Trump impact minimal
The Thai government believes that President Donald Trump’s “America First” policy is unlikely to affect Thailand’s trade and investment.
It also expects the US withdrawal from the Trans-Pacific Partnership (TPP) trade pact, a multinational trade deal that covers 40% of the world economy, will rev up talks for the Regional Comprehensive Economic Partnership (RCEP), led by China.
Commerce Minister Apiradi Tantraporn said Mr Trump’s “America First” policy would be good for the US and stimulate its economy, which would, indirectly, have a positive effect on Thai exports.
On the investment front, Mrs Apiradi said after speaking with US businessmen at the World Economic Forum in Switzerland, which ended last Friday, most US business leaders remain confident in Thailand and will continue to invest.
US businesses also said a wholesale business pullout is scantly possible, saying US manufacturers have invested in more than half a dozen Asean countries and are not capable of making all of their products at home.
“US investors insist they will keep investing in garments, shoes and electronics, not only in Thailand, but in Asean,” she said. “As for the TPP, a US withdrawal will not affect Thailand, as the country is not yet party to the pact. Instead, the RCEP trade talks are expected to be expedited without TPP.”
Mrs Apiradi said Thailand is also eligible to pursue trade and investment talks through the Trade and Investment Framework Agreement and Thailand-US Amity Treaty. Currently, the US is Thailand’s thirdlargest trading partner in the world market, following China and Japan. Two-way trade between Thailand and US amounted to US$37.9 billion in 2015, accounting for some 9% of Thailand’s trade value with the world.