InfoQuest, (May 31, 2019) -- According to Mr. Adul Chotinisakon, director general of the Department of Foreign Trade, he had recently been informed that the United States had announced to terminate the designation of Turkey as a beneficiary nation under its Generalized System of Preferences (GSP) from May 17. He expressed that Thai exporters should take advantage of their preferential tariff privileges to seize Turkey's market share in the United States.
Under the United States GSP program, more than 3,400 products can be exempted from tariffs in countries of origin that are GSP beneficiary countries. Products that can be identified as Thai origin and can apply for U.S. tariff exemption must be wholly obtained (WO) or produced in Thailand, or made of Thai raw materials in a proportion of not less than 35 percent. About 1,200 products in Thailand enjoy preferential tariff privileges under the GSP program of the United States. In 2018, the value of products enjoyed preferential tariff privileges totaled 4.24859 billion U.S. dollars, accounting for 13 percent of the total trade volume between Thailand and the United States, and the utilization rate of preferential tariff privileges reached 67.51 percent. Among them, products with the highest utilization rate include air-conditioning components, rubber gloves, condiments, non-alcoholic beverages (juice), spectacle lenses, and auto parts.
Mr. Adul Chotinisakon, director general of the Department of Foreign Trade also said that the termination of GSP program in Turkey had caused that Turkey's exporters have to pay normal import duties, while Thailand still enjoyed the preferential privileges to import duty-free. In the past, Turkey ranked fifth among the countries enjoying the preferential tariff privileges of the United States, with a market share accounting for about 8 percent, so Thailand should make use of its preferential tariff privileges to increase or seize the market share of Turkish auto products, auto parts and polyacrylate.
Source: InfoQuest, by Panu / Tanawat / Rachada, translated by Xinhua Silk Road
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