Thailand aims to cut US trade gap by $15 bln

Thailand expects to reduce its trade surplus with the U.S. by as much as $15 billion a year, or one-third, with its recent initiatives to prevent the misuse of origin rules for exports, according to Thai Deputy Prime Minister and Finance Minister Pichai Chunhavajira.

The Thai government is committed to translating a number of anti-trade circumvention policies into action to ensure Thailand establishes a long-term, fair and balanced partnership in trade and investment with the U.S., Pichai said at an American Chamber of Commerce conference in Bangkok on May 20.

The cut would represent about a third of Thailand’s outstanding 46-billion USD trade surplus with the US last year.

Thailand has submitted a framework of proposals to the Trump administration to kickstart official negotiations to avert a 36% tariff on its goods, which could take effect in early July if no agreement is reached.

The Thai offers, including steps to tackle trade rerouting by Chinese businesses, lowering of tariff and non-tariff barriers and ramp-up in investment, could be beneficial to both the nations, he said.

According to Nalinee Taveesin, President of the Thailand Trade Representatives, Thai firms could invest at least $2 billion in the US soon. The Southeast Asian nation has also expressed interest in joining a massive gas pipeline project in Alaska backed by President Donald Trump.