Bangkok: Finance Minister has sent documents to the United States, believing the deal can be closed before August, with hopes of reducing the tariff rate to a competitive level and assurances of a backup plan and compensation for entrepreneurs. Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, addressed concerns following a US announcement imposing a lump sum import tax on goods from 14 countries, including Thailand, starting August 1st with a 36% customs tax rate. He highlighted the need for expedited negotiations before the tariff's implementation, noting the postponement of the tariff collection date from July 9th to August 1st to allow more negotiation time.
According to Thai News Agency, Mr. Pichai expressed confidence that the information sent by Thailand to the US on July 6th-7th would be well-received, aiming for a competitive tariff rate for Thailand. He detailed the varied tariff proposals, pointing out that while some countries have achieved 0% tariffs under free trade agreements, Thailand seeks to align its rates with competitive nations.
Mr. Pichai clarified that Thailand is not pursuing a rate reduction below Vietnam's but rather aims for mutual cooperation, resulting in a common import rate. He emphasized that the government's proactive measures preceded his US negotiation visit, indicating ongoing discussions with the US trade group. He remains ready to travel to the US for further clarifications if needed.
Addressing potential tariff increases by the US on BRICS-supporting countries, Mr. Pichai explained Thailand's partnership with BRICS is for strategic learning amidst global changes, assuring it is not a misguided decision. He stated that further actions regarding BRICS participation depend on the US's response.
Mr. Pichai confirmed the government's contingency plans to mitigate the impact of a potential 36% tariff, including compensation for entrepreneurs and economic stimulus budgeting, alongside establishing a fund for affected entrepreneurs.