Bangkok: Chalat Rachkitprakarn, an MP from the Bhumjaithai Party, has raised concerns about the Pheu Thai Party's ability to negotiate with the United States regarding the current customs tariff rate. With only three weeks left to make progress, he warned that a failure to reduce the US tariff rate, which currently stands at 36%, could result in investors shifting their focus to Vietnam.
According to Thai News Agency, Mr. Chalat expressed his doubts on Facebook following the announcement from the United States that it would maintain the customs tariff rate at 36% starting August 1st. He noted that neighboring countries like Laos and Cambodia have successfully negotiated tariff reductions by 6% and 13%, respectively, bringing Cambodia's rate in line with Thailand's at 36%.
Mr. Chalat questioned whether the negotiation team, which has had over two months to prepare under the Pheu Thai Party's supervision, is capable of handling the situation effectively. He speculated whether the team lacks expertise or if political influences are hindering their efforts. Despite the uncertainties, he urged support for the Thai negotiation team, emphasizing the importance of reducing the tariff to below 20% to prevent investors from moving their operations to Vietnam.