Bangkok: “Chulaphan” emphasizes that reducing US taxes to zero does not address the requirement of negotiating adjustments to the tariff wall. A budget of 5,000 million baht is being prepared to help SMEs access low-interest capital sources.
According to Thai News Agency, Mr. Chulaphan Amornvivat, Deputy Minister of Finance, explained the motion concerning the US tariff wall increase, a pressing issue for Thailand. He focused on the new US tariff rate and its implications for both the agricultural and industrial sectors. A working group has been monitoring the situation since January 6th to understand potential tariff measures. The US uses a unique calculation method involving the Balance of Trade formula, which is challenging for any Ministry of Finance to predict.
The Deputy Minister stressed the importance of protecting farmers and SMEs from domestic price burdens. He appreciated the members’ discussions and highlighted the negotiation team’s role in leveraging trade partnerships. The negotiations will be transparent, showcasing the government’s strategies to ensure favorable outcomes for the country.
Mr. Chulaphan noted that simply reducing US tariffs to zero does not fulfill requirements. Instead, Thailand must consider other factors impacting trade with the US. The government plans to assist the private sector in adapting to the new trade norm by providing a 5 billion baht budget for low-interest loans. Additional measures will be implemented, particularly for the affected agricultural sector.
While the situation poses challenges, Mr. Chulaphan acknowledged potential opportunities. Countries might respond by increasing tariffs or implementing measures like the Digital Services Tax on US platforms. Thailand could explore these options to benefit its economy, recognizing the significant impact on economic growth.