On August 25, 2019, Ms. Rachada Thanadirek, Deputy Spokesperson of the Prime Minister's Office, revealed that the ongoing trade war has led to both positive and negative impacts. Since taking office, the government has implemented various measures to accommodate shifts in trade and investment. The positive aspect of trade is that Thai products have the opportunity to replace U.S. goods in China or Chinese goods exported to the U.S., presenting an opportunity for agricultural and food products.

          However, products within the supply chain of Chinese goods, such as electrical components and circuit boards, will be affected. In this regard, Mr. Jurin Laksanawisit, Minister of Commerce, has instructed the following actions: 1) Establish a War Room to monitor the trade war situation and propose timely responses, with a joint working group from both public and private sectors to promote exports by product group and market; 2) Conduct targeted roadshows for Thai products to penetrate the U.S. and Chinese markets, as well as expand into new markets in India, the Middle East, and ASEAN; 3) Integrate the work of commercial and agricultural attachés, marking the first time these two agencies will jointly drive agricultural exports; 4) Advance trade negotiations at both multilateral and bilateral levels. Additionally, the shift in trade may lead to an influx of goods into Thailand. The Ministry of Commerce has prepared to address this by utilizing the Anti-Dumping and Subsidy Act as a tool to protect Thai entrepreneurs.

          Regarding the shift in investment, it is expected to have a positive impact on Thailand, as investors are considering relocating their production bases from the U.S. and China, particularly those moving out of China, such as investors from the U.S., China, Taiwan, and Japan. Currently, there are 10 companies that have decided to invest in Thailand, including Ricoh and Delta, with expectations for more to follow. To attract this group of investors, Deputy Prime Minister Somkid Jatusripitak has assigned the BOI to oversee this initiative, which will focus on three areas: 1) Implementing measures beyond tax incentives to attract investment to Thailand; 2) Establishing a task force to attract foreign investors directly affected by the trade war; 3) Organizing marketing promotion activities in China, the U.S., Japan, and Europe, involving the private sector and financial institutions to support funding sources and enhance approval efficiency.

          The aforementioned actions are part of the main efforts related to the direct impacts of the trade war. The government is also advancing other initiatives, such as enhancing the capabilities and reducing production costs in the industrial and agricultural sectors, as well as promoting workforce skills and infrastructure to support incoming investments. Despite uncertainties from external factors, the strategies implemented and those planned will lead to increased export potential, elevate production bases, promote knowledge transfer, and enhance employment.

Thank you for the information from www.thaipost.net