Thaksin: Tariff could be reduced to 0% but must be 0 for both sides
DE FACTO Pheu Thai boss Thaksin Shinawatra said today (Apr. 8) in advising his daughter/Prime Minister Paetongtarn Shinawatra regarding negotiating with US about the 36% tariff President Donald Trump has imposed on Thailand he mentioned that the Thai side could reduce the levy to 0% but it must be 0 for both sides, Thai Newspaper said.
Asked why the US has imposed such a high tariff on Thailand, Thaksin said the Americans used the same formula in making this calculation. This is based on how much trade surplus we obtain and how much they are able to sell to us, converting it to percent and dividing by two.
For example,Cambodia imports very little, almost nothing at all from the US, so it is 90% divided by two.
The US threw in this formula for negotiation with each country, Thaksin said, adding the government today contacted Washington for negotiation and it should progress well with the Prime Minister today also selecting who should represent Thailand in the talks.
The tax system and trade barriers maintained here were unnecessary and it was never adjusted with the Americans feeling that Thailand is discriminating against them far too much.
For example when it comes to motorcycles, US produces Harley-Davidson but can it compete against Kawasaki, Suzuki and Honda? Despite this Thailand has set a small tariff and we have to adjust this, Thaksin said.
“But that doesn’t mean we will give up everything. We can reduce the tariff to 0, but if it’s 0, it has to be 0 for both sides,” he said.
The former prime minister said the economic problems Thailand faces today are much worse than before and while it should be manageable it would take time to resolve.
“It’s not as fast as before,” he said.
If the economy is like a house, in the past we had to repair a damaged roof which was easy to do. However today, because the problems have been left to linger for a long time, the foundation has deteriorated and the pillars are shaky thus it is more difficult and time-consuming methods are required for repairs.
However, as there are new technologies, the house should be repaired for the better.
Photo: Thai Rath
The report was originally published by www.thainewsoom.com
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