Bangkok--9 Dec--TPPIA
The Thai Pulp and Paper Industries Association (TPPIA), upon reaching a resolution on December 3, prepares to propose a Safeguard Measures to the Bureau of Trade Interests and Remedies to protect the local copier paper industries as well as the entire supply chain of local pulp and paper industries from heftier import competitions.
Mr. Montri Mahaplerkpong, President of the Thai Pulp and Paper Industries Association (TPPIA), says that “During the past few years, the local pulp and paper industries have been hitting hard by the increasing competition of the imported products, especially in the area of copier papers. Recently, our members have found an irregularly sharp and continuing hike in import copier papers sold at very low prices that have significantly affected the sale volume, capacity, and inventory of local pulp and paper industries. If this incident is allowed to continue, it will definitely put an end to the local businesses and will largely affect the entire supply chain of the Thai pulp and paper industries - from its beginning at the eucalyptus plantations that hire as much as 158,000 families all the way to pulp production, copier paper production, and paper distribution network that has been generating staple income for all the involved people. If nothing is to be done to correct this matter, it is very likely that the foreign competition will go out of control and destroy the Thai pulp and paper industries that has an annual value of over Bt30 billion. It is therefore very necessary that we help mending this situation and restore the local industries for the safety of the local labor and industry throughout the entire supply chain.”
“The Thai Pulp and Paper Industries Association consulted with stakeholders in the local pulp and paper industries as well as partners from the Federation of Thai Industries. The association has concluded to propose Safeguard Measures to the Bureau of Trade Interests and Remedies, Ministry of Commerce as a way to proceed on suitable protective measures from the increase of imported products. We are now depending on the actions of the government to help us shoring up the local pulp and paper industries,” says Mr. Montri.
Thailand is now consuming about 230,000 tons of copier papers per year, totaling in a gross annual value of Bt10 billion. Imported copier papers were once stood at the amount of 1,000 tons per month, but recently it has briskly increased into 4,000 tons, with a peak at 6,000 tons, per month. This sharp 600% hike of the imported paper has significantly diluted the local business which depends on the local demands of 19,000 tons for copier paper a month. Imported paper which used to have a 5% market share is now gaining a hefty track of 30% as a result of the oversupply in China and Indonesia as well as the Anti-Dumping measures posted by Australia. Thailand’s 0% import tax for paper, compared to 3-20% in other ASEAN countries, is also a big reason for those oversupply papers to overflow into the country.