In a critical meeting aimed at addressing challenges in Thailand's agricultural sector, Dr. Ph.D. Oram Watthananon, Chairman of the Thai Chamber of Commerce, engaged with Mr. Itthi Sirilatthayakon, Chairman of the Federation of Thai Industries (FTI), to discuss strategies for enhancing agricultural exports and resolving domestic agricultural issues. The discussions underscored the vital role that agriculture and food production play in bolstering the nation's competitiveness on the global stage.
Thailand, renowned for its agricultural potential, is facing significant hurdles, particularly due to geopolitical tensions and trade wars. The U.S. Trade Barriers have notably impacted agricultural exports, with the situation exacerbated by China's strict regulations on Thai durian exports, which now require exporters to provide a Test Report for Basic Yellow 2 residues. Failure to address these issues promptly could lead to widespread repercussions for Thailand's agricultural supply chain.
During the meeting, the Thai Chamber of Commerce introduced a new policy titled "Unlocking New Growth: New Potential for Growth," aimed at enhancing the country’s competitiveness. This strategy emphasizes five core value chains essential for economic momentum: trade and investment, agriculture and food, tourism and services, AI and digital technology, and sustainability. The goal is to elevate Thailand's agricultural and food sectors towards sustainable development, positioning the country as a global food hub.
In light of these challenges, the Thai Chamber has proposed urgent recommendations to the Deputy Minister of Agriculture, including the establishment of a Global Trade Task Force. This initiative seeks to foster collaboration between the public and private sectors to tackle agricultural issues and enhance export capabilities. Additionally, the Chamber suggested considering the import of essential agricultural goods from the U.S. to improve Thailand's bargaining position during trade negotiations.
The discussions also highlighted the necessity for the Ministry of Agriculture to support budget allocations aimed at improving production efficiency and reducing agricultural costs. Furthermore, the Ministry is encouraged to facilitate the import of high-quality agricultural products for processing and subsequent export as value-added goods.
On April 17, 2025, a new executive order titled "Restoring American Seafood Competitiveness" was issued by the U.S. government, aimed at revitalizing the U.S. seafood industry. This order calls for collaboration with the Thai Ministry of Agriculture to potentially exempt Thai tuna imports (subject to a 12.5% tariff) from increased duties, thereby reducing non-tariff barriers (NTBs) that hinder trade.
Moreover, the Thai Chamber expressed concerns regarding the durian export situation to China. They proposed the formation of a "Team Thailand" to systematically address the export challenges faced by Thai durians and other fruits. This team would work to establish effective communication and negotiation strategies with Chinese authorities to expedite the resolution of issues related to pesticide residue checks.
The Ministry of Agriculture is also urged to collaborate with the Thai Rice Exporters Association to ensure compliance with regulations regarding the use of chlorpyrifos, a pesticide that could jeopardize Thai rice exports. In addition, the Ministry is advised to reduce legal and regulatory obstacles that may conflict with international commitments, such as import fees for aquatic animals or products.
In a related development, Mr. Surapong Paisitpattanapong, Vice Chairman of the Automotive Industry Group of the FTI, reported a decline in car production and exports in March 2025. While total production rose by 12.49% from February, it decreased by 6.09% year-on-year, attributed to reduced exports and a significant drop in production for domestic sales, particularly in passenger vehicles.
From January to March 2025, a total of 352,499 cars were produced, reflecting a 14.88% decrease compared to the same period last year. Although production for domestic sales increased by 35.01%, it was primarily driven by electric vehicles (BEV and PHEV), while production of pickup trucks saw a decline of 29.32%. The domestic car market is currently facing challenges due to stringent credit approvals from financial institutions amid rising household debts and a sluggish economy.
In terms of exports, the automotive sector faces additional pressures from U.S. tariffs, which have increased to 27.5%. Despite these challenges, Thailand continues to export approximately 30,000 to 40,000 vehicles to the U.S. annually. However, the ongoing uncertainty surrounding global economic conditions and potential tariff increases necessitates careful monitoring and strategic adjustments.
As of April 2025, the production of electric vehicles reached a record high of 9,905 units, marking a 33.20% increase from the previous year. The government's plan to stimulate the economy through a 500 billion baht loan is also under review, with a focus on evaluating its impact on consumption and production across various industries.
Meanwhile, Mr. Pornchai Thiraveja, Director-General of the Fiscal Policy Office, projected a 2.1% growth for the Thai economy in 2025, primarily influenced by external trade pressures, particularly from U.S. import tariffs. The export value is anticipated to grow by 2.3% annually, reflecting the ongoing challenges posed by the U.S. trade policies.
The Ministry of Finance is actively preparing to address the economic impacts of these tariffs, emphasizing the need for ongoing negotiations with the U.S. to find mutually beneficial solutions. The government is also looking to expedite budget disbursements to support economic stimulation and assist vulnerable sectors affected by the trade policies.
In a bid to support exporters, the Export-Import Bank of Thailand (EXIM Bank) is hosting a financial event titled "MOF Journey: 150 Years of Thai Fiscal Policy" from May 1 to May 3, 2025. This event aims to offer special promotions and consultations for entrepreneurs engaged in international trade, particularly in light of the challenges posed by U.S. reciprocal tariffs.
As the Thai economy navigates through these turbulent times, the collaboration between government entities and the private sector will be crucial in addressing the multifaceted challenges facing agriculture, automotive, and overall economic growth.
