Bangkok: Ekanat Promphan, Thailand's Minister of Industry and Secretary-General of the Ruam Thai Sang Chart Party, has expressed optimism over the United States' announcement to set a 19% tariff on Thailand. He believes this rate, which is a reduction from a previous 36%, is the most favorable among ASEAN nations and competitors. Ekanat suggests this development will bolster confidence within Thailand's industrial sector and attract foreign investment.
According to Thai News Agency, Ekanat emphasized that the competitive tariff rate would aid in the relocation of production bases and stimulate foreign investors who have been hesitant to invest in Thailand. He also highlighted the importance of adjusting product standards to align with free-market rules, aiming to enhance the quality of goods traded. Ekanat is actively working on revitalizing Thai businesses, tackling zero-dollar tours, and promoting domestic products to strengthen Thailand's economic resilience.
Ekanat further mentioned that in the face of uncertain tax environments, it is crucial to fortify Thailand's production base and achieve self-reliance. He is advocating for bureaucratic reforms to enhance efficiency and transparency within the Thai government. He acknowledged that while discussions with the Ministry of Finance are ongoing to reduce industry costs, including those related to electricity and transportation, sustainable solutions are necessary rather than temporary compensations.
When discussing regional competition, Ekanat asserted that the 19% tariff rate positions Thailand advantageously within ASEAN, surpassing Vietnam and matching Indonesia. However, he cautioned that the rate should not be underestimated as it presents both opportunities and challenges in maintaining competitiveness.
Addressing inquiries on political issues, Ekanat declined to comment on recent political cases, focusing instead on the immediate economic priorities. He reiterated the importance of tackling the US tariffs and emphasized that overcoming these economic challenges should take precedence in the current climate.