In a move that appears to indicate Thailand and the US are forging closer ties, the US trade representative yesterday pledged to continue trade and investment with Thailand while inviting Thai companies to invest in the US, notably in petroleum and natural gas.
Commerce permanent secretary Wiboonlasana Ruamraksa on Thursday met Diane Farrell, the deputy assistant secretary for Asia at the US Commerce Department. Ms Farrell reaffirmed the importance of the Thai-US relationship and said the country remains committed to trade and investment with Thailand.
She asked large Thai companies to invest in petroleum and natural gas businesses in the US, which she described as having good potential.
Ms Wiboonlasana said she defended Thailand against US accusations of an unfair trade deficit.
Thailand was named as one of 16 countries in an executive order by President Donald Trump in late March calling for a probe into US trade imbalances and vowing to reverse the trade deficit. One order gave the US Commerce Department 90 days to produce a report on the factors behind the trade deficit, while a second sought to raise the collection of tariffs on imports.
The Thai Commerce Ministry recently submitted a report to the US Office of the Federal Register that found Thailand's trade surplus with the US is caused by normal trade and economic practices. The report insists the trade deficit value is not substantial, making up only 1.5% of the US's total trade deficit.
In addition, US shipments to Thailand have not expanded much, as the US does not have a bilateral free-trade agreement with Thailand, while foreign direct investment from the US has decelerated, said the report. Thai products, including midstream products that add value to high-tech products in the US and agricultural raw materials imported by the US, also play a vital role in US economic development, it said.