Commerce officials braced for new Trump measures

Commerce officials braced for new Trump measures

The government is scheduled to hold a joint meeting between the state and the private sector on Wednesday to discuss possible adverse impacts from executive orders signed recently by US President Donald Trump.

Commerce permanent-secretary Wiboonlasana Ruamraksa said the ministry will also hold separate meetings with operators in individual industries such as food, automotive and parts, computers, gems and jewellery, and electronics, as well as with the Thai Chamber of Commerce and the Federation of Thai Industries.

"We need to discuss the overall impact of Mr Trump's executive orders for trade in services and investment. Key products exported to the US belong mostly to US or foreign companies operating in Thailand," she said. "Once all information is available, the commercial counsellor in Washington will be tasked with explaining to the US Department of Commerce on May 18."

Mr Trump signed a pair of executive orders in late March calling for an investigation into US trade imbalances and vowing to reverse the country's trade deficit.

One of the orders gives the US Commerce Department 90 days to produce a report on the factors behind the trade deficit, while the second seeks to increase the collection of tariff duties on imports.

Deputy Prime Minister Somkid Jatusripitak recently said the country's exports would only slightly be affected if the US government introduces punitive trade measures. He said Thailand has a slight trade surplus with the US.

Thailand's exports to the US represent only 10% of the total, mainly for electronics parts, which are bought by US firms operating in Thailand. Those parts are mostly shipped back to be assembled in the US, creating jobs and income for the US.

The US is Thailand's third-largest trading partner, after China and Japan. Two-way trade between Thailand and US amounted to US$36.5 billion in 2016, $24.49 billion of which was from Thai exports.

Mr Somkid said Thailand's trade surplus is mainly because of private sector activities, not baht manipulation or intervention by state officials, citing statistics that show the currency is still appreciating.

Commerce Minister Apiradi Tantraporn said earlier trade officials were studying possible impacts from any new measures.

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