Thailand to protest over new US regulations for exporters

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Thailand to protest over new US regulations for exporters
By PETCHANET PRATRUANGKRAI
The Nation 2011-06-13

Thailand will send a letter to the Office of the US Trade Representative protesting against new regulations that will put a higher financial burden on exporters, especially small and medium-sized enterprises.

Surasuk Riangkrul, deputy director-general of the Foreign Trade Department, said the US Department of Commerce had recently changed its rules for exporters, especially in relation to products that come under anti-dumping or countervailing duties for cash deposit instead of bonds. This measure creates difficulties for Thai exporters, especially SMEs, because they have less liquidity than big firms.

"Although this is a temporary measure, Thai exporters may face difficulties exporting goods to the US. Importers would pass the burden of the cash deposit onto the exporters or start buying goods from countries that do not face anti-dumping or countervailing duties," he said.

The department, in cooperation with Thai manufacturers and exporters, will send a letter to the USTR protesting against this measure and asking for a revision of the new rules. Previously, the department had protested against new regulations that extended the period during which high duties were levied on Thai goods.

The US Department of Commerce recently revised its rules on countervailing duties and will no longer consider exempting exporters who have not engaged in price dumping for three consecutive years or been subsidised by their government for five years.

The decision has dashed the hopes of Thai exporters, who will end up having to pay high anti-dumping duties for the next five years.