Thailand Rushes US Tariff Talks to Maintain 19% Framework

Supachai Suthumpun, Thailand's Deputy Prime Minister and Minister of Commerce, has expressed an intention to accelerate tariff negotiations with the United States. The primary objective is to conclude these talks before the US implements "Section 301" tariff measures, aiming to maintain the current 19% tariff framework for Thailand. Minister Supachai revealed that discussions were held with US Trade Representative (USTR) officials during recent meetings, including the ASEAN Economic Ministers' Meeting in the Philippines and her attendance at the UN General Assembly in the US. These talks focused on technical details, with no major sticking points reported. Both sides are proceeding cautiously in line with Free Trade Agreement (FTA) principles. Her upcoming schedule includes attending a "Team Thailand" meeting in Japan, followed by accompanying the Prime Minister to the UN General Assembly in the US. There, she plans to meet with USTR officials again to finalize the negotiations. The core of the negotiations revolves around resolving tariff issues before the US announces the results of its "Section 301" investigation, which concerns tariff hikes, overproduction, and forced labor. Thailand's current tariff rate of 19% was a result of negotiations that reduced it from an initial 36% imposed by the US last April on countries with trade deficits. However, following a US court ruling, a temporary measure (Measure 122) was in effect until July 24th, after which the US began considering "Section 301" actions. Thailand is particularly focused on addressing US concerns regarding forced labor and overproduction, with the US questioning Thailand's production capacity. While Thailand's rate for forced labor has been indicated at 12.5%, neighboring countries have rates around 10%. Therefore, Thailand is negotiating to ensure its tariff rate remains within the 19% framework to secure competitive parity with its regional peers. Minister Supachai stated that while the fundamental principles of the negotiations have been agreed upon, technical details require further refinement by the team. She also requested that the Prime Minister engage in direct discussions with the US President, citing Thailand's consistent cooperation with the US. Source: INN News