US cutting tariff privileges because we don’t import pork, certain products: Jurin

The United States announced a cut in tariff privileges (Generalised System of Preferences, or GSP) for 231 Thai products effective from December 30 because Thailand is not importing pork and products that contain ractopamine – an animal feed additive used to promote leanness and growth in livestock – from the US, Deputy Prime Minister and Commerce Minister Jurin Laksanawisit revealed.

He confirmed that Thailand still has no policy to open its markets to such products due to public health and in the interest of domestic pig farmers.

The US Trade Representative (USTR) has given Thailand the opportunity to discuss and clarify the GSP issue, he said.
Jurin said he had instructed Thailand’s commercial ambassador in Washington, DC to coordinate and added that in the past the ambassador has always worked with the USTR.

“To open our market, we need to talk to a host of ministries and not just the Commerce Ministry, because the issue is related to the Department of Livestock Development under the Agriculture Ministry, the Public Health Ministry as well as the pig farmers association and other parties. The Commerce Ministry might not be able to make a decision on this matter by itself, but at this time we insist that Thailand has no policy to open up its market for those particular products,” Jurin said.

He said Thailand is working with the private sector to prepare for the impact of the US move.

“I don’t want anyone to worry too much about it. We are working with the private sector to find other markets for GSP-excluded products. Also, the private sector has said it is not concerned with the GSP cut as Thai products can compete price-wise because of good quality and reliability,” he said.

“After the GSP cut, Thai products will see a normal import tax rate of 3-4 per cent, representing a tax burden of about Bt600 million,” Jurin added.