Thailand is aiming to reduce its trade surplus with the United States by as much as $5 billion annually—approximately one-third of the current figure—through recent measures to curb the misuse of origin rules in exports, Finance Minister Pichai Chunhavajira announced.
Speaking at an American Chamber of Commerce conference in Bangkok on Tuesday, Mr Pichai underscored the government’s commitment to implementing anti-circumvention policies that will promote a fair and sustainable trade and investment partnership with the United States. While he did not specify a timeline, the projected reduction would represent a significant portion of Thailand’s $46 billion trade surplus with Washington recorded in the previous year.
To address growing trade tensions and avoid the imposition of a proposed 36% tariff on Thai exports, the Thai government has submitted a detailed framework of proposals to the US administration. These proposals include actions to counter trade rerouting practices by Chinese firms, reduce both tariff and non-tariff barriers, and enhance bilateral investment. Mr Pichai expressed confidence in the initiatives, stating they are “practical and viable” and have the potential to produce “win-win results” and “tangible quick wins” for both nations.
Thailand is prioritising a trade agreement with the United States to mitigate economic headwinds, as the country faces downward revisions in growth forecasts from the central bank and the World Bank. The US remained Thailand’s largest export destination last year, accounting for 18% of total shipments.
In a related development, Thai authorities announced on Monday the suspension of investment promotion for sectors associated with oversupply or environmental concerns. Additionally, the government will intensify the evaluation of new investment proposals to ensure that core production activities are conducted within the country. Measures have also been introduced to simplify the issuance process for certificates of origin, alongside the expansion of a product watchlist to include more industrial goods.
Looking ahead, Thailand is also positioning itself to boost private sector investment in the United States, particularly in sectors such as energy, digital technology, infrastructure, wellness tourism and creative industries. According to Nalinee Taveesin, President of Thailand Trade Representatives, Thai firms are prepared to invest at least $2 billion in the US. This follows a recent delegation of Thai business leaders to the US to explore investment opportunities.
Furthermore, Thailand has signalled interest in participating in a major gas pipeline initiative in Alaska, which has received support from President Donald Trump.
-Bloomberg
