Bangkok: The Economic Association of Thailand has highlighted the need for Thailand to reform its trade tax structure and non-tariff measures on agricultural products in response to the United States' imposition of import tariffs. The tariffs are driven by the U.S.'s fiscal challenges, including an annual fiscal loss of US$1.8 trillion and a staggering government debt increase of US$36 trillion.
According to Thai News Agency, a seminar titled "Trump's Tariffs: How Can Thailand Survive?" was organized by the Economic Association of Thailand. Dr. Kobsak Phutrakul, the association's president, explained that the U.S. is facing economic challenges, which have prompted the imposition of tariffs. He noted that China is surpassing the U.S. in several industries, further pressuring the American economy. Dr. Phutrakul warned that the impact of these tariffs would persist and advised the Thai government to address the subsequent challenges in various sectors, including manufacturing and agriculture.
He emphasized the necessity for Thailand to sustain its economy against the backdrop of a potential global economic slowdown. The government should focus on supporting SMEs and adapting to the influx of Chinese goods, which have recently seen significant growth in the Thai market. Dr. Phutrakul proposed diversifying trade partners by targeting markets like India, ASEAN, and China to reduce reliance on the U.S.
Assoc. Prof. Dr. Nipon Puapongsakorn, former president of the Economic Association of Thailand, stressed the importance of reforming Thailand's trade tariff structure. He pointed out that the U.S. has long demanded changes, as Thailand's current import tariffs and non-tariff measures are seen as barriers. The tariffs, particularly on agricultural products, need revision to maintain Thailand's competitiveness in the international market.
The tariffs are expected to affect various Thai exports, such as Hom Mali rice, shrimp, and tuna, which heavily rely on the U.S. market. The disparity in rice pricing with Vietnam, a competitor, highlights the urgency of these reforms. Additionally, the zero-percent import tariff on U.S. goods could adversely impact domestic farmers, necessitating careful consideration of agricultural policies.
Mr. Nipon suggested that Thailand expedite actions against counterfeit goods and reduce tariffs on agricultural and industrial products to remain competitive. He also advocated for improving educational exchanges and attracting high-tech industries to Thailand. Furthermore, Mr. Nipon called for medium-term strategies to explore new markets and enhance production processes while maintaining neutrality in international economic affairs.
The reform measures also include addressing agricultural workforce challenges by reducing the number of workers in the sector and facilitating their transition to other jobs. By developing new skills and creating job opportunities in rural areas, the government can contribute to the sector's restructuring and long-term sustainability.