U'S' Thailand Trade Relations

1
U.S. Thailand Trade Relations

• Pitak Udomwichaiwat
• Minister-Counsellor (Commercial)
• September 18, 2007
• Office of Commercial Affairs
• Royal Thai Embassy
• Washington, D.C.

2
U.S. Market Overview

• The U.S. is currently Thailands largest export
  market
• Thailand is the 29th largest export market for
  the U.S. and 18th largest supplier to the U.S.
• Total US-Thailand volume of trade 2006 30.6
  billion

3
U.S. Market Overview
4
Major Imports Exports

• Major U.S. Imports from Thailand
• Electrical Electronic Apparatus
• Computers Parts
• Televisions / Monitors
• Jewellery
• Seafood
• Clothing Apparel
• Furniture
• Natural Rubber
• Footwear
• Tires
• Auto Parts
• Rice

• Major U.S. Exports to Thailand
• Integrated Circuits
• Keyboard / Typewriter Parts
• Semi-Conductors
• Cotton
• Aircraft Parts
• Computers Parts
• Electrical Apparatus
• Diamonds
• Gold
• Jewellery
• Soybeans
• Oil

5
Negative Factors Affecting Trade

• Slower U.S. Economic Growth Rate
• Weaker U.S. Dollar
• Growing Competition
• U.S. Bilateral Agreements (FTAs)
• In Force NAFTA, Singapore, Australia, DR-CAFTA,
  etc.
• Pending Congressional Approval Peru, Panama,
  Colombia, and Korea

6
Key Trade Challenges

• Antidumping Duties
• Canned Pineapple
• Butt Weld Pipe Fittings
• Carbon Steel Pipes and Tubes
• Hot Rolled Steel
• Prestressed Concrete Steel Wire and Strand
• Polyethylene Retail Carrier Bags
• Frozen Warm Water Shrimp
• (Zeroing and Continuous Bond Issue - Under
  dispute settlement in WTO)
• Countervailing Duties
• Hot Rolled Steel

7
Key Trade Challenges

• GSP
• Total 4,600 tariff lines
• Thailand utilizes 1,218 tariff lines or
  approximately 26.5
• Third largest beneficiary behind Angola and India
  in 2006 (4.25 billion)
• Annual Review 2006 (Effective July 1, 2007)
• New Exclusions
• PET Resins (HS 3907.60.0000) MFN Rate 6.5
• Color Television w/ VCR or Player (HS
  8528.72.64) MFN Rate 3.9
• CNL Waiver Revocation
• Gold Jewelry (HS 7113.19.50) MFN Rate 5.5

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Key Trade Challenges

• GSP (continued)
• Annual Review 2007
• Application for CNL Waiver November 16, 2007
• Recommendations
• Expand use of GSP eligibility to other products
• Encourage the submission of CNL Waiver Petition

9
Key Trade Challenges

• 301
• Thailand under Priority Watch List
• SPS
• Product Detention
• Contamination
• Pest
• Food Additives
• Labeling

• Other Non-Tariff Barriers
• Standard
• Environment
• Labor

10
Farm Act

• The 2002 Farm Bill
• 273.9 Billion over six years (2002-2007)
• Expire September 30, 2007
• The 2007 Farm Bill
• House Action
• August 27, 2007 Passed House
• Extension for 5 years, ending 2012
• Budget 286 Billion
• Key Issues
• Conservation Program
• Food Stamp/Nutrition Program
• Counter-Cyclical Payment (including both
  Price-Based and Revenue Based payments)
• Senate Action
• Consideration by September 30, 2007 unlikely
• Passage likely on beginning of 2008, retroactive

11
New Trade Opportunities

• APHIS/USDA approval for the importation of 6
  fresh fruits into the U.S. through irradiation
  (effective July 23, 2007)
• Mangos
• Mangosteens
• Lychees (excluding Florida)
• Longans (excluding Florida)
• Rambutans
• Pineapples
• First shipment expected in mid-November 2007

12
North America Regional Hub

• Office of Commercial Affairs, Washington, D.C.
• Hub Manager
• Trade Regime
• Trade Promotion
• Contact inquiries_at_thaiembdc.org
• 4 Thai Trade Centers
• Trade Promotion
• Los Angeles ttcla_at_earthlink.net
• New York info_at_thaitradeny.com
• Chicago ttcc_at_thaitradechicago.com
• Miami ttcmiami_at_earthlink.net

13
North America Regional Hub

• Canada
• Vancouver thaitcvancouver_at_depthai.go.th
• Toronto thaitradetoronto_at_on.aibn.com
• Mexico
• Mexico City thaitcmexico_at_prodigy.net.mx

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THANK YOU