Thailand and the United States: Trade talks put on hold pending US approval
IN BRIEF
Trade talks between Thailand and the United States scheduled for April 23 have been suspended. Thailand faces very high US tariffs (36%). The Thai government is calling for emergency negotiations regarding tariffs. Imports of 1 million tons of liquefied natural gas from the United States are expected, worth as much as $500 million. The consequences of Trump’s policies could seriously affect Thai exports. Technical negotiations are continuing pending a final timetable. Trade talks between Thailand and the United States are experiencing a significant slowdown, with the first round of talks, scheduled for April 23, now suspended. This situation follows the significant increase in US tariffs, reaching up to 36%, which prompted Thai exporters to call for immediate negotiations. In this context, the Thai government emphasizes the importance of rebalancing trade while increasing its imports of liquefied natural gas from the United States, in order to prepare for future challenges.
Summary of the Thai-US Trade Situation Trade talks between Thailand and the United States, scheduled for April 23, have been suspended pending US approval. This postponement comes amid tensions over tariffs imposed by Washington on Thai imports, prompting the Thai government to respond by considering increasing its imports of liquefied natural gas (LNG) from the United States. Suspension of Trade Talks
The first round of trade talks between Thailand and the United States, originally scheduled for April 23, has been put on hold. This postponement was reported by several Thai media outlets, indicating that the Thai government is awaiting US approval. Thai Prime Minister Paetongtarn Shinawatra had previously announced this date, emphasizing the importance of these negotiations for the Thai economy. Impact of US Tariffs As Thai exporters face US tariffs of up to 36%, pressure is mounting on the Thai government to urgently negotiate agreements to reduce these tariffs. These high tariffs are jeopardizing several Thai export sectors, prompting the authorities to intensify trade discussions with the United States to find tailored and balanced solutions. Liquefied Natural Gas Import Strategies
In an effort to counter this worrying situation, Thailand is considering increasing its LNG imports from the United States. The country plans to purchase an additional 1 million tons of LNG over the next five years, for a total of $500 million. This decision is part of a strategy aimed at reducing the trade imbalance and offsetting the effects of tariffs on trade between the two nations. Concerns Related to US Policy Thai exports to the United States are being tolerated under pressure of transformation due to anticipated changes in US policy. With the potential return of Donald Trump,
According to the President, Thai exports could experience significant disruptions, as the Thai government must prepare for this possibility as 2024 approaches. Such a situation would further pressure the country to intensify its efforts to secure more favorable trade terms. Trade Negotiations Underway at the Technical Level Despite the postponement of trade negotiations, discussions continue at the technical level. Thai Finance Minister Pichai Chunhavajira stated that preparations for these talks are underway, although the precise date remains uncertain. This reflects the Thai government’s commitment to maintaining an open dialogue with the United States while seeking to mitigate the negative effects of existing tariffs. Thailand at the Center of US Trade ConcernsThe United States has expressed its intention to prioritize trade negotiations with Thailand, placing the country among the fourteen main targets of its trade policy. This increased attention could potentially bring opportunities for Thai businesses, provided the discussions result in mutually beneficial agreements. Thailand hopes to strengthen its market access and improve its position in global trade.
To learn more about the implications of the current trade situation, you can read the following articles: Celebrating 20 Years of Cambodia’s Engagement in the WTO ,
Thailand: A Popular Destination for Swiss Businesses , Trump Could Affect Thai Exports , The EU at the Heart of Trade Negotiations , Statement by the Thai Prime Minister on US Trade Policy , Cambodia’s Reactions to New US Tariffs
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The EU at the Heart of Trade Negotiations , Urgent Negotiations in the Face of US Tariffs , Strengthening LNG Imports , Trade Talks Suspended Pending US Green Light
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Suspended Negotiations : The planned first round did not take place. High Tariffs : Thai exports face 36% tariffs in the United States.Thai Position
: Recognition of the Need for Trade Rebalancing.
LNG Purchases : Thailand plans to import 1 million tons of liquefied natural gas from the United States. Preparing for Trump
: Increasing Pressure on the Thai Government as 2025 Approaches.
US Priority : Thailand Among 14 Target Countries for Trade Negotiations. Energy Issues: Discussion of tariff relief during pre-negotiation meetings. Market Opening: Interest in improving market access in Thailand.
FAQs on Thailand-US Trade Talks
What are the reasons for the postponement of the Thailand-US trade talks? Several factors, including the need for US approval and the assessment of existing tariffs, led to the temporary suspension of these talks. When were the talks originally scheduled?
The trade talks were originally scheduled for April 23 but were postponed to a later date.
What is the US tariff rate on Thai exports? Thai exporters face US tariffs of approximately 36%, which is a major obstacle to trade.What is Thailand’s plan to address these high tariffs?
To mitigate the impact of the tariffs, Thailand plans to increase its imports of liquefied natural gas (LNG) from the United States by an additional 1 million tons over the next five years.
How is the Thai government responding to these trade issues?
The Thai government recognizes the importance for the United States of rebalancing their trade and expresses its willingness to engage in constructive negotiations on this issue. What are Thailand’s expectations for the future of trade relations with the United States?Thailand expects that, despite these tensions, fruitful discussions can resume to foster mutually beneficial trade relations, particularly with regard to market access.
