Thailand is making significant progress in transitioning towards a bio-circular green economic model in its textile industry, as highlighted in the latest trade policy review conducted by the United Nations Environment Programme (UNEP) titled ‘Sustainable and circular textile value chains: Linkages with trade and trade policy’.
The UNEP study emphasizes the pivotal role of trade policy instruments in fostering a more sustainable and circular textile sector. Thailand’s efforts include the removal of tariffs on clean technologies, aimed at encouraging the adoption of environmentally friendly practices among textile manufacturers. Notably, tariffs on wastewater treatment machines and solar cells were eliminated in January 2013 and 2007 respectively, contributing to their affordability and widespread use. Despite this progress, the study also notes the need for more consistent support for energy-efficient products, citing high tariffs on LED products at 40 percent.
In addition to tariff adjustments, Thailand has implemented environmental standards and regulations tailored to the manufacturing industry, including specific guidelines for textile factories. These measures focus on enhancing energy efficiency, conservation, and pollution reduction, with technical regulations aligning with the Thai Industrial Standards for synthetic dyestuffs.
Thai textile exporters are increasingly adopting ecolabels such as the Global Organic Textile Standard (GOTS), Green Label: Thailand, the EU Ecolabel, and the Bluesign standard. These voluntary sustainability labels facilitate access to global markets for Thai producers, although challenges such as a limited certification range and complex processes persist.
To further its commitment to sustainable textile production, Thailand has implemented stringent labelling requirements for imported medical textiles, ensuring safety and quality. 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.
Thailand’s integration into the global value chain is bolstered by its participation in the Regional Comprehensive Economic Partnership (RCEP), simplifying trade rules and fostering economic cooperation within the bloc. These collective efforts position Thailand as a leading advocate for sustainable practices in the textile industry, driving innovation and compliance with international environmental standards.
