US plans to reinstate GSP scheme for Thailand, to help trade relations

The United States signalled its intent to reinstate the Generalised System of Preferences (GSP) scheme for Thailand, as disclosed by Thailand’s Commerce Minister, Phumtham Wechayachai. This development comes after the scheme expired in 2020.

Phumtham’s statement emerged following a strategic dialogue with US Secretary of Commerce Gina Raimondo and a representative from the President’s Export Council. The dialogue served as a platform to reinforce the trade relations between the two nations.

The conversation extended to cover the Indo-Pacific Economic Framework (IPEF) negotiations, focusing on the optimisation of the pact’s potential to benefit the US, Thailand, and other IPEF member nations through long-term economic collaboration under its supply chain agreement.

Thailand appealed to the US to fast-track the renewal of the GSP scheme that expired in 2020, to safeguard the advantages for Thai exporters and US importers.

Raimondo expressed her trust in the Thai government and reassured them of the swift renewal of GSP benefits. Additionally, Thailand has requested the US to consider its removal from the watch list for intellectual property (IP) enforcement.

Phumtham stated that Thailand has made strides in enhancing IP protection and enforcement, implementing measures to apprehend counterfeit and pirated merchandise, both offline and online, and improving cooperative measures among governmental organisations. The US has recognised these positive steps, according to Phumtham.

Trade relations

“This is the first time the two sides have met after a hiatus of more than four years caused by the pandemic.”

The meeting reaffirms the significance of the Thailand-US alliance and strategic partnership.

Phumtham further added that the commerce ministries of both nations, along with the President’s Export Council, are prepared to collaborate on bolstering economic relations and promoting bilateral trade and investment.

He highlighted how this meeting allowed Thailand to showcase its economic and trade policies, including initiatives to alleviate expenses and boost income for farmers, producers, and consumers.

Both parties underscored the significance of supply chain development. Thailand is prepared to collaborate with the US by becoming a production base for advanced US industries such as digital, artificial intelligence, electronics, semiconductors, electric vehicles, clean energy, aviation, and pharmaceuticals, Phumtham explained, reported Bangkok Post.

In 2023, the US was Thailand’s second-largest trade partner after China, with a trade value amounting to US$68.3 billion. The US remains Thailand’s top export market, with a value of US$48.9 billion. The key exports include computers and computer parts, rubber products, telephone and telephone parts, semiconductors, transistors and diodes, and electric transformers and components.

Meanwhile, the US is Thailand’s third-largest import market, with an import value of US$19.5 billion. The main imports include crude oil, machinery and components, electrical circuits, aeroplanes, gliders, aviation equipment, and components.