Thailand is moving forward with trade negotiations with the United States, offering to expand tariff-free access for American goods to 69 percent of eligible product categories. The talks, which have been ongoing for over 100 days, are expected to reach a key stage by August 1. Deputy Prime Minister and Finance Minister Pichai Chunhavajira stated that Thailand is open to importing goods it cannot produce or produces in limited quantities while ensuring that any new access aligns with its existing trade agreements.
Progress has been steady despite differences in approach. The U.S. is seeking higher local content requirements for Thai exports, possibly raising the threshold from 40 to 70 percent. While this could increase production costs, it may also provide longer-term clarity and stronger trade compliance. Thai negotiators are focused on finding common ground that benefits both economies.
To support local businesses during the transition, Thailand is launching a 200 billion baht soft loan program through state-owned banks. With interest rates as low as 0.01 percent and government interest subsidies, the loans are intended to help small firms and agricultural producers invest, retain staff, and manage inventory. These measures are part of a broader strategy to keep the Thai economy resilient and open to international trade.
Investment trends are also being reshaped by changing U.S. trade policies. Section 232 tariffs and export controls, including restrictions on AI chips, are under review, while Thailand’s new global minimum tax is prompting updates to domestic tax codes to maintain investor confidence. Thai officials are working to ensure that regulatory changes remain fair and transparent.
Looking outward, Thailand is diversifying its export markets by targeting Latin America, South Asia, the Middle East, Africa, and Europe. The Ministry of Commerce is tightening origin verification and supporting businesses in improving product quality, branding, and e-commerce presence. With 60 percent of Thailand’s trade already linked to free trade partners, the government aims for 80 percent by 2027. Both countries appear poised to build a stronger, more balanced trade relationship.
Source: NNT
Thailand and U.S. Accelerate Trade Negotiations as August Deadline Approaches
