On October 26, the United States and Thailand announced the signing of a framework deal for reciprocal trade to guide future talks aimed at expanding market access and strengthening bilateral economic ties. Under the framework, the Government of Thailand has agreed to negotiations to eliminate tariffs on approximately 99% of goods made in America, covering a wide range of U.S. industrial, food, and agricultural products. The United States will maintain a 19% tariff on American importers of most goods main in Thailand, while identifying that in future talks certain products made in Thailand could be eligible for potential tariff adjustments or reductions to zero.
Beyond tariffs, the Government of Thailand has also committed to future talks focused on addressing non-tariff barriers that affect U.S. exports. Some of the areas for negotiationinclude accepting U.S.-manufactured vehicles that comply with federal motor vehicle safety and emissions standards; recognizing U.S. Food and Drug Administration certificates and prior marketing authorizations for medical devices and pharmaceuticals as sufficient to meet Thailand’s requirements; issuing import permits for U.S. ethanol for fuel; amending customs laws to remove the customs reward system related to breaches and penalties; and adopting and implementing good regulatory practices to enhance transparency and efficiency.
Thailand’s Commerce Minister and the lead of the trade negotiation team, Suphajee Suthumpan, emphasized that the eventual final agreement is expected to foster a positive business environment and strengthen investor confidence, with the Thai government prioritizing the talks to accelerate discussions and reach agreements swiftly to meet the year-end target.
