Mr. Korn Chatikavanij, former Thailand’s Minister of Finance, stated that since there was about three weeks before the U.S. imposed a 36% import tariff on Thailand’s goods, the Thai government must use this window to negotiate and introduce suitable measures to protect the nation’s economy and export from negative impact.
One of such measures is to allow all U.S.’ good to enter Thailand’s market without facing import tariffs, similarly to Vietnam’s concession. If this is the case, the government must inform Thai citizens regarding the advantages and disadvantages of this choice to create a common understanding and measure that can address the following consequences effectively.
Furthermore, the Thai government must also prepare remedial measures for those being affected by the zero-tariff policy for domestic manufacturers and entrepreneurs who may face intense competition from the increase of import goods, especially from the U.S., which has advantages in lower cost.
The government should also align its budget plan with these remedial measures to address the effect caused by the zero-tariff policy. Furthermore, the Thai government must also accelerate its cooperation and negotiation with the U.S. before August 1.
If Thailand faced a 36% tariff, the direct foreign investment would relocate to other nations, affecting Thailand’s overall economy.
Mr. Korn stated that if he is a member of the negotiation team, he will use a proactive strategy, collaborate with the ASEAN’s nations, and negotiate with the U.S. through the World Trade Organization’s conference.
These will give Thailand more influence in the negotiation process, expand collaboration, and find a sustainable solution. He will also inform Thai people regarding the benefit and loss from this agreement completely since in the end, it is unlikely for all parties to achieve a win-win situation.
Regarding the nation’s stock market, Mr. Korn stated that foreign investors are continuing to sell Thai stocks. However, this would no longer create a significant impact as the current prices of Thai stocks are very low. He added that investors should invest in stocks that generate high dividends as these stocks usually pay at an average of 8 – 9%.
