NationThailand-Jan 1
The Thai Chamber of Commerce (TCC) advised Thailand to maintain its neutral stance in global trade, noting that US President-elect Donald Trump’s trade policies could trigger a 160-billion-baht loss for the Thai economy. “The US political transition is a good opportunity for Thailand to become a conflict-free country, set up a clear business flow and launch measures to attract investment in Thailand,” said chamber president Sanan Angubolkul. He expects Trump’s trade policies to affect Thai exports, especially products in which Thailand has a trade surplus with the US like hard-disk drives, semiconductors, tires, air conditioners and solar cells. Manufacturing, construction and agriculture sectors would be affected by Trump’s trade policies and barriers, he added.
Sanan noted that Trump’s 60% import tariff on Chinese goods would trigger an influx of Chinese products in the Thai market. Though Thai consumers would be able to access Chinese products at a cheap price, this would severely affect Thai manufacturing and service sectors, he pointed out. However, he said Trump’s import tariffs on Chinese goods could trigger production base relocation from China to reduce export costs, offering an opportunity for Thailand to attract foreign investment. Sanan expects Trump’s trade policies to trigger a loss of 160 billion baht on the Thai economy, especially import tariff hike. Initially, Thai exports would drop by 1.03%, triggering a 0.59 percentage point decline in Thai gross domestic product (GDP), he said. TCC also advised Thailand to expand trade and investment to India, and form a trade partnership with Vietnam in order to boost the economic growth. Thailand should adapt itself over time, prepare proactive and passive policies, and strengthen public-private collaboration to cope with this issue, especially on imports and exports, he added. Read more at:
