Bangkok: The Federation of Thai Industries (FTI) expressed confidence that the Thai negotiation team can engage with the United States effectively, following the imposition of a 19% import tax on Indonesia by the US. The FTI emphasized that Thailand’s trade surplus with the US is 2.5 times larger than Indonesia’s, providing a significant basis for negotiations. While acknowledging the challenges ahead, the FTI remains optimistic about the abilities of the Thai team, including the collaboration with the new Governor of the Bank of Thailand (BOT) and other governmental and private sectors.

According to Thai News Agency, Mr. Nawa Chantanasurakon, Vice Chairman of the FTI, highlighted the recent developments where US President Donald Trump announced completed negotiations with Indonesia, resulting in a 19% tariff on Indonesian products while US exports to Indonesia remain tariff-free. Mr. Nawa suggested that Thailand should aim for a competitive tariff rate similar to other ASEAN countries, excluding Laos and Myanmar. The announcement of the tariff on Indonesia was supported by 47 FTI member industry groups, with most favoring the reduction of tariffs on US products to 0% to maintain competitiveness.

Mr. Nawa pointed out that certain industries, like pharmaceuticals, could benefit from reduced tariffs due to their quality and safety, while sectors like chemicals, which require high investment, need a gradual adjustment period. The FTI sees this approach as strategic in negotiations rather than a hindrance.

Despite concerns about potential future reductions of import tariffs to 0% across all products, similar to Indonesia and Vietnam, Mr. Nawa remains hopeful. He emphasized that the Thai negotiation team is composed of knowledgeable and capable members who can engage in constructive discussions. He believes that, although challenging, the team is well-prepared for the task.

Mr. Nawa also addressed the appointment of the new BOT Governor, expressing trust that the Ministry of Finance and BOT will select an individual capable of collaborating effectively with both public and private sectors. He stressed the importance of facilitating soft loans and supporting SMEs affected by the economic climate, including temporary debt repayment suspensions. He expressed concern over the underutilization of liquidity by financial institutions and commercial banks, advocating for systems to support honest debtors.