The Thai government is pursuing a balanced trade negotiation with the United States, aiming to protect all domestic sectors while preparing extensive financial support measures.
Speaking at the “Unlocking Thailand’s Future… Navigating the Global Crisis” seminar hosted by MCOT, Deputy Minister of Finance Paopoom Rojanasakul said that “Team Thailand,” led by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, is addressing the impacts on both exporters and domestic producers, including industries, SMEs, and farmers, following the imposition of a 36 percent reciprocal tariff. The goal is not merely to secure the lowest possible tariff rate, but to achieve a balanced outcome that safeguards the interests of all parties and protects Thailand’s strategic industries. He acknowledged that any deal would involve opening Thai markets, which could affect local SMEs and farmers.
Regarding Thailand’s proposal to reduce import duties to zero percent on several items, he clarified that Thailand does not need to grant the U.S. full market access, as protecting domestic producers is a priority. He compared the situation to Vietnam, which faces tariffs of both 20 percent and 40 percent based on a product’s Regional Value Content, or RVC.
To mitigate the effects of U.S. tariffs, the Ministry of Finance has prepared a 200 billion Thai baht soft loan package. This will be funded by state-owned banks, such as the Government Savings Bank, and channeled through other state and commercial banks to assist affected SMEs and individuals. The aid will be targeted, with different banks focusing on specific sectors like agriculture, real estate, and exporters seeking new markets.
The government is also driving the economy through a 110 billion Thai baht central budget for rural roads, bridges, and irrigation systems to create jobs. Furthermore, the Finance Ministry will collaborate with the Interior Ministry on a new debt relief program. Mr. Paopoom also highlighted a new initiative to attract cryptocurrency funds from foreign investors and tourists as a fresh mechanism to revitalize the economy, reducing reliance on the national budget and leveraging Thailand’s soft power to generate domestic revenue.
Source: NNT
Government Considers Crypto and Soft Loans in Light of US Tariff Discussions
