Thai Goods Will Continue to Face 19% Reciprocal Tariffs
The U.S. and Thailand issued a joint statement on a trade framework over the weekend, which says Thailand will eliminate tariff barriers on about 99% of U.S. exports, while the U.S. will exclude some products from the Sept. 5 Annex III (see 2509050073) to spare them from 19% reciprocal tariffs. Those goods will still be subject to most-favored nation duties, and the 19% is added to MFN, as well. The final agreement will be negotiated over coming weeks, the statement says.
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The statement underlined this section: "Thailand will address and prevent barriers to U.S. food and agricultural products in the Thai market, including expediting access for U.S. Food Safety and Inspection Service (FSIS)-certified meat and poultry products. Thailand will additionally address trade irritants and ensure requirements imposed on U.S. horticultural products, including for distiller dried grains with solubles, are science- and risk-based."
Thailand also promised to amend its customs laws "to remove the customs reward system related to customs breaches and penalties."
The statement notes that Thai companies have committed to buy "feed corn, soybean meal, and dried distiller grains with solubles with an estimated value of $2.6 billion per year," energy products worth $5.4 billion a year, and 80 aircraft, worth $18.8 billion.