The parliament held an urgent debate on the fallout of the 36% US levy on Thailand's exports as lawmakers expressed concern about the long-term impact of the tariff on the trade-reliant nation's economy.
The government agreed to the discussion at the House of Representatives as it is the most pressing issue confronting the nation, Wisut Chainarun, chief whip of the ruling Pheu Thai Party, told reporters Wednesday. The house agreed to delay discussions on a clutch of other bills, including a measure to legalise casinos in entertainment complexes, he said.
Prime Minister Paetongtarn Shinawatra's administration has sought talks with the US to seek relief and ways to narrow a nearly US$46 billion trade surplus with Washington. The Southeast Asian nation, among the hardest hit by tariffs that went into force Wednesday, has offered to step up imports of energy, agriculture products and aircraft, as well as reducing import taxes.
The United States was Thailand's largest export market last year with electronics, machinery and agricultural products topping the list of goods. It now also faces the prospect of an increase in the influx of cheap products from China and other countries hit by steeper tariffs than Thailand.
A survey of chief executives of Thai companies released Wednesday showed that almost 71% of the participants were worried about cheap Chinese goods flooding Thai markets, leading to lower use of production facilities or more factory closures.
The government has designated Deputy Prime Minister and Finance Minister Pichai Chunhavajira to lead tariff negotiations with the Trump administration. A working group of government officials is tasked with devising strategies to minimise the impact on economy and trade.
Sirikanya Tansakun, a lawmaker and deputy leader of the opposition People's Party, criticised Ms Paetongtarn government's response to the tariff hit, saying its offer to the US was not "phenomenal." Thailand's move to send 40 Uyghur refugees back to China last month and a court’s denial of bail to a US academic accused of insulting the monarchy — actions slammed by the US — will not help the country in tariff negotiations, she said.
A package of 3 billion baht ($86 million) to help tariff-hit industries paled in comparison to relief measures announced by other countries, Ms Sirikanya said. Given the tariffs can shrink Thai gross domestic product by one percentage point, the government should consider raising the legal public debt ceiling from 70% provided it has concrete plans to sustain growth, boost investment and shield affected industries, she added.
