The 19% reciprocal tariff, to be imposed on Thai imports to the US market, will become effective on August 7th, when Thailand and the United States are scheduled to issue a joint statement.
Deputy Commerce Minister Chantawit Tantasith
Thailand’s deputy commerce minister, Chantawit Tantasith, said that commerce officials have been racing against time to amend regulations and rules, such as the Rules of Origin and the Rules of Regional Value Content, to comply with the US trade measure, to ensure the utmost benefit for Thai businesses and to enable them to make mitigating adjustments.
He also said that the Commerce Ministry has been in close consultation with the Thai industrial and agricultural sectors, assessing the feedback and helping them prepare for the new rules and to explore new markets via free trade area (FTA) mechanisms.
Thailand’s 3 million SMEs are vital to the economy and they employ more than 10 million people, said Chantawit, adding that promoting their capabilities through FTAs and digital technologies will enhance their competitiveness in the global market.
He cited coffee as a good example of a product which has high potential to increase revenue for Thai SMEs. According to the Commerce Ministry, the Thai coffee market is worth an estimated 100 billion baht and is increasing by 9% annually.
Chantawit said China is a potential market for Thai coffee and Thailand can use the ASEAN-China free trade agreement to expand the market for Thai coffee in China, where coffee consumption is increasing by 8.55% per annum.
Meanwhile, Pote Aramwattananont, president of the Thai Chamber of Commerce and the Board of Trade, urged Thai exporters to plan the export of their products to the US carefully, in order to capitalise on the tariff rate.
Pote Aramwattananont, president of the Thai Chamber of Commerce and the Board of Trade
He said goods which leave warehouses before August 7th, and are sold in US outlets before October 5th, will be subject to a 10% import tariff, while goods which are sold after October 5th will face 19% import tariff.
