FORMER finance minister Korn Chatikavanij said in a Facebook post today (July 16) that a strategy for self-development is most important for Thailand should the country not accept 0% tariff on US goods, Naewna newspaper said.
As announced by US President Donald Trump today the deal with Indonesia is similar to the one struck with Vietnam earlier this month with a 19% flat tariff on exports to the US, down from 32 percent announced on July 7, with no levies on US exports going there. It also included a penalty rate for so-called transhipments of goods from China via Indonesia, according to Reuters and published by Yahoo!Finance.
Under the deal Vietnam secured goods going to the US would face a 20 percent tariff, down from initial 46 percent levy, and that any transshipments from third countries would face a 40 percent levy while US exports to the country face no tariffs.
The accord came as the top US trading partner – the European Union – readied retaliatory measures should talks with Washington fail. The EU is facing a 30 percent tariff on exports to the US.
When it come to Thailand Korn said to read the game he outlined below:
(1) There is still time to negotiate;
(2) The agreement with Vietnam is the basis for the negotiation;
(3) If Thailand does not erase all duties on US imports to 0%, a deal is unlikely to be reached and even if one is struck it will be subject to a higher tariff rate than both Indonesia and Vietnam;
(4) Trump announced that he had talked directly with Indonesian President Probowo Subianto (Philippine President Ferdinand Marcos Jr. plans to travel to meet Trump next week). As for Thailand, no prime minister has met him for talks.
(5) When the Association of Southeast Asian Nations (Asean) does not join forces, each country has almost no bargaining power. This is another testament to the lack of unity (and even friendship) among Asean countries.
(6) The Thai government must make a decision that is in the best interest of the Thai people as a whole. The government was urged to not give in to any lobbyist capital groups in special cases. It is a difficult decision, and Korn gives encouragement to the government in working on it.
(7) From now on, a strategy of self-development is most important for Thailand. Indonesia and Vietnam are ready to accept 0% tariff competition, but as Thailand still cannot do so the country has to collectively develop further on this issue.
CAPTION:
Former finance minister Korn Chatikavanij. Top photo: Naewna, Front Page photo: Thai Rath
Also read:Review 2026 budget as Thailand is facing full 36% tariff hike: Korn
US has no plan to build naval base in southern Thailand
Sisaket by-election tug of war between Thaksin and Newin
Dissolution of Constitutional Court solution to political ills: Ex-Thammasat law dean
Thaksin anticipates twist in Paetongtarn’s impeachment case
Cabinet nod for draft Financial Hub Act – to be immediately sent to the House
