Thailand to boost US exports by importing American corn

Thailand’s Finance Minister to Visit US to Boost Exports Including Feed, Corn Imports

Thailand’s Deputy Prime Minister and Finance Minister Pichai Chunawajira outlined the country’s strategy on US trade and tariff policies ahead of his visit to the United States. The focus is on increasing Thai exports to the US while increasing imports of US goods.

After a meeting of Thailand’s US Tariff Policy Committee on April 11, Pichai Chunawajira said detailed discussions were held on specific product groups. Consultations were held with various industry groups involved in US trade to prepare negotiating strategies.

“As for the timing of our visit to the US for negotiations, it should be as soon as possible,” Pichai Chunawajira said. “The Office of the US Trade Representative (USTR) has already accepted our request, although a specific date has not been set yet.”

He added that he plans to travel to the US with Commerce Minister Pichai Naripattapan, jokingly saying, “When someone calls Pichai, we both turn around at the same time.” They will be joined by private sector representatives to strengthen Thailand’s position.

The Deputy Prime Minister explained that Thailand needs to identify its strengths in exports, especially in animal feed processing. Currently, Thailand exports only 3% of its animal feed processing output to the US market, but increasing that to 6% would bring significant benefits, helped by importing raw materials from the US.

Thailand currently uses 9 million tonnes of corn annually for processing, with 4 million tonnes produced domestically and the rest imported from other countries.

Pichai Chunawajira suggested shifting import sources towards the US, noting that importing US corn could potentially reduce production costs for animal feed.

On investment strategies, the Board of Investment (BOI) needs to adapt its approach given the significant changes in the global situation. Negotiations on importing natural gas from the US or potential investments by Thai state-owned enterprises in US gas fields will be considered.

However, Pichai Chunawajira stressed that if Thailand were to buy gas from the US, prices must remain reasonable.

Prime Minister Yingluck Shinawatra had previously said that the government’s strategy must be both “fast and precise”. After comprehensive preparations and monitoring of the affected sectors, the government will determine its approach to the negotiations.

“I must emphasize that the negotiations will not be concluded in one round, but will take time and will be held at different levels,” the prime minister said. “We believe that these changes will have a structural impact on the economy, so we must prepare both mitigation measures for those affected in the short term and consider long-term economic restructuring and continued market diversification to ensure the resilience of the Thai economy.”

Poi Aramwattananont, chairman of the Thai Chamber of Commerce, who attended the meeting, expressed concern that despite the 90-day tariff deferral announced by President Trump, the tariff announcement on April 2 has already had a negative impact.

“New orders have become noticeably less frequent because no one knows what prices to negotiate,” Poi Aramwattananont said.

“This is becoming a serious problem in an already tense environment. If the situation remains unclear, the June-July export figures will be significantly lower.”

For Thai goods with existing orders in the U.S. at the original tariff rates, shipment must be made no later than May 10.

Poi Aramwattananont also announced that he will lead a delegation from the Thai Chamber of Commerce, along with the American Chamber of Commerce in Thailand and government officials, to explore investment opportunities at the SelectUSA event, where all U.S. states invite foreign investment.

His delegation is scheduled to travel from May 9 to 14, followed by a Thai-U.S. seminar in Thailand from May 19 to 21, aimed at strengthening bilateral investment between the two countries.

Tags: USA, corn, Thailand