THAILAND has threatened to launch a disputes proceeding involving the United States at the World Trade Organisation if Washington goes ahead with plans to grant tariff privileges to footwear exports from South American countries. The US is to waive duties on footwear in ex-change for co-operation in suppressing drugs in the region but the Thais say their footwear industry will suffer heavily. As a result, exports from the South American countries will be taxed at between 0-6 per cent, while Thai products will be taxed at 12 per cent.

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