Bangkok: Thailand is actively working to resolve concerns surrounding forced labor as it prepares for possible US tariffs. Supajee has disclosed that the United States might impose a 12.5% tariff on Thai goods, prompting an urgent need for Thailand to address forced labor issues.
According to Thai News Agency, the U.S. Trade Representative (USTR) has proposed import tariffs of 12.5% under Section 301 on 60 countries, including Thailand, due to perceived failures in addressing forced labor issues. While major export products like electronics are exempt, goods such as rice, seafood, and automotive parts could be impacted. Negotiations are currently in progress to resolve the issue before the U.S. concludes its investigation.
Deputy Prime Minister and Minister of Commerce, Supachie Suthamphan, highlighted that Thailand lacks specific legislation to comprehensively address forced labor, making it vulnerable to US trade barriers. Although Thailand has the Labour Protection Act of 1998 and the Anti-Trafficking in Persons Act of 2008, these do not specifically prohibit the import or control of goods produced under forced labor from an international trade law perspective. Consequently, the government is striving to negotiate and improve labor standards to meet international criteria.
Despite the US not directly accusing Thailand of employing forced labor, there are concerns about Thailand importing goods from countries that do. The situation is currently in a preliminary phase, and the Ministry of Commerce is working to resolve the matter by July, before the existing 19% tariff concludes on July 24th.