He said on Monday (Aug 4) the country has successfully navigated the global trade war sparked by the Trump-era tariff regime, securing a 19% import tax rate on Thai goods entering the US ‒ a level he described as comparable to regional peers and more favourable than some competitors.
“This was a global crisis, not one faced by Thailand alone,” Dr Prommin said, reports the Bangkok Post.
“But we’ve now reached a resolution that offers significant advantages for our business sector going forward.”
He added that the crisis phase is over, but the government’s responsibilities continue. “We now have a clear answer, and that clarity enables us to expand trade and market access.”
Thai goods bound for the United States will be subject to a 19% tax, starting on Thursday (Aug 7).
The rate, markedly lower than the 36% initially set by the US, was announced after the government agreed to eliminate import duties on over 10,000 items imported from the US.
Dr Prommin noted that the 19% rate puts Thailand on a level playing field with regional exporters.
“We’re no longer at a disadvantage. In fact, we might even have a slight edge over some countries. We’re now in a fair position to compete in the same markets.”
Looking ahead, the government will shift focus to economic restructuring, as outlined by Deputy Prime Minister and Finance Minister Pichai Chunhavajira.
On the legal side, Dr Prommin confirmed that once the agreement has passed a special cabinet session and a consensus on the negotiation framework has been reached, it will be submitted to parliament for approval.
“There is a legal process that must be followed. Once we are at that stage, everything will proceed transparently and in line with the law,” he said.
TRADE-FOCUSED, NOT SECURITY-RELATED
Deputy Prime Minister and Finance Minister Pichai Chunhavajira has spoken publicly to say that the agreed 19% US import tariff on Thai goods is purely a trade and economic matter, with no hidden security or geopolitical agenda.
“The agreement focuses solely on trade and economic collaboration,” DPM Pichai stated at a press briefing. “Although the initial phase is concluded, several technical, legal and domestic steps remain before full implementation.”
Mr Pichai explained that talks between Thai and US teams covered four major areas: tariff structures, a list of tradable goods, international investment plans and non-tariff measures. He emphasised that the agreement aligns with Thailand’s existing Free Trade Agreements (FTAs) and will not compromise national interests in sensitive sectors.
As part of the deal, the Thai government is preparing to cautiously open certain markets, including limited quotas for US pork, soybeans and corn. Pork imports will remain tightly restricted due to concerns over domestic industry and health standards, while soybeans may be allowed in at a quota of 1-2 million tons under strict inspection protocols.
In a bid to prevent misuse of the agreement, Thailand will enforce a stricter Certificate of Origin (C/O) system. Products must contain at least 40% local content to qualify for tariff benefits; otherwise, they will be subject to a punitive 40% duty.
The government has earmarked over B10 billion from the Competitiveness Enhancement Fund to support domestic exporters during this transition. The funds will go toward upgrading production lines, maintaining employment, and reducing operational costs. "Each industry has different needs, and we’re responding with targeted support ‒ finance, infrastructure, and regulatory standards," Mr Pichai said.
On the investment front, the Deputy PM revealed that Thai companies are now actively exploring opportunities in the US, especially in the agricultural processing sector. Additionally, Thailand is expected to boost crude oil imports from the US by around 10% starting in 2026, subject to favourable pricing and contract terms.
The country also plans a major aviation upgrade, with 80-90 new small aircraft to be acquired over the next decade to modernize its aging fleet.
Looking ahead, Pichai said the country’s GDP growth ‒ previously projected at 2.2% ‒ could exceed expectations depending on global conditions and the government’s execution. He stressed that boosting competitiveness and local content in manufacturing remains a top priority.
“Major corporations are now preparing to invest in Thailand, recognising the country’s strong fundamentals and long-term potential,” Mr Pichai concluded.