Asean may be cited in business discussions as to US safety requirements in the region.
An expert urged the government to form a task force to bargain the taxes that the US has imposed on Thai goods before the 90-day wait announced by US President Donald Trump last month expires.
European affairs analyst Panitan Wattanayagorn told the Bangkok Post that the government must comprehend the rationale behind the US’s decision to impose tariffs on its trading partners and tailor its response correctly.
Washington’s goal is to address the US trade deficit, and the price announcement was intended as a means of bringing the US’ trading partners back to the table to solve the trade gap, he said. Additionally, he said, the US should look at policies that the US believes are overwhelmingly assisting China.
Interestingly, Mr. Panitan said the government must realize that the US’s decision to impose tariffs also has a social and security impact.
In other words, he said, the state must perform its cards right in its negotiations with Washington.
Time to respond
When the US announced the mutual taxes, its trading lovers responded in three different ways.
The first group of nations, which includes Canada, Mexico, Israel, Singapore, and the European Union, soon began direct negotiations with the US and revised their business agreements in an effort to lower taxes.
Their imports are then subject to US tariffs of 10 to 17 % as a result.
According to Mr. Panitan, the second group of nations are aware of their proper importance on the global level and are the first to go to negotiations with the US.
Discussions with members of this group, including Thailand, will be more difficult, he said, because some nations are anxious or ready to engage in trade talks with the US.
In the meantime, the next group is prepared to confront the US head-on if Washington turns out to be unwilling to engage in negotiations with them.
He said that this bloc includes big economies like China, India, or, at least in some cases, Brazil.
Given Thailand’s minimal bargaining power and humble trade deficit with the US, Mr. Panitan said the government may approach the negotiations with care.
He acknowledged that the strategy may take longer to produce results, but there are still many ways the US may use pressure on Thailand to comply with its demands, including the government’s new decision to return a group of Uyghur asylum seekers to China.
Government negotiators should also be aware of Thailand’s significant role in the region’s safety platform, according to Mr. Panitan, who referred to the US conducting joint procedures and safety exercises on Thai bases. It may make sure that no one gets swayed into the discussions.
The question is,” We have these accounts, but how will we use them to get the military engaged?” he said.
Mr. Panitan demanded that the government first determine the state of its business before making a decision regarding what it can manage and negotiate for.
He emphasized the need to type a dedicated staff to begin negotiating the taxes, as the US might interpret any delay in sending diplomats as a sign of indifference, which he believed would make the negotiations more difficult.
Mr. Panitan argued that the government should take advantage of the opportunity to talk to higher-level US authorities about a price reduction of at least half because the tariffs are already being put on hold.
He cited the criminal investigation against American scientific Paul Chambers over der majoreste and computer crimes charges as examples of how the government should not disregard this opportunity, particularly given recent developments in Thailand that might affect the US’s response.
Prepare for effects.
As the state prepares for the US-US discussions, it must also look for additional nations to promote Thai goods to prevent any problems to the local market and prepare for an influx of products from nations like China and Vietnam.
He claimed that the government may also work to bring both the US and China to the table of negotiations.
If powerful, Mr. Panitan said the agreement could be used as a bargaining chip in US negotiations.
He suggested that the government also use Asean, citing the geographical gathering as a potent bargaining platform.
But, Asean may integrate its efforts and put together a unified high-level team that can handle all member’s economic, political, and security concerns. Given the complex social relationships within the alliance.