A senior official at Thailand’s Ministry of Commerce has warned that any trade deal with the United States cannot be finalized until a new parliament and cabinet are in place, as concerns grow that Washington could raise tariffs if fighting between Thailand and Cambodia is not resolved.
Speaking on Friday, Chotima Iamsawadikul, director-general of the Department of International Trade Negotiations, said the current caretaker government lacks the authority to sign binding trade agreements. Any deal reached with the United States would need approval from a newly formed cabinet and endorsement by the House of Representatives, which was dissolved on December 12 by caretaker prime minister Anutin Charnvirakul.
Her comments come as Thailand faces a 19% import tariff imposed by the United States, and amid warnings from US President Donald Trump that tariffs could be raised further if the Thailand-Cambodia conflict continues.
Chotima confirmed that technical discussions with the Office of the United States Trade Representative in Washington are ongoing. These talks focus on tariff structures, market access for goods and services, investment rules, and non-tariff barriers. However, she stressed that even if technical negotiations conclude successfully, Thailand cannot sign or implement any agreement until a new government is formed, which is expected no earlier than May 2026.
The timing is politically sensitive. A Thai delegation led by foreign minister Sihasak Phuangketkeow is attending an ASEAN summit in Kuala Lumpur, where regional leaders are under pressure to help broker a ceasefire between Thailand and Cambodia. Officials acknowledge that progress on border peace could directly affect trade relations with major partners, including the United States.
Chotima said President Trump has already signaled that tariffs could be increased if peace is not restored, following recent discussions with Anutin. She added that Thailand’s current tariff exposure remains unchanged for now, but the risk of escalation remains real.
Technical negotiations have also focused heavily on sanitary and phytosanitary standards, particularly agricultural products such as pork. Issues under review include the use of growth promoters and health risk assessments of processing facilities, with input from the Department of Livestock Development.
Another sticking point is local content rules, known as regional value content. The United States is currently negotiating similar rules with China, and Thai officials expect Washington to wait for those talks to conclude before applying consistent standards globally.
Despite progress at the technical level, officials acknowledge that Thailand’s caretaker status creates unavoidable delays. Once a new government is formed, any agreement will require cabinet approval and parliamentary ratification before it can be signed.
Business groups remain uneasy. The United States is Thailand’s largest export market, and officials warn that higher tariffs or a stalled deal could seriously damage export prospects in 2026.
Source: Matichon
The story US trade deal on hold as tariffs could rise if border conflict drags on as seen on Thaiger News.
