Thailand responds to new US tariff policy

Bangkok (VNA) – The Thai Government has recently instructed relevant ministries and agencies to take measures to address forced labour, excess production capacity and rules-of-origin fraud in an effort to minimise the impact after the US imposed an additional 12.5% tariff on Thai exports, reported The Nation.

Specifically, under the direction of Prime Minister Anutin Charnvirakul, the Ministries of Finance, Foreign Affairs, Agriculture and Cooperatives, Commerce, Labour and Industry, as well as the commissioner-general of the Royal Thai Police, will coordinate to formulate response measures and prepare a database to support trade negotiations with the US.

The US imposed additional import tariffs on goods from 60 trading partners under Section 301 of the Trade Act of 1974. Thailand was placed in the 12.5% tariff group, a rate described as higher than that faced by several of the country’s trade competitors.

The higher tariff will increase costs for Thai exports and could weaken their competitiveness in the US market.

In the labour sector, the Ministry of Labour has been tasked with working with relevant agencies to strengthen the enforcement of regulations on preventing and combating forced labour, while establishing a certification and traceability system for high-risk products to demonstrate that Thailand’s supply chains are free from forced labour.

Regarding overcapacity, the Ministry of Commerce will coordinate with relevant ministries and agencies to review production capacity, inventories, subsidy policies, cost structures, export turnover and the origin of goods in sectors at risk of investigation. The Government has also called for stronger inspections and action against origin fraud and the use of Thailand as a transshipment hub to circumvent trade defence measures imposed by importing countries./.

VNA