During the latest round of tariff negotiations, via video conference on Wednesday, the United States proposed that Thailand increase market access for US-made products, reduce non-tariff barriers and promote US investment in Thailand US, Deputy Commerce Minister Chantawit Tantasith told the media today.
He claimed that the talks are heading in the right direction, though, as both sides appear to be satisfied.
Thailand’s negotiating team, headed by Finance Minister Pichai Chunhavajira, will consider how much Thailand can respond to the US requirement for greater market access, as there are over 10,000 types of item involved, including agricultural and industrial goods, said Chantawit.
Regarding the use of local content in the manufacturing of finished products for export to the US market, the deputy commerce minister said that the US has divided these products into goods which use a mix of local Thai content and content from other countries on a lower tariff rate than Thailand, goods which use content from China and goods which use content from the other countries besides those on lower tariffs.
He noted that this issue is complicated and the Thai negotiating team must be very cautious in identifying the specific items with the different local content.
Concerning the proposal for promotion of US investments in Thailand, he said that the Thai side will consider how far the country can accommodate this US proposal.
As the August 1st deadline draws near, he said the Thai side must speed up the consideration process and submit its responses to the US, adding that US proposals can change.
Chantawit asked the Thai private sector to be understanding and not to view the US in a negative light or as “taking advantage” of Thailand, adding that the US tariff approach should provide a lesson for Thai industries in making adjustments to remain competitive in the global market, including the US market.
