Thailand and nine foreign embassies have urged the US to extend tax privileges after they expired early this year, costing their exporters more than Bt2 billions in higher duties.

The move came after exporters filed a complaint to the Thai Trade Representative in the US saying they have lost export competitiveness in the US market after the US Congress did not extendthe US generalized system of preferences to Thailand and the nine other exporting nations.

Kessiri Siripakorn, commercial ambassador at the Thai Trade Office in Washington DC, said last week that the Thai government and nine foreign embassies submitted a letter to the US government calling for Congress to extend its GSP soon.

The letter stated that the 10 nations have lost their export competitiveness to other countries after they had to pay the normal duty of 10-15 per cent under a normal track.

Thailand and the other nine developing nations including Indonesia, Paraguay, Nepal and Sri Lanka have lower competitiveness, so they still need the US government's preferences to help reduce costs and level the playing field by extending tariff privileges, she said.

The latest GSP ended last year. Thai exporters now have to pay an import duty of 10-15 per cent or Bt2.5 billion of the total exports to the US a year. Exports of Thai goods to the US under the GSP are worth about Bt22 billions a year.

Thai shrimp exporters will receive payment guarantees under the anti-dumping duty issued by the US soon after ending the investigation

About Bt1 billions of duties are expected to be refunded to Thai exporters this year after their export capability has long suffered.

Anurat Khokasai, chief marketing and operating officer of Prantalay Marketing - one of the four major shrimp exporters to the US - said Thai shrimp exports will soon enjoy a lower duty of 0.7 per cent, down from the current rate of 2.6 per cent.

Thai shrimp exports to the US should have better competitiveness as rivals have faced higher anti-dumping duties than the Thai rate.

May 30, 2011
By Petchanet Pratruangkrai
Source: nationmultimedia.com

• US cites forced labor concerns as grounds for new tariffs
• Aquatic products face challenge of maintaining market share in US
• Viet Nam extends anti-dumping duties on some Thai sugar products to 2031
• Europe has had enough of China’s export surge
• Global rubber prices surge, raising hopes for Vietnamese exporters