Commerce Ministry Responds to USTR Allegations on Forced Labor and Overcapacity
Thailand defended its labor standards and production practices during technical talks with U.S. trade officials on May 13-14, denying forced labor in supply chains and rejecting overcapacity allegations in key industries.
Arada Fuengtong, director-general of the Department of Foreign Trade, revealed that Thailand participated in technical-level discussions with the USTR on May 13-14, 2025, represented by Deputy Minister Dr. Kirita Phaopitchit and officials from the Department of Foreign Trade, Ministry of Labor, Ministry of Foreign Affairs, Thai Customs Department, and Board of Investment. The delegation addressed U.S. concerns regarding forced labor and excess capacity under a Section 301 investigation of the Trade Act of 1974.
Thailand emphasized that its supply chains are free from forced labor, with strict enforcement of labor laws and exports verified by U.S. buyers and international organizations as compliant with standards and free from exploitation. The country is developing a Human Rights Due Diligence law to enhance supply chain oversight. Both sides acknowledged the importance of close cooperation in preventing forced labor throughout supply chains.
Regarding overcapacity concerns, Thailand affirmed its commitment to free trade and market mechanisms, noting that production and investment decisions are made by the private sector based on market conditions. The government has no production targets but facilitates fair competition, and denies overcapacity in automobiles and parts, rubber products, and machinery and electronics. Thailand also pledged close collaboration with U.S. Customs to prevent goods misrepresentation and enhanced origin verification to ensure Thai exports meet U.S. standards.
"This discussion occurred in a constructive and friendly atmosphere," the statement noted. "Thailand and the United States share long-standing mutual trade interests. Thailand is integral to U.S. supply chains and Thai goods are desired by American consumers—not a trade threat. Thailand reaffirms its readiness for close cooperation to ensure transparent, fair, and sustainable bilateral trade."
