me the most is that the image of Thai products in the US market could be tarnished in the eyes of consumers, should they be misled into believing that Thai traders cheat their counterparts,” said Nopporn.

 

He suggested that all groups of major exporters – including automobiles and parts, textiles and clothes, and fishery products – would have to review their trade practices with the US.

 

Nopporn said that although he was not too worried about the issue, Thailand must nevertheless prepare for the worst-case scenario. He also urged the government to move on a free-trade agreement with the United States.

 

Pipat Luengnaruemitchai, assistant manager director at Phatra Securities, said most major products including electronics, rubber products and seafood are labour-intensive industries in which the US was not competitive – so the chances that the US would impose punitive tariffs on Thai goods were small.

 

“The US, however, might, raise the issue of the inadequate protection of intellectual property rights including drug patents. The US may also again accuse Thailand of not doing enough about labour and human rights,” said Pipat.

 

Teerana Bhongmakapat, an economist at Chulalongkorn’s Faculty of Economics, shared Pipat concerns, saying that the US could raise any reason to use as a bargaining chip against Thailand. 

 

“The US U-turn on its policy from free trade to trade-targeting may have an impact on the Thai economy and global economy should the US take actions, and other trade partners retaliate or adopt the same policies,” Teerana said.

 

Finance Minister Apisak Tantivorawong said the impact on Thailand would be minimal because Thailand had a small trade surplus. The US is likely to target China, which has the largest trade surplus with the Americans, he said. 

 

Thailand last year had a trade surplus worth US$19 billion (Bt653.2 billion), 11th among the top 15 countries having a trade surplus with the US. 

 

Thailand’s top-10 export products to the US last year were computers and parts, rubber products, jewellery, radio/TV receivers and parts, automobiles and parts, apparel, steel products, seafood, integrated circuits and processed fruits. 

 

Nattaporn Jatusripitak, adviser to the Office of the Prime Minister, said concerned parties including the Commerce Ministry, Bank of Thailand, the Federation of Thai Industries and the Thai Chamber of Commerce would soon meet to work out trade issues with the US.

 

Source: http://www.nationmultimedia.com/news/national/30311214

 

-- © Copyright The Nation 2017-04-04

[yellowboat]

3 hours ago, webfact said:

“What concerned me the most is that the image of Thai products in the US market could be tarnished in the eyes of consumers, should they be misled into believing that Thai traders cheat their counterparts,” said Nopporn.

Try importing American goods or any goods into Thailand.  Your image of Thailand changes in a blink of an eye.

[connda]

Thailand is the poster child for trade protectionism.  The amount of tariffs and duties imposed on goods imported from the US <and elsewhere> are excessive.  So, imho, if the US administration is planning to level the playing field and assess similar tariffs on Thai goods imported to America, I'd say that Thailand has something to worry about unless they choose to accept some degree of quid pro quo.  On the other hand, there are the trans-national, globalist who leverage cheap labor and offshore production to third-world and developing nations such as Thailand who will also exert power on the decision making process. They will definitely not want to see the US impose tariffs on their Thailand produced goods. Those people will have a lot more say in the results of any trade negotiations then the various governments.  Money talks, especially when it's spread around liberally to officials on both sides of the pond.   

[IAMHERE]

The days of 'free trade' are over; 'Fair Trade' is the flavor of the day. Don't be surprised if Thai imports are severely taxed by the US until a Fair Trade deal is achieved.

[klauskunkel]

 

Look, a multi-tasker: conducting while whistling

[Retiredandhappyhere]

Govt readies for US deal

 

 

Yes, I expect they are "mulling" over the possibility of forming a few committees to deal with the problem.

[Gold Star]

The collective intelligence of the market is far greater than anyone's opinion.

Given the current strength of the baht to US$, and other currencies, the market seems unconcerned.

Currently, the high flying baht does more to curtail exports than US trade policy, as it makes Thai goods more expensive.

[Srikcir]

8 hours ago, webfact said:

Thailand last year had a trade surplus worth US$19 billion

If the USA could eliminate just one year of trade unbalance with Thailand, it could pay for most of the Mexican wall.

Hmmmm. Tacos anyone?

[spidermike007]

4 hours ago, yellowboat said:

Try importing American goods or any goods into Thailand.  Your image of Thailand changes in a blink of an eye.

 

Excellent point. Thailand is very protectionist. Even the elements of a few recent ASEAN charters that Thailand agreed to, are not being put into practice, and tariffs on many classes of items, including ALL alcoholic beverages are still being imposed, or in the case of beer, the commodities are being very nearly prohibited from import, to protect the local companies. This is now illegal. They signed on. Nobody forced their hand. There comes a point where honor has to trump profit, and protectionism. Not the case here. 

 

China is even worse, being perhaps the most protectionist nation on earth, when it comes to imports. Try importing something into China, of any value. I have. What a nightmare.

[Thaidream]

American products sold in Thailand are expensive because of duty and other taxes.  However, Thailand is moving to use excie tax on imported products which is somewhat different. It will still raise prices for us, the consumer.  The one thing that could save Thailand is the fact it has military bases that America would need in a confrontation with North Korea or China. Defense issues count when countries are negotiating trade deals.

[yellowboat]

1 hour ago, spidermike007 said:

China is even worse, being perhaps the most protectionist nation on earth, when it comes to imports. Try importing something into China, of any value. I have. What a nightmare.

A one off imported shipment of finished goods to China, is always going to be a hassle. It depends on the channel and what you are bringing in.  Electronic components seem to be okay.  Finished products tend to be more expensive in China even those made in China.  iPhones and brooms are an example.  They are cheaper in Hong Kong than in China and they are made in China.  China has a tax problem all the way around.  At one stage, Shenzhen retailers were buying China made brooms in Hong Kong and selling them in Shenzhen.  The logic does your head in.  

Edited April 4, 2017 by yellowboat

[elgordo38]

9 hours ago, webfact said:

“What concerned me the most is that the image of Thai products in the US market could be tarnished in the eyes of consumers, should they be misled into believing that Thai traders cheat their counterparts,” said Nopporn.

Sometimes when I buy Thai products I think my cataracts are ready to operate on. 

[elgordo38]

9 hours ago, webfact said:

“The US, however, might, raise the issue of the inadequate protection of intellectual property rights including drug patents

There you hit the nail on the head. 

[elgordo38]

1 hour ago, spidermike007 said:

 

Excellent point. Thailand is very protectionist. Even the elements of a few recent ASEAN charters that Thailand agreed to, are not being put into practice, and tariffs on many classes of items, including ALL alcoholic beverages are still being imposed, or in the case of beer, the commodities are being very nearly prohibited from import, to protect the local companies. This is now illegal. They signed on. Nobody forced their hand. There comes a point where honor has to trump profit, and protectionism. Not the case here. 

 

China is even worse, being perhaps the most protectionist nation on earth, when it comes to imports. Try importing something into China, of any value. I have. What a nightmare.

You will never reach the point where honor will trump profit. Honor in China is a selective thing which Trump will find out this week. China's stance is it ours period no negotiating don't believe all that Chinese rhetoric you read in the news. They are out and out grabbers and never SHARE or NEGOTIATE unless it suits them which is rarely. 

[elgordo38]

1 hour ago, Srikcir said:

Thailand last year had a trade surplus worth US$19 billion

Its no wonder Thailand is worried. Who would have thought they could outsmart Uncle Sam. When shopping though still many US products are priced through the roof. I guess spidermike was right they are not removing duties as they should be. 

[55Jay]

I don't know anything about all this but was wondering if the recent announcement from the Head Thai Tax Pirate about tinkering with way tax on alcohol is calculated, was somehow linked to scrutiny on trade issues they knew was coming.   Way down the list of talking points at that level I'm sure, but that's me, a mere mortal consumer, contemplating from the cheap seats.  LOL.