Bangkok: Somchai reveals the US benefits from the rare earth minerals MOU, pointing out that Thailand is being pressured to choose sides in the US-China economic war. Associate Professor Dr. Somchai Phakphaswiwat, an economist and political scientist, discussed this during an interview on the "Share Lao Khao Det" program on MCOT NEWS FM 100.5. He highlighted the ongoing instability in the global economy, largely attributed to the ramifications of US trade barriers, which have adversely affected nations worldwide. The escalating US import tariffs, which have reached up to 17%, exemplify this impact. Data from the trade agreement framework suggests that the US stands to gain more than Thailand due to its superior bargaining position. Additionally, Thailand is set to procure 80 aircraft valued at over 600 billion baht, alongside animal feed and energy amounting to nearly 800 billion baht. Moreover, Thailand is preparing to abolish tariffs on up to 99% of its agricultural and industrial products.
According to Thai News Agency, Assoc. Prof. Dr. Somchai emphasized that Thailand was pressured to sign a memorandum of understanding (MOU) concerning rare earth minerals. This pressure stemmed from the heightened economic rivalry between the United States and China, following China's announcement of stringent global regulations necessitating licenses for companies utilizing even minimal amounts of rare earth minerals. Consequently, the United States was compelled to expedite its search for these minerals to mitigate potential pressure from China. The MOU, however, is non-binding and can be renegotiated or withdrawn in certain circumstances. Assoc. Prof. Dr. Somchai further urged for the prompt disclosure of the MOU's contents and guidelines to ascertain its benefits and the legal extent of its binding effect on Thailand.