Bangkok: “Weerayut” questions whether Thailand is giving too much to the US in exchange for tax deals. Wirayut compares Thailand’s recent negotiations with the US to those involving Vietnam and Malaysia, urging for ASEAN cooperation in future discussions.

According to Thai News Agency, Mr. Wirayut Kanchanachuchat, Deputy Leader of the People’s Party and economic team member, analyzed a Joint Statement signed by Thailand and the United States, comparing it to similar agreements with Vietnam and Malaysia. He highlighted three main points of concern for the Thai government and its negotiation team.

Thailand committed to purchasing 80 aircraft from the US for $18.8 billion, in contrast to Vietnam’s 50 aircraft for $8 billion and Malaysia’s 30 aircraft, with a possibility of doubling. Malaysia’s additional commitments for semiconductors, aircraft components, and data center equipment, totaling $150 billion, align with its Silicon Valley of the East strategy. Meanwhile, Thailand’s additional purchases include $5.4 billion in energy and $2.6 billion in agricultural products annually. Vietnam remained vague, committing to $2.9 billion in agricultural products.

Thailand has agreed to lift tariff barriers, offering the US 99% of its total list of industrial and agricultural products, while Vietnam and Malaysia promised broader preferential market access without specific percentages. The US included a rare earth strategy in its statement with Malaysia, but Thailand addressed it through a separate MOU. Additionally, Thailand is required to abolish its customs reward system, unlike its counterparts.

In the realm of digital business, Thailand agreed to allow “free” cross-border data transfers, benefiting US business operations. Conversely, Malaysia stressed the need for “appropriate safeguards,” granting it more discretion over future data transfers.

Wirayut concluded that while the joint statement is not legally binding, Thailand should consider the experiences of its neighboring countries to evaluate the merits of the trade-offs involved. He advocated for a collective ASEAN approach in future negotiations with the US to ensure fair and balanced agreements.