Thailand is hoping to avoid potential US tariff measures, with the country’s commerce minister outlining a negotiation strategy to address concerns about its trade surplus with Washington. Pichai Naripthaphan emphasized Thailand’s commitment to ensuring the country is not targeted by US trade actions.
Minister Pichai told reporters that Thailand has a well-defined plan for negotiations and is prepared to adapt to US requests to achieve a positive outcome. He indicated his intention to return to the United States for further discussions with US officials.
“Don’t be too alarmed,” Pichai reassured, highlighting the existing plan. While he refrained from revealing specific details due to the sensitivity of negotiations, he expressed confidence in Thailand’s ability to navigate the situation. When questioned about the possibility of reciprocal tariffs, Pichai stated, “if we do anything wrong, we can fix it,” demonstrating a proactive approach to potential trade disputes.
Thailand’s Proactive Approach to Trade Discussions
Pichai revealed that Thailand had already developed contingency plans before his earlier trip to the US this month, which he described as “quite fruitful.”
The minister emphasised on the long-standing and positive trade relationship between the two countries, saying a unique agreement that allows US investors to hold 100% stakes in certain Thai businesses. “We have had this agreement for a long time but people don’t know about it… everyone wants it, but America is the only one to have it,” he explained, noting that sectors like banking and telecoms are excluded.
Impact of US Trade Policy on Thai Exports
Prime Minister Paetongtarn Shinawatra has directed a study to assess the potential impact of US trade policy on Thai exports, a crucial driver of the Thai economy.
Commerce ministry data shows Thailand’s substantial $35.4 billion trade surplus with the United States in the previous year. The US is Thailand’s largest export market, accounting for 18.3% of total shipments, valued at $54.96 billion.
Measures to Narrow Trade Gap
Thailand has announced plans to import 1 million tonnes of ethane in the second quarter of the year as one measure to potentially narrow the trade gap with the US.
Earlier this year, a broad trade memorandum was signed, directing federal agencies to conduct comprehensive reviews of various trade issues, including persistent US trade deficits, by a specified deadline.
