Thailand Targets 12 Trillion Baht Exports to Boost Weak GDP Growth
Thailand aims to reach 12 trillion baht in annual exports to reverse slowing GDP growth, with deputy PM Supachai Panitchpakdi negotiating with the U.S. in late August to resolve trade disputes over forced labor and alleged transshipment of
Deputy Prime Minister and Commerce Minister Supachai Panitchpakdi expressed dissatisfaction with Thailand's second-quarter GDP growth rate of 1.9 percent, down from 2.8 percent in the first quarter. The slowdown has been attributed to impacts from the Middle East conflict, which has raised energy prices and living costs for the public.
Exports remain a critical engine for GDP growth. The government projects two-digit growth in export value for the full year, with first-half exports (January-June) totaling approximately 6.6 trillion baht. If conditions remain stable, full-year exports are expected to reach 12 trillion baht. A technical team is scheduled to negotiate the U.S. Agreement on Reciprocal Trade (ART) on August 27-29, with Panitchpakdi following on August 30-September 1.
The government is currently resolving two Section 301 investigation issues: forced labor, which has been concluded, and surplus production, where the U.S. alleges Thai goods are transshipped. Panitchpakdi expressed confidence that Thailand can clarify its position, noting that domestic production accounts for 75-90 percent in three key sectors—rubber, machinery, and automobiles—exceeding the U.S. 60-percent threshold. Currently, 72 percent of Thai goods enjoy U.S. tariff exemptions, and negotiations are underway to secure relief for the remaining 28 percent, particularly agricultural products. Final discussions are scheduled for late August through early September.
Parallel to trade matters, Panitchpakdi instructed preparations to address flooding in Nan Province and neighboring areas, directing the Department of Internal Trade to coordinate with the private sector to ensure adequate supplies of essential consumer goods.
