Bangkok: Mr. Nattapong Ruangpanyawut, leader of the Prachachon Party and the opposition, expressed his concerns regarding the Thai government's sluggish pace in negotiating with the United States on tariff matters. He fears that Vietnam's ability to secure a more favorable deal with the US will put Thailand at a disadvantage.
According to Thai News Agency, Mr. Nattapong pointed out that while Thailand's negotiations have been delayed, Vietnam managed to finalize an agreement that grants it full access to reduce tariffs to 0% for the United States. This development, he argues, leaves Thailand in a precarious position, with its current tariff rate at 20%, complicating efforts to strike a more advantageous deal with the US. He emphasized that Vietnam's success could be used as a benchmark by the US to insist on better terms from Thailand.
Mr. Nattapong proposed that the Thai government should consider a win-win approach, advocating for the liberalization of the banking and telecommunications sectors. These sectors, currently monopolized in Thailand, pose challenges for US businesses, as highlighted in a report by the United States Trade Representative (USTR). By opening up these sectors, he believes that the US could benefit from a more competitive market environment in Thailand.
Given the limited timeframe before the new US tariff rate takes effect on August 1st, Mr. Nattapong highlighted an opportunity for continued negotiations. He mentioned a letter from US President Donald Trump, indicating that there is still a chance for Thailand to negotiate a reduction in its tariff rate from 36%. He stressed the importance of presenting an offer to the US that truly captures its interest in Thailand.
Addressing the specifics of a potential deal, Mr. Nattapong acknowledged the complexity of determining precise figures, as they depend on the details of each product and Thailand's competitive standing in trade with the US. He emphasized the need for the Thai government to consult with local entrepreneurs across various business sectors before making any proposals to the US, as overlapping tax rates could impact competitiveness.