Bangkok, 16 August 2019 (NNT) – The postponement of a tariff imposition by the U.S. on some products from China to 15 December this year, is a positive signal that both countries may resume negotiations, says the Ministry of Commerce, pointing out that the situation towards the end of the year may change, urging the authorities to take proactive action to penetrate the U.S. as an alternative market to China.
The Ministry of Commerce’s Trade Police and Strategy Office (TPSO) Executive Director, Pimchanok Vonkorpon has said regarding latest development in the U.S. – China trade war, saying however, that the U.S. has postponed the imposition of a 10% tariff on some products imported from China, while the two country’s negotiations are set to take place in September, and the raising of tax effective in the last quarter, and Thailand’s export sector performance should all be taken into account.
The U.S. previously announced a list of items to be subject to a 10% tariff in two groups, with the first group affected from 1st September on some 3,000 items, and the second group affected from 15th December on some 500 items. The U.S. has recently announced that the tariff collection on some items in the first group will be pushed back to 15th December, including items related to healthcare, safety, and national security.
The TPSO now suggests Thailand still has an opportunity to expand its market presence in the U.S. as an alternative export market to China, especially for processed farm products, food and beverages, apparel, and home appliances, and thus the government should issue proactive market penetration measures to compete with other countries looking to expand their market in the U.S. as well.