According to the Federation of Thai Industries (FTI), the US Department of Commerce has commenced an anti-dumping investigation targeting Thai-produced tires marketed in America.
The FTI alluded that the US commerce department’s move was a result of the ongoing US-China trade war, as various exporters are Chinese-owned factories relocated to Thailand.
The Thai business group is concerned over the trade developments, which could potentially impact other Thai industries.
US trade officials are preparing to launch various investigations regarding the anti-dumping duties (AD) and countervailing duties (CVD) for imported tires from South Korea, Taiwan, Vietnam, and Thailand.
Anti-dumping and countervailing investigations are warranted over certain import products being transacted at unusually low prices.
FTI’s Vice-chairman, Kriangkrai Tiannukul, believes that the investigation is related to the ongoing US-China trade conflict. Tiannukul said:
“The conflict has affected many businesses and companies based in China, so they relocated their facilities to other countries.”
Thailand is a significant destination for Chinese companies seeking to relocate from China. The vice-chair added:
“The US is watching this movement and allegedly trying to use a trade barrier on Chinese products. Apparently this is part of a political conflict.”
The US Department of Commerce is set to conclude its investigation on November 9th, deliberating on whether the Asian nations were dumping tires into America. The commerce office stated:
“The strict enforcement of US trade law is a primary focus of the Trump administration.”
The US will begin its dumping investigations on July 26th.
Thailand and the other implicated countries will be allowed to present a defense against the dumping allegations.
Thailand is estimated to have at least eight tire factories – mostly based in the country’s Eastern Economic Corridor – with five of the factories originally from China, and the remaining three organically Thai produced.
The FTI expressed that Thailand serves as an export base for various Chinese companies producing products ranging from tires to processed food.
In 2017, the US trade authority slapped Chinese aluminum foil companies with additional import duties over product dumping in America.
Source: Bangkok Post