Thailand and U.S. reach agreement to cap trade tariffs at 19 percent

Thailand and the United States have reached a consensus on the key components of a reciprocal trade agreement (ART), aimed at reducing tariff burdens on Thai goods. Following negotiations in Washington between Thai Commerce Minister Suphajee Suthumpun and U.S. Trade Representative Jamieson Greer, the two nations resolved issues related to Section 301 investigations concerning forced labor and structural overproduction.

Under the new framework, the total import tariff burden on Thai products is expected to be capped at a maximum of 19 percent. This is a significant reduction from the potential 36 percent tariffs Thailand previously faced. The agreement is intended to protect more than 400,000 jobs in Thailand and maintain the competitiveness of its exports in the U.S. market, which remains Thailand's largest export destination.

As part of the deal, Thailand has committed to increasing imports of agricultural products, energy, and aircraft from the United States, alongside increasing investments in the U.S. Technical teams will now work to finalize the remaining details of the agreement.