Thai minister says US trade pitch gets positive response
Thailand's Finance Minister Pichai Chunhavajira reacts on the day of the cabinet meeting at Thai Government House in Bangkok, Thailand on May 7, 2024. (File photo: REUTERS/Chalinee Thirasupa)
BANGKOK: Thailand has told Washington it will crack down on transshipments through its ports, buy more US goods and improve local market access as part of a pitch to avoid steep tariffs on its exports, its finance minister said on Wednesday (May 14).
Thailand is among Southeast Asian nations hardest hit by US President Donald Trump's measures, facing a 36 per cent tariff on its exports if a reduction can't be negotiated before a global moratorium expires in July.
"Our trade proposal is a 'win-win' solution," Pichai Chunhavajira told reporters, adding US Treasury Secretary Scott Bessent had responded positively to the proposal, which he said showed a readiness for negotiation.
Thailand's offer will reduce the US trade deficit and bring other benefits, and Pichai said he hoped that would see the 36 per cent tariff lowered to levels similar to other countries.
"I don't see why we would be treated differently, once everything is finalised," Pichai said, adding it could take time for officials to go through the proposal in detail.
The United States was Thailand's largest export market last year, accounting for 18.3 per cent of total shipments, or US$55 billion. Washington has put its deficit with Thailand at US$45.6 billion.
The proposal submitted to Washington includes strengthening cooperation in sectors such as food processing and digital technology as well as increased Thai investment in the US, Pichai said.
There would also be strict enforcement of rules of origin to prevent the routing of shipments from third countries through Thailand, he said.
Steps to increase imports of US energy, agricultural products, aircraft and parts, and to provide greater market access for US farm products, including fruits and feed corn, were also in the offer, he said.
And while Thailand will increase its imports of US products, Pichai said there was solid demand for Thai goods in the United States.
Thailand's top three exports to the United States last year were computers, teleprinters and telephone sets, and rubber products, while its main imports from the US were crude oil, machinery and parts, and chemicals.
