She said the US had imposed a 36% tariff on Thai exports and that many other countries were in a similar situation and were preparing measures in response, reports the Bangkok Post.
“We believe that the world will see fierce retaliations through tax instruments. Many countries have decided to talk with the US government but none have seen any conclusive results,” Ms Paetongtarn said.
“The new measure has a significant impact on our exports, especially electronics, processed foods and farm products,” the prime minister said.
Ms Paetongtarn said the government on Sunday formed a working group to discuss the issue and consider proposals with the private sector and representatives of the US, both formally and informally.
“This week, Mr Pichai Chunhavajira, deputy prime minister and finance minister, will leave for discussions with many parties in the US ‒ the government sector, the private sector and stakeholders,” the prime minister said.
“We will tell the US government that Thailand is not only an exporter but also an ally and economic partner that the US can rely on in the long term,” she said.
The government has come up with policy-related proposals including an increase in imports from the US in the energy, aircraft and farm sectors, the prime minister said.
Thailand plans to develop cooperation with the agricultural, industrial and other sectors in the US and there are many more details relevant to the matter, Ms Paetongtarn said.
Thailand will request that the US grant promotional privileges for Thai investors and fewer obstacles to Thai exports. It would also suppress products for export that claim to originate from Thailand (but in fact come from other countries), the prime minister said.
She said she was confident that the US would accept Thailand’s proposals so that the two countries remain allies and trading partners.
The Thai government was ready to listen more to the US and people could rest assured that the proposals that the government would prepare are all aimed at protecting the interest of Thailand, Thai people and business operators, the prime minister said.
She said that her government would introduce immediate and long-term measures to help affected Thai business operators - small and medium-sized enterprises and large-scale industrialists.
Ms Paetongtarn said that she would meet parties concerned to discuss plans to protect the national interest and economy.
Pichai sounds alarm on US trade surplus
Thailand needs to quickly reduce its trade surplus with the US by any means possible, Finance Minister Pichai said last Friday (Apr 4).
He said Thailand should import more items from the US for which there is substantial demand, such as agricultural products, automobiles, electronics and liquefied natural gas (LNG), which the country uses to generate electricity, said Bangkok Post in a separate report.
In the agricultural sector, Thailand must accept being both an exporter and importer of various products as changes in the local production structure mean raw materials are imported for processing into agricultural products, such as animal feed and food for people, said Mr Pichai.
He also discussed Thailand’s potential in the global canned tuna industry, stating raw tuna supply is insufficient, making imports necessary.
Thailand could import tuna from the US for processing and export it not only to the US, but also to other countries, maximising the use of cold storage and processing facilities available, said Mr Pichai.
Regarding LNG, he said Thailand produces the gas in the Gulf of Thailand and imports it from Myanmar and other countries, but these gas reserves are dwindling.
The US has abundant LNG at competitive prices, and any purchases from that market should be made at reasonable prices, said Mr Pichai.
“Reducing the trade surplus with the US to a level they find acceptable is key. The closer to zero, the better. This can be achieved in two ways: maintaining the same size of the economy [bilateral trade volume], and increasing imports from the US,” he said.
“We want to increase the size of the economy, with both imports and exports rising.”
Mr Pichai said the effect of the US tariff increase is significant and involves several complex steps.
The tariff hikes have an international impact, affecting Thailand and the US, as well as Thailand’s trade relations with other countries, which in turn trade with the US, creating multiple layers of impact, he said.
Mr Pichai said if this issue is not resolved, it could negatively impact Thailand’s GDP, leading to fewer jobs and reduced exports.
He said retaliatory measures are not the correct approach, as Thailand is a small country and mishandling this issue could reduce Thailand’s GDP by at least 1 percentage point.