Abstract:
The objective of the study is to assess the impact of Uruguay Round agreement in case of tariff reduction of Thailand on Thai textile industry in various aspects, for example, production, employment, investment, export and import etc. Moreover, this study analyzes the structure of Thai textile industry, the related government policy and measurement concerned with background of Thai textile industry in order to be aware of the problems in developing Thai textile industry, and to solve such problems effectively. The study results indicate that the reduction in tariff would lower the cost of production and domestic price, increase the export volume, thus enhancing the countrys economic growth. As for the impact on Thai textile industry, it would reduce the production cost in the upstream industry which is spinning industry. This, in turns, would transfer the benefit to the downstream industry as well. Besides, the growth of textile industry comes from the expansion of other industries. However, the reduction in tariff would lead to fierce overseas competition. As a result, the efficiency improvement are the requirement to survive in this arena. As for the impact on Thai industry in general, the industries which will benefit from the tariff reductions are the capital-created industry such as machinery and equipment, and the import-oriented such as chemical and synthetic rasin etc. Moreover, these impacts would link to macroeconomic growth, causing the economic growth to grow, despite the reduction in tariff revenue of government.