Thai-US relations 'hinge on future US trade policy'

[webfact]

Thai-US relations ‘hinge on future US trade policy’

By WICHIT CHAITRONG 
THE NATION 

 

 

PRIME MINISTER General Prayut Chan-o-cha’s trip to Washington last week may have improved the junta-government’s image, but Thai-US economic relations hinge on future US actions, according to experts.

 

Somchai Pakapatwiwat, a political scientist, said there were several possible twists in relations. 

 

The first was whether the US would punish Thailand by imposing trade barriers on Thai goods to tackle its trade deficit with Thailand. 

 

Second was whether US investors would invest more in Thailand, especially as the Thai government is keen on promoting the Eastern Economic Corridor. 

 

Third, would the US extend more collaboration on education and technology? 

 

“We may get a clear picture in the next two or three months as to what will happen to the relationship,” said Somchai. 

 

He said the US wanted Thailand to buy more American products, while the Thai government is trying to encourage companies in the Kingdom to import US goods and invest more in the US in order to help President Donald Trump achieve his job-creation goal.

 

While Prayut may be happy with Trump’s hospitality and geniality, he must remember that the US president would do what he has to do to protect his country’s interests, which might contradict Thailand’s interests, said Somchai. 

 

Sompop Manarungsan, dean of the Panyapiwat Institute of Management, was also worried about future actions by Trump. 

 

“If Trump can manage the North Korea threat and US domestic politics, he may turn to address trade issues seriously with trade partners including Thailand,” said Sompop. 

 

On the US list of 16 countries having high trade surpluses with the US, Thailand ranked 11th with a surplus worth US$19 billion (Bt635 billion) last year. The US trade deficit in goods was worth $736 billion last year .

 

“Taking into account two-way trade between Thailand and the US worth about $40 billion, Thailand’s trade surplus with US was relatively high,” said Sompop. Trump wants Thailand to import more US goods, including military hardware, he added. 

 

Thailand does not have much negotiation power when it comes to trade issues with the US, Sompop said. Thai business leaders who accompanied Prayut to the US have pledged to buy more US goods and invest more in America. The Siam Cement Group plans to import 155,000 tonnes of coal from the US, while PTTGC is considering investing in shale gas in the state of Ohio. 

 

“Voters in Ohio had contributed to Trump winning presidential election, “ Sompop said. “This is the reason why Thai companies have tried to appease Trump by promising to invest and create jobs.” 

 

Sompop expected Trump would aggressively promote the Indo-Pacific Economic Corridor to counter China’s One Belt, One Road initiative. The US has closely cooperated with Japan and India. Among Asean countries, the US is also trying to cement closer relationships with Thailand, Vietnam and the Philippines, he said, noting that Trump planned to visit the last two countries by the end of this year. 

 

Pipat Luengnaruemitchai, assistant managing director of Phatra Securities, was also worried about possible US trade retaliation against Thailand.

 

The US has laws to punish countries accused of manipulating currency by weakening it in order to boost exports. Thailand has not yet met this criteria but rising trade and current-account surpluses are moving Thailand closer to the US definition of currency manipulation, added Pipat. 

 

Source: http://www.nationmultimedia.com/detail/national/30328781

 

-- © Copyright The Nation 2017-10-09

[Ricardo]

But what does the USA have to sell, that Thailand needs or wants ?

[elgenon]

rice, cotton, vegetables

[RichardColeman]

Went with a smile, smiled and came back with nothing other than told to pucker up reduce the trade gap.  Go Trump !!

[BuaBS]

5 hours ago, Ricardo said:

But what does the USA have to sell, that Thailand needs or wants ?

Intel & AMD CPU's

[Ricardo]

5 minutes ago, BuaBS said:

Intel & AMD CPU's

Yes, Intel are only tested in China/Vietnam/Malaysia.

 

http://www.tomshardware.com/answers/id-2833989/malaysia-china-amd-intel.html

 

I suppose Boeing aircraft for Thailand's LCCs, at least until the new Chinese narrow-body twin-jet has proven itself, but they'd probably be leased so not change the import/export statistics ?

 

Perhaps agricultural-exports, apples or wheat ?  Tourism or education for-the-rich & their kids ?

 

Intellectual-property should also be important, were it not for the counterfeits.

[Sydebolle]

Bilateral trade is USD 40 bio.; Thailand has a surplus of USD 19 bio - i.e. US buys from Thailand for 29.5 bio. and the reciprocal trade US to Thailand is a mere USD 10.5 bio?

That's a lot of rice, chicken and other export products then ;-) 

[chilli42]

1 hour ago, BuaBS said:

Intel & AMD CPU's

Tanks, guns

[zydeco]

2 hours ago, Ricardo said:

But what does the USA have to sell, that Thailand needs or wants ?

Movies, television programs, computer software and myriad other things that are intellectual property and not being paid for.

[over it]

Thailand is, in large part, an aging and uneducated society saddled with debt and stuck in its ways. 

 

You do the math.

[retarius]

I want to buy an American car but the taxes on new imported vehicles is very high indeed. Thailand should cut its punitive taxes and they could solve the trade problem buy having the population buy cheap American made cars which have much better specs than Thai made vehicles.

[yankee99]

"155,000 tonnes of coal from the US" thats the equivalent of about  7 million usd which is a joke

[TKDfella]

1 hour ago, over it said:

Thailand is, in large part, an aging and uneducated society saddled with debt and stuck in its ways. 

 

You do the math.

Well, there you go, you said it. Thailand needs to change or it'll get left behind!

[Chongalulu]

1 hour ago, retarius said:

I want to buy an American car but the taxes on new imported vehicles is very high indeed. Thailand should cut its punitive taxes and they could solve the trade problem buy having the population buy cheap American made cars which have much better specs than Thai made vehicles.

You do realise that WTO rules don't allow discriminatory tariffs  on the same class of import from different countries unless part of a wider trade agreement. So a reduction in tariffs would have to apply to BMW'S Mercs etc.

[retarius]

11 minutes ago, nchuckle said:

You do realise that WTO rules don't allow discriminatory tariffs  on the same class of import from different countries unless part of a wider trade agreement. So a reduction in tariffs would have to apply to BMW'S Mercs etc.

Yes I do. 

[Chongalulu]

1 minute ago, retarius said:

Yes I do. 

I agree with your sentiments but they won't do it in order to protect their own motor industry. What I find irksome is that Thailand seems to be the dumping ground for all the old technology engines. You can't buy a diesel Honda CRV even though that would be a better choice,and even the new civic comes with the ancient 1.8 engine.

[Chongalulu]

5 minutes ago, retarius said:

Yes I do. 

I agree with your sentiments but they won't do it in order to protect their own motor industry. What I find irksome is that Thailand seems to be the dumping ground for all the old technology engines. You can't buy a diesel Honda CRV even though that would be a better choice,and even the new civic comes with the ancient 1.8 engine.

[hstew]

common sense.

[wwest5829]

4 hours ago, Ricardo said:

But what does the USA have to sell, that Thailand needs or wants ?

Easy to answer. Look at imports from the U.S.

[Chris Lawrence]

5 hours ago, Ricardo said:

But what does the USA have to sell, that Thailand needs or wants ?

Money, equity, finance.

[BuaBS]

9 hours ago, zydeco said:

Movies, television programs, computer software and myriad other things that are intellectual property and not being paid for.

Nobody wants to pay for that.  Getting the rich and overpaid even richer.

[SamadhiWarrior]

3 hours ago, yankee99 said:

"155,000 tonnes of coal from the US" thats the equivalent of about  7 million usd which is a joke

Being purchased by Siam Cement and considered only a "trial lot". Seems it is considered to be similar quality as  Indonesian coal used in cement production. Could lead to a longer term deal, apparently. 

 

http://www.khaosodenglish.com/politics/2017/10/04/expert-raises-alarm-prayuth-trump-coal-deal/

[connda]

Trade imbalance?  Nothing in the article about the duties and tariffs that double, triple, or quadruple the price of consumer products that are ironically made in China shipped to the US for consumption and export, and then are exported back to Thailand just to be priced out of existence once they encounter Thai Customs. 
So Trump, please address that!

[MyFriend You]

7 hours ago, retarius said:

I want to buy an American car but the taxes on new imported vehicles is very high indeed. Thailand should cut its punitive taxes and they could solve the trade problem buy having the population buy cheap American made cars which have much better specs than Thai made vehicles.

Then, as one illustrious poster proclaimed  "If they lowered the taxes on imports, no one would buy Thai Cars"  protectionism at its best.

[MyFriend You]

I see 40 baht to the dollar by year's end  -   (hahahaha)   just dreamin

[YetAnother]

14 hours ago, webfact said:

The first was whether the US would punish Thailand by imposing trade barriers on Thai goods to tackle its trade deficit with Thailand. 

the first is the first; usa considers thailand to be somewhere in the se asia

[Trouble]

14 hours ago, Ricardo said:

But what does the USA have to sell, that Thailand needs or wants ?

Cheaper liquor?