The United States and Thailand have agreed on a framework for an Agreement on Reciprocal Trade aimed at enhancing economic ties between the two countries. The agreement is expected to grant exporters from both nations expanded access to each other's markets, building on existing agreements such as the U.S.-Thailand Treaty of Amity and Economic Relations from 1966 and the 2002 U.S.-Thailand Trade and Investment Framework Agreement.
Under the terms of the proposed trade agreement, Thailand will eliminate tariff barriers on approximately 99 percent of goods, which includes a wide array of U.S. industrial, food, and agricultural products. In return, the United States will maintain reciprocal tariffs at 19 percent for Thai goods as outlined in Executive Order 14257, with certain products identified for zero percent tariff rates under Executive Order 14346.
Both countries have committed to addressing non-tariff barriers that impact bilateral trade. Thailand has pledged to accept U.S.-manufactured vehicles that meet federal safety and emissions standards, recognize U.S. Food and Drug Administration certificates for medical devices and pharmaceuticals, issue import permits for U.S. ethanol used as fuel, amend customs laws related to penalties, and adopt improved regulatory practices.
Further commitments include expediting access for U.S. Food Safety and Inspection Service-certified meat and poultry products into Thailand’s market. Requirements imposed on U.S. horticultural exports will be science- and risk-based, with Thailand agreeing to accept certificates issued by relevant U.S. authorities.
Labor rights are also addressed in the framework, with both countries agreeing to protect internationally recognized labor rights. This includes ensuring freedom of association and collective bargaining for workers in Thailand as well as strengthening enforcement against forced labor and child labor.
Environmental protection measures form another part of the agreement. Thailand will work to combat illegal trade in forest products, promote resource efficiency, implement World Trade Organization rules on fisheries subsidies, and take steps against illegal fishing and wildlife trade.
Intellectual property issues are also set to be resolved under this framework. Thailand has committed to tackle trademark counterfeiting, copyright piracy, rogue management organizations, circumvention of technological protection measures, and patent backlogs.
On digital trade and investment issues, Thailand will refrain from imposing digital services taxes or discriminatory measures against U.S. digital businesses; ensure free cross-border data transfers; support a permanent WTO moratorium on customs duties for electronic transmissions; remove film screen quotas; ease foreign ownership restrictions in telecommunications; and eliminate domestic processing requirements for debit card transactions.
The two countries will also address concerns about state-owned enterprises’ behaviors that distort markets. Additionally, they plan to enhance cooperation on supply chain resilience by addressing unfair practices from third parties as well as working together on export controls, investment security measures, and efforts against duty evasion.
Commercial deals between American and Thai companies are expected alongside the agreement's finalization: agricultural product purchases valued at $2.6 billion per year; energy product imports totaling $5.4 billion per year; and procurement of 80 U.S.-made aircraft worth $18.8 billion annually.
Negotiations are set to continue over the coming weeks with preparations underway for signing the final agreement after completing necessary domestic procedures in both countries.