Thailand on the world stage/International Trade : Trade Measures

Overview

Trade agreements at all levels, bilateral, regional and multilateral, are aimed at abolishing both tariff measures (TMs) and non-tariff measures (NTMs). However, many countries continue to utilize restrictive measures in order to protect domestic markets, particularly NTMs such as Anti-dumping (AD), Countervailing (CVD), Safeguard (SG), and Sanitary and Phytosanitary (SPS) measures. Developed countries, especially, impose SPS measures, setting high standards for food, and technical barriers to trade (TBTs) by setting high product standards.
Tariff measures (TMs) are limited for WTO member countries, whose actual tariffs, or applied rates, may not exceed the WTO specified MFN rate.
Non-tariff measures (NTMs) are government measures involving international trade permitted by WTO. They must not involve unjustifiable inequitable treatment, create hidden trade barriers and must comply with relevant obligations and agreements. The United States focuses on protecting its domestic industry and labor force while the European Union emphasizes sanitation and the environment.
Thailand is currently facing restrictions from five kinds of NTM: 1) product control measures; 2) licensing and import control measures; 3) measures controlling import and export volumes; 4) semi-monopolistic measures such as specifying which types of product may be delivered to which ports; and 5) technical measures, for example, technical regulations, special customs procedures and specification of ingredients.
The energy saving and environmental preservation trends have been transformed into crucial regulations for global trade. A number of countries have focused more on energy saving and environmental preservation in a bid to solve global warming problem which has been a key topic in international summits of G8, G20, and ASEAN. Manufacturing for exports which takes into account the energy saving and environmental preservation issues will reduce trade obstacles, match demand of international markets, and be welcomed by the export markets. For example, automotive industry has focused more on alternative energy or electricity by developing vehicles using clean and environmental-friendly fuel in order to reduce the use of gasoline and gas, and to lower emissions that negatively affect environment and livelihood of the general public.