Thailand may be excluded from a list of ten countries mostly likely to face the imposition of high reciprocal tariffs by the United States, Commerce Minister Pichai Naripthaphan said yesterday, quoting a source in the US private sector.
Although it is not confirmed yet when tariff talks will be held, or what issues will be negotiated between the Thai and US delegations, he said that the Thai side has been holding discussions with some American companies, such as Seagate Technology (Thailand).
He also stressed that the Thai delegation has been working on proposals for presentation to its US counterparts.
As far as Thailand is concerned, he believes negotiations can be concluded in 1 or 2 rounds of talks and he dismissed the speculation that he may be removed from the Cabinet if there is a reshuffle.
According to the Office of Trade Policy and Strategy, Thailand exported agricultural produce worth US$4.7bn to the US last year, the majority being dog and cat food, rice, flavoured tuna, fruit and vegetable juice, other flavoured foods, sauces, frozen shrimp, fruit and flavoured pineapple.
Some Thai farm products which may have increased their share in the US market, in place of similar products from China, due to the high tariffs imposed on Chinese products.
These include:
· Cat and dog food: US imported US$2.2bn, with Thailand being the leading exporter (US$845.2m and 38% market share). China came third (US$187.6m and 8% market share).
· Rice: US imported US$1.5bn, with Thailand being the leading exporter (US$843m and 56% market share). China came third (US$56.5m million and 4% market share).
· Flavoured mackerel: US imported US$52.1m, with Thailand being the leading exporter (US16.3m with 31% market share). China exported US5.7m (11% market share).
· Flavoured bamboo shoots: China was the leading exporter (US$16.7m with 59% market share). Thailand came second (US$4.9m million with 17% market share).
Other Thai products which may see an increase in US market share include pasta, frozen squid, soy sauce, other flavoured fish and frozen beans.
Thai products which may face fiercer competition from China include garlic, vegetables, dried chilli, green tea and dried and powdered onion.
