BANGKOK (Reuters) -Thailand will go ahead with talks on finalising a reciprocal trade deal with the United States, a government spokesperson said on Saturday, adding the discussions will remain separate from issues relating to its border dispute with Cambodia.
Bangkok had earlier on Saturday said that Washington was suspending negotiations until the Thai government reaffirmed its commitment to a U.S.-brokered ceasefire deal with Cambodia.
However, the temporary suspension occurred before a call between Thai Prime Minister Anutin Charnvirakul and U.S. President Donald Trump late on Friday, Thai government spokesperson Siripong Angkasakulkiat said in a statement.
“Tariff negotiations will continue and remain separate from border issues,” Siripong said, adding that Trump had told Anutin that the U.S. did not wish to interfere in the Thailand–Cambodia issue under the existing bilateral mechanisms.
Washington and Bangkok last month 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.
A letter from the Office of the U.S. Trade Representative regarding the suspension of talks to conclude details of the trade deal was received on Friday night, Foreign Ministry spokesperson Nikorndej Balankura earlier 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.
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”.
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.
Trump 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.
Anutin said in a Facebook post after the call with Trump that he had asked for a cut in the 19% tariff on Thai goods.
Trump replied that it was already a low rate, Anutin said, but he would consider the request if the removal of landmines along the Cambodia border was completed quickly.
(Reporting by Orathai Sriring; editing by Mark Heinrich and Alexander Smith)
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