TPSO says the Thai-US reciprocal trade framework will not affect Thai exports, as US demand for electronics rises and purchasing power recovers. Thailands newly announced framework for reciprocal trade with the United States will not affect the countrys export performance this year, according to the Trade Policy and Strategy Office (TPSO).
Nantapong Chiralerspong, director-general of TPSO, said the joint statement outlining the framework carries no immediate impact on trade flows. He noted that Thai exports to the US remain strong, with growth of 35.3% in September driven by rising consumer demand following interest rate cuts in the US.
The US market is rebounding thanks to improving purchasing power. As one of the worlds largest consumer markets, this recovery also supports global trade momentum, Nantapong said.
He added that the electronics sector currently in an upcycle continues to benefit from strong US demand. Washingtons relatively low import tariffs on electronic products and the increasing popularity of mobile devices among younger generations have also supported Thai exports.
Nantapong said the reciprocal tariff framework has limited effect on Thai exports. The import duty rate of 19% helps Thai manufacturers stay competitive within the region, he noted.
In September, Thai exports to the US were valued at US$6.79 billion, up 35.3%, giving Thailand a trade surplus of US$5.22 billion. In the first nine months of the year, exports reached US$52.17 billion, a 28.6% increase, with a trade surplus of US$36.44 billion.
By contrast, exports to China in September were valued at US$2.95 billion, up 3.2%, though Thailand recorded a US$6.47 billion deficit. For the first nine months, exports to China totalled US$30.66 billion, up 16.1%, while the trade deficit stood at US$47.3 billion.
Commerce Minister Suphajee Suthumpun earlier said the joint statement signified a mutual intention to negotiate a reciprocal trade agreement between Thailand and the US.
The agreement will be based on shared interests, aiming to maintain a stable and sustainable economic relationship, with negotiations expected to conclude by the end of this year.
The negotiation framework will cover tariffs, non-tariff measures, trade in services, investment, the digital economy, rules of origin, anti-circumvention, commercial procurement opportunities, and economic security cooperation.
Thailands negotiating team will take into account diplomatic relations, international legal obligations, trade data, and potential impacts on production, exports, investment, employment, and economic stability.
In 2024, the US was Thailands second-largest trading partner after China, with total trade valued at US$74.48 billion. The US was also Thailands top export market, accounting for US$54.95 billion in exports mainly computers and components, telecommunication devices, and electronic equipment.
The US ranked fourth among Thailands import sources, with goods worth US$19.52 billion, including crude oil, machinery, chemicals, natural gas, and aircraft.
Source : The Nation |
