Thailand and the United States Forge New Trade Agreements Amidst Rare Earth Supply Challenges
In a significant development, Thailand and the United States have reached a framework agreement aimed at enhancing trade relations, particularly in critical minerals and energy products. The deal, which includes cutting tariffs on 99% of U.S. exports to Thailand, seeks to diversify the mineral supply chain and reduce reliance on China. However, concerns have been raised regarding the adverse impacts of a rare earth memorandum of understanding (MoU) with the U.S., as prominent parties in Thailand warn of potential monopolistic practices and trade imbalances. The Thai government assures that the MoU is non-binding and further discussions will take place to ensure mutual benefits. The U.S. maintains a 19% tariff on Thai imports while pushing for compliance on required purchases related to the agreement. As the global landscape of rare earth minerals evolves, the Thailand-U.S. collaboration marks a strategic shift in the region, particularly affecting their relationship with China and implications for regional stability.
BBC, Reuters, bangkokpost.com, Nation Thailand, MLex, The China-Global South Project, Logistics Viewpoints -, 富途牛牛, The Statesman, Evrim Ağacı