Bangkok: Deputy Commerce Minister Chantawit has announced that the United States Trade Representative (USTR) is satisfied with Thailand's latest proposal, yet recommends that Thailand enhance market access, reduce non-tariff barriers, and support US investments. The Thai government faces a critical decision deadline of August 1, 2025.
According to Thai News Agency, Mr. Chantavit Tanthasit, Deputy Minister of Commerce, revealed that negotiations with the USTR are progressing positively. Both parties are examining the remaining proposals in detail. The US has advised Thailand to focus on three main areas: expanding the list of products with market access, reducing non-tariff trade barriers, and encouraging Thai business investments in the US.
Thailand must evaluate the extent to which it can accept the US proposals, particularly concerning over 10,000 agricultural and industrial products yet to be finalized. The Ministry of Commerce, through the Department of Foreign Trade, is working on technical measures to support these negotiations. This includes analyzing the impact of non-tariff measures and potentially adjusting local content criteria to align with new US standards. Both sides aim to conclude negotiations by the August 1, 2025 deadline.
Mr. Chantawich acknowledged the complexity of the local content issue, which involves the proportion of raw materials from third countries, potentially affecting supply chains and tax benefits. Meanwhile, Thailand has proposed an investment plan to attract US private sector investment, which has garnered initial interest, but further consideration of the details is required.
He emphasized the urgency of the negotiations, as all countries are striving to meet the August 1 deadline. The Thai team is prepared to swiftly address any new proposals from the US, which are subject to frequent changes.
The changing structure of Thailand's local content, with increased foreign raw material reliance, necessitates continuous adaptation. Mr. Chantawich stressed that global competition should be viewed as an opportunity to enhance domestic industry capabilities, benefiting not only the US but also Thailand.
Successful negotiations hinge on two main factors: progress in discussions between USTR and Thailand, and ongoing communication and consultation with the domestic private sector. Given the rapidly changing and unpredictable situation, expedited efforts are essential.
Addressing concerns about political uncertainty, Mr. Chantawich expressed confidence that all parties will prioritize national interests, maintaining a unified goal of safeguarding Thailand's long-term interests in the negotiations.