An adviser to Prime Minister Paetongtarn Shinawatra has emphasised that the government's approach to negotiations over US tariffs must be based on a "know your enemy, know yourself" strategy, which aims to carefully assess the situation and Thailand's strengths before engaging in talks.
The adviser, Supavud Saicheua, said the Thai government is preparing to open discussions on reducing import tariffs and increasing Thai investment in the United States. This move comes in response to the 36% hike in import tariffs on Thai goods, which is set to take effect tomorrow.
One key strategy is to import US agricultural products, which will then be processed into food products for export to other countries. Thailand's expertise in food processing provides a significant advantage in this area. He said that the government plans to build business partnerships with US states with large agricultural industries to support this strategy.
He also revealed that the government will offer interest-free loans as a short-term measure to help businesses affected by the tariff increases. A budget of 3 billion baht will also be allocated to help these businesses find alternative markets for their exports.
Mr Supavud highlighted that the US's tariff hikes are driven by three main objectives: reducing trade imbalances, generating additional revenue to ease the US's budget deficit, and encouraging US companies to bring manufacturing operations back to America. However, he cautioned that rushing into negotiations, as some countries like Canada and Vietnam have done, may not be the best approach. Despite having trade surpluses with the US, these countries still face higher tariffs.
The Thai government, he said, has prepared strategic plans to address the situation. The central strategy involves adjusting economic relations and trade systems to leverage the strengths of both nations, such as the example of Thai processing of US agricultural products.
This strategy is designed to mitigate the negative impact of the US tariff policies, including tackling goods wrongly labelled as originating from Thailand. It also aims to increase Thai investments in the US and expand agricultural imports, particularly in sectors where Thailand lacks domestic production, such as energy-related products.
The Thai government's negotiations with the US will follow a methodical, step-by-step process, ensuring that the final agreements benefit both countries, Mr Supavud added.
