Pisal Slams Gov Over US Tariff Deal Exceeding 12.5%
Pisal warns the Thai government that a reciprocal tariff deal with the US exceeding 12.5% is a failure, urging them to use forced labor issues as leverage.
Stock photo for illustration only, not from the actual event
- Pisal urges the Thai government to cap US reciprocal tariffs below 12.5%.
- Warns that exceeding this threshold indicates a failure in trade negotiations.
- Suggests leveraging forced labor and product mislabeling issues during talks.
Pisal has strongly criticized the government's international trade strategy, stating that if the reciprocal tariff negotiations with the United States end up surpassing the 12.5 percent mark, the current administration must be deemed as having failed to protect the nation's economic interests.
This issue has drawn intense scrutiny from political and economic circles due to the potential fallout for Thai entrepreneurs, who could face soaring operational costs and lose their competitive edge in the global market if trade negotiators fail to secure a lower rate.
Bilateral trade negotiations with the US are notoriously complex and governed by strict regulatory frameworks. Setting a hard threshold like 12.5% highlights the political pressure on the administration to adopt an aggressive negotiating stance rather than accepting unfavorable terms, likely drawing from baseline cost assessments previously flagged by local industries.
Furthermore, Pisal offered strategic recommendations for the government's negotiation team, suggesting that structural weaknesses and compliance issues should be flipped into diplomatic leverage, specifically pointing to forced labor concerns and illicit product transshipment practices.
- Enforce stricter labor standards to address international forced labor concerns.
- Crack down on proxy product schemes that bypass legitimate rules of origin.
- Leverage these compliance steps to negotiate lower tariff concessions.
This proposal urges state agencies to transform domestic regulatory challenges into diplomatic assets, ensuring Thailand avoids a perpetual disadvantage on the global economic stage.
Source: Matichon Politics
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