Key insights
- The US Section 301 investigation into Thailand's excess production capacity and forced labor practices poses a risk of tariffs on Thai goods. While the direct impact on US equities is limited, increased global trade tensions could negatively affect multinational corporations and supply chains, contributing to overall market uncertainty.
BANGKOK, March 23 (Reuters) - Thailand must submit written comments to the United States on the U.S. Section 301 trade investigation by April 15, the commerce ministry said on Monday.
The country risks facing a tariff if it fails to defend its case, Chotima Iemsawasdikul, director general of the Department of Trade Negotiations, told a briefing. * Thailand is among 16 countries the US said would be subject to investigation underSection 301 of the Trade Act of 1974. * The investigation of Thailand covers excess productioncapacity in sectors such as autos, machinery parts, fish, fishoil, animal feed and garments, and a separate case on imports ofgoods made with forced labour, with no specific source countryidentified, Chotima said. * The country remains in discussions with the US followingthe original joint statement on tariff and non‑tariff issues, she said. * Thai goods had been hit with a 19% US tariff, which hasnow been replaced by Washington’s new global tariff . * The Thailand‑EU free-trade agreement talks are halfwaythrough, and Thailand is pushing to conclude them this year,Chotima said.