Thailand is seeking to conclude trade negotiations with the United States before Washington announces the results of investigations into Thai trade practices that could lead to additional tariffs, Deputy Prime Minister and Commerce Minister Suphajee Suthumpun said.
Thailand wants to keep the tariff rate on its exports to the US within the previously agreed 19% framework, with the two sides having settled the main principles of the negotiations and only a few technical details remaining, she said.
Ms Suphajee said she reached agreement on the main principles with US Trade Representative Jamieson Greer during a recent visit to Washington and would meet him and his deputy, Rick Switzer, again during Prime Minister Anutin Charnvirakul’s visit to the US.
The US is preparing to announce the results of investigations into issues including forced labour and production overcapacity under Section 301 of the US Trade Act of 1974, which allows Washington to take action against foreign trade practices it considers unfair or harmful to US commerce.
The US initially announced a 36% tariff on Thai goods last year, citing its trade deficit with Thailand, before reducing it to 19% following negotiations under the previous government. Some non-tariff issues remained unresolved, however, requiring further talks by the current government.
Thailand also faces a 12.5% tariff related to forced-labour considerations, compared with 10% for neighbouring countries that reached agreements with Washington last year. Ms Suphajee said Thailand needed comparable terms to prevent a higher tariff burden from undermining the competitiveness of Thai exporters.
She said the government was also monitoring possible wider effects if the US imposes additional tariffs on Russia and countries buying Russian oil and energy, although Thailand may not be directly affected.
Ms Suphajee said she might ask Mr Anutin to raise the remaining issues directly with US President Donald Trump, as some matters required discussion at the leaders’ level.