ANN/THE NATION – The Thai Chamber of Commerce (TCC) has urged the government to establish a high-level task force to counter potential trade tariffs from the United States (US) ahead of an April deadline.
The TCC insists that the task force – led by the prime minister and comprising both public and private sector representatives – must develop a proactive strategy to mitigate the risk of protectionist policies under a possible Trump administration.
Concerns are mounting over the potential imposition of tariffs on Thai exports, which could result in economic losses of THB100 to THB150 billion, a gross domestic product (GDP) contraction of 0.5 to 0.7 per cent, and difficulties in achieving the government’s 3.5 per cent growth target.
The warning stems from the widening US trade deficit, with Thailand’s surplus continuing to rise. In response, the Joint Public and Private Sector Consultative Committee (JPPSCC) has called for the swift formation of a joint working group – though the government has yet to issue a formal response.
TCC Chairman Sanan Angubolkul voiced concerns that businesses are bracing for potential US trade restrictions. He anticipates a shift towards new markets, with ASEAN and Thailand playing a larger role, particularly in key sectors such as electronics, electrical appliances, automobiles, industrial goods, consumer products, and agricultural and food products.
The Chamber emphasised the necessity for stringent import controls, particularly for substandard or low-priced goods that undermine fair competition.
Sanan called for rigorous import standard checks, mandatory certifications, and thorough verification of product origins to prevent counterfeiting and tax evasion.
He also demanded robust enforcement against predatory pricing and dumping, and a review of competition laws to reflect the current economic climate. TCC vice chairman Poj Aramwattananont highlighted the need to address the trade imbalance by increasing imports from the US, particularly in agriculture, food and energy.
He suggested a reform of Thailand’s import tariff quotas with the US to ensure a balanced and robust negotiating position.
Moreover, he stressed the importance of analysing the service sector trade deficit, including digital services, management fees, copyrights, banking, insurance, education and franchise fees, for a comprehensive understanding of economic relations.
PM-LED TASK FORCE PROPOSED
The Chamber reiterated its call for a prime minister-led special team to coordinate vital ministries, including Foreign Affairs, Commerce, Agriculture, Industry, Digital Economy, and Labour.
This team would work closely with the Thai Chamber of Commerce and the Federation of Thai Industries (FTI) to develop a proactive negotiation strategy.
Poj advocated for increased import quotas for feed corn, soybeans, beef, seafood, and energy products from the US to alleviate trade pressures and strengthen Thailand’s negotiating stance.
President of the University of the Thai Chamber of Commerce Thanavath Phonvichai warned of the severe economic consequences of failing to act swiftly. He predicted that Thailand’s 2025 growth could fall below three per cent, significantly lower than the government’s 3.5 per cent target.
He outlined the potential indirect impact of US tariffs on Canada, Mexico and China, estimating a THB20 to THB25 billion loss and a 0.1 to 0.5 per cent reduction in GDP. Tariffs on automobiles could result in a THB60 to THB65 billion loss and a 0.35 to 0.4 per cent GDP decrease, potentially limiting growth to 2.6 to 2.8 per cent this year.
