Thailand will set up a task force to strictly enforce existing regulations to stem the flood of cheap Chinese imports that are threatening the manufacturing sector and an already weak economy, a minister said yesterday.
The move came amid warnings that many Thai companies may not be able to survive what Thailand’s main industry association is calling a flood of cheap Chinese goods, which has already led to the closure of nearly 2,000 factories in Southeast Asia’s second-largest economy in the past year.
This year, Thailand’s economy is expected to grow by 2.6 percent due to tourism and exports, but the manufacturing sector is expected to drag down.
Photo: EPA-EFE
According to government data, factory production fell 2.01 percent in the first half of this year compared to the previous year.
Thailand will set up a task force of 28 government agencies that will meet every two weeks to review and revise regulations to prevent the distribution of illegal goods, acting Thai Commerce Minister Phumtham Wechayachai told reporters.
“We will make more extensive use of existing measures,” Phumtham said, adding that these arrangements were in line with global trade rules.
Other measures include increasing the number of goods controlled under industrial and drug laws and conducting more frequent random container checks, he said.
Thailand introduced a 7 percent value-added tax on imported goods priced below 1,500 baht ($44) in June.
However, the launch of Chinese e-commerce company Temu in Thailand last month has fuelled new fears among small businesses that cheaper imported goods could be a threat to their business.
The Thai government said it was in talks with the Chinese embassy over concerns about the online platform’s compliance with local tax laws, Phumtham said.
The Chinese embassy in Bangkok did not immediately respond to a Reuters request for comment.
“We do not discriminate against any country, but we are ready to make adjustments if the current rules cannot solve these problems and the concerns of society,” Phumtham said.
Comments are moderated. Comments must be relevant to the article. Comments containing offensive or obscene language, personal attacks of any kind, or advertising will be removed and the user banned. The final decision is at the discretion of the Taipei Times.
