Thais revise trade offer with US

Bangkok Post

a day ago

Thailand has offered to commit to a 20-year liquefied natural gas (LNG) import deal with the United States, and plans to acquire Boeing aircraft over the coming years to avert a punitive 36% export levy threatened by the Trump administration, according to Deputy Prime Minister and Finance Minister Pichai Chunhavajira.
These purchases are part of a broader effort to reduce Thailand's US$46 billion (1.5 trillion baht) trade surplus with the US by 70% within five years, aiming for a full balance within eight years, he said.
To sweeten the deal, Thailand has also offered to eliminate import tariffs on a wide range of US products, including agricultural and industrial goods, many of which are in short supply domestically. The proposal also outlines a phased reduction of non-tariff barriers. The revised offer comes just days before the expiration of a 90-day tariff freeze imposed by the Trump administration. If accepted, it could help Thailand avoid a punitive 36% export levy and secure a more favourable rate between 10% and 20%.
Mr Pichai said Thailand proposed a 0% import tariff on a number of products for the United States during bilateral tax agreement negotiations held last week.
"The 0% import tariff offer was not applied across the board. However, a considerable number of goods were included under this rate," Mr Pichai said.
"This does not give the US an unfair advantage over our other trading partners. We know which items are acceptable and which are not," he added.
Mr Pichai further explained that, in his view -- and seemingly from the US perspective as well -- the proposals Thailand presented were constructive. Nevertheless, he declined to disclose details of the discussions at this stage.
He clarified that Thailand's offer aimed to promote a greater trade balance between the two countries.
"Achieving a trade balance between Thailand and the US requires increased bilateral trade. Whether such a balance is reached in five or 10 years is not the central issue for the US; the real question is how we can expand trade between us," he said.
Mr Pichai said that international negotiations are rarely resolved in a single meeting. "Negotiations evolve gradually. It's true that there are many countries still awaiting responses, but during this visit, the US side examined our proposals thoroughly," he noted.
He also said that during his visit, he met with representatives from major US private sector investors in Thailand, all of whom strongly supported his efforts and expressed continued confidence in the Thai market.
"These are significant investors," he said, adding that he also gained additional insights into the challenges facing the US agricultural sector during the trip.
Mr Pichai further noted that during discussions with the United States Trade Representative (USTR), the Thai proposals were well received.
"They praised our proposals as being well-formulated, but also inquired whether certain elements could be expanded upon. I have since revised and resubmitted an updated proposal to the US," he said.
Earlier, Mr Pichai told Bloomberg News in an interview on Sunday that Thailand is making a last-ditch effort to avert a punitive 36% export levy threatened by the Trump administration, with offers of greater market access for US farm and industrial goods, along with increased purchases of energy and Boeing jets.
The revised proposal was submitted Sunday night, just days before the end of the 90-day tariff pause announced by President Donald Trump. If accepted, Thailand can immediately waive import tariffs or non-tariff barriers for a majority of the products, while phasing out restrictions more gradually for a smaller set of goods, he said.