BANGKOK, 28 February 2017 (NNT)
The University of the Thai Chamber of Commerce (UTCC) has speculated that United States President Donald Trump’s tax war against China will cause a negative effect to Thai export sector.
UTCC’s Center for International Trade Studies Director Att Pisanwanit has analyzed the effects of the US President’s trade policy which imposes a 45 percent import tax for Chinese goods and the cancellation of the Trans-Pacific Partnership (TPP) and concluded that the move will affect Thailand as an exporting country for products to the U.S.
He said this measure will cause 11.4 percent drop of Chinese exports to the U.S., and 4.9 percent drop for Thai products. The currency policy which strengthened Chinese Yuan currency against the U.S. dollar will also negatively impact the Thai exports to the U.S.
He added the TPP cancellation will cause positive effects to Thailand rather than negative, but Thailand and other ASEAN countries are yet to push forward the regional economic partnership schemes and FTA agreement with the U.S.
He commented Thailand is yet to prepare for other trade sanctions rather than tax measures, along with the developing of quality products to be in compliance with the U.S. Food and Drug Administration, be cautious of the potential fluctuation of currency rates in the ASEAN region and promote more exports to India and the Middle East.
Source: National News Bureau of Thailand
Illustration Photo: Blowing the bugs from under the mangosteens' leaves prior to Vapour Heat Treatment, which is compulsory for exports to the Japanese market (credits: Fruitnet.com / Flickr CC BY 2.0)