BANGKOK: Thailand has submitted a new trade proposal to the United States, offering to cut levies to zero on many US imports in a bid to avoid steep tariff hikes on its own products, the finance minister said on Monday (Jul 7).
Washington has threatened to impose a 36 per cent levy on Thai imports if no reduction is negotiated before Jul 9, when a 90-day pause capping tariffs at a baseline of 10 per cent for most nations expires.
The United States accounted for 18.3 per cent of Thailand’s shipments last year, amounting to US$54.96 billion in value, making it Thailand’s biggest export market. Washington says its deficit with Thailand stood at US$45.6 billion.
“We heard their feedback and what they were especially interested in, and we adjusted it (the trade proposal),” Minister Pichai Chunhavajira told reporters, who returned from Washington last week following talks.
The US Trade Representative’s office praised Thailand’s efforts but suggested minor adjustments, Pichai said.
He said the improved proposal includes zero tariffs on many US imports and other measures that aim to bring trade with the United States into balance in less than 10 years, sooner than earlier proposed. It also includes commitments to increase imports of American goods to boost bilateral trade.
“It’s not just about reducing tariffs but also about opening up trade further,” he said.
“Of course, we are not offering a 0 per cent tariff across the board, but we are providing zero tariffs on a substantial number of items,” Pichai said.
“In my view, the conditions we have proposed are very favourable and should satisfy them,” he added.
