[BANGKOK] Thailand’s formal trade proposal will be submitted to the US this week, with the first round of discussions set to take place online, the country’s finance minister said on Tuesday (Jun 17), as it seeks to head off the threat of higher US tariffs.
The South-east Asian nation faces a 36 per cent US tariff on its exports if a reduction cannot be negotiated before a 90-day pause that caps US President Donald Trump’s “reciprocal” tariffs at a baseline of 10 per cent expires in July.
Formal trade negotiations with the United States will commence this week, starting with technical discussions at the official level, Finance Minister Pichai Chunhavajira told reporters.
“The latest formal proposal will be submitted following these discussions this week. After that, the first round of discussions with the US will be conducted online,” he said, without giving a date.
Any potential in-person meetings would be considered after the initial talks, Pichai said.
The formal proposal to be submitted would be under the main criteria previously announced, he said.
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Last month, Pichai said the country had submitted a proposal to Washington that aims to address the trade imbalance, and includes measures to enhance market access for US exports and tackle transshipment violations, as well as Thai investment that would create US jobs.
On Monday, the commerce minister expressed confidence that both countries could agree on good terms on tariffs, possibly as low as 10 per cent.
The United States was Thailand’s largest export market last year, accounting for 18.3 per cent of total shipments worth US$55 billion. Washington has put its trade deficit with Thailand at US$45.6 billion.
A meeting to consider a 157 billion baht (S$6.2 billion) economic stimulus project will be held on Wednesday, Pichai said, to support a sluggish economy, which could grow by just over 1 per cent this year due to the impact of US tariffs.
Pichai also said he is open to working with any candidate chosen as the next central bank governor from the list of applicants, leaving the decision to the selection committee.
He said he has already been closely engaging with the central bank on various collaborative matters. REUTERS
