The United Nations Environment Programme (UNEP) has conducted a trade policy review titled “Sustainable and circular textile value chains: Linkages with trade and trade policy,” highlighting Thailand’s shift from conventional manufacturing techniques to a bio-circular green economic model. Thailand has been a member of the WTO since 1995.
The UNEP report emphasizes how important trade policy tools are for developing a more circular and sustainable textile industry. With the abolition of tariffs on clean technology, significant progress has been made in pushing textile makers to embrace eco-friendly practices. For example, removing tariffs for solar cells in 2007 and wastewater treatment equipment in January 2013 has greatly increased them.
In addition, the policy eliminates duties on used apparel while acknowledging the need for more continuous support for energy-efficient products. The policy specifically highlights the high tariffs now in place on LED products, which stand at 40%.
Thailand has enacted several environmental norms and regulations, including rules for textile manufacturers, that are geared towards the industrial sector in addition to tariff modifications. According to the report, these actions are intended to promote energy conservation, increase energy efficiency, and reduce pollution. They also include technical limits on the use of dyes that align with the Thai Industrial Standards for synthetic dyestuffs.
The use of voluntary sustainability labels like the Global Organic Textile Standard (GOTS), Green Label: Thailand, the EU Ecolabel, and the Bluesign standard has led to an increase in the acceptance of ecolabels among Thai textile exporters. Despite obstacles including a narrow certification range, difficult procedures, and a lack of knowledge about the advantages of these labels, these certifications have greatly aided Thai businesses’ access to the international market. Thailand has further demonstrated its dedication to sustainable textile production by adopting non-tariff measures for imported textile products, such as strict labeling guidelines for medical textiles to guarantee quality and safety.
Proactive investment management strategies in the nation, such as those provided by the Board of Investment (BOI) and Special Economic Zones (SEZs) like the Eastern Economic Corridor (EEC), are intended to draw foreign capital into the nation’s cutting-edge and high-tech textile sectors. These regulations encourage innovation in fields like functional textiles, biomass energy, and adherence to international environmental standards, supporting not only the nation’s environmental goals but also its aspiration to become a regional center for textiles.
Thailand’s membership in the largest free trade agreement in the world, the Regional Comprehensive Economic Partnership (RCEP), which streamlines trade regulations and promotes economic cooperation among member countries, serves as additional support for the country’s integration into the global value chain.
