BANGKOK — Deputy Prime Minister and Finance Minister Pichai Chunhavajira has outlined Thailand’s approach to U.S. trade and tariff policies ahead of his upcoming visit to the United States. The strategy focuses on increasing exports to the U.S. while simultaneously boosting imports of American goods.
In a statement following the April 11 meeting of Thailand’s committee tasked with handling U.S. tariff policies, Pichai revealed that detailed discussions took place concerning specific products. Various industry groups involved in U.S. trade were consulted to prepare negotiation strategies.
“As for when we will fly to the U.S. for negotiations, it must be as soon as possible,” Pichai stated. “The Office of the United States Trade Representative (USTR) has already accepted our request, though no specific date has been set yet.”
He added that he plans to travel with Commerce Minister Pichai Naripattapan, noting humorously that “when someone calls ‘Pichai,’ both of us will turn around at the same time.” Private sector representatives will join them to strengthen Thailand’s position.
Plans to Increase U.S. Corn Imports
The Deputy PM explained that Thailand must identify its export strengths, particularly in animal feed processing. Currently, Thailand exports only 3% of its processed animal feed to the U.S. market, but increasing this figure to 6% would bring significant benefits, facilitated by importing raw materials from the U.S.
Thailand currently uses 9 million tons of corn annually for processing, with domestic production at 4 million tons and the remainder imported from various countries. Pichai suggested reallocating import sources in Thailand’s favor, noting that American corn imports could potentially lower production costs for animal feed.
Regarding investment strategies, the Board of Investment (BOI) must adapt its approach due to significant changes in the global situation. Negotiations about natural gas imports or potential investments by Thai state enterprises in U.S. natural gas fields will be considered, with Pichai emphasizing that if Thailand purchases gas from the U.S., prices must remain reasonable.
Negotiations Will Take Time
Prime Minister Paetongtarn Shinawatra has previously announced that the government’s strategy must be both “fast and accurate.” After comprehensive preparation and monitoring developments across affected sectors, the government will determine its negotiation approach.
“I must emphasize that negotiations won’t conclude in a single round but will take time and occur at various levels,” the Prime Minister had stated. “We believe these changes will have structural economic impacts, so we must prepare both mitigation measures for those affected in the short term and consider long-term economic restructuring and continuous market diversification to ensure Thailand’s economy remains strong.”
Concern About Silent New Orders
Poj Aramwattananont, Chairman of the Thai Chamber of Commerce who attended the meeting, expressed concern that despite President Trump’s 90-day delay in tariff implementation, the April 2 tariff announcement has already had troubling effects.
“New orders have become remarkably quiet because nobody knows what prices to negotiate,” Poj revealed. “This is becoming a major problem in an already tense atmosphere. If the situation remains unclear, export figures for June-July will drop significantly.”
For Thai goods with existing orders to the U.S. at the original tariff rates, shipments must leave port by May 10 at the latest.
Hoping to Turn Crisis into Opportunity
Poj also announced that he will lead a delegation from the Thai Chamber of Commerce, together with the American Chamber of Commerce in Thailand and government representatives, to explore investment opportunities at the SelectUSA event, where all American states invite foreign investment.
His delegation is scheduled to travel May 9-14, followed by a Thailand-U.S. seminar in Thailand from May 19-21 aimed at enhancing bilateral investment between the two countries.
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