In a bid to maintain tariff benefits for Thai exports, Commerce Minister Krirkkrai Jirapaet plans to write to the US Trade Representative via the Foreign Trade Department asking for an extension to the Generalised System of Preferences (GSP) on Thai goods.

He will explain how necessary the privileges are to millions of local jobs.

"The minister's letter will urge upon the USTR the importance of the GSP on Thai goods and its continuation next year," a source at the ministry said.

The United States is considering terminating the GSP status of 13 trading partners, including Thailand, saying the money would be better spent on poorer countries and US manufacturers need protection from products from countries with lower labour costs.

The 13 countries are Argentina, Brazil, Croatia, India, Indonesia, Kazakhstan, the Philippines, Romania, Russia, South Africa, Thailand, Turkey and Venezuela.

The US asked them to tell the USTR by September 5 how the cuts would affect their industries. A final decision is due at the end of the year.

The source said it was hoped the US would continue the privilege for Thailand after considering explanations from government and the private sector.

Meanwhile, the Thai Commercial Office in the US targets export growth of 15-16 per cent to US$19.5 billion (Bt727 billion) next year, lower than this year's expected growth.

This is a preliminary figure, said Songseen Susevi, executive director of the office in Los Angeles.

The Export Promotion Department predicted exports to the US would grow only 15 per cent this year, but there was aggressive growth in the first eight months to $12.7 billion, an increase of 17.6 per cent, and an overall 20-per-cent increase to $17 billion is now expected by the end of the year.

The US is the Kingdom's largest export market, accounting for 15 per cent of export value, followed by Japan and China.

Despite this year's boom, a slowdown in the world economy and higher competition will affect export growth next year, Song-seen said, adding that the US might cut GSP privileges on television sets and parts, plastics and jewellery.

According to Commerce Ministry data, television sets and parts exported to the US grew by 8.2 per cent to $930 million in the first eight months of the year, jewellery by 1.1 per cent to $588 million, and plastic pellets by 96.6 per cent to $213 million.

Petchanet Pratruangkrai

The Nation