Thailand to propose five measures in tariff negotiations with the US

Thailand is set to propose five measures to the United States in trade talks, scheduled for April 23rd in Washington DC, aimed at easing the full impacts of the 36% reciprocal tariffs imposed on Thai exports to the US market.

The Thai delegation, led by Finance Minister Pichai Chunhavajira, left Bangkok yesterday. According to the Finance Ministry and the Bank of Thailand, the talks are expected to be unpredictable and are shrouded in uncertainties.

The Thai delegation has prepared a set of five measures to be proposed to their American counterparts. These include the opening of the Thai market and import tax cuts for US farm products, under the framework of the US National Trade Estimate 2025, increased imports of US-made products which cannot be locally produced in Thailand, tighter screening of re-exported products from Thailand, promotion of Thai investments in processing industries in the US and cooperation between Thailand and US on mutually supportive industries.

Citing an example, Pichai told the media on Wednesday that Thailand plans to import one million tonnes of liquefied natural gas (LNG), worth about US$600 million, from the US over a five-year period, and about 400,000 tonnes of ethylene gas, worth about US$100 million, over four years.

He said that the reciprocal tariffs to be imposed on Thai products is a major issue, which Thailand will have to address by itself, adding, though, that consultations with ASEAN member states, regarding a collective approach towards the US trade barriers, must be pursued in parallel with unilateral approach.

Pichai offered an assurance that Thailand has sufficient liquidity and national reserves and that the reserves will not be used under the present difficult circumstances.