Bangkok: Sirikanlaya Tansakul, Deputy Leader of the Prachachon Party, has urged the government to pivot its focus towards providing economic relief and stimulus, as ongoing negotiations with the United States over tariffs remain uncertain. Ms. Sirikanlaya expressed concerns about the potential outcomes of the negotiations, emphasizing the need for the government to prepare for economic challenges in the near future.
According to Thai News Agency, Ms. Sirikanlaya has been closely monitoring the government's efforts to negotiate US tariffs, which currently aim to reduce rates on 90% of products to 0%. Despite these efforts, she noted that significant changes have yet to materialize. With the unpredictable nature of dealing with former President Donald Trump, she stressed the importance of maintaining a competitive tariff rate for Thailand's key exports, even if it matches those of neighboring countries.
Ms. Sirikanlaya highlighted the complexities of the negotiation process, pointing out that even countries like Vietnam have shown resistance to agreements announced by Trump. She warned that Indonesia might encounter similar issues, underscoring the difficulty in predicting outcomes. Despite these uncertainties, she remains hopeful for a competitive tariff rate that supports Thailand's economy, noting that a predicted 18% tariff rate would still result in low GDP growth for 2025-2026.
As the final round of negotiations approaches, Ms. Sirikanlaya called on the government to shift its focus towards mitigating economic impacts and preparing for future challenges. She expressed concerns about the limited funds remaining for economic stimulus, with only 40 billion baht left from the approved 110 billion baht for 2025. With less than two months before the fiscal year's end, she urged the government to prioritize preparing reserve funds for 2026, given the anticipated economic challenges.
Ms. Sirikanlaya further emphasized the need for clear guidelines and policies from Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, regarding budget preparation for 2026. She advocated for a minimum budget cut of 100 billion baht to address future economic needs, suggesting that the issuance of a Loan Act might be unavoidable. The opposition Budget Committee has proposed that Mr. Pichai provide clarity on economic stimulus plans, urging a reevaluation of priorities and a strategic approach to budget cuts.