Thailand hires lobbying firm for trade talks, pledges transparency
Thailand has hired a consultancy or lobbying firm to assist in tariff negotiations with the United States, Finance Minister Pichai Chunhavajira said on Friday.
He emphasised that the move is being conducted with full necessity, transparency, and value, with the primary goal of safeguarding Thailand’s trade and export interests.
The Finance Minister noted that the negotiation landscape has been continuously changing over recent months due to the United States assigning negotiators at various levels, including the Department of Commerce, United States Trade Representative (USTR), and even the Secretary of the Treasury.
"The Thai government is ready to face any approaches the US may take, which is why it is crucial to have parallel collaboration between the Fiscal Policy Office (FPO) and the Department of Trade Negotiations (DTN) to ensure that the negotiations cover all levels and do not put Thailand at a disadvantage," he said.
As the head of the policy-level negotiation team, Pichai plays a central role in steering the negotiations in line with the evolving situation. He acknowledged that the usual fee for hiring a consultancy or lobbying firm in the US is between US$20,000 and $300,000 per month.
However, he noted that in special situations, such as "reciprocal tariff" negotiations, firms with specialised expertise and strong policy connections with US government officials can command higher fees.
This is particularly true when the work is urgent, involves competition with other countries, and is linked to Thailand’s trade and export value, amounting to billions of baht annually.
He said that such an investment is considered worthwhile, given the potential damage that could arise.
"I would like to confirm that this process is transparent and verifiable, as the US has strict regulations on hiring consulting firms under the Foreign Agents Registration Act (FARA), which mandates that all foreign-related contracts must be disclosed on the US Department of Justice’s website," Pichai said.
"If we don’t have the right support, the right team that understands the US, and the proper tools, Thailand may lose market access, face export setbacks, and our farmers and businesses could suffer greatly."
Pichai concluded by stating that modern international policy implementation requires technical understanding, careful consideration, and the courage to make decisions at the right time.
He also expressed his gratitude for all suggestions and reiterated that he is always open to constructive feedback.
Earlier, Sirikanya Tansakun, deputy leader of the opposition People’s Party, posted on her personal social media, expressing her congratulations that the government had secured a slot for negotiations with the United States.
However, she raised concerns and questions regarding two budget allocations that the Cabinet approved in late May and early June.
Her comments followed the approval of the central budget for DTN, allocated for the reciprocal tariff negotiation project with the US, amounting to 97.28 million baht on May 28. At that time, there were no further details, and the department was expected to provide clarification.
On June 10, the Cabinet approved a central budget for FPO to cover the expenses of the same negotiation project with the US, totalling 97.06 million baht.
The office provided further details, stating that the funds were divided into 9.6 million baht for overseas travel and 87.4 million baht for hiring a private firm to provide comprehensive lobbying and strategic communication services. This is expected to be the hiring of a lobbying firm.
Sirikanya noted that hiring a lobbying firm is common practice, and that the payments are usually made as monthly retainer fees, ranging from $20,000 to $30,000 for a six-month contract.
However, she pointed out that, considering the 87.4 million baht budget and assuming the contract lasts 12 months, the cost would amount to approximately $200,000 per month, which is above the standard rate.
She also preemptively raised several questions for DTN, including the division of responsibilities between the Ministry of Finance, the rationale for budgeting through two different agencies with equal allocations, the appropriateness of FPO handling the matter despite having an ambassadorial adviser in Washington DC – who is primarily assigned to the World Bank or IMF – and the details of the employment contract, particularly whether the payments would be lump sum or monthly, as well as why the fees are higher than usual.
