US targets Thai exports for strict origin checks amid trade concerns
The United States has identified 50 to 60 Thai products for stringent origin verification to prevent circumvention of trade regulations through false origin claims for exports to the US, as stated by Finance Minister Pichai Chunhavajira.
He noted that the US is focusing on the issuance of certificates of origin (C/O) to prevent misuse of trade privileges granted to Thailand, ensuring goods exported to the US meet the necessary origin criteria.
Pichai announced three measures by the Thai government to address the improper issuance of C/O documents. The first measure involves identifying the targeted products and conducting on-site inspections of the factories producing these goods.
Secondly, the government will evaluate the production costs by requesting a C/O to verify the percentage of domestically sourced materials and compliance with C/O criteria.
The third measure assigns the Commerce Ministry as the sole authority for issuing C/Os, replacing the current system that includes the Federation of Thai Industries and the Thai Chamber of Commerce. This aims to enhance control and accountability.
Pichai also mentioned that Thai officials are investigating whether the US requires product origin verification at the sub-code level for each item.
An anonymous source from the Finance Ministry revealed that over the past three to five years, Thailand’s trade surplus with the US has increased significantly, possibly due to exports falsely claiming Thai origin, reported Bangkok Post.
The source added that some Chinese products use Thailand as a production base for re-export due to the Thailand-China free trade agreement, which removed import tariffs. Consequently, many Chinese manufacturers established production bases in Thailand for exporting to third countries, often using minimal locally sourced materials.
Pichai was scheduled to lead Thailand’s trade negotiation team to Washington on April 23 for discussions with the US, but the visit was postponed as the US requested Thailand to review proposed trade measures prior to the meeting.
Prime Minister Paetongtarn Shinawatra emphasised that despite Thailand’s size, negotiations should be based on mutual benefit.
“We are not going to accept any offer. That’s not acceptable. Every country matters. We must enter negotiations knowing what we are prepared to offer and what they should offer us.”
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