AGTA Facilitates Trade Negotiations Between US and Thai Officials

The American Gem Trade Association (AGTA) met with senior government officials in Bangkok to discuss ongoing US-Thailand trade negotiations and their potential impact on the Asian country’s gem and jewelry supply chain.

Meetings took place between AGTA and senior members of Thailand’s gem and jewelry sector during the Bangkok Gems & Jewelry Fair earlier this month, the group said Monday. The association also held a private discussion with Kirida Bhaopichitr, vice minister for commerce, who led a delegation of senior Thai government officials.

The US currently applies a 12.5% import tariff on loose colored gemstones from Thailand, a key source of goods for the US market. Without a bilateral trade agreement with the US, Thailand risks losing market share to competing gem suppliers. Thai finished jewelry imported into the US is subject to combined duties of between 17.5% and 19.5%, AGTA explained.

The association outlined its concerns regarding the status of the negotiations and the potential risks to Thailand’s gem and jewelry supply chain if an agreement was not reached soon. The delegation also responded to questions from Bhaopichitr and representatives of several Thai government departments. AGTA subsequently shared details of the discussion with the office of the US Trade Representative (USTR), it said.

Thailand is an important sourcing and processing center for AGTA members. The association and the US jewelry industry requested the meeting to raise concerns about the progress of talks. The US and Thailand have been attempting to forge an Agreement on Reciprocal Trade (ART), with the discussions covering trade-related issues between the countries, AGTA added.

“We want to see stability in trade flows, so it is important that we help Thailand move forward to reach a bilateral trade deal with the US: Thailand is a vital supplier of loose colored gemstones and high-quality gemstone-set jewelry to the US market,” observed AGTA CEO John Ford.

Image: AGTA executives meeting with the Royal Thai government. (American Gem Trade Association)