Thailand and New Zealand have agreed to strengthen bilateral trade ties in all aspects through existing frameworks amid global trade challenges, which include the threat of high reciprocal tariffs in the United States.
Prime Minister Paetongtarn Shinawatra and her New Zealand counterpart Christopher Luxon held a phone conversation on Friday to discuss closer cooperation, said government spokesman Jirayu Houngsub.
During the talk, Ms Paetongtarn said the Thai government is closely monitoring the fallout from US tariff policies and is prepared to engage in a dialogue with Washington to promote more balanced trade relations.
Mr Luxon noted that New Zealand’s actual average tariff was only 1.9% but the country faced a 20% reciprocal tariff rate from the US.
Both leaders agreed to accelerate work to strengthen economic relations, even though the US has announced a 90-day pause on reciprocal tariffs for all countries but China, while maintaining the 10% baseline import tax.
The two nations also expressed concern about the potential for escalating trade wars and rising global inflation, which could slow domestic economic growth.
Existing bilateral and multilateral frameworks such as Asean-Australia-New Zealand Free Trade Agreement (AANZFTA), Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) should be used as tools to mitigate impacts of the US import taxes, the leaders agreed.
According to Mr Jirayu, Mr Luxon also extended his condolences over the recent earthquake in Thailand and thanked the Thai authorities for providing humanitarian assistance to Myanmar in the aftermath.
Ms Paetongtarn concluded the talks by reaffirming Thailand’s commitment to elevating bilateral ties with New Zealand to a strategic partnership by 2026.