Thailand is pushing forward in its negotiations with the United States for a reciprocal trade agreement, aiming to shield its exporters from the potential threat of increased tariffs. The talks, which are yet to be concluded, revolve around the Agreement on Reciprocal Trade (ART), as confirmed by Thai officials.
Currently, Thai exports are subjected to a 12.5% tariff under the U.S. Section 301 measure due to concerns over forced labor. Additionally, a U.S. investigation launched in March 2026 is examining structural excess production capacity, which could lead to further duties on Thai products. This investigation also includes several other major trading partners.
In response, Thai officials have submitted data to contest U.S. claims about excess production capacity and potential transshipment of goods. They argue that the production capacity in key industries is higher than estimated by U.S. authorities, and they are advocating for a reassessment by Washington.
The Thai government is seeking tariff conditions similar to those of regional competitors such as Malaysia and Indonesia. Officials assert that an ART could enhance market access and provide more certainty for Thai exporters, though the exact tariff terms are still under discussion.
The prospective trade agreement is also expected to address U.S. concerns regarding trade barriers, investment, and market access in Thailand. Completion of the deal would require approval through Thailand’s domestic channels before implementation.