TNSC:Thai exports rely more on direction of baht

BANGKOK, December 18 (TNA) - The Thai National Shippers Council (TNSC) says that the country's exports now rely more on the direction of the Thai currency, rather than the Generalized System of Preference (GSP) granted by the United States to low income economies. TNSC Chairwoman Ghayapad Tantipipatpong told journalists on Monday that the United States' recent decision on moving Thailand up from its Priority Watch List (PWL) to its Watch List (WL) was a good news, thanks to the Thai government's concrete crackdowns on pirated products and a clear timeframe on Thailand's new general election late next year announced by Thai Prime Minister General Prayut Chan-ocha during his recent talks with US President Donald Trump. Ghayapad assessed, however, that the WL level should not much raise Thai exports to the US market, as Thailand's per capita income has already been higher than the US criteria on granting its GSP to only low income economies. "Although the protection of intellectual property rights is a key factor Washington has resorted to grant its GSP to trading partners, Thailand's per capital income now exceeds 6,000 US dollars per annum, representing a middle income economy, while the US criteria has been maintained on granting its GSP to only low income economies", the TNSC chief explained. Pointing out that Thai exports more rely on the direction of the Thai baht now, the TNSC chairperson conceded that the appreciation of the Thai currency by 8 per cent over the past few months to 32.44 baht a US dollar, the strongest level in almost three years, could affect the country's shipment of goods to overseas markets and the Thai government's corporate income tax due to reduced revenues of local exporters. The TNSC chief expressed her optimism, meanwhile, that the Thai baht could weaken to 33 baht a US dollar next year, the level that could boost the country's export growth by 5 per cent year-on-year from the growth rate of 8.5-9 per cent year-on-year this year, as the rising trend of the US key interest rate and Washington's economic stimulus measures should lead to more capital outflows to the US economy, rather than more capital inflows cushioned by Thailand's growing stock markets and increased foreign exchange reserves this year. (TNA)