Thailand mulls zero duty for more US goods to win tariff deal
Thailand, which has previously cut tariffs on imports of longan and tilapia fish from other countries, could lower the levy for the US on those goods to zero, Finance Minister Pichai Chunahavajira said. The government may also amend existing regulations to allow left-hand drive vehicles from the US and eliminate taxes on goods already included in free-trade agreements with other countries, he said.
The US is pushing for 'ambitious proposals', the minister told a trade seminar in Bangkok on Monday (Jul 14), without elaborating. The two sides remain engaged in ongoing dialogue to reach a deal, he said.
Thai officials are optimistic about finalising an agreement before the Aug 1 deadline set by US President Donald Trump. Thailand has pledged to eliminate import duties on 90 per cent of US goods and to remove various non-tariff barriers. The government has also offered to increase purchases of US agricultural and energy products in a bid to reduce its trade surplus, which stood at US$46 billion last year.
The US was Thailand's largest export destination in 2024, accounting for approximately 18 per cent of total shipments. Thai exports have increased by about 15 per cent in the first five months of this year, driven by accelerated orders ahead of the anticipated tariff implementation.
Some of the US demands in trade talks go beyond tariff and non-tariff reductions and cover geopolitical issues, Pichai told a trade seminar in Bangkok on Monday. Conceding to such demands may spark domestic unrest, he said, adding that any agreement with the US must be mutually beneficial and sustainable for Thailand in the long term.
US demands regarding local content requirements are unlikely to have a major impact as Thailand's exports are mostly from older industries with high domestic inputs, Pichai said.
The US has threatened higher tariffs on countries suspected of rerouting Chinese goods to avoid the trade war. Trump recently announced a deal with Vietnam that includes a 20 per cent tariff on exports and a 40 per cent rate on products considered to be transshipped.
Thailand is among several countries that have received tariff warning letters from the Trump administration and is now racing to finalise a deal to avoid steep levies. Failure to secure reduced tariffs from its largest export market could lead to a sharp decline in shipments and shave up to one percentage point off the nation's projected economic growth. BLOOMBERG
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
21 minutes ago
- Straits Times
Avoiding trade curbs vital for normalisation of ties, India tells China
Find out what's new on ST website and app. FILE PHOTO: Chinese Vice President Han Zheng attends a meeting with Britain's Chancellor of the Exchequer Rachel Reeves (not pictured) at the Great Hall of the People in Beijing, China January 11, 2025. REUTERS/Florence Lo/Pool/File photo BEIJING/NEW DELHI - India and China must resolve friction along their border, pull back troops and avoid "restrictive trade measures" to normalise their relationship, India's foreign minister told his Chinese counterpart in Beijing on Monday. India's Subrahmanyam Jaishankar met Wang Yi in Beijing during his first trip to the country since 2020, when a deadly border clash between their troops led to a four-year military standoff and damaged ties until a thaw began in October, when they agreed to step back. "Good progress" made by the countries in the past nine months for normalisation of relations is a result of the resolution of friction along their border, Jaishankar told Wang. India and China share a 3,800 km (2,400 miles) border that is poorly demarcated and has been disputed since the 1950s. They fought a brief but brutal border war in 1962 and talks over the decades to settle the border dispute have made slow progress. Last month, Indian Defence Minister Rajnath Singh told his Chinese counterpart that the two countries should seek a "permanent solution" to the border dispute, seen as a new push by New Delhi for a conclusive outcome. "It is now incumbent on us to address other aspects related to the border, including de-escalation," Jaishankar said, adding that it was also critical that restrictive trade measures and roadblocks be avoided to foster mutually beneficial cooperation. The minister was speaking in the backdrop of Beijing's restrictions in recent months on supplies of critical minerals such as rare earth magnets and machinery for manufacturing of high-tech goods. Top stories Swipe. Select. Stay informed. Singapore HSA intensifies crackdown on vapes; young suspected Kpod peddlers nabbed in Bishan, Yishun Singapore Man charged over distributing nearly 3 tonnes of vapes in one day in Bishan, Ubi Avenue 3 Singapore Singapore boosts support for Timor-Leste as it prepares to join Asean Singapore UN aviation and maritime agencies pledge to collaborate to boost safety, tackle challenges Asia Thailand's anti-graft agency set to probe suspended premier Paetongtarn Business Singapore's economy sees surprise expansion in Q2 despite US tariff uncertainty: Advance estimate Singapore High Court dismisses appeal of drink driver who killed one after treating Tampines road like racetrack Singapore 18 years' jail for woman who hacked adoptive father to death after tussle over Sengkang flat India holds the world's fifth-largest rare earth reserves but its domestic output remains underdeveloped. There was no immediate Chinese readout of the talks between Jaishankar and Wang. Jaishankar, who is in China to attend the meeting of foreign ministers of the Shanghai Cooperation Organisation, met Chinese Vice President Han Zheng earlier in the day, the official Chinese news agency Xinhua reported. India and China should steadily advance practical cooperation and respect each other's concerns, Han told Jaishankar, Xinhua said. REUTERS
Business Times
21 minutes ago
- Business Times
Suspended Thailand's PM Paetongtarn hit by ethics investigation, source and media say
[BANGKOK] Thailand's anti-graft body will investigate suspended Prime Minister Paetongtarn Shinawatra for alleged ethnics violations over a leaked phone call with Cambodia's influential former leader Hun Sen, an official and local media said on Monday (Jul 14). The investigation will be another blow to the beleaguered government of 38-year-old Paetongtarn, Thailand's youngest premier, who the Constitutional Court suspended from duty earlier this month over the same issue. The leaked Jun 15 call, during which Paetongtarn appeared to kowtow before Hun Sen and criticised a Thai army commander, triggered a major backlash at home, with allegations she had undermined Thailand's integrity and sovereignty amid a heated territorial dispute with Cambodia. Paetongtarn has since seen protests calling for her resignation and the exit from her coalition of its second-largest party, leaving her government with a razor-thin majority. 'The commission has set up an investigation panel. There is no timeframe,' said an official from the National Anti-Corruption Commission, who declined to be named because they were not authorised to speak publicly about the matter. The body has a broad remit to probe allegations of offences by state officials beyond graft. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Multiple Thai media outlets on Monday reported it had decided to investigate Pateongtarn. The NACC secretary-general Sarote Phuengrampan told reporters he was not aware of the investigation or any decision by commissioners. The complaint came from 36 senators who also petitioned the Constitutional Court alleging Paetongtarn, the daughter of politically influential billionaire had violated ethical standards and intentionally abused her power. She is suspended from duty until a verdict is delivered. Paetongtarn has apologised for the call and insisted she was trying to find a peaceful solution to an escalating row with Cambodia, which saw a troop buildup on both sides of their border. Paetongtarn's battles after only 10 months in office underline a deep rift in Thailand between the Shinawatra political dynasty and its rivals among a conservative establishment backed by the army, a long-running power struggle that has seen two coups and the fall of multiple parties and prime ministers by court orders. REUTERS
Straits Times
37 minutes ago
- Straits Times
Thailand's anti-graft agency set to probe suspended premier Paetongtarn
Find out what's new on ST website and app. If found guilty, Ms Paetongtarn faces potential disqualification and removal from office. Thailand's anti-graft agency plans to probe allegations of ethical misconduct against suspended Prime Minister Paetongtarn Shinawatra, according to local media reports. This adds to the leader's growing legal woes over her controversial handling of a border dispute. The Thai National Anti-Corruption Commission's decision on July 14 to launch a full panel investigation followed a preliminary inquiry, several Thai media outlets reported. The probe stems from accusations by a group of senators that Ms Paetongtarn seriously violated or failed to uphold ethical standards as outlined in the constitution. If the panel determines that there is sufficient evidence, it may formally charge Ms Paetongtarn and refer the case to a division of the Supreme Court for adjudication. Past rulings by the court in similar cases have led to lifelong bans on Thai politicians from holding or running for public offices. The anti-graft investigation marks the latest challenge for Ms Paetongtarn, who has already been suspended from office by the Constitutional Court over the same allegations of ethical misconduct. Top stories Swipe. Select. Stay informed. Singapore HSA intensifies crackdown on vapes; young suspected Kpod peddlers nabbed in Bishan, Yishun Singapore Man charged over distributing nearly 3 tonnes of vapes in one day in Bishan, Ubi Avenue 3 Singapore Singapore boosts support for Timor-Leste as it prepares to join Asean Singapore UN aviation and maritime agencies pledge to collaborate to boost safety, tackle challenges Business Singapore's economy sees surprise expansion in Q2 despite US tariff uncertainty: Advance estimate Singapore High Court dismisses appeal of drink driver who killed one after treating Tampines road like racetrack Singapore 18 years' jail for woman who hacked adoptive father to death after tussle over Sengkang flat Singapore Jail, caning for man who had 285 child porn videos, including those that show infants These stem from remarks she made during a leaked phone call with former Cambodian leader Mr Hun Sen regarding a border dispute. The youngest daughter of billionaire and former prime minister Thaksin Shinawatra, Ms Paetongtarn now faces potential disqualification and removal from office if the Constitutional Court finds her guilty. Ms Paetongtarn may seek more time to submit a defence statement to the court, according to Deputy Prime Minister Phumtham Wechayachai, who has been appointed acting premier during her suspension. She was originally required to submit a defence statement to the court within 15 days from July 1, but may seek a two-week extension now, he said. Ms Paetongtarn's coalition government was plunged into a crisis when Mr Hun Sen leaked the phone recording showing the premier siding with him rather than the Thai army while discussing solutions to a simmering border disputes. That angered conservative-leaning activists and opponents, who organised the biggest public protest in years to demand her ouster. The court case is the biggest threat yet to Ms Paetongtarn's nascent political career and her less than one-year-old government. She came to power in August 2024, a year after her predecessor, Mr Srettha Thavisin, was ousted in a similar ethics related case over an appointment of a cabinet minister. While Ms Paetongtarn has stepped away from the top office, she still has seat in the cabinet as the new Minister of Culture. BLOOMBERG
