Thailand's Feed Industry Proposes $2.8 Billion Increase in U.S. Agricultural Imports Amid Trade Surplus Concerns
Initiative aims to reduce trade surplus with the United States and prevent potential tariffs on Thai exports.
Thailand's animal feed industry has proposed increasing imports of U.S. agricultural commodities by approximately $2.8 billion annually.
This move is intended to reduce the nation's $35.4 billion trade surplus with the United States and mitigate the risk of potential tariffs on Thai exports.
The Thai Feed Mill Association is in discussions with the government to adjust import regulations, making U.S. feed ingredients like soybean meal and corn more competitively priced.
Association President Pornsil Patchrintanakul emphasized the need to remove a 2% import tax on U.S. soybean meal and temporarily suspend World Trade Organization-mandated tariffs on corn to facilitate this shift.
Currently, Thailand imports minimal amounts of U.S. soybean meal and no U.S. corn, relying heavily on suppliers from Brazil and neighboring Southeast Asian countries.
The proposed changes could lead to annual imports of up to $1.4 billion in soybean meal, $1.1 billion in corn, and $300 million in ethanol by-products from the United States.
This initiative aligns with broader efforts by Thai authorities to address trade imbalances with the United States.
Commerce Minister Pichai Naripthaphan expressed hope that Thailand can avoid U.S. tariffs by engaging in negotiations and adjusting import policies.
The United States is Thailand's largest export market, accounting for 18.3% of total shipments in 2024.
Prime Minister Paetongtarn Shinawatra has directed government agencies to assess the impact of U.S. trade policies on Thailand's export-driven economy.
A working group established in January is formulating negotiation strategies to address these challenges.
The proposed increase in U.S. agricultural imports is part of Thailand's strategy to balance trade relations and maintain favorable economic ties with the United States.
The outcome of these efforts will depend on ongoing negotiations and potential adjustments to existing trade policies.
This move is intended to reduce the nation's $35.4 billion trade surplus with the United States and mitigate the risk of potential tariffs on Thai exports.
The Thai Feed Mill Association is in discussions with the government to adjust import regulations, making U.S. feed ingredients like soybean meal and corn more competitively priced.
Association President Pornsil Patchrintanakul emphasized the need to remove a 2% import tax on U.S. soybean meal and temporarily suspend World Trade Organization-mandated tariffs on corn to facilitate this shift.
Currently, Thailand imports minimal amounts of U.S. soybean meal and no U.S. corn, relying heavily on suppliers from Brazil and neighboring Southeast Asian countries.
The proposed changes could lead to annual imports of up to $1.4 billion in soybean meal, $1.1 billion in corn, and $300 million in ethanol by-products from the United States.
This initiative aligns with broader efforts by Thai authorities to address trade imbalances with the United States.
Commerce Minister Pichai Naripthaphan expressed hope that Thailand can avoid U.S. tariffs by engaging in negotiations and adjusting import policies.
The United States is Thailand's largest export market, accounting for 18.3% of total shipments in 2024.
Prime Minister Paetongtarn Shinawatra has directed government agencies to assess the impact of U.S. trade policies on Thailand's export-driven economy.
A working group established in January is formulating negotiation strategies to address these challenges.
The proposed increase in U.S. agricultural imports is part of Thailand's strategy to balance trade relations and maintain favorable economic ties with the United States.
The outcome of these efforts will depend on ongoing negotiations and potential adjustments to existing trade policies.