The Thai government is urging the United States to restore trade benefits and remove the country from its intellectual property (IP) watch list. Deputy Prime Minister and Commerce Minister Phumtham Wechayachai raised these issues during a meeting with US ambassador Robert Godec.
One of the main concerns expressed by the Thai government is the restoration of Generalized System of Preferences (GSP) trade benefits. The GSP program allows duty-free entry into the US for 3,500 products from 119 countries and territories to promote economic development. The US revoked Thailand’s GSP eligibility for about one-sixth of its GSP-eligible trade in late 2020, citing inadequate market access for US pork products. This decision is estimated to have caused losses of around $19 million for Thailand.
Additionally, the Thai government requested the removal of the country from the IP watch list. The US conducts annual reviews of IP protection by its trading partners under the Special 301 provision. Countries on the watch list may lose trade benefits, including preferential tariffs, if they fail to address the identified problems. Thailand has made significant efforts to enhance IP protection in recent years, including amendments to the Copyright Act.
During the meeting, both parties emphasized the strategic partnership between Thailand and the US. The Thai Ministry of Commerce expressed readiness to collaborate with the US embassy in strengthening economic relations, bilateral trade, and investment. The two countries discussed various topics, including the development of small and medium-sized enterprises, amendments to trade and investment regulations, and the utilization of free trade agreements for economic growth.
Thailand views the US as a potential partner, particularly in modern technologies such as artificial intelligence (AI), electronics, electric vehicles, clean energy, aviation, and pharmaceutical products. In return, the US pledged to support American companies investing in Thailand.
In 2022, the US was Thailand’s second-largest trade partner after China, with a total trade value of $65.27 billion. Key exports from Thailand to the US included computers, rubber products, semiconductors, electrical appliances, and jewelry. On the other hand, Thailand imported crude oil, machinery, electrical circuits, plants, and chemicals from the US.
The Thai government’s efforts to restore GSP trade benefits and improve IP protection reflect its commitment to fostering stronger economic ties with the US. As both countries navigate evolving global trade dynamics, their strategic partnership is poised to drive growth in various sectors, benefiting businesses and consumers alike.
