Several Thai exports will soon enjoy better competitiveness after the United States decided to end its surcharge under a practice called zeroing used in its calculations of anti-dumping duties.

"Thai frozen shrimp, plastic bags and steel exports to the US are currently facing high anti-dumping duties, since the zeroing calculation method has led to high levies. The change of the levy calculation should reduce taxes and boost export opportunities for Thai products," Surasak Riangkrul, deputy director-general of the Foreign Trade Department, said yesterday.

The United States will start employing the new calculation method without zeroing on April 16.

Thailand had filed complaints to the World Trade Organisation (WTO) accusing the US of unfairly calculating anti-dumping duties on Thai products.

Zeroing is the US practice of calculating several different ways but ideally using the weighted-average net price of the most similar product sold in the home market. It uses this method to calculate anti-dumping duties on products that could hurt its domestic market.

Thai exports had suffered a handicap from high duties for many years, Surasak said.

However, the department warned Thai exporters to monitor the new calculation method closely, which could cause higher levies in the future.

Exporters should also carefully quote prices that reflect the real cost of production to avoid facing anti-dumping duties, he said. The US has accused exporters of price-cutting.

Washington has been pressured by many trade partners to scrap what are seen as unfair calculations. Recently, it was slapped with trade-retaliation measures by the European Union and Japan.

The zeroing practice artificially inflates dumping margins, which the WTO says is incompatible with global trade rules.

By Petchanet Pratruangkrai

Source: nationmultimedia.com