Suphajee updates Thai-US trade talks as Thailand addresses Section 301 concerns
Commerce Minister Suphajee Suthumpun says Thailand has clarified US concerns over excess capacity, forced labour and transshipment.
Deputy Prime Minister and Commerce Minister Suphajee Suthumpun on Tuesday gave an update on Thailand’s trade cooperation talks with the United States and its clarification to Washington over the investigation into Thailand on allegations of unfair trade practices under Section 301 of US trade law.
She said the Thai team was still in the United States to continue technical discussions with US officials on the issues under investigation.
The two key issues of interest to the US side are excess capacity and forced labour. Suphajee said Thailand had already submitted detailed explanatory documents on all issues on April 15.
She expressed confidence that the information Thailand had provided was clear and complete, adding that both sides continued to share the intention of promoting trade in a way that would deliver the greatest benefit to both countries.
The Commerce Ministry has also accelerated negotiations on the Trade and Investment Framework Agreement, or TIFA, an issue that has been pending since the previous government.
Thailand and the United States are ready to push this matter forward together, with the aim of completing this part before the Section 301 hearing process under US trade law begins.
On concerns raised by the Office of the United States Trade Representative (USTR) over Thailand’s rising trade surplus with the US over the past year, Suphajee said she had clarified the facts.
She explained that at least 30% of the goods contributing to Thailand’s increased trade surplus with the US were produced by US companies that had invested and established manufacturing bases in Thailand, while more than 20% came from Thai operators.
Thailand also clarified its measures to prevent transshipment, or the practice of bringing goods from third countries through Thailand for export to the United States.
Suphajee reaffirmed that the Thai government had clear information and documentary evidence to explain all facts and prove the transparency of Thailand’s export process.
She said Thailand had stressed this point to ease US concerns and build confidence that the country attaches importance to the issue.
The current dispute stems from two major US Section 301 actions launched in March 2026. The USTR opened investigations into structural excess capacity and production in manufacturing sectors covering 16 economies, including Thailand, and separately launched forced-labour-related investigations covering 60 economies.
Section 301 of the Trade Act of 1974 allows the USTR to examine whether foreign government practices are unreasonable or discriminatory and burden or restrict US commerce, potentially leading to tariff or non-tariff action.
For Thailand, the case is economically sensitive because the US can consider measures by country and by industrial sector after the consultation process. The outcome was expected between mid and late June, and no later than July 24, 2026.
