Adding up the list of Thai concessions
The US reciprocal tariff rate on Thai exports dropped from a threat of 36%, effective starting on Thursday, in exchange for several significant Thai concessions.
Thailand proposed eliminating import duties for more than 10,000 items imported from the US (out of roughly 11,000 items in total), mostly consisting of goods that are not produced domestically or are insufficiently produced, such as medical instruments, advanced auto parts, and specialised food products.
Thailand also reduced non-tariff barriers, streamlining customs procedures and implementing a "post-clearance audit" system, while simplifying regulations to facilitate US imports.
In addition, the country committed to purchase liquefied natural gas from the US, as well as crude oil, ethane, aircraft, and agricultural products that Thailand does not produce or produces insufficiently, such as animal feed corn.
The goal is to reduce the trade surplus of more than $35 billion by half within five years.
A major focus of the talks was stricter rules of origin, with Thailand adopting more rigorous rules of origin for export products to prevent the country being used to circumvent US tariffs, especially for transshipment of Chinese goods. The US plans to implement its new rules of origin worldwide.
The specific details remain unclear, but the US wants to prevent circumvention of import tariffs by third countries.
Thailand is also increasing quotas for the import of US corn, while lowering import duties for soybeans.
However, Thailand retained tariffs on sensitive products, or those that would impact domestic farmers.
In terms of regional security cooperation, Thailand committed to increased efforts, especially regarding de-escalating border tensions with Cambodia.
There were no discussions on granting gas concession rights or military base access to the US.
The Trump administration said it had concerns over market access, trade imbalances and investment, while Thailand wanted continued protection for its most vital domestic industries.
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