The United States under then-President Donald Trump secured a reciprocal trade framework with Thailand, promising unprecedented market access for U.S. goods and services, including the elimination of tariffs on 99% of U.S. imports into the Southeast Asian nation.
The agreement, announced by the Trump administration, aimed to boost U.S. exports and address a significant trade deficit with Thailand, which the U.S. Trade Representative’s office reported at $45 billion, making it the 11th largest for the U.S.
The deal projected over $26.8 billion in new commercial agreements. These included $2.6 billion annually in agricultural products like feed corn, soybean meal, and dried grains.
Energy sector deals were valued at $5.4 billion per year, covering liquefied natural gas, crude oil, and ethane. Additionally, the framework anticipated Thailand procuring 80 U.S. aircraft, totaling $18.8 billion.
Under the framework, Thailand committed to dismantling a wide array of trade barriers. This included abolishing import tariffs on nearly all U.S. industrial, agricultural, and food products.
In return, the U.S. committed to reducing non-tariff barriers and reviewing existing duties. The U.S. planned to maintain a 19% tariff on some Thai imports, with a potential reduction to zero for specific items under Executive Order No. 14346.
Thailand also agreed to accept U.S. vehicle safety standards and certifications from the U.S. Food and Drug Administration for medical devices and drugs. Regulations on ethanol imports for fuel were to be relaxed.
Further concessions included reforms to customs laws to reduce incentives based on fines and the implementation of more transparent regulatory guidelines. The agreement sought to open agricultural markets by accelerating approvals for U.S. meat and poultry from certified facilities.
Technical trade barriers affecting products like dried corn were also targeted for resolution. Thailand committed to recognizing U.S. agency certifications for various goods.
The framework extended to digital trade, with Thailand pledging not to impose digital service taxes or discriminatory measures against U.S. platforms. It also promised free cross-border data transfers and support for a World Trade Organization moratorium on electronic transmission customs duties.
Domestic debit card transaction processing regulations were to be abolished, and restrictions on foreign ownership in telecommunications businesses would be eased.
On intellectual property, Thailand pledged to address issues such as trademark, copyright, and patent infringement. This included tackling illegal copyright collection agencies and delays in patent applications. Both nations also agreed to collaborate on protecting geographical indications.
The agreement also outlined cooperation on economic security, focusing on supply chain resilience and preventing tax evasion. Export controls and strategic investment measures were also part of the bilateral agenda.
Thailand made commitments to improve labor laws to international standards, bolster workers’ rights to organize and bargain collectively, and increase enforcement against forced and child labor. Environmental protection standards were also slated for enhancement.
The overarching agreement was framed as a key component of the “America First” policy. The initiative aimed to correct perceived trade imbalances and strengthen economic ties with strategic partners.
U.S. and Thai officials were expected to finalize and sign a complete agreement in the weeks following the initial announcement. This move aimed to expand opportunities for American farmers, manufacturers, and small- and medium-sized businesses.