Bangkok: Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, is set to release details about US products imported into Thailand at a 0% tariff rate, pending parliamentary approval. The Cabinet has acknowledged the contents of a 19% US tariff agreement, and Pichai anticipates businesses will expedite exports before August 7th. Measures to support businesses have been established.
According to Thai News Agency, the announcement follows a special cabinet meeting where Pichai presented the results of negotiations regarding the 19% US tariff rate on Thailand. The non-binding agreement outlines the fundamental principles agreed upon, which will be used to elaborate on detailed contracts. The Cabinet has acknowledged and approved the final set of agreements submitted on July 31st. The United States will publish the full agreement, known as the Agreement on Reciprocal Tariff Text (ART Text), which forms a large framework for negotiations. Discussions are expected to continue as this is the first round of agreements.
Pichai explained that once major drafts are finalized, the framework will guide negotiations for a detailed contract. This contract will specify each item in detail, and he anticipates the process will take some time. Pichai highlighted areas open for discussion, such as whether Thailand will purchase from the United States and the rules for importing US goods, including the rules of origin.
Regarding the reciprocal tariff agreement's submission to Parliament, Pichai noted that the process will be expedited. He mentioned that negotiations have been announced by several countries, indicating that announcement timeframes are set with specific issues applicable to each country. The negotiations will also consider differences among other countries.
In response to inquiries about support for Thai entrepreneurs, Pichai stated that measures are in place but have not been discussed in detail. He has prepared assistance measures tailored to each business's needs.
Concerning the 20 billion baht in aid, Pichai mentioned two types of funding available: soft loans and temporary revolving credit lines. The soft loans aim to address the uncertainty about US tariffs that led to a slowdown in exports. Exporters are expected to accelerate shipments before the new 19% tariff takes effect on August 7th. Temporary credit lines address short-term needs due to inventory. Long-term export challenges will be addressed by increasing competitiveness with the help of the Federation of Thai Industries and Chambers of Commerce.
Pichai clarified that reducing import tariffs to zero on several US items would only occur after approval by the House of Representatives. The term "zero" includes both immediate and non-immediate tariffs. Immediate tariffs apply to products already imported from countries other than the US, while delayed tariffs require more time for readiness. Import quantities may be limited based on needs.
Regarding the timeframe for reducing import tariffs to 0%, Pichai stated that there is no set timeframe, as negotiations are ongoing. A final agreement with the US must be reached before discussing the legal process.