EU'S New GSP Excludes High School And Other Income Countries.

In June 13, 2012, the European Parliament voted to approve the 2014 EU trade preferences arrangement for developing countries. Generalized system of preferences (GSP) it will be formally implemented in January 1, 2014. The new arrangement excludes high school and other income countries, and the EU GSP is awarded to the least developed countries. Thailand has entered the ranks of high school and other income countries, so it will no longer enjoy the EU GSP treatment. Generally speaking, the new GSP arrangement will give about one year's adjustment time, that is to say, Thailand will lose the GSP treatment in January 2015.

Kai Tai Research Center expects Thailand After the loss of EU GSP treatment, Thailand's total exports to the EU will be affected by 39% of the total product, which will lead to an average price increase of 2% of Thailand's products in the EU market. According to the degree of impact, they can be divided into the following situations:

Products that are basically unaffected: products such as computers and parts, integrated circuits, rubber, chicken products, furniture and so on, which have little difference between the zero tariff or normal duty rate (MFN) and the GSP system. Besides, Thailand's jewellery and jewellery products did not enjoy preferential tariff on GSP. These products account for about 38% of Thailand's total exports to the EU.

Products with moderate impact: that is, products with a price increase of about 2-5% according to the new tax rate, such as automobiles and spare parts, household appliances and other electrical appliances, textiles and clothing, shoes, rubber products, leather products, lenses, canned fish products and processed products. These products account for about 56% of Thailand's total exports to the EU.

Products with greater impact: products with higher tariffs and higher tariffs on GSP, such as canned pineapple, frozen and refrigerated shrimps, and shrimp products. These products account for about 6% of Thailand's total exports to the EU.

However, the EU's new Pratt & Whitney restriction did not come into force in 2014-2015 years, so Thailand enterprises still have some time to adjust. For now, the main factor that affects Thailand's exports to the EU is still public in the euro area. debt crisis And the cost of labour in Thailand is higher than that of many competitors in Southeast Asia. These factors have reduced the total value of Thailand's exports to the EU by 11.4% in the first 5 months of 2012. Kai Tai Research Center predicts that the total value of Thailand's exports to the EU will shrink by about 5% in 2012.