Illustrative image (Photo: bangkokpost.com) Bangkok (VNA) – Thailand’s Ministryof Commerce on May 11 sent a document to the US saying that the country’s tradesurplus with the US is based on differences in economic structure, not fromdiscrimination or unfair policies.
The ministry’s spokesman PimchanokVonkorpon said that the Cabinet approved Thailand’s draft clarification letterat its meeting on May 9.
According to the letter, US exports toThailand have not expanded at a high level as the US does not have a free tradeagreement with Thailand, while US direct investment in Thailand has sloweddown.
The Thai products that the US imports helpdevelop the American economy, the ministry argues. They include intermediateproducts for value to be added by US advanced technology and agriculturalmaterials.
Thailand has also invested more in the US,generating jobs for tens of thousands of Americans, while many US firms investand operate in Thailand.
Thailand is the regional export base for USfirms and links up with US value chains in the Asia-Pacific region.
Thai exports to the US reflect structuraldifferences and mutual dependence between the Thai and US economies, theministry said.
The letter also explained that Thailand’strade policies adhere to the World Trade Organisation’s commitments and theThailand-US framework agreement on trade and investment.
On January 31, the US President signed twodecrees aimed at correcting the country’s trade deficit with 13 economies. Theyare in descending order Canada, China, the European Union, India, Indonesia,Japan, the Republic of Korea, Malaysia, Mexico, Switzerland, Taiwan (China),Thailand and Vietnam. The documents require analytical reports on the cause ofthe trade deficits and response from related trade partners. -VNA
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