Exemption tops agenda as Chutima arrives for US talks
Thailand is set to resubmit a proposal to the US to review the country’s potential exemption from higher tariffs on steel and aluminium products.
Thai negotiators also vowed to continue talks with US counterparts to tackle trade issues after a meeting in Bangkok last week during which they discussed ways to prevent circumvention practices and the redirection of Chinese products to Thailand that are subject to higher tariffs under the Trump administration.
According to Deputy Commerce Minister Chutima Bunyapraphasara, who has just arrived in the US for further meetings, US officials remain concerned about escalating imports from Thailand and circumvention practices.
Thailand submitted an official proposal to the US on April 27, asking the latter for a country exemption and product exclusion.
Thailand contends that it has a market share of steel and aluminium imported into the US of less than 1%, meaning it has no impact on US national security, and that steel products imported from Thailand consist largely of raw materials used to produce finished products in the US.
“After having discussed the matter with Jeffrey Gerrish, the deputy US trade representative for Asia, Europe and the Middle East, and Gilbert Kaplan, the undersecretary of commerce for international trade in Washington, they have informed us that the US administration has already taken into account Thailand’s proposal,” Ms Chutima said.
“But they still need Thailand to take care of export controls for such goods bound for the US market and prevent any circumvention practices and the redirection of Chinese products to Thailand that are subject to higher tariffs after President Donald Trump on March 8 ordered a steep 25% tariff on steel and 10% tariff on aluminium imports into the US, citing national security considerations under Section 232 of the Trade Expansion Act of 1962.”
Wanchai Varavithya, deputy directorgeneral of the Foreign Trade Department, said last week that the US in particular was afraid there might be circumvention through trans-shipment and assembly operations in Thailand, with products being imported from countries subject to US tariff hikes and anti-dumping measures, then re-exported to subrogate the import rights of Thai-made products.
Mr Wanchai said US officials have noted that diamond saw blades, clothes hangers and nails are products for which circumvention has potentially occurred.
An investigation is under way, while the department has said any companies found to have circumvented the measures will be put on a blacklist and have their certificates of origin revoked by the Commerce Ministry.