Finance Minister Pichai Chunhavajira has been handed arguably his toughest mission to date: travel to Washington and secure a better deal on new US tariffs.
Pichai was appointed to lead the mission on Tuesday (April 8), just days after the Trump administration imposed a minimum 10% tariff on imports from countries that enjoy a trade surplus with the US, effective from Wednesday (April 9).
Thailand was slapped with a 36% “reciprocal” tariff – higher than Thai officials had anticipated. The kingdom last year reported a trade surplus of US$45.6 billion (1.59 trillion baht) with the US, the 11th highest in the world.
While China responded immediately with retaliatory tariffs and the European Union is considering whether to follow suit, Thailand is among many countries opting to negotiate with Washington instead.
The US Trade Representative’s Office (USTR) reports that over 50 nations targeted by Trump’s new tariffs have reached out to the White House requesting talks.
Seeking ‘constructive talks’
Pichai’s team was armed with proposals for its Washington mission at an urgent meeting led by Prime Minister Paetongtarn Shinawatra on Tuesday.
The PM said the team would leave for the US later this week, while Pichai said he expected to hold talks with the USTR “as soon as possible”.
The team also includes Commerce Minister Pichai Naripthaphan, Commerce Permanent Secretary Vuttikrai Leewiraphan, and the PM's chief policy adviser Pansak Winyarat.
Team leader Pichai, 76, declared that Thailand would not opt for retaliatory measures against the US but instead focus on “constructive negotiations based on cooperation and understanding” to protect the country’s long-term interests.
“Given Thailand's small size, maintaining good long-term trade relations [with the US] is more important than short-term retaliation,” he said.
After meeting with the prime minister on Tuesday, Pichai unveiled his strategy for the Washington negotiations.
Thailand would offer to increase imports from the US, reduce or waive duties on over 100 American products, eliminate non-tariff barriers, and encourage more Thai investment in the US, he said. Taking more raw materials and natural gas from the US could help meet Thai industrial demand, he added.
“We are not doing this in response to US threats or demands … We are addressing the issue in a way that benefits us while giving the US what it wants. This is a win-win solution for both of us,” Pichai said.
Rise to top of corporate ladder
Born on February 15, 1949, Pichai earned a bachelor's degree in commerce and accountancy from Thammasat University and a master's in business administration from Indiana University of Pennsylvania in the US.
He has a long track record of running major petroleum businesses, including Thai Oil, Bangchak Corporation, and PTT Exploration and Production (PTTEP).
He was appointed finance minister and deputy PM by Paetongtarn’s predecessor, Srettha Thavisin, in April last year and retained both positions in her new Cabinet last August.
Pichai stepped down as chair of the Stock Exchange of Thailand (SET) and chair of Bangchak’s board of directors to join the Pheu Thai-led coalition government almost a year ago.
He had helmed the SET for less than three months before switching to politics. His central bank career also includes three years as a board member from 2014 to 2017.
Other businesses Pichai chaired in the energy sector include Bangchak’s affiliates BCPG and BBGI. He also served as director of several SET-listed corporations, including IRPC, PTT, Thai Airways International, and Siam Commercial Bank.
Political connections
Pichai worked closely with the government of Thaksin Shinawatra, Paetongtarn’s father, over two decades ago. At that time, Pichai was a senior executive of the Petroleum Authority of Thailand and reportedly played a key role in its privatization under a Thaksin government policy.
The state agency was transformed into a public company and listed on the SET in December 2001 as PTT Plc.
Pichai then served as PTT’s executive vice president of finance and corporate accounting from 2001 to 2007. A year later, he was appointed as the oil giant’s chief financial officer, a position he served until his retirement in 2009. After leaving PTT, Pichai was appointed to the boards of several state enterprises.
In 2014, former prime minister Yingluck Shinawatra, Thaksin’s sister and Paetongtarn’s aunt, named Pichai as one of seven defence witnesses after being prosecuted over her government’s rice pledging scheme.
Yingluck fled abroad before being handed five years in prison plus a 35-billion-baht fine for mismanaging the scheme – a sentence she is currently appealing.
