Thai exporters advised to add value, quality after EU cuts GSP

BANGKOK, January 11 (TNA) - Thailand’s Commerce Ministry has advised exporters not to panic after the European Union (EU) stopped all Generalised System of Preferences (GSP) given to the kingdom from January 1. Duangkamol Jiambutr, a spokeswoman of the Ministry, said exporters should find ways in adding value and quality of their products in an attempt to protect their market share under the new tariff system and to also consider setting up production bases in Thailand’s neighbouring countries which still enjoy GSP privileges. In an attempt to assist Thai exporters, Duangkamol said the Commerce Ministry has explored other markets including Russia, Africa, the Middle East, Latin America and ASEAN member countries, aimed at reducing risks and for the exporters not to depend on the EU market alone. During the first nine months of 2014, Thailand exercised GSP for exported goods worth about 6.724 billion U.S. dollars. The EU now excludes Thailand, China, Ecuador and the Maldives from its GSP because the World Bank has defined them as upper-middle income countries from 2011 to 2013. The GSP was introduced in the form of tariff reduction in 1971 to allow developing countries to sell their products to the EU to improve their economies. (TNA)