Thailand gears up for end of EU tariff reduction privileges - FreshFruitPortal.com

Thailand gears up for end of EU tariff reduction privileges

Countries More News Top Stories
Thailand gears up for end of EU tariff reduction privileges

Companies across a range of industries in Thailand are reportedly having difficulty adjusting their business models and investment plans in preparation for losing Generalised System of Preference (GSP) privileges in the EU next year, according to Nationmultimedia.compinapple_91018319 small

GSP is a system of non-reciprocal concessions under which developed countries allow duty-free or low-duty entry to imports from a selection of developing countries up to a certain limit or quota.

The Commerce Ministry's Foreign Trade Department is said to be organizing seminars and other projects to educate enterprises on how they would operate without the GSP privileges, and is also keeping in contact with Brussels to seek alternative support programs for Thai exporters.

The story went on to say how possible programs could include relocating factories to countries that still benefited from tariff reductions or those that have free trade agreements with the EU.

The garment and processed food industries are just some of the sectors that have allegedly already moved abroad.

Thai National Shippers Council vice chairman Vallop Vitanakorn is reported to have said that many companies of all sizes had tried to adjust their business models in preparation for next year.

Vitanakorn added target countries for Thai investment were Least Developed Countries (LDCs) like Cambodia, Laos, Myanmar and Bangladesh, according to Nationmultimedia.com.

Photo: www.shutterstock.com

www.freshfruitportal.com

Subscribe to our newsletter