Bangkok: Thailand is poised to finalize the Article Recognition Agreement (ART) with the United States, contingent upon the initiation of technical negotiations, while remaining steadfast on key national interest points. Supajee, a representative from the Thai government, emphasized that Team Thailand is prepared to swiftly negotiate and conclude the ART deal if the United States Trade Representative (USTR) begins technical discussions. The potential conclusion of these negotiations could occur within a week, as Thailand stands firm on three critical issues aimed at safeguarding national interests and competitiveness.
According to Thai News Agency, Deputy Prime Minister and Minister of Commerce, Supachie Suthamphan, addressed the urgency prompted by the U.S. Section 301 tariffs on goods made with forced labor. These tariffs impose an additional 12.5% on Thai imports atop the standard Mean Factor (MFN) tariff. In response, Thailand is expediting negotiations on the ART to sustain the competitiveness of its exporters and counteract these measures.
Ms. Supajee reiterated that Thailand is ready for technical-level negotiations, pending the USTR's scheduling. She expressed confidence that discussions could be resolved within a week, given that Team Thailand has thoroughly prepared for the negotiations. While the technical discussions will be detailed, Thailand is committed to three core principles related to the protection of farmers, the public, and entrepreneurs' rights.
The negotiations aim not solely at securing the lowest tariff rates but ensuring that U.S. tariffs on Thai goods remain comparable to those imposed on competing nations. Ms. Supajee highlighted the importance of expanding the list of exempted goods to preserve Thai business competitiveness. Protection of national interests remains paramount, focusing on farmers, the public, and entrepreneurs' rights.
The Thai government has outlined four strategic actions to bolster negotiations with the U.S. and defend national interests:
- Fast-track the implementation of Human Rights Due Diligence (HRDD) legislation to ban imports made with forced labor, elevating Thailand's standards to international levels.
- Swiftly conclude the ART agreement for mutual benefits between Thailand and the U.S.
- Encourage Thai investment in the U.S. to generate jobs, added value, and strengthen economic ties.
- Boost imports of necessary goods from the U.S. to address domestic production shortfalls and reduce trade imbalances.
Ms. Supajee clarified that the U.S. seeks trading partners with laws against importing goods produced via forced labor, not accusing Thailand of such practices. The Thai government is advancing HRDD laws to enhance standards, build trading partner confidence, and support sustainable trade negotiations.
Regarding the U.S.'s concerns about structural excess capacity, Thailand has assured that its industrial sector operates at an appropriate level, not fitting the excess capacity definition. The timeline for U.S. announcement on this matter remains uncertain, but Thailand will continue to monitor developments and engage in negotiations to protect its national interests and mitigate impacts on exports.