By significant constraints The Thai commitment to the president of the USA Donald Trump for almost full access to US products to the local market, with the aim of protecting certain domestic industries. This said a government official, presenting the basic terms set by the Southeast Asian country under a duty agreement with Washington.
Restrictions – especially for pork and corn – will be determined in the final negotiations with the US, according to Pongsarun Assawachaisophon, Deputy Secretary General of the Prime Minister and a member of the negotiating team.
The duty is expected to reduce Thai economic growth by 1.5 percentage unit next year. The deal is designed to satisfy Trump’s request to eliminate Thai trade surpluswhile keeping the trade open to Bangkok’s largest export market.
The US president announced last week the 19% duty on Thailand, reduced by the initially threatened 36%, after several rounds of negotiations and offers from Thailand, including the abolition of import duties in more than 90% of US products.
“Among the more than 10,000 US products that will have a 0%duty, some will be subject to gradual duties, introductory quotas or other terms,” Pongsarun said in an interview with Bloomberg yesterday (4.8.2025). “Thailand has achieved a very good deal because we did not act recklessly. We explained our reasons and did not just insist on keeping everything closed. “
Trump has promoted his threats to imposing duties, In order to push countries to buy more American products, And he claimed, as in the case of Indonesia, that markets are “completely open” to American products. However, Many Southeast Asian countries have requested exceptions or protection for the agricultural sectoras farmers are an important political group. Jakarta, for example, wants to protect poultry and corn industries, while the Vietnam seafood sector is seeking support.
As for American pork, Bangkok will gradually reduce duties and reduce US imports to less than 1% of domestic consumption. It must also be free from the add -on ractopamine, which is used to promote the development of lean muscle mass and is banned in Thailand.
Initial restrictions aim to allow the US to “test the market”, while giving the Thai pork producers time -especially to Charoen Phokphand Foods Co. And betagro- and to smaller pigs to adapt, he said. Access to the pork market has long been a controversial issue for the US and is why Washington has recalled some trade preferences for Bangkok in 2020.
In terms of corn, Thailand will require local feed mills to first absorb all the corn produced in the country, at specified prices, before they are granted quotas for the import of US supplies, Pongsarun said. The Thai Animal Mill Association, which has been called upon to consult on the subject, has stated that the country is able to buy corn annually from the US worth $ 2.8 billion, as well as soybeans and dried cereals from distilleries.
‘Made in Thailand’
A distinct issue that concerns Thailand is The extra 40% duty imposed by Trump on the so -called transmitted goodsa way in which Washington prevents Chinese manufacturers from avoiding the highest US duties.
About one -third of Thailand’s current exports to the US will fall into this categorysaid Pongsarun, From car tires to electrical appliances and toys made by Chinese factories in Thailand.
Government regulations consider products with at least 40% local content as “made in Thailand”, but Pongsarun said that Officials expect the US to require a much higher limit, possibly up to 80%. These details have not yet been revealed by Washington.
Since April, Thailand has revised the rules on the issuance of certificates of origin with the help of US customs and border protection and has intensified controls and visits to factories for 65 products of about $ 15 billion, which the US had been pointed out as possible.
In the future, the certification of the products will only be granted by the Ministry of Foreign Trade, instead of the Thai industries or the Thai Chamber of Commerce, a move that allows the government to exercise more control.
“This is what we have to do anyway,” Pongsarun said, preaching: “Agreement with the US is a awakening that pushes us to accelerate the process of reforming this system.”