Thai exporters urged to cope with challenges in EU

BANGKOK, January 8 (TNA) - The Kasikorn Research Center (KRC) has called on Thai exporters to beware of and cope with challenges in the European Union (EU) in 2015. In order to cope with the challenges, the Bangkok-based research firm suggested on Thursday, Thai exporters maintain product quality amid greater competition and carefully handle cost management to ease impacts from the EU's higher import tariffs, by 3-4 per cent, and from unstable foreign exchange rates. Besides, the leading private Thai think tank warned, the EU may also order basic raw materials from Thailand's neighboring countries instead, namely natural rubber and rubber products, processed chicken, gems and jewelry, chemical products and seafood. KRC pointed out, however, that Thai exporters who are in the chains of large-scaled production should better cope with the challenges, as they have flexibility in cost management, referring to the manufacturers of computers, computer parts, automobiles, air-conditioners and electrical appliances. KRC acknowledged, as there are many negative factors for Thai exports to the EU, especially impacts after they are excluded from the giant European trade bloc's Generalized System of Preferences (GSP) as of January 1, 2015, which ends Thailand's tariff privileges worth 252 million US dollars, the growth rate of Thai exports to the EU could fall to a range of 0.5-3.5 per cent this year, instead of about 4.6 per cent last year, on the condition that the EU economy expanded by 1.1 per cent this year, but if the EU economic growth rate was lower, Thai exports to the giant European market could even shrink in 2015. (TNA)