The Thai Retailers Association has called on ministers to enforce strict product standards and tax foreign e-commerce platforms to protect local SMEs
- The Thai Retailers Association is calling for a government crackdown on cheap foreign imports sold via e-commerce, citing unfair price competition that threatens local small and medium-sized enterprises (SMEs).
- Foreign sellers are accused of exploiting loopholes to avoid import tariffs and taxes, while also dumping surplus inventory in Thailand, undercutting local businesses.
- The association has proposed enforcing mandatory safety and quality standards on all foreign goods sold online, matching the requirements for domestic products.
- A second proposal demands that cross-border e-commerce platforms be made responsible for collecting and remitting import duties and taxes directly at the point of sale.
Thai retailers have called on the government to crack down on the massive influx of cheap foreign goods entering the country through cross-border e-commerce platforms, warning that unfair price competition is threatening the survival of millions of small and medium-sized enterprises (SMEs).
Thailand’s 3.3 million SMEs employ roughly 13.6 million people, accounting for nearly 70% of total private sector employment. However, shifting consumer habits and aggressive foreign market expansion have placed unprecedented pressure on domestic traders.
Speaking in a report Nath Vongphanich, president of the Thai Retailers Association (TRA), highlighted a sharp divergence in retail channels. Online sales in Thailand jumped by 23.5%, compared to 7.5% growth across physical stores
Yet despite rapid digital adoption, the vast majority of top-selling items on major platforms originate from foreign sellers rather than local producers.
Tariff Deflection and Regulatory Loopholes
According to the TRA, international manufacturers—faced with trade barriers and tariffs in Western markets—are redirecting surplus inventory into Southeast Asia.
This dumping strategy has flooded Thailand with underpriced merchandise, making it virtually impossible for local SMEs to compete on price alone.
Furthermore, industry leaders warn that foreign merchants routinely exploit regulatory loopholes to avoid import tariffs and value-added tax, undercutting local retailers that comply with domestic tax obligations and quality standards.
Two-Pronged Policy Proposal
To establish a level playing field, the TRA has submitted a formal policy framework urging ministers to implement two decisive measures:
Mandatory Product Standards: Enforce safety and quality compliance on all foreign goods soldrick-and-mortar retailers in Thailand
Platform Tax Accountability: Mandate that cross-border e-commerce platforms collect and remit import duties directly at the point of sale, holding platforms liable for auditing merchant inventories.
Implementation Bottlenecks
While government ministries have acknowledged the trade imbalance, enforcement remains constrained by bureaucratic backlog. Custom officials face significant operational hurdles in inspecting and processing the enormous volume of low-value parcels arriving daily.
Nevertheless, the TRA confirmed it will continue championing reforms under its ACT Strategy (Advance & Inclusive Growth) to harmonise trading standards across offline, online, and cross-border channels to safeguard domestic employment and retail stability.
