Thailand eyes swift tariff deal with US, signalling aircraft purchases
Thailand has experienced growing shortages of oil and natural gas, relying on imports for over half its energy needs. This presents an opportunity to import from the US if competitive prices are offered. - Bloomberg
BANGKOK: Thailand's Finance Minister, Pichai Chunhavajira, anticipates a resolution on the country's tariff negotiations with the United States within the next fortnight.
Pichai indicated a readiness for further discussions, following continuous engagement at the working group level, and hinted that Thailand's proposal might include purchasing new aircraft from the US as part of a significant plan to replace 100 existing planes.
Speaking as the head of the Thai-US tariff negotiation team, Pichai told Krungthep Turakij that clarity on US customs tariffs for Thailand is expected within "one to two weeks" from now.
This follows Thailand's submission of a formal proposal to the US, which has led to ongoing working-level discussions. Official negotiations are likely to follow, with Thailand comprehensively prepared to ensure its offer receives serious consideration.
"Overall, due to negotiation constraints and available time, the US may not need to rush negotiations with Thailand as much as with other economically significant trading partners like Japan, South Korea, Europe, or rapidly growing economies such as Vietnam and Indonesia," Pichai stated. "However, at the working group level, we have been in constant discussion and are ready to travel for further negotiations if requested by the US."
Regarding the current progress, Pichai explained that initial discussions involved clarifying the situation directly with relevant US agencies.
This aimed to convey that Thailand's trade surplus with the US is not unusual, partly a result of investments by US companies in Thailand that produce and export goods back to the US, alongside other factors influencing the trade balance.
Furthermore, he clarified that Thailand is actively improving internal regulations to prevent potential loopholes. This involves reviewing and adjusting rules related to "Local Content"—the proportion of domestically produced raw materials and parts—and implementing more stringent measures to prevent fraudulent export claims.
Thailand has also signalled its readiness to increase purchases of goods from the US, particularly items where Thailand faces shortages and the US offers competitive prices. This includes agricultural products, with the minister confirming discussions with Thai producers regarding increased demand.
Concurrently, over the past decade, Thailand has experienced growing shortages of oil and natural gas, relying on imports for over half its energy needs. This presents an opportunity to import from the US if competitive prices are offered.
Crucially, Thailand plans to acquire over 100 new aircraft to modernise its ageing fleet, which could form a significant part of a purchasing agreement with US suppliers.
Regarding investment, Thailand is actively promoting mutual investment. This involves encouraging Thai companies to invest in US industries prioritised by Washington, and conversely, inviting increased US investment in Thailand, particularly in jointly desired sectors such as energy. - The Nation/ANN
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