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Former Thai Prime Minister Thaksin Shinawatra is calling for major policy reforms in Thailand, spotlighting the need to revamp import regulations and investment strategies following the looming threat of a hefty 36% US tariff on exports. The proposed levy poses a significant risk to Thailand’s export-driven economy, hinging on reducing dependency on foreign manufacturers skirting local content requirements.

 

Speaking at a seminar by the American Chamber of Commerce in Thailand, Mr Thaksin emphasised the urgency for the government, led by his daughter Paetongtarn Shinawatra, to address the issue. He pointed towards the burgeoning electric vehicle sector, which has attracted substantial Chinese investment through government incentives, as a focal point for policy improvement.

 

Citing a trade imbalance with China and a surplus with the US, Thaksin highlighted the necessity for change due to imminent tariffs. His remarks come as Thai officials ready for negotiations with the US to potentially lower the reciprocal tariff, a legacy of the Trump administration. Last year, Thailand enjoyed a US$46 billion trade surplus with its largest export partner, the US.

 

Thaksin's statements suggest a strategic pivot from Thailand, historically benefiting from Chinese investments spurred by global supply chain shifts. Between 2022 and 2024, Chinese firms were the foremost foreign investors in Thailand, reflecting nearly 28% of foreign investments, dwarfing the US's 8% share, as reported by the Board of Investment.

 

As Thailand navigates tensions in international trade dynamics, this development underscores the complexities faced by neutral economic players in the US-China trade war. The US urges nations to reduce ties with China while Beijing warns against deals detrimental to its interests.

 

 

 

Further reforms could involve adjusting Thailand's import taxes to favour US goods, stepping away from World Trade Organization norms in favour of bilateral agreements, with US corn and liquefied natural gas cited as examples to counterbalance the trade deficit.

 

Despite lacking an official role in his daughter's administration, Thaksin's influence on policy is profound. In response, Ms Paetongtarn has commenced reviewing practices around certificates of origin misuse and addressing US concerns over currency matters, as mentioned by Finance Minister Pichai Chunhavajira.

 

While tariff talks with the US have been postponed, Thailand’s procrastination prompts questions about its strategic approach, especially with peers like Indonesia and Vietnam advancing in their negotiations. Thaksin reassured American businesses of Thailand’s preparedness for complex negotiations ahead, underscoring that resolutions are more nuanced than mere percentage adjustments.

 

As Thailand braces for forthcoming discussions, these strategic shifts signal a country preparing to adeptly navigate the unpredictable currents of global trade tensions.

 

 

  Adapted by ASEAN Now from Bangkok Post 2025-04-25

 

 

 

Hes right. America should start selling off its telecoms.