Trade agreement between Thailand and USA: tariffs remain stable!

Trade agreement between Thailand and USA: tariffs remain stable!

These days there are exciting developments in trade relations between Thailand and the USA. Reports from Nation of Thailand According to him, speculation about a reduction in the US import tariff on Thai goods to zero percent is quite off base. Thai Trade Minister Suphajee Suthumpun, fresh from the ASEAN summit in Kuala Lumpur, has made it clear that the tariff rate will remain at 19%. This information was officially confirmed at Don Mueang Military Airport 2, somewhat curbing the current uncertainty over customs policy.

So while there is no tariff reduction on Thai goods, Thailand and the US still agreed a framework for a new trade deal during the same summit. How Thailand News reported, the two countries are ushering in the era of a sustainable economic partnership. Trade Minister Suphajee stressed the importance of these talks as the US is Thailand's second largest trading partner after China. Negotiations are expected to be completed by the end of the year in order to improve market access and economic cooperation.

A new chapter in the trade agreement

The new framework agreement could pave the way for significant changes. It covers numerous areas, including tariff reductions, non-tariff measures, services and digital economy regulations, as well as from Thailand Business News held. Thailand plans to eliminate tariffs on about 99% of American goods, while the US will maintain its current tariff structure on Thai imports.

• Thailand wird Zölle auf mehr als 10.000 amerikanische Waren befreien.
• Reduzierung nicht-tarifärer Handelshemmnisse wird durch vereinfachte Zollverfahren angestrebt.
• US-Firmen werden Anreize im Bereich der sauberen Energie und Halbleiter erhalten.

An important aspect of the agreement is the possibility of reducing the trade surplus with the USA by 70% over the next five years. Thailand will also facilitate market access for US meat and poultry products and commit to adopting high environmental standards and protecting international labor rights.

Economic impact of this agreement

The economic impact of the announced agreement is both positive and challenging. Let's take a look at the benefits: The competitiveness of Thai exports, particularly in electronics and processed foods, could improve significantly. Additionally, lower tariff rates will ease pressure on the Thai economy, potentially preventing a technical recession. In addition, an increase in foreign direct investment, particularly in the electrical goods sector, could lead to improved economic growth.

But as bright as the future looks, there are also risks that cannot be ignored. Small and medium-sized enterprises (SMEs) could suffer from increasing competitive pressure. A general slowdown in U.S. imports and inflation could also dampen export growth. The agricultural sector in particular must prepare for new challenges from increased US imports, which could put Thai farmers under pressure.

Trade talks between Thailand and the US are raising eyebrows, and the coming months could be crucial for the economic landscape of both countries. With a clear focus on shared benefits, it remains to be seen how these relationships will develop.