Thailand faces impact from US economic policy

BANGKOK, Jan 21 (TNA) -- Thailand and several countries will definitely face trade and economic policy from the new US President Donald Trump, said Nopporn Thepsithar, chairman of Thai National Shippers’ Council (TNSC). Mr Trump’s economic policy is contradicted to prevailing free trade system in the world and it is just like a huge tsunami which would impact global and Thailand’s economy, he said. “This’s like a beginning of changes of global economy,” Mr Nopporn said. Already, purchase orders of Thai textiles from the US have declined by 10 per cent because the US wants to bring back production to its country, he said, adding that other industries including electronics, vehicles and parts, electrical appliances which account between 38 – 39 per cent of Thailand’s total exports have cut their production following lesser demand from the US market. Expressing concerns over Mr Trump’s strict trade policy, especially on hiring children by factories, Mr Nopporn said he is worried that the US may stop importing Thai fishery products if the Thai government does not impose strict measures to solve the illegal, unreported and unregulated (IUU) fishing issue. Also, the US government is unlikely allowing Chinese exports to flood the US market, he said. Direct investment from the US and several other countries in Thailand would slow down and Thailand will have to speed on negotiating with the Washington on the quality of Thai goods, explore niche markets and maintains its exports in the Association of Southeast Asian Nations, Mr Nopporn said. TNSC projects that Thailand’s exports in 2017 would grow between 2 – 3 per cent and decline sharply to only 0.2 per cent if the US trade and economic policy is too severe. (TNA)