FTI urges swift conclusion to US trade deal as exports surge 41%

The Federation of Thai Industries (FTI) has voiced strong support for the government’s efforts to expedite the conclusion of the Agreement on Reciprocal Trade (ART) with the United States.

FTI President Pimjai Leeissaranukul stated that it is critical that all pending issues are resolved during the negotiations between Thai delegates and US officials, scheduled to take place between Aug 27 and Sept 1.

She expressed confidence that the Ministry of Commerce will lead the discussions toward a balanced, fair and mutually beneficial agreement.

To emphasise the economic stakes, Pimjai pointed out that the US retained its position as Thailand’s largest export market during the first half of this year. Shipments to the US reached US$47.14 billion, a 41% year-on-year increase and accounting for 24% of Thailand’s total exports.

“Establishing clarity regarding tariffs and trade rules is vital as they directly impact purchase orders, manufacturing schedules, domestic employment and business investment choices,” she explained.

Thailand’s export basket to the US spans several key sectors, including computers and components, hard disk drives, electronic parts, semiconductors, power transformers, machinery, rubber products, tires, auto parts, air conditioners, jewelry and processed agricultural goods.

“This diverse mix demonstrates how bilateral trade links advance technological manufacturing with foundational, income-generating local industries,” she noted.

The FTI president argued that the ART should look beyond simple tariff reductions and focus on providing commercial certainty and mitigating trade barrier risks. She urged negotiators to aim for a balanced expansion of trade and investment, enabling businesses from both nations to integrate supply chains and create shared economic value for long-term sustainability.

Addressing concerns over trade imbalances, Pimjai stated that the economic relationship must be evaluated holistically rather than focusing solely on surplus and deficit figures.

Government estimates indicate that at least 30% of Thailand's trade surplus with the US stems from US-based multinational companies with production bases in Thailand. These exports generate returns for their parent firms, while strengthening the overall US supply chain.

At the same time, Thailand has signaled its readiness to increase imports of US products in sectors where domestic demand exceeds local supply, such as energy, commercial aircraft, high-tech machinery, chemicals and specific agricultural raw materials.

Pimjai stressed, though, that import increases should align with real market demand and safeguard domestic farmers, small and medium-sized enterprises (SMEs) and local manufacturers from undue harm.

She concluded that the ART negotiations should be viewed as a framework on which to build a comprehensive economic partnership, rather than a mere exchange of tariff concessions. If designed effectively, the agreement would protect Thailand's principal export market while opening up fresh opportunities for US and Thai businesses to build future-ready supply chains together.