Bangkok: "Thanakorn" has expressed concern over Thailand's ability to meet the deadline for negotiations on tariffs imposed by the United States under former President Donald Trump's administration. He indicated that failing to reach an agreement in time could have severe repercussions on Thailand's export sector and overall economy. He urged "Pichai" to clarify the situation to the Thai public after attending negotiations that have yet to achieve a definitive outcome. Thanakorn emphasized the need for a backup plan to mitigate the impact on business operators and domestic workers.
According to Thai News Agency, Thanakorn Wangboonkongchana, former Minister to the Prime Minister's Office and Deputy Leader of the Ruam Thai Sang Chart Party, highlighted the concerns following the efforts by Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance. Pichai led Team Thailand into negotiations with US officials, including the Chairman of the US Trade Representative and the US Deputy Secretary of the Treasury. However, the discussions have not resulted in a clear resolution due to necessary adjustments to the terms and conditions. Thanakorn worried that the negotiations might not conclude in time to meet the 90-day deadline set by Trump, which is only four days away, potentially affecting Thailand's export sector significantly.
The potential imposition of a 36% tax on Thai exports compared to a reduced 20% on Vietnamese products could make Thai goods 16% more expensive. This disparity could diminish Thailand's export competitiveness, with products facing steep competition from Vietnam, whose exports share similar structures. The anticipated impact on Thailand's economy could be substantial, particularly affecting the export and investment sectors. Higher prices for Thai products in the US market may lead to diminished competitiveness, possibly resulting in reduced production capacity or factory closures in Thailand, which would increase unemployment and elevate the cost of living.
Thanakorn advised that Mr. Pichai and the government's economic team should explain the situation to the public, following the inconclusive first round of negotiations. He stressed the importance of consulting with economic advisory experts to devise the best possible solutions for the country. He urged the government to prepare contingency measures or emergency plans to support exporters, who are vital to the nation's income. Measures should include exploring new markets to reduce reliance on the US and providing financial support and job assistance to domestic workers.