Cabinet approves US tax statement, allocates emergency funds for border victims

The Prime Minister’s Office convened an urgent Cabinet meeting on Friday to discuss and approve the joint statement regarding the 19% reciprocal tariff from the United States. The meeting, chaired by Acting Prime Minister Phumtham Wechayachai, focused on the recent communication from the US stating that Thai exports to the US would be subject to a 19% tariff, aligning with similar rates in the region.

Phumtham highlighted that this tariff rate, while higher than the initial 10%, was a positive development, enabling Thailand to remain competitive in the global market. A key step in the negotiation process was for the Thai government to issue a joint statement with the US, which required Cabinet approval.

Deputy Prime Minister and Finance Minister Pichai Chunhavajira worked with US counterparts to draft the statement, which needed Cabinet approval before being issued. This allows Pichai to proceed with the joint declaration, marking an important step in managing the trade relationship.

In addition to the US tariff issue, the Cabinet also discussed urgent budget measures to assist those affected by the Thailand-Cambodia border conflict, including both government officials and civilians. The meeting assigned the National Security Council (NSC) to act as the secretariat and work with relevant agencies, including the Ministry of Finance, National Economic and Social Development Council (NESDC), Ministry of Defence, Ministry of Interior, and Royal Thai Police, to outline the criteria and procedures for accessing emergency funds.

The emergency funds are part of a budget allocation for unforeseen expenses and will be used to compensate civilians, military personnel, and police officers affected by the border conflict. This is in addition to the existing compensation funds, and the situation has been categorised as an urgent matter.