• 
• 

Published on April 1, 2008

The supposition is the result of the US Trade Representative's (USTR) National Trade Estimate 2008 report, released yesterday.

Thailand was placed on the Priority Watch List (PWL) last year, which meant that exports to the United States faced higher tariffs.

In the report, the USTR says Thailand still lacks sustained and coordinated enforcement of intellectual property rights, while import tariffs remain high, restricting market access.

"It is a negative signal for us that Thailand remains on the PWL, as we could face more trade difficulties with the US, which is our largest export market," said Buntoon Wongseelashote, Thai Chamber of Commerce chairman on the monitoring of trade rules.

Besides the high possibility of losing Generalised System of Preferences (GSP) status - a programme designed to promote economic growth in the developing world - the country may face more complications or retaliatory measures to obstruct trade with the US, he said.

The US is scheduled to announce its GSP revision at the end of the year. One-third of Thailand's trade with the US benefits from GSP status.

The USTR report concentrates mainly on the protection of intellectual property rights in the Kingdom. It says widespread counterfeiting and piracy continue to flout owners' rights.

US industries are estimated to have suffered a trade loss in Thailand of more than US$308.5 million (Bt9.7 billion) in 2006 due to such infringements.

To ensure that Thailand will not face more difficulties, Buntoon urged the government to clarify its intellectual-property policy and demonstrate it is serious in enforcing rights.

The US also remains dissatisfied with the process of Thai compulsory drug licensing, saying that it still lacks transparency.

The USTR added that Thailand's tariffs were too high, in particular on agricultural products. If tariffs were reduced, annual exports of American farm goods should reach $1.5 billion compared to $870 million last year.

In addition, without GSP status, Thai exports to the US would face tougher competition, as Washington will soon wrap up a free-trade agreement with Malaysia, Buntoon said.

Petchanet Pratruangkrai

The Nation