Luxemburg assists Thailand

Luxemburg assists Thailand

BANGKOK (DPA): Luxemburg Prime Minister Jean-Claude Juncker pledged on Thursday to lobby the European Union for a reappraisal of Thailand's lost general system of preferences (GSP) privileges.

"My government will try to be as helpful as possible to explain to our colleagues and partners in Europe that the crisis has to be taken into account on the decision concerning GSP," Juncker, who is also finance and labor minister, told a press conference following his talks with Thai ministers.

Thailand has been lobbying the EU to reconsider its decision to cut favorable tax treatment this year on several crucial Thai exports, such as frozen shrimp.

On January 1 EU import taxes on Thai shrimp jumped to 14.4 per cent, compared to 9.7 per cent last year when they were still getting GSP treatment.

Thai government officials have argued that the country's deep recession in 1998, when gross domestic product shrank an estimated 8 per cent, has lowered per capita income and therefore Thailand should still qualify for GSP, which is designed to assist developing nations.