Thailand plans to restore trade balance with US: Finance Minister

This remark followed a meeting on measures to mitigate the impact of US trade policies, chaired by Prime Minister Paetongtarn Shinawatra.

Pichai stated that the government should consider ways to ensure mutual benefits between the two countries. Acknowledging that US trade policies posed a challenge for Thailand, he mentioned that there is an opportunity to boost Thai trade while reducing the trade deficit for the US.

With a US$46 billion (1.6 trillion baht) trade surplus with the US, he outlined the plan as follows:

1. Increase imports from the US, focusing on products that Thailand requires domestically, such as agricultural goods, pork offals and energy products like natural gas.
2. Reduce or exempt taxes on over 100 US products for which Thailand generates relatively low annual revenue.
3. Eliminate non-tariff barriers to facilitate trade between the US and Thailand.
4. Emphasise the importance of product origin certification to ensure that Thailand is not misused as a source of origin for goods exported to the US.
5. Support capable Thai private sectors in increasing their investments in the US, particularly in agriculture and energy.

Pichai noted that there are still many details Thailand needs to work on. The Commerce Ministry will handle the specifics to be proposed to the working team to mitigate the impact of US trade policies and the Cabinet, while he will oversee the process in line with the PM’s order to ensure maximum benefits.

He emphasised that the guidelines to mitigate the impact of US trade policies must be thoroughly addressed. He declined to comment on when he will travel to the US for negotiations, stating that the US has already recognised Thailand’s efforts to ensure mutual benefits for both countries.

“Now we understand what the US needs, so we must adjust and find solutions,” he said. “In the next 10 years, we have to find a way to create a trade balance between the two sides, just like private companies investing in the US must be companies with potential that can create a stable trade balance.”

Pichai confirmed that the government has prepared measures to stimulate the domestic economy, such as steps to mitigate the impact on Thai exporters affected by US trade policies, as well as accelerating investment in infrastructure.

He said that Thailand would expand the public debt ceiling from the current 70% if necessary, adding that Thailand cannot negotiate with the US alongside ASEAN countries, as each nation has different strengths and weaknesses.

Pichai affirmed that the government will focus heavily on this issue, urging people to have confidence in the government’s potential.