BANGKOK – The ongoing trade war between the United States and China has continued to dampen world economic growth, as well as exports of Thailand’s automotive products. Prime Minister and Defense Minister, Gen. Prayut Chan-o-cha, has recently expressed his concern over the situation, after the Philippines announced its plan to impose tariffs on Thai automotive
The Industry Minister, Suriya Juangroongruangkit, met with representatives of the Thai automotive industry to discuss the Philippines retaliatory measures against Thailand’s automotive exports, following a trade dispute between the two countries. Thailand was found to have failed to comply with the World Trade Organization’s (WTO) ruling against its regulations on cigarette imports, which has affected Philippine cigarette exports.
The Industry Minister said information presented at the meeting will be revised and submitted to the cabinet meeting, so that relevant agencies can come up with proper solutions. Initially, negotiations between the sides must take place because the Philippines is the top importer of Thai automotive products, with about 120,000 vehicles being imported annually.
Suriya said, “Right now, there are reports from Philippine media about the cigarette situation. Our Customs Department say prices of cigarette products from the Philippines are lower than they actually are. This means less taxes are paid. This is why they raise the auto issue. If we don’t fix the cigarette issue, they will implement retaliatory measures. I think that there should be talks because we’re exporting a large number of cars to the Philippines. All these issues must enter the negotiation process.”
In addition, the Thai automotive industry has to deal with Vietnam’s non-tariff barriers. The country takes 14 days to a month to inspect each batch of imported vehicles. This has affected the manufacturers’ operating costs and created problems. The government and the Office of Industrial Economics have been asked to assist the Thai automotive industry and help Thailand maintain its position as the leading regional automotive manufacturer.
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