Thailand

The United States and Thailand launched Free Trade Agreement negotiations in 2004 but suspended them in 2006 following the dissolution of the Thai Parliament and the subsequent military-led coup.

Although FTA negotiations remain suspended, U.S. and Thai officials continued to discuss bilateral issues as well as ways to advance the WTO Doha negotiations and the APEC and ASEAN agendas.

The United States and Thailand held informal consultations a formal dialogue on trade and investment issues in Washington, D.C. in June 2008 and informal meetings in March 2009. The United States raised concerns regarding Thai customs practices, labeling requirements and other technical barriers to trade, market access for U.S. beef and live cattle, and the deterioration of intellectual property rights protection in Thailand over the past several years.

The United States will continue to monitor and evaluate the political situation in Thailand and, as appropriate, will consider steps to further strengthen bilateral economic relations.

U.S.-Thailand Trade Facts

U.S. goods and services trade with Thailand totaled $35 billion in 2007 (latest data available). Exports totaled $10 billion; Imports totaled $25 billion. The U.S. goods and services trade deficit with Thailand was $14 billion in 2007.

Thailand is currently our 25th largest goods trading partner with $32.6 billion in total (two ways) goods trade during 2008. Goods exports totaled $9.1 billion; Goods imports totaled $23.5 billion. The U.S. goods trade deficit with Thailand was $14.5 billion in 2008.

Trade in services with Thailand (exports and imports) totaled $3.6 billion in 2007 (latest data available). Services exports were $1.8 billion; Services imports were $1.8 billion. The U.S. services trade surplus with Thailand was $9 million in 2007.

Exports

Thailand was the United States' 29th largest goods export market in 2008.

U.S. goods exports to Thailand in 2008 were $9.1 billion, up 7.2 percent ($612 million) from 2007, and up 86.4 percent from 1994 (the year prior to Uruguay Round). U.S. exports to Thailand accounted for 0.7 percent of overall U.S. exports in 2008, down from 1.0 percent in 1994.

The top export categories (2-digit HS) in 2008 were: Electrical Machinery ($1.9 billion), Machinery ($1.6 billion), Iron and Steel Products ($484 million), Optic and Medical ($451 million), and Precious Stones (gold and diamonds) ($447 million).

U.S. exports of agricultural products to Thailand totaled $1.1 billion in 2008, the 19th largest U.S. Ag export market. Leading categories include: cotton ($272 million), wheat ($164 million), feeds and fodders ($103 million), dairy products ($82 million), and hides and skins ($58 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to Thailand were $1.8 billion in 2007 (latest data available), 13.6 percent ($214 million) more than 2006 and 76 percent ($769 million) greater than 1994 level. Other private services (business, professional, and technical services) category led U.S. exports in 2007.

Imports

Thailand was the United States' 19th largest supplier of goods imports in 2008.

U.S. goods imports from Thailand totaled $23.5 billion in 2008, a 3.5 percent increase ($793 million) from 2007, and up 128 percent from 1994. U.S. imports from Thailand accounted for 1.1 percent of overall U.S. imports in 2008, down from 1.6 percent in 1994.

The five largest import categories in 2008 were: Electrical Machinery ($5.6 billion), Machinery ($4.8 billion), Rubber ($1.6 billion), Precious Stones and Metals (articles of jewelry) ($1.2 billion), and Prepared Meat, Fish (shrimp and tuna) ($1.1 billion).

U.S. imports of agricultural products from Thailand totaled $1.9 billion in 2008, the 12th largest supplier of Ag imports. Leading categories include: rubber and allied products ($630 million), processed fruit and vegetables ($382 million), and rice ($341 million).

U.S. imports of private commercial services (i.e., excluding military and government) were $1.8 billion in 2007 (latest data available), up 16.9 percent ($257 million), and up 272 percent ($1.3 billion) from 1994 level. Travel accounted for most of U.S. services imports from Thailand.

Trade Balance

The U.S. goods trade deficit with Thailand was $14.5 billion in 2008, a 1.3 percent increase ($181 thousand) over 2007.

The United States has a services trade surplus of $9 million in 2007 (latest data available).

Investment

U.S. foreign direct investment (FDI) in Thailand (stock) was $15.0 billion in 2007 (latest data available), a 37.3 percent increase from 2006.

U.S. FDI in Thailand is primarily concentrated in the manufacturing, banking, finance, and wholesale trade sectors.

Thailand FDI in the United States (stock) was $335 million in 2007 (latest data available), a 16 percent increase from 2006.

Sales of services in Thailand by majority U.S.-owned affiliates were $3.2 billion in 2006 (latest data available), while sales of services in the United Sates by majority Thailand-owned firms were $295 million.

 

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*NOTE: Refers to private services trade not including U.S. military sales, direct defense expenditures, and other miscellaneous U.S. government services.