Thailand
Thailand: Commerce Ministry working on trade row buffers
The Commerce Ministry is set to propose short, medium and long-term measures to cope with the impact of the deepening trade row between the US and China at the International Economic Policy Committee meeting chaired by Prime Minister Prayut Chan-o-cha on June 11.
Chutima Bunyapraphasara, the acting commerce minister who chaired Wednesday’s joint meeting with the private sector to evaluate the impact of the US-China trade row, said the short-term measures include a war room with academics and economic specialists to monitor and propose best practices, such as how to expand into new markets.
The measures also cover ways to take care of domestic manufacturers from an anticipated influx of imported goods through the safeguard, anti-dumping and anti-circumvention measures.
For the medium term, she said the ministry will seek to fast track negotiations for free trade agreements (FTAs) and a review of investment and tax policy to increase Thailand’s competitiveness.
In the long term, Thailand needs to restructure the manufacturing base to be in line with the changing global market.
Ms Chutima said export products expected to suffer from the trade tiff are electronics and parts, automobiles and parts, rubber tyres, food and garments.
A study by the Commerce Ministry found Thailand’s exports in the last 16 months as of April 30 were down 0.19% to $630.3 million because of the trade row.
Kriangkrai Tiennukul, vice-chairman of the Federation of Thai Industries, said a war room is needed to handle the impact of the trade row and boost the country’s exports.
“The ongoing trade row could deliver both positive and negative effects to Thai exports,” he said.
“Thailand should not stay put and do nothing. New markets like BRICS [Brazil, Russia, India, China and South Africa] and other potential regions need to be tapped, while negotiations for the FTAs should be revved up after the new government is in place.”
Mr Kriangkrai said in light of the unabated trade squabbles, the private sector forecasts exports to stay flat or see only 1% growth this year.
The prediction excludes a scenario where the US slaps tariffs of up to 25% on an additional list of Chinese imports worth $300 billion.
A study by the Commerce Ministry’s planning unit, the Trade Policy and Strategy Office, earlier projected Thailand to gain more than it loses if the US raises tariffs of up to 25% on an additional list of Chinese imports worth $300 billion.
Source: https://www.bangkokpost.com/business/news/1685976/commerce-ministry-working-on-trade-row-buffers