Thailand-US tariff talks reach in-principle deal before Section 301
Thailand and the US have reached a tariff agreement in principle, with technical details and wording under review before further Section 301 measures.
- An in-principle agreement on tariffs has been reached between Thailand and the United States, with only technical details and wording now needing to be finalised.
- Thailand aims to complete the deal swiftly to pre-empt potential US countermeasures under Section 301 of its Trade Act, which addresses unfair trade practices.
- The agreement was confirmed by Commerce Minister Suphajee Suthumpun following recent discussions with the Office of the United States Trade Representative.
Thailand and the United States have reached an agreement in principle on tariff negotiations, with the remaining work focused on reviewing technical details and the wording of the agreement, Deputy Prime Minister and Commerce Minister Suphajee Suthumpun confirmed on Monday (September 28).
Speaking at Government House, Suphajee explained that officials were carefully reviewing the technical provisions and wording. Thailand aims to complete the process before Washington takes further action under Section 301.
Section 301 of the US Trade Act of 1974 allows Washington to investigate foreign trade practices it considers unfair and take countermeasures, including tariffs, if grounds for action are established. Thailand has faced Section 301 proceedings concerning forced-labour import controls and alleged excess manufacturing capacity.
During her recent visit to the United States for the United Nations General Assembly, Suphajee also held talks with representatives of the Office of the United States Trade Representative (USTR). She described the discussions as smooth and indicated that the negotiating teams were working to complete the remaining details as quickly as possible.
Asked about signs of easing tariff tensions between the United States and China following talks between the two countries’ leaders, Suphajee stressed that Thailand would continue trade negotiations with both major economies to pursue mutual benefits.
On concerns over the misuse of Thai origin status, she noted that Thailand already has measures in place to address the issue. She also viewed the situation as an opportunity to increase the use of domestically sourced raw materials and components, thereby raising local content in Thai production.
Separately, Suphajee confirmed that the 10th round of free trade agreement negotiations between Thailand and the European Union began in Phuket on Monday, with Thailand hosting the talks.
The negotiations are aimed at resolving the roughly one-third of the agreement that remains outstanding and reaching an overall agreement within this year. Suphajee plans to travel to Phuket on Tuesday (September 29) to join the talks.
