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Thailand Establishes Strategic Trade Negotiation Committee to Strengthen Trade Relations with the United States

Background and Strategic Context

As Thailand’s largest export market, the United States plays a pivotal role in the Thai economy, making U.S. tariff policies a matter of critical national importance. Following recent negotiations, the United States has agreed to maintain reciprocal tariffs at 19 percent on originating goods from Thailand, a significant reduction from the initially proposed 36 percent rate. The Thai government continues to pursue favorable tariff treatment to safeguard its export sectors, agricultural industries, manufacturing base, employment levels, and overall economic stability.

Establishment of the Strategic Trade Negotiation Committee

To enhance bilateral trade discussions with the United States and strengthen Thailand’s strategic trade and economic policy framework, the Thai government has established the Strategic Trade Negotiation Committee (“Committee“). The Cabinet has appointed the Deputy Prime Minister and Minister of Finance as Chairman of the Committee for Trade Negotiations with the United States, with a mandate to coordinate inter-ministerial efforts and advance policy-level coordination.

According to government statements, the Prime Minister has directed the Cabinet to establish the Committee, comprising ministers from six key ministries:

  1. Ministry of Commerce
  2. Ministry of Foreign Affairs
  3. Ministry of Agriculture and Cooperatives
  4. Ministry of Industry
  5. Ministry of Digital Economy and Society
  6. Ministry of Public Health

The Prime Minister has set an ambitious deadline of four months for the Committee to conclude negotiations, underscoring the urgency of these discussions for Thailand’s economic interests.

Key Negotiation Priorities

Tariff Optimization

Under the agreed framework, the United States will identify specific products from a designated list to receive a zero percent reciprocal tariff rate, presenting strategic opportunities for Thailand to optimize benefits for priority sectors while maintaining balanced trade relations.

Non-Tariff Barriers and Market Access

Thailand has committed to addressing barriers to U.S. exports, including accepting U.S. manufactured vehicles that comply with U.S. federal motor vehicle safety and emissions standards, accepting U.S. Food and Drug Administration certificates for medical devices and pharmaceuticals, issuing import permits for U.S. ethanol for fuel, and amending customs laws to remove certain customs penalty reward systems.

Regulatory Alignment and Standards

Many issues raised by the United States—including regulatory reform, law enforcement, and product standards—align with areas that Thailand aims to improve independently, creating opportunities for mutual benefit and long-term trade facilitation.

Commercial Commitments

The negotiations have resulted in forthcoming commercial agreements between U.S. and Thai companies across multiple sectors, including purchases of agricultural products valued at approximately 2.6 billion USD annually, energy products valued at approximately 5.4 billion USD annually, and the procurement of 80 U.S. aircraft totaling 18.8 billion USD.

Broader Trade Strategy

The establishment of the Committee reflects Thailand’s proactive approach to advancing its comprehensive trade and investment strategy. Beyond the U.S. negotiations, the Thai government is simultaneously pursuing a Free Trade Agreement with the European Union, demonstrating its commitment to diversifying and strengthening international trade relationships.

Conclusion and Outlook

The formation of the Strategic Trade Negotiation Committee represents a significant institutional response to evolving global trade dynamics. In the coming weeks, the United States and Thailand will negotiate and finalize the Agreement on Reciprocal Trade, prepare the Agreement for signature, and undertake domestic formalities in advance of the Agreement entering into force.

Businesses and stakeholders are strongly encouraged to monitor these developments closely, as the outcomes may have substantial implications for:

  1. Export sector competitiveness and market access
  2. Supply chain optimization and sourcing strategies
  3. Regulatory compliance requirements
  4. Long-term investment planning
  5. Thailand’s broader economic policy direction

The government’s coordinated, multi-agency approach—coupled with clear timelines and measurable commitments—positions Thailand to navigate the complex landscape of international trade negotiations effectively while protecting national economic interests.

Author: Panisa Suwanmatajarn, Managing Partner.

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Copyright Collection Society: New Database for Transparent Music Royalties

The management of music copyrights by collection societies has long been fraught with challenges, including a lack of transparency regarding which entities legitimately represent copyright holders. This opacity often results in unauthorized royalty collections, duplicate payments, and legal disputes over copyright infringements. To address these issues, the Department of Intellectual Property (DIP) under Thailand’s Ministry of Commerce has developed innovative online systems to enhance fairness, reduce infringement risks, and streamline access to copyright information.

On September 24, 2025, the DIP launched two pivotal platforms: a comprehensive music database and a registry for authorized royalty collection agents and infringement handlers. These systems aim to promote equitable use of intellectual property rights and foster discipline in commercial practices, particularly benefiting businesses such as restaurants, cafes, hotels, and other service-oriented enterprises that rely on music.

The music database encompasses over 250,000 Thai songs and more than 19 million international tracks registered for royalty collection. Users can search for songs to verify their copyright status, authorized collection organizations, and applicable royalty rates. This functionality reduces the burden of overlapping royalty payments, curbs illegal collection demands, and mitigates copyright violations. It also enables users to secure proper permissions efficiently, minimizing the risk of legal action for unauthorized use.

The complementary database for royalty collection agents and infringement representatives allows the public and businesses to verify the credentials of individuals or entities claiming to represent copyright owners. It provides details on legal authorization, the scope of protected works, and the duration of the mandate. Registered agents receive digital identification cards with QR codes, which, when scanned, instantly display relevant information through the system, safeguarding against fraudulent representations.

Both platforms are accessible via the DIP’s official website at https://www.ipthailand.go.th, marking a significant advancement in digital intellectual property services. These tools are poised to support Thailand’s creative industries by fostering a transparent environment for music royalty management, driving sustainable economic growth through intellectual property. The DIP’s initiative reflects a commitment to balancing the interests of copyright holders, users, and the public, establishing a fair and efficient framework for the industry.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand and the United States Advance Agreement on Reciprocal Trade

Thailand is accelerating efforts to finalize a reciprocal trade agreement with the United States by year-end. The Minister of Commerce confirmed in her first policy statement to the Parliament that the Agreement represents a key component of her “Quick Big Win” strategy, designed to expand international market access while safeguarding Thai producers and consumers. This trade agenda forms part of a broader initiative to stabilize domestic prices and enhance competitiveness for small and medium enterprises (SMEs).

Progress Toward the Thai–U.S. Trade Agreement

Following the joint statement released on 31 July 2025, both countries have been working intensively to finalize the Agreement on Reciprocal Trade (Agreement). The Agreement will encompass trade in goods, services, and investment, with the dual objective of expanding U.S. market access for Thai exports while preserving domestic safeguards, particularly in the agricultural and local manufacturing sectors.

Enhanced Origin Rules and Digital Verification

The Department of Foreign Trade (DFT) has been designated as the sole authority for issuing Certificates of Origin (C/O) for exports to the United States, ensuring full compliance with stricter U.S. rules of origin. To prevent fraud and strengthen oversight, the DFT has implemented AI-based verification systems that enhance transparency and traceability in export documentation. Under this enhanced framework:

  • AI verification tools automatically analyze shipment data and flag irregularities
  • Strict anti-forgery protocols are enforced
  • The high-risk product watch list has been expanded to 65 categories

These initiatives have delivered measurable results—C/O forgery cases declined sharply from 168 in 2023 to just 5 in 2024, with zero cases reported thus far in 2025.

The verification of product origin has emerged as a significant concern for U.S. authorities, who suspect transshipment of Chinese goods through Southeast Asia. Goods that fail to meet local-content requirements could face tariffs as high as 40%, compared to the current 19% rate on Thai exports, underscoring the critical importance of accurate origin certification.

Strengthened Trade-Remedy Protection

Thailand currently enforces 31 anti-dumping (AD) measures, while facing 73 AD measures imposed by other countries. For anti-circumvention (AC) measures, Thailand has implemented 6 cases and has been subject to 4 such cases by other countries.

To expedite relief for affected businesses, the Ministry of Commerce (MOC) has announced improvements to streamline the investigation process under these trade remedy mechanisms:

  • Complaint review period reduced from 4 months to 1 month
  • Investigation period shortened from 12 months to 9 months
  • AI-driven data analysis was introduced to improve accuracy and reduce processing time to 3 months

Strategic Readiness for Thai Exporters Under the New Trade Framework

Once the Agreement is finalized, Thai exporters will gain enhanced access to the U.S. market and lower tariff barriers. However, compliance obligations will become more rigorous. Exporters are advised to:

  • Review supply chain transparency and origin documentation to ensure compliance with relevant regulations and standards
  • Ensure consistency with the DFT’s certification framework
  • Implement internal audit systems to maintain long-term compliance

Conclusion

The forthcoming Agreement represents an important milestone in strengthening Thailand’s global trade position and promoting sustainable economic growth. By aligning with U.S. trade standards, Thailand will gain expanded access to international markets while building greater trust and transparency in its export system. The deployment of AI-based verification and expedited trade-remedy processes demonstrates the government’s commitment to efficiency and accountability. Concurrently, Thai exporters must meet more stringent compliance requirements and strengthen their internal controls. Overall, the Agreement achieves a balanced approach between creating new business opportunities and maintaining responsible regulation, enabling Thailand to compete globally with enhanced confidence and credibility.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand Streamlines Origin Certification Procedures for Exporters Under New DFT Notification

Pursuant to the mandate of the Ministry of Commerce, the Department of Foreign Trade (DFT) has been designated as the sole authority responsible for issuing Certificates of Origin (C/O) for goods exported from Thailand. The DFT recently issued the Notification on the Registration of Authorized Exporters for Self-Certification of Rules of Origin under International Trade Agreements or International Trade Practices B.E. 2568 (2025) (the “Notification”), which took effect on 1 October 2025.

This Notification establishes the criteria, procedures, and conditions for exporters to register and obtain authorization to perform self-certification of origin, enabling them to issue their own origin declarations to claim preferential tariff treatment or other benefits under international trade agreements.

Purpose of the Notification

The Notification enables exporters to certify the origin of their goods under regional trade agreements more efficiently, without relying exclusively on government-issued certificates of origin. The initiative is designed to:

  • Facilitate international trade;
  • Reduce administrative burdens; and
  • Expand exporters’ access to preferential tariff treatment under applicable trade frameworks.

A Streamlined Digital Process

Under this Notification, registration is conducted through an enhanced digital system, which:

  • Improves operational efficiency and transparency;
  • Supports digital compliance monitoring by the DFT; and
  • Enables faster access to preferential customs benefits, significantly reducing processing times.

This development provides qualified exporters with greater procedural efficiency, expedited access to tariff preferences, and reinforces Thailand’s commitment to regulatory harmonization in response to increasing global scrutiny of origin compliance.

Author: Panisa Suwanmatajarn, Managing Partner.

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Startup Promotion and Development Act: Facilitating Growth and Innovation

The Draft Startup Promotion and Development Act (“Draft”) aims to bolster Thailand’s startup ecosystem by addressing legal and operational challenges that hinder growth and competitiveness. Recognizing the pivotal role startups play in driving economic progress and innovation in an increasingly dynamic global landscape, the Draft seeks to create a supportive legal framework to enhance entrepreneurial capacity, funding access, and business networking. The public consultation period for the Draft is open until 27 October 2025.

Regulatory Framework and Authorities:

The Draft establishes the Startup Promotion Committee, tasked with overseeing and formulating policies to foster startup development. The National Innovation Agency (NIA) acts as the primary coordinator, bridging public and private sectors to streamline access to benefits and incentives for qualifying startups. The NIA also operates a one-stop service center, disseminates information on rights and benefits, and facilitates connections to funding opportunities.

Eligibility Criteria for Startups:

To qualify for the benefits outlined in the Draft, startups must meet specific criteria and submit a self-declaration to the NIA, including:

•  Establishment Period: The startup must be a limited company incorporated for no more than 10 years at the time of application.

•  Revenue Threshold: An average annual revenue not exceeding 300 million baht over the past three consecutive years.

•  Dividend Status: The startup must not have paid dividends.

•  Ownership Structure: The startup must not be controlled by another company, except in cases where the controlling entity is itself a startup or a company established by, or in partnership with, a higher education institution to promote research and innovation.

Startups are required to annually update their information and supporting documents through the NIA’s electronic system. Upon verification, eligible startups are officially recognized and granted access to the prescribed benefits.

Rights and Benefits for Startups:

The Draft provides several key benefits to recognized startups, including:

  • Exemption from Shareholding Restrictions: Startups are permitted to hold their own shares to support fundraising, operations, and expansion, or to offer shares to the public and issue debentures, subject to Securities and Exchange Committee regulations.

•  Additional Entitlements: Benefits related to taxation, immigration, funding, and intellectual property are managed by relevant agencies, ensuring a comprehensive support system.

These benefits are available for five years from the Draft’s official publication date, with an extension of up to 10 years for startups engaged in agricultural activities.

Penalties for Non-Compliance:

The Draft includes provisions for penalties to ensure adherence to its regulations, maintaining transparency and integrity within the startup ecosystem.

What Startups Should Prepare:

To take full advantage of the Draft, startups should:

1.  Verify Eligibility: Ensure compliance with the establishment period, revenue threshold, dividend status, and ownership structure requirements.

2.  Prepare Documentation: Gather and maintain accurate records for submission to the NIA, including financial statements and ownership details, to support the self-declaration process.

3.  Engage with the NIA: Utilize the NIA’s one-stop service center and electronic system for updates and to access funding and networking opportunities.

4.  Understand Benefits: Familiarize themselves with available exemptions and incentives, particularly regarding shareholding, taxation, and intellectual property, to maximize strategic growth.

5.  Stay Compliant: Adhere to the Draft’s regulations to avoid penalties and sustain eligibility for benefits.

Conclusion

The Draft represents a significant milestone in modernizing Thailand’s legal framework to support startups, foster innovation, and strengthen national competitiveness. By establishing a more transparent, flexible, and growth-oriented regulatory structure, the Draft provides a robust foundation for a thriving and dynamic startup ecosystem in Thailand. Upon enactment, it is anticipated to cultivate a more vibrant and investor-friendly environment that will accelerate the growth and success of emerging businesses throughout the country.

Author: Panisa Suwanmatajarn, Managing Partner.

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Department of Business Development Establishes Division to Combat Illegal Business Practices

On October 2, 2025, the Department of Business Development (DBD) announced the formation of the Division for the Prevention and Suppression of Illegal Businesses, aimed at strengthening enforcement mechanisms to address unlawful business activities in Thailand. This initiative underscores the DBD’s commitment to safeguarding economic integrity and ensuring compliance with legal standards.

Addressing Illegal Business Practices:

The newly established Division focuses on tackling fraudulent practices, particularly the use of “juristic person mule accounts” and nominee shareholding arrangements. Juristic person mule accounts involve the registration of corporate entities to open bank accounts for deceptive purposes, exploiting the DBD’s streamlined and accessible registration processes. Additionally, some foreign nationals have been found to use Thai nominees to register companies, concealing true ownership in violation of Thai law. These practices threaten national security, economic stability, and public trust.

To counter these issues, the Division will coordinate with relevant authorities to pursue legal action against offenders, ensuring accountability to the fullest extent of the law.

Organizational Structure and Strategy:

On October 1, 2025, the DBD convened its inaugural meeting to outline the Division’s objectives and operational framework. A central committee was appointed, supported by four subcommittees specializing in:

  1. Business Registration Prevention: To strengthen pre-registration verification and prevent misuse of the registration system.
  2. Business Data Analysis: To identify patterns and anomalies indicative of illegal activities.
  3. Business Auditing: To conduct thorough inspections of business operations and financial records.
  4. Legal Affairs: To develop legal frameworks and ensure compliance with existing regulations.

These subcommittees will formulate policies, establish inspection protocols, and foster collaboration with other agencies to enhance law enforcement efficiency. The Division will also devise measures to prevent and suppress businesses that evade or violate legal requirements.

lamp on deck behind bars

Objectives and Broader Implications:

The Division’s primary goal is to curb illegal business activities that undermine transparency, create unfair competition, and jeopardize economic stability. By addressing practices such as nominee shareholding and fraudulent registrations, the DBD aims to promote good governance, enhance investor confidence, and support equitable economic development.

This initiative aligns with the government’s long-term vision of fostering a transparent and fair business environment, reducing disparities, and promoting sustainable growth. It ensures that all market participants operate on a level playing field, benefiting stakeholders across sectors.

Impact on Stakeholders:

The establishment of the Division will have significant implications for various parties involved in Thailand’s business ecosystem:

•  Business Owners and Investors: Enhanced verification processes will be implemented to prevent the misuse of juristic person registrations, ensuring legitimate operations.

•  Foreign Nationals: Those attempting to bypass legal requirements through nominee arrangements will face increased scrutiny and potential penalties.

•  Financial Institutions: Banks and financial service providers will be required to adopt stricter due diligence measures when opening accounts for juristic persons.

Conclusion:

The creation of the Division for the Prevention and Suppression of Illegal Businesses reflects Thailand’s commitment to fostering a transparent, compliant, and equitable business environment. By addressing illicit practices such as juristic person mule accounts and nominee shareholding, the DBD seeks to protect public trust, uphold national security, and promote sustainable economic growth. Stakeholders are urged to comply with the strengthened regulations, while the Division will continue to monitor, collaborate, and enforce measures to ensure a lawful and fair business landscape in Thailand.

Author: Panisa Suwanmatajarn, Managing Partner.

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Logistics: Transforming Bangkok’s West Port into a SMART PORT

The Port Authority of Thailand (PAT) is revolutionizing Bangkok’s West Port in Khlong Toei by developing it into a SMART PORT. This initiative integrates advanced technologies and semi-automated systems to boost operational efficiency, minimize energy use, and prioritize environmental sustainability, aligning with global trade demands where over 90% of commerce relies on maritime transport.

Advanced Infrastructure for Enhanced Efficiency

The West Port transformation includes the deployment of two types of semi-automated equipment:

  • Automated Rail Mounted Gantry Cranes (ARMG) for streamlined container handling.
  • Automated Ship-to-Shore Cranes (STS) to facilitate efficient cargo transfer.

The project encompasses a 634-meter-long berth with a quay area of approximately 29,100 square meters (18.19 rai). The hinterland will expand to 176,023 square meters (110 rai), optimizing container handling capacity. These upgrades aim to modernize services to international standards, increase container throughput, and enhance customer satisfaction, with Phase 1 operations slated for 2030.

Commitment to Sustainability and Community Engagement

PAT is dedicated to balancing economic growth with environmental stewardship. A comprehensive Environmental and Health Impact Assessment (EHIA) has been conducted, focusing on four key areas:

  1. Physical Environment: Analysis of topography, soil, geology, climate, air quality, noise, vibration, and water resources.
  2. Biological Environment: Evaluation of terrestrial and aquatic biodiversity.
  3. Environmental Management: Assessment of land use, transportation, water and wastewater management, flood control, electricity consumption, and waste management.
  4. Quality of Life: Consideration of socio-economic impacts, public health, occupational safety, tourism, visual aesthetics, and cultural heritage.

To ensure transparency, PAT hosted a stakeholder forum, gathering input from government agencies, environmental organizations, NGOs, academics, local residents, and community leaders. This collaborative approach addresses public concerns and integrates community feedback to foster sustainable development and build trust.

Long-Term Vision: A Smart Community

The master plan for Khlong Toei Port, spanning 2,353 rai, has been under review since 2019. It envisions a mixed-use “Smart Community” with high-rise residential units, modern amenities, and a transport hub. This holistic development aims to integrate the port’s advancements with the needs of surrounding communities, creating a sustainable and interconnected urban ecosystem.

stacked shipping containers against blue sky

Key Takeaways

Long-Term Impact: The initiative supports Thailand’s economic growth while fostering a modern, sustainable “Smart Community” by 2030.

SMART PORT Transformation: Bangkok’s West Port is being upgraded with semi-automated cranes and advanced technologies to enhance efficiency and align with global trade standards.

Sustainability Focus: The project prioritizes environmental protection through comprehensive EHIA studies and sustainable practices.

Community-Centric Approach: Stakeholder engagement ensures transparency and incorporates public feedback for balanced development.

Author: Panisa Suwanmatajarn, Managing Partner.

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New Labeling Requirements for Vehicles – Ensuring Transparency and Informed Choices for Consumers

Introduction

In a significant step toward enhancing consumer safeguards, the Office of the Consumer Protection Board (OCPB), Thailand’s primary authority on consumer rights, has designated a range of vehicles as “controlled labeling products.” This regulatory update, effective from 2023, mandates comprehensive and standardized labeling to promote transparency, mitigate transaction disputes, and empower consumers with essential information. The initiative underscores OCPB’s commitment to fostering fair market practices, particularly in the rapidly evolving automotive sector, including electric vehicles.

Background and Purpose

The decision follows an extensive review process initiated in 2023, encompassing detailed analyses of benefits, drawbacks, and impacts on both consumers and businesses. Public consultations with stakeholders ensured a balanced approach. As articulated by OCPB, the primary objectives are to protect consumer rights, standardize buying and selling processes, and cultivate market transparency. Vehicles involved in complex sales—such as automobiles, electric cars, motorcycles, electric motorcycles, and electric bicycles—often lead to misunderstandings if critical details are omitted. By enforcing clear labeling, OCPB aims to equip buyers with the tools for informed decisions, thereby reducing risks and bolstering confidence in the industry. This aligns with broader goals of equitable economic growth and sustainable consumption practices.

Key Labeling Requirements

Under the new guidelines, manufacturers and sellers must affix labels that clearly and comprehensively disclose vital product details. The required elements include:

•  Model Designation: The specific model name or identifier of the vehicle.

•  Manufacturing Date: Month and year of production.

•  Warranty Conditions: Detailed terms, including duration and coverage scope.

•  Battery Type (for electric models): Specifications of the battery, such as chemistry and capacity, to address safety and performance concerns.

These labels must be prominently displayed, using legible fonts and formats that ensure accessibility. Non-compliance may result in penalties, emphasizing the obligation for businesses to adhere strictly to the regulations. While the announcement focuses on vehicles, OCPB’s broader controlled labeling framework—applicable to various goods—typically requires additional universal elements, such as the product type, brand or trademark, manufacturer’s address, usage instructions (in fonts no smaller than 2 millimeters), warnings (in fonts no smaller than 5 millimeters where applicable), and production or expiration dates. For vehicles, these are integrated to provide a holistic view, preventing hazards and ensuring product integrity.

Implications for Businesses and Consumers

For manufacturers and retailers, this mandates proactive label design and production, potentially involving specialized printing services to meet precision standards. Compliant labeling not only avoids legal repercussions but also enhances brand reputation by signaling reliability. Consumers, in turn, benefit from reduced information asymmetry, enabling comparisons across models and averting post-purchase regrets.

Conclusion

The OCPB’s vehicle labeling mandate represents a forward-thinking regulatory evolution, harmonizing consumer protection with industry innovation. By prioritizing clarity and completeness in disclosures, it paves the way for trustworthy transactions and sustainable mobility solutions. Businesses are advised to consult OCPB guidelines promptly, while consumers should leverage available resources to exercise their rights vigilantly. This framework not only safeguards individual interests but also contributes to Thailand’s vision of a transparent  consumer-centric economy.

Author: Panisa Suwanmatajarn, Managing Partner.

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U.S. Trade Policy Update: New Tariffs on Pharmaceuticals, Heavy Trucks, Furniture, and Home Goods

Following the U.S. government’s implementation of tariffs on imported foreign goods, on September 25, 2025, the U.S. government announced a new rate of import tariffs for particular products aimed at protecting domestic industries and strengthening national security. The new tariff rates for such particular products took effect on October 1, 2025.

Products and New Tariff Rates

  • Branded or patented pharmaceutical products: Import tariff rate of 100%
  • Heavy trucks: Import tariff rate of 25%
  • Upholstered furniture: Import tariff rate of 30%
  • Kitchen cabinets, bathroom vanities, and related products: Import tariff rate of 50%

Pharmaceutical Manufacturing

A 100% import tariff has been imposed on branded and patented pharmaceutical products. However, business entities that commit to building or expanding manufacturing facilities in the United States will qualify for exemptions, designed to enhance supply security and promote domestic production.

Generic drugs, which account for nearly 90% of prescriptions in the United States, are 100% excluded from these applied tariffs. These lower-cost alternatives, manufactured primarily in India and China, contain the same active ingredients as brand-name products but only enter the market once exclusivity periods expire.

Nevertheless, health policy experts warn that higher costs for branded or patented medicines could cascade throughout the healthcare system, potentially increasing expenses for patients and insurers, straining hospital budgets, and leading patients to ration or skip treatments—particularly in therapeutic areas where few generic alternatives exist.

Furniture and Home Goods

The newly announced import tariffs also apply to furniture and home-related products, a sector heavily dependent on imports. In 2022, imported furniture accounted for 60% of U.S. sales, including 86% of wood furniture and 42% of upholstered items. Analysts expect the new duties to drive up retail prices, disrupt supply chains, and contribute to inflationary pressures, potentially resulting in higher consumer costs and shortages in specific product categories.

man and woman in furniture shop

Heavy Trucks

The import tariffs extend to heavy trucks, placing additional pressure on foreign manufacturers competing in the U.S. market. While truck prices have risen more slowly than overall inflation in recent periods, analysts caution that the new measures could reverse this trend, increasing costs for buyers and straining supply chains. The U.S. government has positioned the truck tariffs as a strategic move to strengthen domestic production and protect national security.

Objective of the New Tariffs

The U.S. government has introduced these tariffs with the aim of strengthening domestic production capabilities and reducing dependence on foreign suppliers in sectors it considers essential to economic and national security. The measure concerning pharmaceuticals, in particular, is designed to incentivize companies to expand their manufacturing operations within the United States.

Current Status of the New Tariffs

The U.S. government has announced the new import tariffs via public statements on social media, which indicate that the new tariffs took effect on October 1, 2025. However, there is no official guidance on how these tariffs will align with existing multilateral or bilateral trade agreements, such as the United States-Mexico-Canada Agreement (USMCA) or World Trade Organization (WTO) commitments. Importers should closely monitor announcements from U.S. Customs and Border Protection (CBP) and the Office of the United States Trade Representative (USTR) for detailed compliance instructions.

Recommended Steps to Prepare for the New Tariffs

Importers and other stakeholders should consider the following actions to prepare for the newly announced tariffs:

  1. Verify HTSUS Classifications: Ensure that all covered goods are correctly classified under the Harmonized Tariff Schedule of the United States (HTSUS).
  2. Monitor Official Notices: Track upcoming Federal Register publications to confirm the scope, coverage, and enforcement details of the tariffs.
  3. Evaluate Alternatives: Explore alternative sourcing options or domestic production partnerships where feasible to mitigate potential impacts.
  4. Assess Financial Impact: Analyze potential cost increases and budgetary implications of the new tariffs on business operations, including cash flow and pricing strategies.
  5. Engage Legal and Trade Advisors: Consult with trade compliance experts or legal counsel to ensure a full understanding of regulatory requirements, documentation obligations, and possible exemptions.

Conclusion

The new U.S. import tariffs are designed to support domestic production, strengthen the economy, and enhance national security. While they encourage local industries and reduce reliance on imports, they may also lead to higher prices for consumers. Careful planning and ongoing monitoring are essential to balance the benefits for producers with the potential impact on consumers.

For Thai exporters, staying up to date on these changes is important, as U.S. trade policy shifts can affect supply chains, pricing, and competitiveness in the U.S. market.

Author: Panisa Suwanmatajarn, Managing Partner.

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Patent: Third-Party Observations in the Patent Application Process

A patent is a legal document that grants an inventor exclusive rights to produce, use, and sell their invention for a specified period, as defined by law. This protection incentivizes innovation by safeguarding the inventor’s intellectual property. Patents can be registered through various mechanisms, such as a conventional patent application or the Patent Cooperation Treaty (PCT) system. A critical component of the patent examination process is the Third-Party Observations system, which allows external parties to contribute information that may influence the approval or rejection of a patent application. This article explores the conventional patent application process, the role of Third-Party Observations, the rationale behind this system, and how the Department of Intellectual Property (DIP) incorporates these observations into its decision-making process.

Conventional Patent Application Process

To obtain a patent, an application must meet stringent legal requirements. The process begins with the submission of a patent application to the Department of Intellectual Property. If the application is complete and adheres to procedural standards, the DIP will publish a notice of the application and inform the applicant to pay for the publication fee. During the publication period, third parties who believe the application fails to meet legal criteria—such as patentability, inventive step, or rightful ownership—may file an opposition. Following the publication phase, the applicant is required to request for a substantive examination, which an official examiner will conduct a thorough search and examination to determine whether the invention is novel and non-obvious by comparing it to existing inventions, including those documented internationally. If the application complies with all legal requirements, the patent is granted. Conversely, non-compliant applications are rejected.

The Third-Party Observations System

The Third-Party Observations system enables individuals or organizations, who are neither the patent applicant nor the examining officer, to submit written information or evidence to challenge a patent application. These submissions, which may include letters, formal statements, or supporting documents, typically assert grounds for opposition, such as lack of patentability, insufficient inventive step, or improper ownership of the invention. The primary objective of these observations is to provide the examiner with relevant evidence that could justify rejecting the application. Notably, filing Third-Party Observations incurs no fee, making the system accessible to a wide range of stakeholders.

scheme of modern photo camera

Rationale for the Third-Party Observations System

The Third-Party Observations system serves several critical purposes in the patent registration process:

  • Preventing Undeserved Patents: By allowing the public to submit additional information or evidence, the system helps ensure that only qualifying inventions are granted patents, reducing the risk of approving applications that do not meet legal standards.
  • Enhancing Examination Effectiveness: Third-party input supplements the examiner’s resources, improving the accuracy and thoroughness of the patent review process and ensuring compliance with legal requirements.
  • Reducing Future Disputes: By addressing potential issues during the examination phase, the system minimizes errors that could lead to costly and complex legal conflicts after a patent is granted.
  • Protecting Third-Party Rights: The system empowers external parties to safeguard their own interests by preventing others from unlawfully benefiting from their intellectual property.

DIP’s Consideration of Third-Party Observations

When Third-Party Observations are submitted, the Department of Intellectual Property incorporates them into the patent examination process. The DIP accepts and reviews all relevant counterarguments, documents, and evidence provided by third parties. While the examiner retains full discretion to determine the persuasiveness of the submitted information, these observations are carefully evaluated as part of the decision-making process. The examiner uses their professional judgment to assess the validity and relevance of the evidence, ensuring that the final ruling on the patent application is informed and equitable.

Conclusion

The Third-Party Observations system is a vital mechanism in the patent application process, fostering transparency, fairness, and accuracy in the granting of patents. By allowing external parties to contribute evidence and arguments, the system strengthens the examination process, prevents the issuance of undeserved patents, and protects the rights of stakeholders. The Department of Intellectual Property’s commitment to reviewing these observations ensures that patent decisions are well-informed and aligned with legal standards. Ultimately, the Third-Party Observations system enhances the integrity of the patent system, promoting innovation while safeguarding the public interest.

Author: Panisa Suwanmatajarn, Managing Partner.

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