Commerce Ministry confirms ongoing U.S. tax negotiations, emphasizes national interests
Thailand continues technical talks with the U.S. on trade issues, including a 19% tax rate and non-tariff barriers. Progress on Local Content measures and RVC expected.
The Department of Trade Negotiations has confirmed that technical discussions between Thailand and the U.S. are still progressing, despite the U.S. maintaining a 19% tax rate on Thai goods.
The discussions focus on trade liberalization, including market access for products, services, and investment. The U.S. has raised concerns regarding non-tariff measures (NTMs) which, according to the National Trade Estimate Report, could impact trade and economic security. These NTMs include various barriers like sanitary measures, such as the use of growth-promoting substances in pork and factory risk assessments. Thailand's Department of Livestock Development is reviewing these issues to ensure public health safety is not compromised.
Progress on Local Content and RVC Measures
Chotima Iemsawasdikul, Director-General of the Department of Trade Negotiations, mentioned that the U.S. government is also negotiating with China regarding the implementation of Local Content or Regional Value Content (RVC) measures. The U.S. is expected to apply the same regulations universally across all countries. Thailand is working to conclude the technical discussions as soon as possible. However, given that the current Thai government is a caretaker administration, any agreements will need to be presented to the newly elected government, approved by the Cabinet, and submitted to the Parliament for final approval before they can be signed.
Chotima reaffirmed that the 19% tax rate on Thai goods remains unchanged, even after previous comments by President Donald Trump, who suggested a possible tax hike if the conflict between Thailand and Cambodia was not resolved, following a conversation with Prime Minister Anutin Charnvirakul.
