Bangkok: Private sector representatives indicate that the 12.5% US tax does not put Thailand at a disadvantage compared to competitors, and recommend that Thailand urgently upgrade its labor standards. According to Thai News Agency, the president of the Chamber of Commerce is closely monitoring the US tariff measures imposed on over 60 trading partners. He believes Thailand is not at a disadvantage because competing countries face similar tariffs of 12.5%. He recommends that Thailand upgrade its labor standards and turn this crisis into an opportunity.
Dr. Poj Aramwattananon, Chairman of the Thai Chamber of Commerce and the Federation of Thai Chambers of Commerce, stated that Thai businesses are closely monitoring the US tariff measures under Section 301 imposed on over 60 trading partners. Although Thailand is subject to a 12.5% tariff, most competing countries are similarly affected, resulting in overall competition in the US market remaining relatively similar. Therefore, it is not yet a significant factor impacting the competitiveness of Thai businesses.
The issues that the United States prioritizes more than tariff rates are forced labor and excess capacity. The private sector believes that Thailand has not had a systemic problem with forced labor for a long time, but it needs to accelerate the enactment of relevant laws and measures to build confidence with trading partners and raise standards to align with international principles, which will help increase future competitiveness.
Furthermore, it is necessary to monitor measures regarding Excess Capacity Products, which the United States is currently defining further details on, as this may impact certain Thai product groups in the future. It is believed that the government should expedite the conclusion of the Agreement on Reciprocal Trade (ART) to create a trade balance with the United States and reduce potential uncertainty.
Dr. Poj said that during this period, the government and private sector need to work closely together. This includes preparing information, defining the position in trade negotiations with the United States, and pushing for trade agreements that will help reduce trade barriers in order to maintain Thailand's long-term competitiveness.
The Thai Chamber of Commerce is ready to represent the private sector in gathering information, suggestions, and impacts from businesses. The University of the Thai Chamber of Commerce has already prepared a summary of its research and survey results for submission to the Ministry of Commerce to be used in negotiations with the United States. The Chamber also supports Thailand's actions in ensuring they are prudent, while simultaneously safeguarding national interests and building confidence among investors and international trading partners.
'Thailand should seize this opportunity to accelerate the upgrading of labor standards, supply chain transparency, and trade agreement negotiations to transform this crisis into an opportunity to enhance the country's long-term competitiveness,' Dr. Poj said.