US pushes Thailand to fix trade ‘issues’ as tariff talks delayed
The country is among the South-east Asian countries facing the highest import levy rates
[BANGKOK] Talks between the US and Thailand over Trump administration’s plans to impose a hefty 36 per cent tariff has been postponed after Washington asked the South-east Asian nation to address a set of “issues” related to trade, officials said.
No new dates have been set for talks after the two sides agreed to postpone negotiations previously slated for Apr 23, Prime Minister Paetongtarn Shinawatra told reporters on Tuesday (Apr 22). She did not specify what the issues were.
“We’ll approach the talks with the mindset that we’ll give them something if they’re also willing to give us something,” she said after a Cabinet meeting.
The US wants Thailand to take more steps to prevent certificate of origin misuse by other countries facing higher US import tariffs. The Trump administration also wants Bangkok to look into its concerns over currency manipulation, said Finance Minister Pichai Chunhavajira.
Thailand is among the South-east Asian countries facing the highest import levy rates after its trade surplus with the US more than doubled to about US$46 billion last year, from about US$17 billion at the beginning of President Donald Trump’s first term.
The remarks come a day after the US set new duties as high as 3,521 per cent on solar imports from four South-east Asian countries including Thailand, the culmination of a probe that found solar manufacturers were unfairly benefiting from government subsidies and selling exports to the US at rates lower than the cost of production.
Commerce Minister Pichai Naripthaphan, who is also part of the Thai negotiation team, said the government was hopeful of a “good outcome” whenever the negotiations are held as the two countries have a “good and longstanding” bilateral relations.
Paetongtarn’s administration has said the higher-than-expected levy on its shipments to the US – Thailand’s largest export market – could shave off at least one percentage point of its growth this year if it’s not negotiated down.
Thailand has offered to step up imports of US commodities like corn, natural gas and ethane, besides reducing import duties and removing non-tariff barriers to secure a deal. BLOOMBERG
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