Ministry urges US to abandon tariff punishment against Thailand
The Commerce Ministry has asked the United States government to speed up the process of renewing tariff privileges under the Generalised System of Preferences (GSP) for Thai products, Commerce Minister Phumtham Wechayachai revealed on Tuesday.
Phumtham, who doubles as Deputy Prime Minister, was giving a briefing about a meeting with US ambassador Robert F Godec held recently at the ministry’s Bangkok headquarters.
The minister underscored that renewing the GSP privileges would benefit entrepreneurs in both Thailand and the US.
The US suspended tariff privileges under the GSP on 573 Thai products in April 2020, resulting in Thai products being subject to an average 4.7% of tariffs instead of 0%.
Phumtham also urged the US government to consider removing Thailand from a “watch list” for intellectual property infringements. He cited the Thai government’s continued efforts to improve intellection property protection and addressing stakeholder concerns regarding intellectual property.
The Commerce Minister also presented government policies to improve the Thai economy, with a focus on reducing people’s financial burden, increasing revenues, and creating an economic balance across all parties ranging from farmers to manufacturers and consumers.
Phumtham highlighted the government’s planned digital wallet scheme, as well as policies related to promoting exports; helping micro, small and medium enterprises; negotiating additional free-trade agreements, and eliminating trade obstacles among partners.
He said Thailand is ready to become a trade partner with the US for modern industries, and various supply chains, including digital, artificial intelligence, electronics, semiconductors, electric vehicles, clean energy, aviation, and pharmaceutical industries.
In 2022, the United States was Thailand’s second-largest trade partner following China, with total trade volume of US$65.27 billion — as well as Thailand’s largest export market.
Thailand’s total exports to the US in 2022 amounted to $47.53 billion, comprising products including computers and components, rubber products, fax machines, telephone and related components, semiconductors, transistors, diodes, electrical appliances, air conditioners, and jewellery.
The US was Thailand’s third-largest import source in 2022, valued at $17.74 billion and covering products including crude oil, machinery components, chemicals, printed circuit boards, and aviation components.
