The government has pledged to increase imports of energy, aircraft and agricultural products from the United States as part of its offer to mitigate the impact of the US' 36% tariff on Thai exports, says Prime Minister Paetongtarn Shinawatra.
Finance Minister Pichai Chunhavajira will lead a delegation to the US this week to discuss trade issues and tell the US that Thailand is not only an exporter but also a reliable friend of the US, she was quoted as saying in a statement.
Her remarks came a day after criticism emerged over the government's slow response to President Trump's tariff hike -- especially when compared to the swift reactions by leaders of other Asean nations.
The US had imposed a 36% tariff on Thai exports and many other countries, she said, were in a similar situation and preparing measures in response. "We believe the world will see fierce retaliation through tax instruments. Many countries have decided to talk to the US government but none have seen any conclusive results," Ms Paetongtarn said.
"The new measure has a significant impact on our exports, especially electronics, processed foods and agricultural products."
The government, she said, has formed a working group to discuss the issue and consider proposals with the private sector and the US, both formally and informally.
"This week, Pichai Chunhavajira, deputy prime minister and finance minister, will leave for discussions with many parties in the US -- the government sector, the private sector and other stakeholders," the prime minister said.
"We will tell the US government that Thailand is not only an exporter but also an ally and economic partner that the US can rely on in the long term," she said.
The government has come up with policy-related proposals including an increase in imports from the US in the energy, aircraft and farm sectors, the prime minister said.
Thailand plans to boost cooperation with the agricultural, industrial and other sectors in the US. In return, Thailand will ask that the US grant promotional privileges for Thai investors and reduce obstacles to Thai exports.
Both sides will also work together to suppress products that claim to originate from Thailand but in fact come from other countries, the prime minister said. She said she was confident the US would accept Thailand's proposals so the two countries remain allies and trading partners.
The government was ready to listen more to the US, and Thai people could rest assured the proposals the government would prepare are aimed at protecting the interests of Thailand, Thais and business operators, the prime minister said.
She said the government would introduce immediate and longer-term measures to help affected Thai business operators, from small- and medium-sized enterprises to large-scale industries. Ms Paetongtarn said she would meet parties concerned on Tuesday to discuss plans to protect the national interest and economy.
Last Wednesday, US President Donald Trump revealed the US would impose a minimum 10% tariff on imports from all countries. For those with a trade surplus against the US, and which it views as having unfair trade advantages -- such as imposing high tariffs, non-tariff barriers and various fees -- a country-specific retaliatory tariff will be applied at half the rate of what US exports face in those markets. For Thailand, this has been set at 36%, effective from April 9.
In a message on Facebook, Piti Srisangnam, an academic at Chulalongkorn University's economics faculty, called on the government to take urgent measures to deal with the US' tariff increase as other countries in Asean have already made their moves.
He suggested Thailand should take a leading role in Asean to steer the region through the crisis as other countries in the regional block have also been affected. If Asean country members join forces and work together, they will have more bargaining power to negotiate with the US, he wrote.
