Thai private sector worries about new US administration trade barriers

With Donald Trump likely to win, the Thai private sector grouping, known as the Joint Standing Committee on Commerce, Industry and Banking, is closely monitoring the US presidential election.

The result could have significant impacts on the Thai economy, especially on exports of goods on which Thailand enjoys a trade surplus with the US, such as hard disk drives, semi-conductors, car tires, air-conditioners and solar cells, according to Sanan Angubolkul, president of the Thai Chamber of Commerce.

He said that the Thai government and private sector must take precautionary measures to cope with the possibility of a new round of trade barriers, such as US tariffs on imports from Thailand.

Sanan also noted that global GDP this year is expected to be low, as manifested in shrinking industrial indices for October for several industrialised countries and regions, such as the US, Europe and Japan.

The International Monetary Fund has forecast the global economic growth rate for 2024 and 2025 at 3.2%, as there are still major risk factors, such as increased trade barriers, inflation and geo-political conflicts, as well as a brewing real estate meltdown in China.

Sanan said that the growth rate in Thailand for 2024 is projected to be 2.6%-2.8%, which is higher than earlier projections, thanks to an increase in exports of electronic products, increased purchasing power and the acceleration of budgetary disbursement.

He noted, however, that flooding in many provinces in the past few months has had negative impacts on the economy and tourism, as he urged the government to roll out economic stimulus packages for the rest of the year to promote tourism.

In the longer term, Sanan said the government must speed up investment in infrastructure, adding that the private sector is supportive of long-term land leases, up to 99 years, to encourage foreign investment.

He also said that the private sector supports the government’s measures to tackle household debt and to help SMEs, which are experiencing difficulties in debt servicing.