The Thai government has set out to stem the flow of cheap Chinese goods into the Southeast Asian country.
After a weekly Cabinet meeting on Tuesday, now-ousted Thai Prime Minister Strettha Thavisin said the commerce ministry would spearhead the effort, local media reported.
China is Thailand's largest trade partner, with bilateral trade reaching $135 billion last year. However, the influx of Chinese goods into the kingdom and other countries in the region has led to concerns over the impact on domestic markets and spurred governments to action.
Thailand's commerce authorities have been tasked with working alongside other government ministries and departments and the Royal Thai Police to draw up a list of measures by the end of the month, with the aim of boosting the competitiveness of local small businesses.
Government spokesperson Chai Wacharonke said the initiative had been prompted by a rising number of private-sector complaints about illegal trade activities by foreign businesses.
"These businesses have affected SMEs [small- and medium-sized enterprises] that are impacted by e-commerce, both online and offline," the Bangkok Post quoted him as saying. "It was found that there has been an unusually high influx of imported goods, with the e-commerce business valued at up to 1.53 trillion baht [$38.6 billion]."
Commerce Minister Phumtham Wechayachai in a Facebook post on Tuesday said Thailand must adapt to the shifting landscape of global trade and that new taxes on e-commerce are on the table to ensure fair competition and prevent "damage to the domestic economy."
He called the entry of Chinese e-commerce platform Temu into Thailand "both an opportunity and a challenge" for businesses in Southeast Asia's second-largest economy. Phumtham also said his ministry places "great importance" on finding opportunities for Thai entrepreneurs seeking to penetrate large markets like China's.
The Chinese embassy in Thailand did not immediately respond to a written request for comment.
The Thai government has been eyeing ways to support its SMEs, which account for 99 percent of its businesses and 35.2 percent of the country's GDP. Southeast Asia-focused news and analysis platform ASEAN Briefing wrote earlier this year. Bangkok aims to boost this figure to 40 percent of GDP by 2027.
In July, a 7 percent value-added tax went into effect on imports that cost less than 1,500 baht (about $43).
Thailand's Constitutional Court on Wednesday voted to remove Prime Minister Srettha from office over an alleged ethics violation. Srettha had appointed a minster who had previously been imprisoned for attempting to bribe a court official.
It is unclear how this will affect trade policy down the road, though Srettha's cabinet will continue serving in a caretaker role until the parliament chooses a new premier.
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