Bangkok: The Federation of Thai Industries (FTI) is advocating for the United States to reduce import tariffs to 18% to enhance Thailand's competitiveness in the global market. The FTI aims for a tariff rate akin to that of its competitors to ensure a fair playing field.

According to Thai News Agency, Mr. Kriangkrai Thienukul, Chairman of the FTI, expressed that the period leading up to August 1, 2025, is critical. This deadline marks the submission of a proposal to adjust the import tariff rate on US goods, a period he describes as pivotal for Thailand's future economic landscape. The FTI, representing the private sector, is optimistic about the negotiations led by Thailand's collaborative public-private team, which has been working diligently to secure favorable terms for the nation.

The US market represents a significant outlet for Thai exports, contributing 18.4% to the country's total export value in 2024. Neighboring competitors like Vietnam have already secured tariff rates of 20% and 40%, while Indonesia and the Philippines have negotiated rates of 19%, and Malaysia at 25%. The FTI hopes for a favorable outcome, ideally achieving a tariff rate of 18%, or at least aligning with competitors at 19-20%, which would enable Thailand to maintain competitive parity.

While achieving a favorable tariff rate remains a priority, the FTI acknowledges that this is just the first step. The Thai industrial sector must continue to evolve, focusing on development, improvement, and restructuring to ensure long-term competitiveness, regardless of the outcome of tariff negotiations. The Federation remains committed to advancing Thailand's industrial sector in the face of these challenges.