BANGKOK (Reuters) -Thailand expects to receive U.S. tariff rates by August 1 that are close to those imposed on other countries in the region, the finance minister said on Friday following talks with the United States Trade Representative.
Thailand faces a 36% tariff from Washington if a deal cannot be reached before August 1.
The United States was Thailand’s largest export market last year, accounting for 18.3% of total shipments, or $54.96 billion. Washington has put its deficit with Thailand at $45.6 billion.
The United States described Thailand’s revised trade proposals as a “very substantial” improvement, minister Pichai Chunhavajira told reporters, after negotiations held online with the USTR on Thursday.
“The atmosphere was good, and the direction was clear,” Pichai said.
“We addressed all concerns raised previously, particularly in solving problems,” he added.
Earlier on Friday, Pichai said the country made more concessions at the talks in addition to an earlier improved trade proposal that offered zero tariffs on many U.S. products.
U.S. tariff rates on Thailand are expected to align with regional countries, Pichai said, adding that transshipment issues would require further discussions.
Vietnam and Indonesia now face U.S. tariffs of 20% and 19%, respectively, significantly lower than the levels announced in April.
Thailand will protect its agricultural sector, especially some products that it is concerned about, Pichai said, adding that the trade proposals would also aim to strike a balance that benefits the country.
Pichai earlier said the economy could grow just over 1% this year due to the impact of U.S. tariffs.
(Reporting by Orathai Sriring, Kitiphong Thaichareon and Thanadech Staporncharnchai; Editing by John Mair and David Stanway)
