On April 9, 2025, Thailand officially announced the establishment of a four-level framework for negotiations with the United States aimed at enhancing trade relations. This initiative comes as the Thai government seeks to address the challenges posed by U.S. trade policies and to bolster its economic ties with the superpower.
Prime Minister Phatthongtharn Shinawatra chaired a meeting where the new negotiation structure was unveiled. The framework consists of four distinct levels of engagement, each designed to tackle specific aspects of trade discussions. At the highest level, a senior delegation led by Deputy Prime Minister and Finance Minister Phichai Naripthaphan will engage directly with U.S. trade representatives.
According to government sources, the negotiations will focus on five key pillars: enhancing U.S.-Thai cooperation in the processed food sector, increasing imports from the U.S., opening Thai agricultural markets, preventing product mislabeling, and promoting Thai investments in the U.S. Phichai Naripthaphan emphasized the importance of these discussions, stating, "Coordination with the USTR has been ongoing since late last year, and we have received positive feedback regarding our request for talks. The Prime Minister has tasked me with ensuring that these negotiations proceed smoothly and effectively."
The second level of negotiation will involve a core team focusing on the five main topics of discussion, while the third level consists of a Forward Team led by the Thai Ambassador to Washington, D.C., who will monitor trade policy developments and maintain communication with USTR officials. The final level will include a Working Group that combines government and private sector representatives to support data sharing and trade promotion.
Phichai Naripthaphan expressed optimism about the prospects of these negotiations, stating, "The progress we have made is encouraging, and we are now awaiting a formal date for discussions with the USTR. This is a critical step for Thailand as we aim to enhance our global competitiveness and open new markets for our goods and services."
In conjunction with these trade negotiations, the Department of International Trade Promotion (DITP) is actively promoting Thai products at the STYLE Bangkok 2025 event, which runs from May 2 to May 6, 2025. This international trade fair aims to showcase Thai lifestyle and fashion brands to a global audience, with over 447 exhibitors and an expected attendance of more than 25,000 visitors.
DITP Director-General Sunanta Kangwankulkit highlighted the importance of this event in helping Thai entrepreneurs expand their international presence. "STYLE Bangkok serves as a proactive tool for our entrepreneurs, especially those in lifestyle and fashion sectors, to compete on a global stage. We aim to facilitate trade connections and promote Thai products effectively," she remarked.
Among the exhibitors, notable Thai brands such as YOTHAKA, DEESAWAT, and KORAKOT are set to gain international recognition. YOTHAKA, for instance, has recently been featured in the popular series "The White Lotus Season 3" and showcased at the Maison & Objet trade fair in France. DITP aims to leverage such high-profile appearances to boost the export value of Thai products.
In addition to promoting established brands, the event will also highlight emerging designers and innovative products, including eco-friendly items and unique home decor. The DITP is keen on fostering collaborations that enhance the export sector and position Thailand as a hub for lifestyle and fashion products.
However, the Thai government faces challenges from the ongoing trade war between the U.S. and China, which has led to an influx of Chinese goods into Thailand and the ASEAN region. ML Peakthong Thongyai, Vice President of the Federation of Thai Industries, expressed concerns about the impact of this oversupply on Thai exports. He noted that Chinese products, which are often priced 20-40% lower than their Thai counterparts due to cost advantages, are threatening the market share of Thai goods.
"The flood of Chinese goods into our market is a significant concern," Thongyai said. "It diminishes the competitiveness of Thai small and medium-sized enterprises (SMEs) and could force some industries to reduce production or shut down entirely. We need to adjust our strategies to enhance our product offerings and improve our market position."
In light of these challenges, the Thai government has been urged to strengthen trade laws and implement measures to protect local industries from unfair competition. A recent survey of 540 business leaders revealed that 70.9% believe that the influx of cheaper Chinese goods has adversely affected their operations.
As Thailand navigates these complex trade dynamics, the government is committed to restructuring its economy to boost competitiveness and reduce reliance on traditional markets. The emphasis is on innovation, quality improvement, and sustainability, with a focus on using high-quality materials and environmentally friendly practices.
In summary, as Thailand embarks on this new chapter of trade negotiations with the U.S., the outcomes will significantly impact its economic landscape and the future of its SMEs. The government’s proactive approach aims to foster a more balanced trade relationship while addressing the challenges posed by external market pressures.
As the Thai government prepares for these negotiations, all eyes will be on the outcomes and their implications for the nation’s economy and the resilience of its industries in the face of global competition.
