Thai Trade-Preference Loss Is a Warning for Asean Region
Thailand is the latest target of U.S. trade warfare, but may not be the last in Southeast Asia. In Bloomberg Economics’ view, the U.S. suspension of Thai trade preferences goes well beyond concerns about the working conditions of Thai fishermen. Rather, it’s a second warning shot to firms thinking about diverting production from China to Asean as a means to avoid punitive U.S. duties. More measures may be in the pipeline, and Malaysia, with a $39.4 billion bilateral trade surplus last year, could be the next recipient.
©2019 Bloomberg L.P.