Bangkok: The Exporters Council has urged the Thai team to negotiate with the United States to cap import tariffs at 20%, aligning with tariffs imposed on competitor nations.
According to Thai News Agency, the Chairman of the Thai National Shippers' Council (TNSC), Mr. Thanakorn Kaset Suwan, expressed concerns following the U.S. decision to impose a 36% tariff on Thai imports. This rate significantly surpasses those of Vietnam and Malaysia, set at 20% and 25% respectively, leaving Thailand at a competitive disadvantage. The increased tariff could potentially impact Thailand's export value to the U.S., which stands at 2 trillion baht or 20% of the nation's total exports.
In response, the Exporters Council has advised the Ministry of Commerce and Team Thailand, led by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, to explore negotiation strategies to secure deals before August 1, 2025. The objective is to ensure competitiveness in industries such as electrical appliances, electronics, ready-to-eat food, rice, and rubber products. Given the labor-intensive nature of these industries, high costs might lead to layoffs, and agricultural products could lose their competitive edge, affecting local prices and the income of Thai farmers.
The TNSC has identified key sectors that would suffer under the current tariff, including electrical appliances, processed foods, rice, and consumer goods. The organization warns of potential widespread economic repercussions, including reduced foreign investment, economic stagnation, and an inability to compete with major trade partners in the future.
The Council's proposals include negotiating tariff reductions with the U.S., supporting international trade promotion activities, and enhancing exporters' competitiveness. Specific recommendations involve reducing U.S. import tariffs to 0% on acceptable items, extending investment promotion periods, and increasing energy purchases from the U.S. The Council also suggests finding alternative markets, organizing trade exhibitions, and finalizing free trade agreements to bolster market penetration.
Furthermore, the Council recommends measures to protect domestic entrepreneurs from imports. These include delaying wage increases, reducing business costs, expediting tax refunds, and enforcing stricter import quality controls. TNSC proposes a 24-hour advance notification for exports to Thailand to prevent low-quality or counterfeit products from entering the country.
In conclusion, these strategic efforts aim to mitigate the adverse effects of the U.S. tariff policy on Thailand's economy and secure a more favorable trade environment for Thai exporters.