Thailand Monitors Trade War Impact on Chinese Goods
On May 27, 2019, Mr. Wanchai Phanomchai, Secretary-General of the Office of Industrial Standards (TISI), revealed the agency's approach to addressing the escalating trade war between the United States and China, which is affecting Thailand's exports. He stated that TISI is closely monitoring the trade war situation due to concerns that products from China, particularly in the mandatory standard category of 112 items, may flood into Thailand. This is especially true for steel and electrical appliances, which had previously entered Thailand in large quantities. The influx of steel has significantly impacted local steel manufacturers, prompting seven steel industry associations to file complaints with the government multiple times. Recently, the government implemented measures to assist, such as anti-dumping measures, which have now concluded.
At the same time, TISI is also observing the actions of Chinese investors who are beginning to invest in steel factories in ASEAN countries, such as Malaysia, with investments amounting to tens of billions of baht, and in Vietnam, with investments in the billions. Previously, Chinese investors might have exported steel from these two countries to the United States, but due to the trade war, they may redirect their exports to Thailand instead. Therefore, TISI must intensively verify the origin of these products to prevent future issues.
"The reason Chinese steel investors are expanding abroad is due to the excess production capacity within China that has developed over the past few years. Additionally, besides producing for the countries they invest in, they may also want to utilize those countries' rights to export to the United States. However, the U.S. has recently tightened regulations, so Thailand must be cautious as it is not far away, and transportation is easy and cost-effective. This steel could easily flood into Thailand," Mr. Wanchai stated.
Mr. Wanchai mentioned that products requiring import licenses fall under the mandatory TISI standards, currently totaling 112 items, categorized into 10 groups, including civil engineering and construction materials such as Portland cement, reinforced concrete bars, and ceramic tiles; consumer goods such as matches, detergents, toys, food wrap film, rubber nipples for baby bottles, and gas lighters; electrical and electronic engineering items such as light bulbs, irons, electric pans, grills, and sockets; fluid engineering items such as rigid PVC pipes for drinking water, shower heads, and faucets for sanitary ware; food items like canned pineapples; thermal engineering items such as liquefied petroleum gas tanks and alcohol for fuel; medical science items like medical oxygen and sterile plastic containers for pharmaceutical products; paints and varnishes such as crayons, synthetic dyes, and lacquer thinners; mechanical engineering and vehicles items such as motorcycle exhaust pipes, helmets, seat belts for cars; and chemicals like ammonium nitrate.
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