BANGKOK – Thailand said on Saturday the United States had told Bangkok that it was suspending talks on finalising a reciprocal trade deal until the Thai government reaffirms its commitment to a ceasefire with Cambodia.
Thailand had said earlier that the U.S.-brokered ceasefire deal to end border clashes with Cambodia could not be carried out because of alleged breaches by Phnom Penh.
A letter from the Office of the U.S. Trade Representative announcing the suspension of talks to conclude details of the trade deal was received on Friday night, Foreign Ministry spokesperson Nikorndej Balankura told reporters.
He quoted the USTR letter as saying trade negotiations could resume once Thailand reaffirmed its commitment to carrying out the joint ceasefire declaration with Cambodia.
The two sides must negotiate and finalise details of the trade deal and prepare it for signature before it takes effect.
Last month, Washington and Bangkok announced a framework for reciprocal trade that would see the U.S. maintain a 19% tariff on Thai products while identifying products where tariffs could potentially be adjusted or cut to zero.
Separately, U.S. President Donald Trump spoke with the leaders of Thailand and Cambodia on Friday night, after border tensions re-escalated this week, and said he thought they were “going to be fine”.
He made no mention of the reported USTR letter saying trade talks were suspended. There was also no mention of it on the USTR or White House websites, where news on trade talks with other countries was posted.
Thailand this week suspended the ceasefire deal and demanded an apology over allegations that Cambodia had laid fresh landmines that injured Thai soldiers, which Cambodia denies.
Ministry spokesperson Nikorndej said Thai Prime Minister Anutin Charnvirakul explained the matter to Trump on their call, “who expressed understanding regarding the issue”.
In a Facebook post after the call, Anutin said he had asked Trump for a cut in the 19% tariff on Thai goods. He said Trump replied that it was already a low rate but he would consider the request if the removal of landmines along the border with Cambodia was completed quickly. REUTERS
