Bangkok: "Sirikanlaya" anticipates that the final "Trump tariff" on Thailand will remain under 20%, following trends observed among Southeast Asian nations, which hover around 19-20%. She advises that farmers currently planting animal feed corn should consider transitioning to other crops if the United States proceeds with full liberalization. The issue of imitating Chinese products is also seen as complex, with potential impacts on the domestic economy should the U.S. enforce stringent restrictions on Chinese raw materials.
According to Thai News Agency, Ms. Sirikanya Tansakul, a member of parliament for the party list and deputy leader of the Prachachon Party, discussed the U.S. tax situation. The government's final proposal is to be submitted to the U.S. today, amidst ongoing negotiations. Some Southeast Asian countries, such as the Philippines and Indonesia, have settled on rates around 19%, with Japan at 15%. The outcome for Thailand remains uncertain, with potential market opening to the U.S. still under negotiation. The situation mirrors earlier instances where agreed rates, like the Philippines' 17% in April, eventually rose to 20% before settling at 19%.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira's prediction that the tariff would not exceed 20% aligns with Indonesia's conditions, which included concessions like ending digital taxes on social media and accepting U.S. automobile standards. The final decision rests with U.S. President Donald Trump. The negotiations aim to balance tax rates without overly compromising on agricultural product exchanges. Concerns persist over the impact on farmers, particularly those growing animal feed corn, with 400,000 farmers potentially affected. The government may need to advise these farmers to diversify crops if liberalization proceeds, as major feed companies have reportedly halted corn purchases despite price guarantees.
Regarding counterfeit Chinese products, Ms. Sirikanya highlighted the complexities of U.S. criteria that could require raw materials to originate in Thailand, complicating the use of Chinese materials. This could disrupt the supply chain between Thailand and China, with strict inspections potentially impacting the economy.
The possibility of a general debate without a vote under Section 152, as proposed by the Bhumjaithai Party, was discussed. Ms. Sirikanya noted that while such a debate on Trump's tax could occur, the Prachachon Party prefers broader discussions involving various issues, not just U.S. taxes, due to the infrequent use of Section 152. An urgent oral motion might suffice for this specific issue, unless broader negotiations among opposition whips lead to a more extensive debate.