Latest news with #JointStandingCommitteeonCommerce
Bangkok Post
3 days ago
- Business
- Bangkok Post
Thai growth projections upgraded on lower US tariffs
The local private sector has increased its forecast for Thai GDP growth this year to 1.8-2.2%, rising from an estimate of 1.5-2% following the recent US decision to reduce tariffs on imports from Thailand from 36% to 19%. At its meeting on Wednesday, the Joint Standing Committee on Commerce, Industry and Banking cited the US tariff reduction as a key factor contributing to the improved economic outlook. The committee also upgraded its forecast for Thai export growth from -0.5% to 0.3%, rising to a more optimistic 2-3% growth, aligning with positive global economic signals after the latest US tariff announcements for many other countries. Payong Srivanich, chairman of the Thai Bankers' Association, said the 19% reciprocal tariff imposed on Thai goods helps the nation avoid the worst-case scenario of losing competitiveness against neighbouring countries, which are now subject to similar tariff levels. However, Mr Payong cautioned that economic growth in the second half of the year is expected to slow, largely due to persistent export challenges. Headwinds include intensified price competition from import surges, declining foreign arrivals and tourism revenue, and the ongoing Thailand-Cambodia border conflict - all of which could dampen economic performance in the latter half of the year. In addition, Mr Payong said, Thailand is likely to face greater challenges from the final quarter of this year into early 2026. Given this outlook, Thailand needs to pursue business and economic reforms to better prepare for long-term uncertainties, Mr Payong said. Kriengkrai Thiennukul, chairman of the Federation of Thai Industries, said the US tariff policy should serve as a wake-up call for Thailand to strengthen its long-term competitiveness, particularly in the manufacturing sector and small and medium-sized enterprises. He called for industrial restructuring and identification of priority sectors aligned with national strategies. Thai manufacturers must enhance production processes across supply chains and upstream industries to increase local content, improve productivity and reduce costs. Adoption of technology and innovation, along with workforce upskilling, including both Thai and migrant workers, was essential to building real economic value. Mr Kriengkrai said the private sector is ready to cooperate with the government, especially in providing data support. Thailand lacks critical industry-level structural data, such as the usage of primary and intermediate raw materials and regional value content, he said. To comply with new US export requirements, the private sector has begun collecting baseline data. However, to develop a comprehensive and reliable database, cooperation from public sector agencies is essential. Such data will be critical for policy decisions and international negotiations in the evolving global trade landscape, Mr Kriengkrai said. Poj Aramwattananont, chairman of the Thai Chamber of Commerce, said that despite a US tariff rate regarded as consistent for the region, Thailand still requires economic adjustments in both the short and long term. In the near term, price competition is expected to intensify for both Thai exports and domestic products, which will face growing pressure from increased import competition due to expanded market access, he warned.
Bangkok Post
09-07-2025
- Business
- Bangkok Post
More detail on US tariff impacts needed, says Pichai
Finance Minister Pichai Chunhavajira says the government is gathering more detailed feedback from the private sector about the potential impacts of US tariffs on Thai exports. With an Aug 1 deadline for reaching an agreement with Washington approaching, he emphasised the need to formulate responses to various possible outcomes, whether favourable or moderately adverse. Discussions are ongoing as Thailand seeks to persuade US officials that its revised trade proposals are sound. The government hopes Washington will agree to a rate lower than 36%, which would be higher than those of key Southeast Asian peers and competitors. 'We must be prepared for every scenario and determine who will be affected,' Mr Pichai said on Wednesday after a meeting with the Joint Standing Committee on Commerce, Industry and Banking. While earlier assessments broadly assumed exporters would bear the brunt of the tariffs, the current analysis is more detailed, he said. The tariffs vary by product type and depend on local content of each item, making the impact uneven across industries, said the finance minister. He added that private sector representatives would submit data on the expected impacts for review by Friday. Poj Aramwattananont, chairman of the Thai Chamber of Commerce, expressed concern prior to the meeting with Mr Pichai. He warned that unresolved negotiations could result in the 36% tariff on Thai products remaining unchanged. 'We hope the US will impose a lower rate on Thailand than those imposed on Vietnam as Thailand's trade surplus with the US is significantly smaller,' said Mr Poj. Vietnam had a trade surplus of $123 billion with the United States last year, compared with a figure of $45 billion for Thailand. Vietnam negotiated an agreement with Washington under which its imports would face a 20% tariff, while Hanoi would impose a zero tariff on US goods, something Thailand does not appear prepared to do. However, Washington will assess a 40% tariff on goods proven to be transshipped — mostly originating in China — or containing very little local Vietnamese content. At the moment, Washington is proposing rates of 25% for Malaysia, 32% for Indonesia and 17% for the Philippines.
Business Times
04-06-2025
- Business
- Business Times
Thai business group cuts 2025 GDP forecast as US tariffs threaten exports
[BANGKOK] Thailand's export engine could stall, and the economy is expected to slow sharply in the second half of the year due to the impact of US tariffs, a leading Thai business group said on Wednesday (Jun 4). The economy was likely to grow by 1.5 per cent to 2.0 per cent this year, down from an earlier forecast of 2.0 per cent to 2.2 per cent, the Joint Standing Committee on Commerce, Industry and Banking said. Committee chair Payong Srivanich said annual growth would fall below 1 per cent in the second half of the year from 3 per cent in the first half, after the group cut its forecast for exports to a range of a drop of 0.5 per cent to a rise of 0.3 per cent, from 0.3 per cent to 0.9 per cent growth previously. Businesses were concerned about the uncertain status of trade negotiations with Washington, and the prospect that other nations could strike a better deal than Thailand. 'We also have to look at our neighbours ... if Vietnam receives a lower tariff than us, the impact will be quite severe,' Federation of Thai Industries chair Kriangkrai Thianuku said. Thailand faces a 36 per cent US tariff if a reduction can't be negotiated before a moratorium expires in July, while Vietnam faces a tariff rate of 46 per cent. Hanoi has held two rounds of talks with Washington. Payong said there were also concerns amongst firms that an appreciating baht would hit their competitiveness. REUTERS
CNA
07-05-2025
- Business
- CNA
Thai business group says US tariffs will deliver hit to economy
BANGKOK :Thailand's economy and exports will grow less than expected this year because of U.S. tariffs, a leading business group said on Wednesday, adding the country could lose market share in the United States if a tariff reduction was not secured. Southeast Asia's second-largest economy was now expected to grow between 2.0 per cent and 2.2 per cent this year, down from a previous forecast of 2.4 per cent to 2.9 per cent growth, the Joint Standing Committee on Commerce, Industry and Banking said. And exports, a key economic driver, were seen growing by between 0.3 per cent and 0.9 per cent this year, down from earlier projection of 1.5 per cent to 2.5 per cent growth, while expected tourist arrivals were cut to 36 million to 37 million, down from 39 million to 39.5 million. Thailand is among the Southeast Asian nations hardest hit by U.S. President Donald Trump's trade policy, facing a 36 per cent tariff on shipments to its biggest export market if a reduction cannot be negotiated before July. If the tariffs stand, the economy might grow by just 0.7 per cent this year, and lost export revenue over the next decade could be 1.4 trillion baht ($43 billion), said Kriengkrai Theinnukul, chair of the Federation of Thai Industries, part of the group. There was also a risk that other countries might negotiate better tariff terms and weaken Thai exports to the United States, Kriengkrai said. The United States took more than 18 per cent of Thai exports last year, worth $55 billion. Washington has put its trade deficit with Thailand at $45.6 billion. Kriengkrai said business was also worried about the strength of the baht, saying the government should make sure the currency does not appreciate too fast or become too volatile. The finance ministry last week cut its forecast for economic growth this year to 2.1 per cent from 3 per cent due to the impact of U.S. tariffs and a global slowdown. Thailand's economy has lagged regional peers since the pandemic, and the group said tariffs added to structural challenges such as high levels of household debt. ($1 = 32.64 baht)
Reuters
13-03-2025
- Business
- Reuters
Thai business group urges PM to negotiate with U.S. amid tariff fears
BANGKOK, March 13 (Reuters) - A Thai business group on Thursday urged Prime Minister Paetongtarn Shinawatra to negotiate with the United States and consider lowering import taxes on U.S. goods, as the government met with the private sector to discuss U.S. trade policy uncertainty. The meeting comes ahead of a deadline U.S. President Donald Trump has set next month for federal agencies to complete comprehensive reviews of a range of trade issues, including analyses of persistent U.S. trade deficits. Thailand's Joint Standing Committee on Commerce, Industry and Banking, a private sector group, also proposed importing more U.S. goods to reduce the trade gap with Washington. "The private sector is satisfied with the discussion," Thai Chamber of Commerce head, Sanan Angubolkul, told reporters, adding Thailand would not be at a disadvantage in negotiations with the United States because businesses had shared information with the government. "Opening the market up to more imports was necessary ... but negotiations have to be held for the mutual benefit of both countries," he said. The Thai Chamber of Commerce last week urged action from the government over U.S. trade policy uncertainty and proposed a "war room" be set up to head off any threat of tariffs by the Trump administration. The United States was Thailand's largest export market in 2024, according to government figures, accounting for 18.3% of total shipments, or $54.96 billion. In Asia, Vietnam, Taiwan, and Thailand are those most exposed to the possibility of increased U.S. tariffs due to their high export-to-GDP ratios with the United States, according to a Reuters analysis. Paetongtarn said she had assured the private sector the government had a strategy on the issue of U.S. trade. "We've had a team in place since January and definitely have a plan," she said before the meeting.
