BANGKOK, 26 April 2014 – Exporters of Europe-bound products are starting to feel the impact of GSP (Generalized System of Preferences) cuts, and are calling on all parties to help foster the creation of a new government swiftly before more GSP benefits are lost.
Phot Aramwatthananon, president of Thai Frozen Foods Association (TFFA), said on Friday that Thai food and fisheries exports to Europe were feeling the effects of the GSP cuts. This was especially true for prepared and preserved shrimp, which has faced an import tariff of 20% since January 1 due to the GSP cut. The product category previously enjoyed a 7% import tariff to the European Union.
Mr. Phot asserted that negotiations for a Thai – European Union free trade agreement will be affected if the political situation remains unresolved and a new government can’t be established. In that event, GSP benefits on 6,200 Thai products will be lost starting on January 1, 2015. Chilled and frozen shrimp will be the most affected product, as tariffs on them will increase to 12%, from 4.2%. Last year, Thailand exported more than 140,000 tons of chilled and frozen shrimps, worth 40 billion baht.
Mr. Phot said exporters pray for the political problem to end soon, because current trade negotiators cannot make decisions in the interim government’s name.
