Japan's planned cut of 14 items of Thai products from the Generalised System of Preference starting 2519 will have little impacts on Thailand because Thai exporters are relying heavily on JTEPA and AJEPA and less on GSP.
Commerce Minister Apiradee Tantraporn said Tuesday that the report of the planned GSP cut had caused serious concern among many Thai exporters because it would impact on trade between the two countries.
She said it was a misunderstanding that the GSP cut would have serious effect on Thai exports to Japan because only six items of Thai products would be affected which include sorbitol, caffeine free coffee, ethyl alcohol, plywood, laminated wood and bloc board.
She also added that only US$17 million worth of products were exported to Japan annually under GSP programme whereas JTEPA and AJEPA programmes cover more than 6,000 items of goods per annum.
The commerce minister, however, said she had instructed Foreign Trade Department and International Trade Negotiations Department to follow up progress of talks for general review of the six items of goods cut from GSP programme under the frameworks of JTEPA and AJEPA.
Despite the planned GSP cut to be effective in the next two years, the commerce minister noted that Thai exports could still resort to tax preferences under JTEPA and JTEPA frameworks.
Source: Thai Public Broadcasting Service (Thai PBS)