TNSC Urges Prioritization of Thai Interests in US Trade Talks
The Thai National Shippers’ Council (TNSC) has publicly voiced its strong support for fostering deeper trade cooperation between Thailand and the United States under a reciprocal trade framework, while simultaneously pressuring the Thai government to make the country’s core economic interests the absolute priority throughout the negotiation process.
Dhanakorn Kasetrsuwan, the chairman of the TNSC, emphasized the critical need for any such cooperation to be pursued on a balanced, transparent, and sustainable foundation.
This approach is deemed essential for actively protecting Thailand’s vital trade interests, ensuring the long-term competitiveness of its key industries, and safeguarding its overall economic security.
The TNSC has proactively offered its resources and expertise, stating its readiness to collaborate closely with the Commerce Ministry and all relevant government agencies.
This collaboration is intended to provide crucial private sector input and technical support at every stage, from the initial negotiations to the eventual implementation of the agreement.
The council views this proposed reciprocal trade framework as a significant and positive step, believing it will substantially strengthen bilateral economic relations between the two nations and elevate Thailand’s strategic role within complex global supply chains.
To ensure the nation’s long-term trade and industrial competitiveness is fully safeguarded, the TNSC has provided a comprehensive set of recommendations for the government to consider, demonstrating the private sector’s commitment to a successful yet protected agreement.
Navigating Trade Surpluses and Safeguarding Domestic Industries
A primary concern raised by the Thai National Shippers’ Council (TNSC) revolves around Thailand’s established trade surplus with the US.
The TNSC is worried that this existing surplus could potentially expose Thai exporters to increased scrutiny, which might translate into the imposition of more US tariffs or the application of unilateral trade remedies against Thai goods.
To mitigate this significant risk, the council has strongly recommended that the Thai government prioritize negotiating robust safeguard mechanisms to be explicitly included within the reciprocal framework.
These mechanisms are vital to ensure that Thai exports are not unfairly penalized or subjected to unilateral, potentially arbitrary, actions by the US.
Another critical area of concern for the TNSC is the need to carefully balance the necessity of increased market access for US goods with the imperative of maintaining domestic industrial stability.
Mr. Dhanakorn noted that the proposed trade framework is expected to require Thailand to agree to substantial tariff reductions and the removal of various non-tariff barriers for American products entering the Thai market.
While this is expected to enhance bilateral trade volume, it also risks exerting severe competitive pressure on key domestic Thai industries.
As a result, the TNSC recommended that Thailand adopt a carefully considered phased liberalization plan.
This plan would involve identifying sensitive sectors, such as agriculture, automotive manufacturing, and consumer goods, to be granted crucial transitional protection and comprehensive adjustment support measures.
This measured approach would allow Thai industries time to adapt to the new competitive landscape created by the reciprocal trade agreement.
Focusing on Policy Flexibility and Supply Chain Integrity
The Thai National Shippers’ Council further urged the government to ensure genuine fairness in the reciprocal trade arrangements, especially as Thailand opens its doors to more US products.
It is considered vital to maintain fair and equitable access for Thai exports into the US market.
The council pressed the government to ensure that any reciprocal tariff agreements are truly balanced, demanding that the US commits to substantially reducing or completely eliminating existing barriers against Thai products, and explicitly agreeing that existing anti-dumping or safeguard mechanisms will not be used in a discriminatory manner against Thailand.
Mr. Dhanakorn highlighted the growing complexity of global supply chains, noting that this increases the risk of goods originating from third countries being improperly routed through Thailand.
If unchecked, this could result in Thailand being unfairly accused of trade circumvention.
To combat this, the TNSC recommended that Thailand significantly strengthen its rules of origin certification systems and engage in close cooperation with US authorities to actively prevent misuse, while simultaneously protecting legitimate Thai exporters from unnecessary administrative burdens and delays.
Finally, the Thai National Shippers’ Council emphasized that the implementation of the new framework will necessitate Thailand aligning various national standards, certifications, and regulatory procedures with US requirements.
They stressed the government must invest heavily in institutional readiness, specifically by enhancing its national testing, certification, and inspection capabilities.
This preparedness is essential to prevent trade disruptions and compliance risks for Thai exporters, ensuring that in the face of global economic volatility, Thailand retains sufficient policy flexibility to protect key domestic sectors and effectively respond to unexpected developments.
