Thailand Should Strengthen Labor Standards to Boost Competitiveness
Thailand's Chamber of Commerce urges the government and private sector to strengthen labor standards and supply chain transparency rather than worry about US tariffs, which impose similar rates on most competing nations.
Thai chamber of commerce argues that US tariffs on Thailand versus competitors differ only marginally and should not be a major concern, recommending faster improvements in labor standards, supply chain transparency, and long-term competitive capacity.
Pont Aramwattananont, chairman of the Thai Chamber of Commerce and Thai Chamber Federation, discussed the US Section 301 tariffs imposed on over 60 trading partners including Thailand. While Thailand faces a 12.5% tariff rate, most competing nations face similar impacts, keeping overall US market competition on relatively level ground. Countries with slightly lower tariffs around 10% may have minor advantages, but the margin is narrower than previous measures and poses no significant threat to Thai business competitiveness.
Pont stated that the US is focusing on forced labor and excess production capacity. The private sector views Thailand as having no systemic forced labor issues, but laws and related measures must be enforced more clearly to build trading partner confidence and meet international standards. This will help Thailand compete fairly with countries that may receive exemptions in the future.
Another critical issue being monitored is excess capacity product measures, which the US is still examining. These could affect certain product groups, requiring urgent negotiation of reciprocal trade agreements to balance commerce with the US.
The most important step now is close government-private sector collaboration to prepare data and negotiating positions with the US for mutually beneficial outcomes. Trade agreements must reduce obstacles and preserve Thailand's long-term competitive capacity.
Pont added that the Thai Chamber of Commerce is ready to represent the private sector by gathering data, recommendations, and impact assessments from businesses to support the Ministry of Commerce. The chamber's university has conducted analyses the chamber will support, ensuring Thailand's approach is careful and balanced between protecting national interests and building investor and trading partner confidence.
"Thailand should use this opportunity to accelerate improvements in labor standards, supply chain transparency, and trade agreement negotiations, turning this crisis into an opportunity to strengthen long-term competitiveness," Pont said.
