Pichai seen leading delegation to the US.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira is optimistic that the trade negotiations with the US will result in a mutually beneficial agreement.
Mr Pichai was scheduled to travel to the US Monday night to negotiate trade-related reciprocal tariff measures with US officials, which are set to take place over the next two days.
He acknowledged that this issue is a concern for everyone, especially as the reciprocal tariff measures are approaching a critical stage, with the deadline anticipated to be around July 8.
However, Mr Pichai emphasised that negotiations did not just begin recently, noting that discussions have been ongoing for some time, both formally and informally.
Several proposals have already been submitted, and this trip is intended to finalise the remaining issues, he said.
According to Mr Pichai, Thailand's approach in these negotiations is to prioritise national interests while also taking into account the constraints faced by the US, with the aim of achieving a win-win outcome that aligns with the needs of both sides.
In addition to tariff-related matters, the discussions will also address non-tariff barriers, such as regulations, rules and trade-related inconveniences. This presents a good opportunity for Thailand to review and improve its regulations to facilitate smoother import and export operations, he added.
According to Mr Pichai, the US Trade Representative (USTR) has held talks with many countries.
However, it remains unclear how far those negotiations have progressed, and no country has yet reached a final agreement easily, despite a number of rumours. Therefore, it is believed that in the end, there may be a postponement of the implementation of the new tariff rates, he noted.
Regarding Thailand, which is subject to a 36% tariff rate, it has been speculated that the actual rate may be reduced to 18%.
Mr Pichai explained that this is merely an academic projection used to assess potential impacts on economic growth, and the actual rate that the US will impose on Thai goods is still unknown, pointing out that the rate could very well be lower than 18%.
According to Mr Pichai, Thailand's negotiating position is that, regardless of the rate imposed by the US, the only request is that Thailand not be taxed higher than other countries in order to preserve its competitiveness.
He believes that other countries likely share the same sentiment.
"If Thailand cannot maintain its competitiveness, it will lead to endless problems. Forming an Asean bloc to negotiate jointly is prohibited, and currently no country has been able to easily conclude negotiations, as detailed discussions often bring new data and additional conditions," he said.
A source from the Finance Ministry who requested an anonymity said Mr Pichai was to lead the Team Thailand delegation, comprising representatives from various government agencies, including the Finance Ministry, the Fiscal Policy Office, the Commerce Ministry, the Trade Negotiations Department and the Foreign Affairs Ministry, to Washington last night for the first official negotiations on tax measures between Thailand and the US.
During the visit, there will be 2-3 scheduled meetings with US counterparts.
One key meeting will be the Thai-US trade negotiation with USTR Jamieson Greer, scheduled for July 3 at 9pm (Thailand time). The main goal is to persuade the US to reduce the retaliatory tariff rate on Thailand from 36% to the lowest possible level.
Source: Bangkok Post
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<p>Time: 2024 By: Ministry of Industry and Trade</p>
