Thailand will submit its formal trade proposal to the United States this week, with the first round of discussions to take place online, Finance Minister Pichai Chunhavajira said on Tuesday, as the country seeks to head off the threat of higher US tariffs.
Washington has threatened to impose a 36% tariff rate on imports from Thailand if a reduction cannot be negotiated before a 90-day pause that caps tariffs at a baseline of 10% expires on July 9.
Formal trade negotiations with the United States will start this week, starting with technical discussions at the official level, Mr Pichai told reporters after a cabinet meeting.
“The latest formal proposal will be submitted following these discussions this week. After that, the first round of discussions with the US will be conducted online,” he said, without giving a date.
Any potential in-person meetings would be considered after the initial online talks, he said.
The formal proposal to be submitted would be in line with the main criteria announced in an earlier proposal, he said.
Last month, Thailand submitted a proposal to Washington that aims to address the trade imbalance, and includes measures to enhance market access for US exports and tackle transshipment violations, as well as Thai investment that would create US jobs.
On Monday, Commerce Minister Pichai Naripthaphan expressed confidence that both countries could agree on good terms on tariffs, possibly as low as 10%.
The United States was Thailand’s largest export market last year, accounting for 18.3% of total shipments worth $55 billion. Washington said its trade deficit with Thailand was $45.6 billion.
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