By: PHUSADEE ARUNMAS

Trade benefit cuts made by the United States government may crimp Thailand's preserved mackerel exports to the US.

Higher tariffs as a result of the cuts might make Thai products less competitive against similar products from Chile, Peru, Pakistan and Morocco, said Chutima Bunyapraphasara, director-general of the Foreign Trade Department.

But any impact would be marginal, as the new tariff rate is only 3%.

Last year, Thailand's mackerel products accounted for 56.1% of the US market, well above the ceiling the US regulations imposed.

The US uses Competitive Need Limits to deny the Generalised System of Preferences (GSP) treatment of imports from developing countries. It excludes products from the programme if the value of imports exceeds $135 million, or accounts for more than half the total imports of that item.

Washington has removed 12 products from six countries that were benefiting from a duty-free export program for developing economies.

They included preserved mackerel from Thailand, certain aromatic and non-aromatic drugs, zinc tubes or pipes and auto parts from India, a form of polyethylene from Indonesia and railway parts from Ukraine

The US GSP in 2008 facilitated US$31.7 billion in imports of nearly 5,000 product lines from 131 developing countries.

Thailand exported mackerel products worth $13.93 million last year followed by Chile ($3.6 million), China ($2.2 million), and Japan ($1.2 million).

Japan, however, was not granted GSP privileges by the US.

Thailand remains fortunate to have the trade preferences renewed for nine products - processed meat, fresh orchids, durian, dried papaya, dried tamarind, processed shrimp, preserved fruits and nuts, processed papaya, and buffalo hide - said Ms Chutima.

Normal import rates for those products are about 1.8% to 8%.

Thailand shipped a combined $29.8 million of the nine products last year.

Currently, 3,500 Thai items are entitled to US trade preferences. Last year, Thailand exercised rights worth $3.53 billion, mostly for auto tyres, processed food and electrical wires used in automobiles.