Page 21 - THE SOUTH CHINA BUSINESS JOURNAL
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ed on this formulation, Indonesia, Malaysia, Southeast Asian countries continue to enhance
Philippines, Thailand, and Vietnam had ATAs of their laws and regulations to better compete for
between 13%-19%. Such hefty margins suggest business opportunities created by the U.S./China
that these countries should substantially increase tariffs. Indonesia recently passed reform legislation
their exports of the tariffed products to the U.S. For that opens up the economy more broadly to foreign
comparison, the world average ATA is 15%. investment and addresses longstanding manpower
However, the data reveal some things you wouldn’t issues. The Philippines is close to enacting substantial
expect. First, the Philippines had the highest ATA of tax reforms long championed by the business
any Southeast Asian country, yet it saw very modest community. Thailand continues to promote a broad
export growth to the U.S. At the same time, Vietnam array of tax and other incentives to attract foreign
had the lowest ATA in the region, but increased its investment. These countries are also pursuing a
exports to the U.S. (measured in dollars) more than variety of bilateral trade agreements with partners
other ASEAN countries. Perhaps this discrepancy around the globe.
is because some Southeast Asian countries do not The Biden administration has made it clear that it will
export large amounts of tariffed products or do not prioritize the removal of tariffs on certain Chinese
not have the capacity to do so at the volumes and goods. This provides a continuing opportunity for
standards required. In effect, they can’t quickly Southeast Asian countries to take advantage of their
take advantage of their high ATAs. comparative edge, boost their competitiveness, and
Nonetheless, cost differentials have created gain market share in products where tariffs are high,
opportunities for these countries to grow their U.S. all of which, accompanied by an effective vaccine
market share. For example, Malaysia has been rollout, will support the region’s economic recovery.
able to expand its exports of products including The elephants may continue to fight, but so far the
thermostats, telecommunications instruments, grass is holding up well.
battery parts, and transistors and semiconductor
parts. Thailand has seen strong growth in U.S.-bound
exports of computers, storage devices, and medical
instruments. These examples show the diversity of
the region’s exports and suggests there are growth
opportunities, particularly where ATAs are high.
SOUTH CHINA BUSINESS JOURNAL 18
Philippines, Thailand, and Vietnam had ATAs of their laws and regulations to better compete for
between 13%-19%. Such hefty margins suggest business opportunities created by the U.S./China
that these countries should substantially increase tariffs. Indonesia recently passed reform legislation
their exports of the tariffed products to the U.S. For that opens up the economy more broadly to foreign
comparison, the world average ATA is 15%. investment and addresses longstanding manpower
However, the data reveal some things you wouldn’t issues. The Philippines is close to enacting substantial
expect. First, the Philippines had the highest ATA of tax reforms long championed by the business
any Southeast Asian country, yet it saw very modest community. Thailand continues to promote a broad
export growth to the U.S. At the same time, Vietnam array of tax and other incentives to attract foreign
had the lowest ATA in the region, but increased its investment. These countries are also pursuing a
exports to the U.S. (measured in dollars) more than variety of bilateral trade agreements with partners
other ASEAN countries. Perhaps this discrepancy around the globe.
is because some Southeast Asian countries do not The Biden administration has made it clear that it will
export large amounts of tariffed products or do not prioritize the removal of tariffs on certain Chinese
not have the capacity to do so at the volumes and goods. This provides a continuing opportunity for
standards required. In effect, they can’t quickly Southeast Asian countries to take advantage of their
take advantage of their high ATAs. comparative edge, boost their competitiveness, and
Nonetheless, cost differentials have created gain market share in products where tariffs are high,
opportunities for these countries to grow their U.S. all of which, accompanied by an effective vaccine
market share. For example, Malaysia has been rollout, will support the region’s economic recovery.
able to expand its exports of products including The elephants may continue to fight, but so far the
thermostats, telecommunications instruments, grass is holding up well.
battery parts, and transistors and semiconductor
parts. Thailand has seen strong growth in U.S.-bound
exports of computers, storage devices, and medical
instruments. These examples show the diversity of
the region’s exports and suggests there are growth
opportunities, particularly where ATAs are high.
SOUTH CHINA BUSINESS JOURNAL 18
