Us-Thai Free Trade Agreement
The United States and Thailand have been trade partners for many decades, with the relationship dating back to 1818 when the US sent its first mission to Siam (Thailand`s old name). Since then, both countries have enjoyed a healthy trade relationship, with the US being Thailand`s second-largest trading partner after China. However, there has never been a formal free trade agreement between the two countries. This is set to change as negotiators from both sides have been in talks to ink a free trade agreement (FTA) that would tilt the trade balance more in favor of the US.
A US-Thai FTA would be significant for both countries as it would eliminate tariffs, reduce barriers to trade, and boost economic growth. Thailand is a significant market for the US, with exports to the country totaling $13.5 billion in 2019. Thailand, on the other hand, is looking to strengthen its trade relationship with the US and create more opportunities for its businesses to export their products.
Thailand`s economy is heavily reliant on exports, with the country exporting everything from cars and electronics to food and textiles. However, the US currently imposes tariffs on some of Thailand`s key exports, including rubber products, seafood, and electronics. An FTA would eliminate these tariffs, making Thai exports more competitive in the US market.
The negotiations for the US-Thai FTA have been ongoing since 2004, but progress was slow due to various issues, including concerns over intellectual property rights, labor standards, and environmental protection. However, in September 2020, both sides resumed talks after the US expressed its desire to strengthen its economic ties with Asian countries and reduce its dependence on China.
One area of concern for Thailand is the potential impact on its farmers. Thailand is a major exporter of rice, and there are fears that an FTA with the US could result in an influx of cheap American rice flooding the Thai market, putting local farmers out of business. Negotiators on both sides are working to address these concerns and ensure that any FTA is fair and equitable for all parties involved.
Overall, a US-Thai FTA would be a win-win for both countries. It would boost trade, increase investment, and create new opportunities for businesses on both sides. However, it is essential to ensure that any agreement is fair and equitable and takes into account the concerns of all stakeholders. With negotiations ongoing, it will be interesting to see how the talks progress, and if a deal can be reached that benefits both the US and Thailand.
- Posted by adriel
- On November 4, 2021
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