Bangkok: Sirikanya sees this as good news: Thailand will receive a 19% tariff from the United States, the same as its ASEAN neighbors. She urges the government to disclose the terms of the deal, identifying which products will be affected. She recommends preparing financial aid and hastening approval of the emergency central budget. She acknowledges that security factors are an influence, and expects that if Thailand and Cambodia clash again, they will be threatened with further tariffs. Nobel Peace Prize nominations are open until October, and believes Trump hopes to be one of the nominees.
According to Thai News Agency, Ms. Sirikanya Tansakul, a party-list MP and deputy leader of the Prachachon Party, commented on Thailand's 19% US import tariff, stating it aligns with those of ASEAN neighbors like Indonesia, the Philippines, Malaysia, and Cambodia. Despite this alignment, concerns persist over undisclosed conditions impacting not only Thailand but also other countries. The US has imposed higher tariffs on goods in transit, and there's no clarity on which goods will be affected. Stricter scrutiny of regional production components could lead to increased tariffs, prompting the need for relief mechanisms to mitigate impacts on exporters and farmers alike.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira discussed a zero-rate import proposal, but Ms. Sirikanya remains uncertain about the specific products involved. She highlighted that animal feed corn is unlikely to receive zero-rate import status and that agricultural products like pork, chicken, and beef are sensitive to US market openings. Key products such as rice and sugar remain protected from market entry. Ms. Sirikanya emphasizes the urgency of government transparency in disclosing negotiation terms, which require input from stakeholders, including farmers.
Compliance with Article 178 of the Constitution necessitates public consultation and parliamentary approval for agreements on investment and trade that significantly impact the economy. Ms. Sirikanya notes that products with high US import costs might be opened to competition, while others, like animal feed corn, could face further restrictions. She stresses the need for caution in selecting zero-percentage products to minimize domestic consumer impact and highlights the necessity of examining tariff details for products like tilapia to understand their effects on local markets.
The impact of US corn imports on domestic animal feed corn prices remains uncertain, with businesses hesitant to purchase from local farmers. Ms. Sirikanya underscores the importance of negotiating relief measures with farmers and addressing agricultural needs beyond the current allocation of agricultural drones. The budget for economic stimulus remains partially unapproved, and Ms. Sirikanya calls for prioritizing emergency reserves to support the economy and mitigate impacts.
Security factors, such as ceasefire negotiations with Cambodia, influenced Thailand's 19% tariff rate. Ms. Sirikanya suggests that Vietnam's earlier announcement of a 20% tariff served as a stimulus for other countries to open their markets. She also warns of potential future tax rate changes, citing President Trump's history of tariff adjustments and the ongoing Thai-Cambodian border conflict as possible triggers for increased tariffs. Ms. Sirikanya speculates that Trump might leverage tariffs for strategic purposes, including a potential Nobel Peace Prize nomination.