The UNEP study underscores the critical role of trade policy instruments in fostering a more sustainable and circular textile sector. Notable strides have been made with the removal of tariffs on clean technologies, a move aimed at encouraging the adoption of environmentally friendly practices among textile manufacturers. For instance, the elimination of tariffs for wastewater treatment machines in January 2013 and solar cells in 2007 has significantly contributed to their affordability and widespread use. Furthermore, the policy extends zero tariffs to worn clothing, although it acknowledges the necessity for more consistent support for energy-efficient products, highlighting the existing high tariffs on LED products at 40 per cent.
In addition to tariff adjustments, Thailand has implemented a series of environmental standards and regulations tailored to the manufacturing industry, including specific guidelines for textile factories. These measures are designed to enhance energy efficiency, foster energy conservation, and minimise pollution, with specific technical regulations on the use of dyes aligning with the Thai Industrial Standards for synthetic dyestuffs, as per the study.
Thailand is transitioning towards a bio-circular green economy, as highlighted by a UNEP trade policy review.
The country has made strides by eliminating tariffs on clean technologies and implementing environmental standards for the textile industry.
Additionally, the adoption of ecolabels is promoting sustainable practices, despite facing challenges.
The adoption of ecolabels has also seen an uptick among Thai textile exporters, leveraging voluntary sustainability labels such as the Global Organic Textile Standard (GOTS), Green Label: Thailand, the EU Ecolabel, and the Bluesign standard. These certifications have significantly facilitated access to the global market for Thai producers, despite facing challenges such as a limited certification range, complex processes, and insufficient awareness of the benefits associated with these labels.
Further enhancing its commitment to sustainable textile production, Thailand has embraced non-tariff measures for imported textile products, including stringent labelling requirements for medical textiles to ensure safety and quality. The country’s proactive investment management policies, including incentives offered by the Board of Investment (BOI) and Special Economic Zones (SEZs) like the Eastern Economic Corridor (EEC), aim to attract foreign investments in high-tech and innovative textile industries. These policies not only support the country’s environmental goals but also its ambition to become a regional hub for textiles, fostering innovation in areas like functional textiles, biomass energy, and compliance with international environmental standards.
The integration into the global value chain is further supported by Thailand’s participation in the Regional Comprehensive Economic Partnership (RCEP), the world’s largest free trade agreement, which simplifies trade rules and fosters economic cooperation within the bloc.
Fibre2Fashion News Desk (DP)
