Thailand Optimistic on US Tariff Deal Ahead of August 1st Deadline
Bangkok confident of securing new trade terms with Washington after submitting final proposals, as ministers underscore negotiation complexities
Thailand’s Deputy Prime Minister and Finance Minister, Pichai Chunhavajira, has announced that Bangkok has submitted its complete counter-proposals for tariff negotiations to the United States.
He expressed confidence in reaching an agreement on new tariff rates before the crucial 1st August deadline.
Speaking on Friday, Pichai revealed that "Team Thailand" had finalised and dispatched its proposals to Washington. He anticipates that the US side is now meticulously reviewing the new offer, which includes additional negotiated points and adjustments made in direct response to specific American requests.
"Thailand's proposals are now 99.99% submitted, having been improved and amended as specified by the US. We've moved as much as we can. Now that everything is submitted, we simply have to wait," Pichai stated.
When pressed for details on the number of items that would benefit from a 0% tariff rate, Pichai declined to disclose specifics at this time. He also confirmed that, currently, there is no liberalisation of pork imports from the US.
Pichai stressed that the entirety of the work undertaken, and the proposed agreement with the US, would ultimately require approval from the Thai Parliament. Despite this, he remains optimistic about securing a new tariff agreement with the US before the August 1st cut-off.
Permanent Secretary for the Finance Ministry Lavaron Sangsnit echoed this sentiment, asserting that a conclusion to the trade talks with the US is "certainly expected before August 1st."
He reiterated his earlier belief that the US would not take long to review the proposals, adding that Thailand's offer represents "the best we could give."
"I can confirm that we have not granted a blanket 0% import tariff exemption to the US," Lavaron clarified. "As for which specific goods are exempt, I cannot disclose that. This is an ongoing negotiation process with back-and-forth exchanges. There are requests for additions, which we either can or cannot grant; these are subject to negotiation. It's a negotiation, not just handing in homework and then doing nothing further."
He further indicated that tariff negotiations would continue if Thailand does not achieve a satisfactory tariff rate by August 1st, aiming for a lower rate or potentially introducing new proposals.
"Comparing our situation to the Philippines, which secured a 19% tariff rate in exchange for 0% tariffs [on certain items], this cannot serve as a benchmark for all countries because the sensitivity of goods differs from one nation to another. We must consider what we can and cannot concede," Lavaron explained.
He clarified that any 0% import tariff exemptions granted by Thailand to the US for specific items would be an exclusive concession.
If other countries subsequently request similar 0% import tariffs, bilateral negotiations would be necessary to determine what trade-offs would be involved – a standard practice in trade discussions.
