As previously stated, the official currency of Thailand is the baht, it is subdivided into 100 satang. One Thai baht is equated to 0.039 Canadian Dollars likewise, one Canadian dollar costs 25.9421 Thai bahts (THB per 1 CAD – Past 24 hrs. (n.d.). Retrieved from http://www.xe.com/currencyconverter/convert/?Amount=1&From=CAD&To=THB). I would definitely still say that it it a soft currency despite its value being on an exponential upward trend. In the past, foreign corporations have been hesitant to invest in Thailand due to political instability. “Since 2006, when the country’s most recent political crisis began, there have been two military coups, two new constitutions, four elections, seven prime ministers, a spate of violent demonstrations, civil unrest leading to the imposition of martial law and administrative chaos” not to mention, the recent death of their longest monarch.”That chronic political instability has filtered into government and businesses, resulting in policy inertia and weak economic growth. It’s no wonder business is cautious” ( Thailand’s Quest for Stability. (2016, October 28). Retrieved from http://knowledge.wharton.upenn.edu/article/thailands-quest-stability/). The previous lack of foreign investment has caused an unstable, but generally low baht currency track record. Tariffs”Thailand’s average applied Most Favored Nation (MFN) tariff rate was 10.7 percent ad valorem in 2014. About one-third of Thailand’s MFN tariff schedule involves duties of less than 5 percent, and almost 30 percent of tariff lines are MFN duty free, including for products such as chemicals, electronics, industrial machinery, and paper. Thailand has bound all tariffs on agricultural products in the WTO, but only around 70 percent of its tariff lines on industrial products” (Thailand – Import TariffsThailand – Import Tariffs. (n.d.). Retrieved July 18, 2017, from https://www.export.gov/article?id=Thailand-Import-Tariffs).Thailand has bound its agricultural tariffs at an average of 39.9 percent ad valorem. MFN duties on imported processed food products typically average from 30%to 50%. Unfortunately, this limits the ability of U.S. exporters of such products to compete in the Thai market, this may be something to reconsider as Thailand continues to expand globally. Tariffs on fresh meats, fresh fruits (including citrus fruit and table grapes) and vegetables, cheese, and even pulses (e.g., dry peas, lentils, and chickpeas) are similarly high. This is most likely due to their overabundance of fertile lands that grow a plethora of fresh agriculture and livestock. “Thailand’s average bound tariff for non-agricultural products is approximately 25.5 percent. Thailand imposes high tariffs in some sectors such as: import tariffs of 80 percent on motor vehicles, 60 percent on motorcycles and certain clothing products, 54 percent to 60 percent on distilled spirits, and 30 percent on certain articles of plastic and restaurant equipment. Thailand charges tariffs of 10 percent to 30 percent on certain audiovisual products. Thailand applies a 10 percent tariff on most pharmaceutical products, including almost all products on the World Health Organization list of essential medicines” (NTE Thailand Final. (n.d.). Retrieved June 23, 2013, from https://ustr.gov/sites/default/files/2013%20NTE%20Thailand%20Final.pdf).”Thailand maintains the same list of tariff-rate-quota (TRQ) from its commitments under WTO agreement on agriculture since 2004. Thailand imposes domestic purchase requirements for several tariff-rate quota products, including nonfat dry milk, soybeans, soybean meal, and fresh potatoes” (Thailand – Import TariffsThailand – Import Tariffs. (n.d.). Retrieved July 18, 2017, from https://www.export.gov/article?id=Thailand-Import-Tariffs).
August 7, 2019 0 Comments