Bangkok: Former Prime Minister Settha Thavisin is optimistic about the efforts of Deputy Prime Minister and Finance Minister Pichai Chunhavajira and the Thailand negotiation team in reducing the United States-imposed tariffs. The US has extended the final negotiation period for these tariffs until August 1st, and Settha believes this extension provides an opportunity for Thailand to secure a better tariff rate, potentially reducing it to 20%, similar to Vietnam's rate.
According to Thai News Agency, Settha expressed his confidence after discussions with the Permanent Secretary of the Ministry of Commerce, who assured that the team would work diligently. He highlighted that Thailand holds several advantages in negotiating tariff reductions and emphasized the importance of a unified approach among various ministries, such as the Ministry of Agriculture and Cooperatives, the Ministry of Industry, and the Board of Investment.
Settha pointed out ongoing issues like non-carrier tax, customs procedures, and rights impersonation that require clarification. He warned that maintaining a 36% tariff rate could push industries to Vietnam, where the rate is lower. However, Settha noted Thailand's strengths, including its safe living conditions, cost-effectiveness, a transparent tax system, and fair treatment of investors, which could serve as significant negotiation points.
Addressing concerns regarding support for SMEs affected by US tariffs, Settha expressed confidence in the government's existing measures, such as special low-interest loans. He stressed the urgency of reducing the tax rate to align with Vietnam and noted that positive negotiation outcomes could boost investor confidence.
Settha acknowledged criticism of the government's slow response but urged unity as the negotiation deadline approaches. He mentioned the potential for roadshows to highlight Thailand's strengths if negotiations do not yield the desired outcomes. Settha also addressed concerns about declining tourist numbers, particularly from China, emphasizing the importance of safety and fair treatment to stimulate tourism.