Thai exporters’ loss may exceed $60 million, as US deters GSP program

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Thai exporters’ loss may exceed $60 million, as US deters GSP program

On Sunday, the 27th of October 2019, the Commerce Minister of Thailand, Jurin Laksanavisit, a Thai Democratic politician and an author, told to the reporters that Thai exporters had been vying following loss of duty-free export status of goods worth up to $1.3 billion, while the losses could mount up to $60 million per year or (1.8 billion baht).

In point of fact, latest comments from the Commerce Minister of Thailand, a newly industrialized country with a fast-growing economy, currently the eighth-largest economy in Asia, comes against a baleful backdrop of a Friday (October 25th) decision from USTR to cancel duty-free treatment of $1.3 billion worth of Thai imports including its famous seafoods under the United States’ Generalized System of Preferences Program (GSP), while the office of US Trade representative had addressed lack of internationally recognized workers’ right in Thailand behind the South-east nation’s suspension from the US GSP program.

As the office of USTR had been quoted saying on Friday (October 25th) that Thailand did not afford workers’ in an internationally recognized worker rights, Thai Commerce Minister, Jurin told to the reporters on Sunday (October 27th) that the tariffs could hit 4 to 5 per cent instead of zero within a timeline of six months.

Nonetheless, adding that the decision would not impact the world’s largest producer of canned Tuna, Thai Union Group Pcl., as its seafoods or pet foods was not sold under any GSP program in the United States, the company said in a statement following US decision to cancel Thailand’s GSP program, “The decision will not have a material impact on Thai Union Group’s business, as no seafood or pet food products sold into the U.S. from Thailand are currently covered by the GSP. ”