Government urged to release full details of tariff deal with the US

People’s Party Deputy Leader Sirikanya Tansakul urged the government today to disclose the full details of the tariff deal with the United States, especially the US goods which will now be exempted from import taxation, which will impact Thai local producers.

While welcoming the 19% tariff rate, down from the original 36%, she noted that it is still on the high side, adding that another area of concern are the various conditions attached to the tariff deal, such as local content requirements and the content of Thai products originating in a third party countries. None of this has been disclosed by the government.

Sirikanya said the US has been aggressive on this issue and tends to impose higher tariffs on transshipped goods.

She said that the Thai public has been in left the dark about which US imports to Thailand are now tariff free, estimated at about 90% of US imports. She also reminded the government that any trade or tariff deal which could have significant impacts on the Thai economy, must be put to public hearings and approval from parliament must be obtained, citing Section 178 of the constitution.

The People’s party deputy leader urged the government to explain to farmers what state compensation they will receive, to offset reductions in incomes, due to the increased competition from USD imports of pork, other meats and maize.

She disclosed that 157 billion baht, earlier earmarked for economic stimulation, has been diverted to compensate and SMEs, adding that she believes this amount is insufficient and that more will need to be allocated from the Central Fund.

Sirikanya pointed out that the 19% tariff on Thai exports to the US may change in the future, depending on the situation, as she cited the case of Canada, which was facing a 25% tariff and ended up with 35%, ostensibly due to its support for the Palestinian cause.