Thailand to submit formal trade proposal to US

Thailand's Deputy Prime Minister and Finance Minister Pichai Chunhavajira confirmed on Tuesday that the country will submit its formal trade proposal to the U.S. this week, with the first round of discussions to take place online.

Washington has threatened to impose a 36% tariff rate on imports from Thailand if a reduction cannot be negotiated before a 90-day pause expires on July 9.

Formal trade negotiations with the U.S. will start this week, starting with technical discussions at the official level, Pichai told reporters after a cabinet meeting.

Any potential in-person meetings would be considered after the initial online talks, he added.

Last month, Thailand submitted a proposal to Washington that aims to address the trade imbalance, and includes measures to enhance market access for U.S. exports and tackle transshipment violations, as well as Thai investment that would create U.S. jobs.

The U.S. was Thailand’s largest export market last year, accounting for 18.3% of total shipments worth $55 billion. Washington said its trade deficit with Thailand was $45.6 billion.