Thailand's Industry Ministry is being asked to allow the creation of a new regulatory unit to help it monitor product standards. (Photo source: Thaipbsworld.com)

Bangkok – The Industry Ministry is being asked to allow the creation of a new regulatory unit to help it monitor product standards, aiming to control the influx of cheap Chinese imports, said the Federation of Thai Industries (FTI).

The new agency's mission is to help the ministry’s Thai Industrial Standard Institute (TISI) to certify the quality and safety of goods, the FTI added.

According to FTI, the TISI is too slow in its operations which means it is not effective in helping the government prevent the import of substandard goods.

"The government needs a helping hand because the import of cheap Chinese goods continues to increase, leading to dumping in the Thai market," Thawee Piyapatana, Vice Cchairman of the FTI was quoted by the English-language Bangkok Post newspaper as saying.

The FTI said the influx of cheap Chinese goods is affecting local manufacturers across 20 sectors, including steel, aluminium, plastics, ceramics, petrochemicals and medicine.

The import volume will continue to rise if the government does not improve its product certification process, said Thawee.

Besides, if Chinese imports continue to increase, it could be a factor leading to a trade deficit, he said.

The Commerce Ministry reported earlier the customs-cleared value of exports increased by 2.6% year-on-year in August, the first gain in 11 months, to 24.3 billion USD. Imports contracted by 12.8% to 23.9 billion USD, resulting in a trade surplus of 360 million USD.

During the first six months of this year, the FTI noted a rapid increase in Chinese imported goods. Thailand has a trade deficit with China of several million baht, the paper cited Kriengkrai Thiennukul, Chairman of the FTI.