Thailand says US trade deficit 'not significant'
text size

Thailand says US trade deficit 'not significant'

Thailand said on Thursday the US trade deficit with it was "not significant" and it had not conducted any foreign exchange rate policies to gain an unfair trade advantage.

Thailand is among countries that run a trade surplus with the US.

US President Donald Trump is seeking to push a crusade for fair trade and has ordered a study into the causes of US trade deficits.

Thailand has submitted to the US a report clarifying that the US trade deficit with Thailand came from structural factors between their economies, not any unfair trade policies, Pimchanok Vonkhorporn, head of the Commerce Ministry's Trade Policy and Strategy Office, said in a statement.

"The value of the deficit is not significantly high because it's only 1.5% of the total US trade deficit," she said, adding that US imports to Thailand were not high because it had no free trade agreements with Thailand.

Slow US investment in Thailand and the impact of slow global growth on the Thai economy were among factors behind low Thai imports from the United States, Ms Pimchanok said.

She said Thai exports to the United States and investment there also helped develop the US economy and add US jobs, while US companies also used Thailand as production bases.

Thailand had not conducted any currency intervention policies to gain an unfair advantage in trade and the central bank focused on stability in exchange rates, Ms Pimchanok said.

Thailand had a trade surplus of about $18 billion with the US last year, putting it 11th globally -- well behind China's $347-billion surplus or nearby Vietnam's $32 billion.

The US is a major market for Thai exports at a time the government is struggling to revive growth, which has lagged regional peers.

The ministry, in its report, drew attention to a 184-year relationship between Thailand and the US, including in trade and investment, Ms Pimchanok said. 

Do you like the content of this article?
COMMENT (2)