Thai exports brace for more challenges despite limited impact from GSP cut

13 Sept 14:32 Key points summarised by AI

The U.S. suspended Generalized System of Preferences (GSP) benefits for 573 Thai product lines, effective April 25, 2020, citing Thailand's failure to adequately provide internationally-recognized worker rights.
Despite affecting approximately one-third of Thailand's GSP trade (valued at $4.4 billion in 2018), research from EIC, Commerce Ministry, and Kasikorn Research Center indicates a limited immediate impact on overall Thai exports, estimated at only 0.006-0.012% of total exports.
Affected products, including processed seafood, chemicals, and building materials, will face increased tariffs averaging 3.9-4.5%, leading to an estimated $50-52 million in additional costs, with small and medium-sized companies being most vulnerable.
Beyond the GSP cut, Thai exports face future uncertainties from potential additional U.S. trade measures (such as currency manipulation monitoring due to Thailand's high current account surplus) and challenges posed by a slowing global economy and a strengthening Thai baht.

New home loan scheme aims to boost property sector with Bt125 billion

Today 11:38 Key points summarised by AI

The Cabinet approved a new Bt50-billion 'A House for Each PLUS' home loan scheme from the Government Housing Bank, offering up to Bt3 million with 40-year repayment terms for low- and middle-income earners.
This initiative aims to significantly boost the property sector and national economy, projecting to generate Bt125 billion in economic activity and create jobs.