Anutin orders action on labour and capacity risks tied to US tariffs
Prime Minister Anutin Charnvirakul has ordered agencies to address forced-labour and excess-capacity concerns in a bid to reduce the risk of further US trade measures.
- Prime Minister Anutin has ordered government agencies to address risks of forced labour and excess production capacity to avoid further US trade measures after Thailand was hit with Section 301 tariffs.
- To combat forced-labour risks, ministries are instructed to enforce laws and develop systems to trace supply chains and certify that Thai goods are not linked to forced labour.
- To manage excess production capacity, agencies will identify at-risk industries, investigate potential tariff circumvention, and ensure business support focuses on productivity rather than expanding output without market demand.
Prime Minister Anutin Charnvirakul has ordered government agencies to accelerate efforts to address forced-labour and excess-production-capacity concerns that could expose Thailand to further US trade measures.
Deputy government spokeswoman Lalida Persvivatana reported on Monday (July 27) that Anutin, who also serves as interior minister, issued the directive before the Cabinet meeting following the United States’ announcement of Section 301 tariffs on more than 60 trading partners. Thailand was placed in the 12.5% tariff group.
Lalida quoted Anutin as saying: “Every agency should look beyond the tariff rate itself and urgently address the risk factors prioritised by the United States, particularly forced labour and excess production capacity, which could be cited as grounds for imposing further trade measures on Thailand in the future.”
The prime minister instructed the Labour Ministry to work with the Commerce Ministry and other relevant agencies to rigorously enforce applicable laws, regulations, rules, and notifications and deliver tangible results.
The agencies were also instructed to compile lists of products and industries considered at risk and develop systems for certifying product origins and tracing supply chains. These mechanisms should demonstrate that Thai goods are not linked to forced labour at any stage of production and provide supporting evidence for negotiations with the United States and other trading partners.
To address excess production capacity, Anutin assigned the Commerce Ministry to lead a coordinated effort involving the Industry Ministry, the Agriculture and Cooperatives Ministry, the Customs Department and other relevant agencies.
They were instructed to identify at-risk products and industries while examining production capacity, inventory levels, government subsidies and product origins. The review will also cover the risk of false claims of Thai origin or the use of Thailand as a transit route to circumvent trade measures.
Anutin emphasised that assistance for businesses should focus on improving productivity, reducing costs, adopting new technologies, and increasing product value. Support should not encourage companies to expand production capacity or increase output without regard to market demand, as this could leave Thailand facing allegations of excess capacity.
All agencies were instructed to prepare systematic response measures, designate responsible bodies, and establish clear implementation timelines. The measures will support negotiations with the United States and help limit the impact on Thai businesses and exports.
