Thailand
Thailand: Biden pegged as good for exports
Commerce Minister Jurin Laksanawisit expects Joe Biden’s victory in the US presidential election to benefit rather than harm Thailand’s exports, while ongoing trade spats between China and the US are likely to ease, boosting global trade sentiment.
“The ministry expects the US under new leadership will have more relaxed measures, be it the Generalized System of Preferences [GSP] or dumping and safeguard measures,” said Mr Jurin.
“The Commerce Ministry’s strategy is to continue working closely with the Joint Public and Private Sector Consultative Committee on Commerce and rev up trade talks with Asean members, particularly on e-commerce,” he said.
Thailand should also prepare for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as the US has Mr Biden at the helm, who is likely to move to rejoin the CPTPP.
CPTPP replaced the Trans-Pacific Partnership, a similar trade pact that included the US until the Trump administration decided to withdraw.
CPTPP is made up of 11 signatory countries whose economies represent 13.4% of global GDP, some US$13.5 trillion.
According to Mr Jurin, the US is also expected to focus more on multilateral trade negotiations through the World Trade Organization (WTO) and forge new free-trade pacts with other countries.
Nonetheless, Mr Jurin expects new trade conditions such as environmental conservation, labour protection, intellectual property and human rights will be key issues for trade conditions and negotiations with the US.
“We expect world trade sentiment will become more relaxed and look positive,” he said. “Exports of raw materials from Thailand to China and the US, in particular, are expected to surge if the trade disputes between China and US become more relaxed.”
Mr Jurin said the US trade policy should be less stiff, allowing Thailand to more easily negotiate with the US on friendlier terms, as Thailand is ready to join the US in bilateral free trade talks.
He also expects the US to focus more on multilateral trade regulations and allow the WTO mechanisms to settle international trade disputes.
The US was Thailand’s fourth trading partner after Asean, China and Japan last year. In 2019, two-way trade between Thailand and the US totalled $48.6 billion, accounting for 10.1% of Thailand’s total international trade value.
Thailand fetched $31.3 billion from exports to the US last year (accounting for 12.7% of Thailand’s total exports), with imports from the US worth $17.3 billion (representing 7.32% of total imports).
Thailand had a trade surplus of $14 billion with the US last year.
Key export products included computers, rubber products, automobiles and parts, gems and jewellery, electrical appliances, garments, seafood, canned fruit and furniture.
Source: https://www.bangkokpost.com/business/2016859/biden-pegged-as-good-for-exports