The US President signed in to law HR 1295 into law on June 29, 2015, which restores preferential tariffs under the Generalized System Of Preferences (GPS) Programme until December 31, 2017, to take effect July 29, 2015. The impact on Thailand took place as the US imported goods under GSP conditions during January – July 2556. The majority of goods comprised of automotive parts, ferro alloys, tires, crude oil, and gems. Second only to India, Thailand benefited the most from the GSP program, followed by Brazil, Indonesia, Turkey, and the Philippines.
The renewal of GSP will enhance the export value as well as competitiveness of Thai products. The US on its part is looking for alternative sources. Given the cost increase in China, the competitive gap between Thai and Chinese products should narrow, as Thailand realizes GPS benefits while China endures normal import duty rates on US imports.
Compiled by BLOG.SCGLogistics
Source Newsletter, Department of Industrial Promotion, Ministry of Industry