Thailand’s Prime Minister Paetongtarn Shinawatra announced on Tuesday that crucial trade negotiations with the United States over steep import tariffs have been postponed at Washington’s request. The talks, originally scheduled for April 23, were delayed after the US expressed dissatisfaction with Thailand’s initial proposals and asked Bangkok to review and revise certain key issues before proceeding.
The negotiations are aimed at addressing the US administration’s plan to impose a significant 36% tariff on Thai imports, a move that could have major implications for Thailand if a reduction cannot be negotiated before a global moratorium expires in July. As a new date was being scheduled for talks, Thai officials say they are consulting widely and preparing to adjust their proposals in hopes of reaching a mutually beneficial agreement. The postponement comes amid heightened trade tensions and follows recent US actions to increase tariffs on several Southeast Asian countries, including Thailand, over concerns such as certificate of origin misuse and currency practices.
“We’re not too slow and we are reviewing issues, including our tariffs that may be adjusted appropriately,” Paetongtarn said, adding that Thai agriculture exports and additional imports were being examined.
In the last year, the US was Thailand’s largest export market accounting for 18.3% of total shipments, or $54.96 billion. Washington has put its deficit with Thailand at $45.6 billion.
“We are consulting academics and all parties and doing our best in this situation,” she added.
“We are protecting the agricultural interests as much as possible,” she said, adding negotiations should be mutually beneficial.
According to the rice export association, Thai rice shipments dropped 30% in the first quarter and may fall short of the 7.5 million metric tonnes of full-year projections due to the levies.
Thailand’s third-largest market by volume was the United States, where 9.94 million tonnes of rice valued at 225.65 billion baht were sent last year.
Pichai Chunhavajira, the finance minister of Thailand, who was scheduled to attend the Washington meetings, stated that working-level discussions were still going on even if the U.S. conversations had been postponed. He stated that he has no immediate intentions to visit the US.
