DPM: US Trade Talks Complex, Focus on Market Access and Local Content

BANGKOK, July 15 (TNA) – Thailand’s Deputy Prime Minister and Finance Minister, Pichai Chunhavajira, stated that trade negotiations with the United States are challenging, with Washington taking a “unilateral” approach.

As head of “Team Thailand, he emphasized Thailand must proceed by prioritizing national interests and maintaining balance with other trading partners. Pichai noted the U.S.’s main objectives are to maximize market access and push trading partners to increase domestic content use, aiming to reduce reliance on Chinese supply chains – a key issue for Thailand to analyze.

A core U.S. demand involves trading partners opening markets and managing “Local Content” in exports to the U.S. Failure to meet these criteria could lead to “circumventing rules of origin” or “Transshipment” labels. While the specific Local Content levels are unknown, the Commerce Ministry has already tightened rules for issuing certificates of origin for Transshipment goods.

To mitigate potential impacts, Pichai announced government support for the private sector, including investment promotion and 200 billion baht in credit lines. These funds, being discussed with banks, will facilitate cost restructuring and production adjustments.

Pichai viewed potential U.S. tariff impacts as an “opportunity” to restructure Thailand’s economy. He urged manufacturing and export sectors to bolster domestic supply chain reliance. – 819 (TNA)