Bangkok: "Pichai" is looking forward to the results of negotiations on a 20% US tax. "Pichai" hopes for the outcome of the negotiations for a 20% US tax, similar to that of neighboring competitors, stating that the US has set multiple rates.

According to Thai News Agency, Mr. Pichai Chunhavijorn, Deputy Prime Minister and Minister of Finance, stated that Team Thailand engaged in negotiations with the United States Trade Representative (USTR) via video conference, aspiring to lower the customs duty from the existing 36 percent. The detailed discussions are expected to lead to a second round of proposals that would align the interests of both Thailand and the United States. The negotiations, described as having a positive atmosphere, might not fully achieve all objectives, but there is optimism that tariff rates could match those of neighboring countries, potentially reaching a basic rate of 20 percent.

Mr. Pichai acknowledged that Thailand faces issues with efficiency and emphasized the need to enhance production capabilities across various sectors. As markets open, Thailand aims to be competitive, focusing not merely on reducing the US deficit through imports but also on investing in production to stimulate economic growth. The government is committed to safeguarding agricultural products and SMEs, ensuring they are robust enough to compete globally once fortified.

Reporters highlighted that Vietnam currently operates under a dual tax system of 20% and 40%, determined by the Regional Value Content (RVC) of products. Products with a higher RVC benefit from a 20% tax rate, whereas those with a lower RVC incur a 40% rate, indicating the presence of multiple tax rates in Vietnam.