Connect with us

Hi, what are you looking for?

Economy

Industry backs no Thai tariff action, citing supply disruption

INDUSTRY GROUPS have declared their opposition to the potential suspension of tariff concessions on exports from Thailand to the Philippines, warning that regional supply chains could be disrupted and consumer prices might rise.

The Trade department is requesting authorization from the World Trade Organization (WTO) to suspend tariff concessions in retaliation against Thailand in a 13-year trade dispute.

Industry representatives from both the Philippines and Thailand presented their case in a public hearing of the Tariff Commission Wednesday, in which the commission presented the 112 proposed product lines for which concessions could be suspended.

The list includes cars, materials for plastic goods, air-conditioning, and flavor enhancers for food products.

The WTO in March suspended consideration of Philippine retaliation against Thailand, after which the Trade department said it would continue to pursue the matter with the international body.

The Philippines first complained in 2008 of Thailand’s customs valuation of Philippine cigarette exports, which the WTO decided in favor of the Philippines two years later.

The trade department in November 2019 said it sought to impose retaliatory measures against Thailand’s automotive exports to the Philippines for non-compliance with the WTO ruling. But trade representatives from Thailand said that the Philippine request ignores procedural rules, as it was made outside of the timeframe prescribed by the WTO.

The Federation of Thai Industries (FTI) during the hearing listed more than a dozen industries that could be hurt by retaliation, including automotive, air conditioning, food, plastic, and steel companies.

“The Philippines and Thailand are in the network of production from raw materials, intermediate (products) to finished goods. We depend on each other, so by this kind of retaliation… would hurt both sides,” FTI Vice-Chairman Nilsuwan Leelarasamee said.

Raised tariffs could increase the prices of machines for farming and soybean products, resulting in higher consumer prices in the Philippines, he added.

Car industry groups from both countries also pushed back against the proposal.

“Completely built up units from Thailand play a critical role in the automotive market mix. The imposition of additional duty, whether in the form of safeguard or retaliatory measure, will drastically increase the prices of vehicles offered to the market,” Chamber of Automotive Manufacturers of the Philippines, Inc. President Rommel R. Gutierrez said.

The Thai Automotive Industry Association noted that car manufacturers on both sides participate in a sophisticated regional supply chain, the disruption of which could have economic and political consequences.

Philippine Plastics Industry Association, Inc. President Danny Ngo said that the inclusion of Thai exports of materials used by Philippine-based plastics manufacturers will increase the cost of domestic production, making producers here less competitive against finished goods imports.

In response, Trade Assistant Director Angelo Salvador M. Benedictos said that the trade dispute has gone unresolved since it began in 2008.

“The issue has been brewing since 2008… and we have not found any solution despite the fact that the Philippines won the case, won all the appeals,” he said.

“Much has been said to the possible damage to both sides. We have of course thought about all of those and we will try… to minimize whatever the damage — hopefully not to ourselves.”

Mr. Benedictos said that the Philippines will proceed with the suspension once it receives authorization from the Dispute Settlement Body of the WTO and after the Trade department goes through its internal processes. — Jenina P. Ibañez

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global plastic pollution treaty, weeks...

Economy

By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded its growth forecast for the Philippines for this year and 2023, citing an “accommodative”...

Economy

THE PHILIPPINE auto industry’s sales recovery will likely be derailed if a measure reimposing excise taxes on pickup trucks is signed into law, according...

Economy

THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected to...

Economy

THE ASIAN Development Bank (ADB) is planning to allocate at least $14 billion for a program aimed at easing a food crisis in the...

Investing

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.