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Saturday, February 24, 2024

GSP suspension gauged to cost $19m in losses

The government insists the suspension of preferential trade benefits for certain Thai products by the US under the Generalized System of Preferences (GSP) is estimated to cause losses of only US$19 million or 600 million baht.

“Of the 231 products facing the US’s GSP cuts, only 147 items were found to actually exercise the US trade preferences in 2019,” said Foreign Trade Department director-general Keerati Rushchano. “These preferences were worth about US$19 million, if converted into the new tariff rates [3-4%] they have to pay.”

GSP, the largest and oldest US trade preference programme, is designed to promote economic development by allowing duty-free entry into the US for 3,500 products from the 119 designated beneficiary countries and territories.

To remain eligible for these advantages, beneficiary countries must comply with 15 statutory eligibility…

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