In late October 2019, the United States announced that it would suspend trade preferences for Thailand due to concerns over workers’ rights. It is expected that the move will hit Thailand’s seafood industry the hardest, though it will also affect the importation of produce, garments, and electrical appliances. Thailand is one of the world’s largest seafood exporters, but its seafood industry has long been plagued by allegations of slave labor and trafficking. The U.S. government stated in its announcement that it hopes to “incentivize Thailand to move forward with legislation and administrative enforcement actions related to worker rights that could lead to a reversal of the GSP action."
Thailand has enjoyed trade preferences under the United States’ Generalized System of Preferences (GSP), which was designed to promote economic growth in developing countries. To this end, these countries may import certain goods into the U.S. duty-free. For Thailand, trade preferences with the U.S. are estimated to be worth $1.3 billion.
After the Trump administration announced the move, Thai government officials responded that they intend to ask the U.S. to reconsider before the suspension takes effect, which is scheduled to occur in April of 2020.
