FRIDAY, March 29, 2024
nationthailand

PM hopes for balanced US foreign policy

PM hopes for balanced US foreign policy

Thai businesses, exporters concerned over Trump’s isolationist, protectionist policies.

Thailand is ready to work with a United States’ administration led by Donald Trump, provided it adheres to a balanced foreign policy in dealing with the world community, Prime Minister Prayut Chan-o-cha said. 
Citing 183 years of Thai-US diplomatic ties, Prayut said the government could work with whoever wins the US presidential election, though other Thai political and business leaders believe the US administration under Trump would more likely be quite conservative and protectionist. 
Attawit Suwannapakdi, a former Bangkok MP, said the US foreign policy would be adjusted by the new Republican president, shifting away from the Democrat Party’s focus on big security and military spending in the Asia Pacific. Economically, he said, the new US government would likely abandon the Trans-Pacific Partnership (TPP) deal initiated by President Barack Obama.
“It’s likely that the Trump administration will not go ahead with TPP, while the US will reduce its global role in order to fix domestic problems and revive the domestic economy,” he said.
For Asian stock markets, including the Stock Exchange of Thailand, Trump’s victory meant increased uncertainties and fears that the global economy and financial markets would take a hit. The SET Index dropped to a low of 1,486.32, but recovered to close at 1,509.43, down 0.03 per cent, while Singapore’s Straits Times Index shed 1.25 per cent to close at 2,785.07 points and Hong Kong’s Hang Seng Index was down 1.95 per cent to close at 22,462.80 points
For Isara Vongkusolkit, chairman of Thailand’s Board of Trade and Thai Chamber of Commerce, a Trump presidency could shift the focus to the US domestic economy, as the country’s international trade policy remains unclear. 
As for the TPP trade deal, he said, Trump might not go ahead with the pact, so it was a good thing that Thailand had not joined the free-trade grouping. 
Amornthep Jawala of CIMB Thai Research unit said the Trump-led government would most likely curb imports with tariff measures or re-negotiate the terms and conditions of TPP because many Americans had lost jobs due to free trade agreements. Trump has been claiming that these agreements have led to more employment in China and Vietnam at the expense of Americans. 
At present, 20 per cent of the United States’ total imports come from China, while imports from Asean countries account for 7.3 per cent of US imports with Vietnam holding the biggest share, followed by Malaysia and Thailand. In the event of an aborted TPP agreement, Vietnam would not have an advantage over Thailand in terms of boosting its exports to the US market via privileges granted by its TPP membership.
However, Nopporn Thepsithar, president of the Thai National Shippers Council, was more optimistic saying that the US economy had not improved over the eight years under Obama’s administration, so a Trump presidency could represent a major change. 
Boonyarit Kalayanamit, director-general to the Trade Negotiations Department, said Trump’s victory would likely lead to an aborted TPP deal, as he tended to favour more protectionist and isolationist policies. 
He also said that Thai exporters should prepare for more protectionist measures, especially in terms of non-tariff barriers in the US market. 
Wiboonlasana Ruamraksa, permanent-secretary to the Commerce Ministry, said Thailand needed to further diversify its export market if the US becomes more protectionist.

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