Thread: Thai exports subjected to $19m tariffs after US GSP cut

BANGKOK (NNT) - Thai exporters to the United States will from 30th December no longer enjoy preferential trade benefits under the Generalized System of Preferences (GSP), which has just been cancelled by the U.S. government. The Ministry of Commerce has elaborated that exporters can continue their businesses, but will be subjected to 19 million US dollars more tariffs in total.


According to the Ministry of Commerce, only 147 items from Thailand will be affected by the GSP slash from the official list of 231 items. These items include automotive tyres and parts, steering wheels, chemicals, bedding and mattresses made from rubber or plastics, wood screws, and aluminium sheets.


In a Friday announcement, the US Trade Representative (USTR) said it has decided to eliminate some tariff benefits due to the “lack of sufficient progress providing the United States with equitable and reasonable market access for pork products,” a reason for which Thai authorities have previously argued, is chemicals found in US pork products that do not comply with Thailand’s regulations.


The Ministry of Commerce has confirmed exporters can continue to export items to the US as usual, however they must pay the normal rate of US import tariffs, of about 3-4 percent.


The Ministry said quality products will still be accepted despite higher taxes, thus the demand from US importers will remain the same.


The Generalized System of Preferences or GSP is a preferential tariff system of the United States which provides tariff reductions to certain countries. The GSP is constantly reviewed by Washington, which monitors the conditions in beneficiary countries.


The Ministry of Commerce said it will be negotiating with the US to find a mutually satisfactory resolution, and offer aid measures to Thai businesses, such as hosting an online business matching session for Thai products in US markets and other new markets.


The ministry will be promoting Thai products at roadshow events in the US and other countries, as well as promoting Thai products featured on e-commerce platforms, with product quality being a priority over price competition.

National News Bureau Of Thailand

chemicals found in US pork products