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Thailand’s Expanding Trade Network: Key Updates on FTAs with Partner Countries

Overview

In the context of an increasingly competitive and rapidly evolving global economy, Thailand has placed greater emphasis on expanding its international trade partnerships. The government has accelerated negotiations for Free Trade Agreements (“FTAs”) with key partner countries to enhance competitiveness and reduce trade barriers. Concurrently, Thailand is strengthening bilateral economic relations—such as with the Republic of South Africa—through strategic discussions aimed at promoting trade, exports, and investment. This approach reflects Thailand’s proactive commitment to creating long-term economic opportunities and expanding global market access.

Thailand’s Recent Developments

1. Acceleration of Free Trade Agreement Negotiations

In response to Thailand being subject to investigations under Section 301 of the U.S. Trade Act of 1974 (B.E. 2517), which may result in additional import tariffs and potential investment restrictions, the Thai government has coordinated with the Ministry of Commerce to establish a dedicated task force. This task force is responsible for closely monitoring and addressing the potential impacts of such measures.

The Department of Trade Negotiations (“DTN”) has accelerated adjustments to Thailand’s international trade strategy, positioning FTAs as a key mechanism to diversify risk and mitigate trade barriers arising from U.S. trade actions. Priority negotiations are being fast-tracked with major partners, including the European Union (“EU”), the Republic of Korea, and ASEAN–Canada, with the objective of concluding these agreements by 2026 (B.E. 2569).

Thailand is also advancing previously signed FTAs that are currently undergoing domestic ratification, including agreements with the European Free Trade Association (“EFTA”), Bhutan, and Sri Lanka, with entry into force targeted for 1 January 2027 (B.E. 2570). In parallel, Thailand is upgrading existing agreements, such as the ASEAN–India FTA and the Thailand–Peru FTA, with completion expected by 2026 (B.E. 2569).

In addition, Thailand is actively participating in negotiations on the ASEAN Digital Economy Framework Agreement (“DEFA”), which is expected to play a pivotal role in advancing the regional digital economy. DEFA is anticipated to facilitate digital trade, reshape ASEAN’s market and production landscape, and enhance investor confidence, with negotiations scheduled for completion by November 2026 (B.E. 2569).

2. Economic Cooperation between Thailand and the Republic of South Africa

The Ministry of Commerce has adopted a proactive approach to strengthening trade cooperation between Thailand and the Republic of South Africa through bilateral consultations. These efforts focus on promoting high-potential exports and enhancing economic collaboration to achieve tangible and measurable outcomes, thereby expanding trade channels and export markets.

Both countries have emphasized the importance of advancing a strategic partnership aimed at reducing logistical and financial barriers to trade while promoting efficient bilateral exports. South Africa is well-positioned to serve as a distribution hub for the African region, while Thailand can function as a gateway for African products into ASEAN markets.

Furthermore, both parties have agreed to leverage the existing cooperation framework between Thailand’s Board of Investment (BOI) and Invest South Africa to systematically promote bilateral investment and facilitate cross-border business activities.

Implications

Exporters should conduct thorough reviews of applicable rules of origin and sourcing requirements and, where necessary, adjust their production structures to ensure eligibility for tariff preferences under Thailand’s FTAs.

To mitigate risks arising from U.S. trade measures, exporters are advised to adopt proactive strategies, including revising pricing structures and diversifying export markets. Businesses operating in affected sectors should closely monitor ongoing developments in the global trade landscape to ensure timely and effective responses.

Conclusion

Thailand’s proactive approach to international trade policy demonstrates the effective integration of legal instruments and strategic trade initiatives. The acceleration of FTA negotiations, coupled with the expansion of bilateral cooperation with key partner countries, serves as a critical mechanism for risk diversification and resilience in an increasingly volatile global trading environment.

These developments underscore Thailand’s adaptability to evolving international economic conditions and its strategic response to external trade pressures, particularly those arising from U.S. trade measures. Ultimately, such efforts aim to strengthen Thailand’s long-term economic competitiveness and enhance trade security.

Author: Panisa Suwanmatajarn, Managing Partner.

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U.S. Tariff Developments Post Supreme Court Ruling

Background

The U.S. Supreme Court’s decision in Learning Resources, Inc. v. Trump (February 20, 2026) represents a pivotal development in international trade law. The Court held that the use of the International Emergency Economic Powers Act (IEEPA) to impose broad-based import tariffs exceeded the scope of authority delegated to the President of the United States.

Although the ruling establishes clear constitutional limits on executive tariff authority, it does not diminish the central role of tariffs in U.S. trade policy. The administration’s swift recourse to alternative statutory mechanisms underscores continued reliance on tariff measures and heightens uncertainty for Thai exporters and other affected parties.

1.  Constitutional Limits on Tariff Authority

In a 6–3 decision, the Supreme Court reaffirmed that the constitutional authority to set tariffs is vested in Congress. The Court concluded that IEEPA does not provide sufficiently clear authorization for the imposition of broad-based import duties; accordingly, it cannot serve as a valid legal basis for such measures.

Notably, the Court declined to order immediate remedies. Instead, it remanded the question of refunds to the United States Court of International Trade, leaving implementation to be resolved through established customs law procedures.

2.  Refunds: A Legal Entitlement Subject to Procedure

Although the tariffs have been declared unlawful, recovery of duties paid is not automatic. Importers must act within the U.S. customs law framework, including by filing timely protests and, where necessary, pursuing claims before the United States Court of International Trade.

Recent developments indicate that the Court of International Trade is moving toward a more structured refund mechanism, potentially inclusive of interest. However, the process remains procedurally complex and administratively burdensome, requiring proactive engagement from affected importers.

3.  Policy Realignment: Section 122 Tariffs

In response to the ruling, the U.S. President promptly invoked Section 122 of the Trade Act of 1974 to impose a temporary tariff on imports from all countries. This measure reflects a strategic adjustment, demonstrating that the executive branch retains meaningful statutory tools to sustain its tariff policy objectives.

Key features of the Section 122 measure include:

  • A uniform global tariff rate of 10–15%;
  • A statutory ceiling of 15%;
  • A duration of up to 150 days, unless extended by Congress; and
  • Application in addition to existing duty obligations.

4.  Section 301 Investigation: Implications for 16 Jurisdictions

On March 11, 2026, the Office of the United States Trade Representative (USTR) initiated a Section 301 investigation covering 16 jurisdictions, including Thailand. The investigation examines whether certain trade practices constitute unreasonable or discriminatory conduct, with particular attention to structural overcapacity in the manufacturing sector.

The scope of the investigation remains broad and may extend to digital trade, pharmaceutical pricing, market access, and environmental policies. Under Section 301, the USTR is empowered to impose remedial measures, including additional tariffs and investment restrictions.

Thailand has been identified as a jurisdiction of concern, primarily owing to relatively low capacity utilization in the automotive, machinery, and rubber sectors, as well as concerns regarding potential tariff circumvention linked to increased foreign direct investment. These factors may result in heightened scrutiny of Thailand’s role in global supply chains.

The procedural timeline is as follows:

  • Government consultations;
  • Written submissions: March 17 – April 15, 2026;
  • Public hearings: commencing May 5, 2026; and
  • Expected completion within 150 days of initiation.

5.  Implications for Thai Exporters

The evolving U.S. tariff framework presents several material risks for Thai exporters:

  • Loss of competitive advantage: A uniform global tariff eliminates country-specific preferential treatment, reducing pricing differentiation.
  • Policy uncertainty: Temporary measures may be extended, modified, or replaced with more burdensome instruments.
  • Cost impact: Additional duties directly affect product pricing, margins, and overall competitiveness in the U.S. market.
  • Regulatory volatility: Rapid legal and policy shifts are increasingly a defining feature of U.S. trade policy, necessitating ongoing monitoring and agile response strategies.

6.  Practical Considerations

Thai exporters are advised to adopt a proactive and structured approach to managing tariff exposure. Recommended actions include:

  • Reviewing customs classification to ensure accuracy and minimize the risk of misclassification disputes;
  • Adjusting pricing and cost structures to reflect prevailing tariff obligations;
  • Monitoring import timing in accordance with U.S. customs entry requirements;
  • Coordinating with U.S. importers to preserve and exercise available refund rights; and
  • Conducting scenario planning to anticipate and respond to potential policy changes.

Conclusion

The Supreme Court’s ruling in Learning Resources, Inc. v. Trump establishes meaningful constitutional constraints on executive tariff authority; however, it does not diminish the central role of tariffs in U.S. trade policy. The administration’s swift transition to alternative instruments — notably Section 122 and Section 301 — confirms continued reliance on tariff-based measures as tools of commercial and geopolitical leverage.

While refund opportunities may arise for duties previously paid under IEEPA authority, recovery remains procedurally complex and requires active legal engagement. For Thai exporters, the combination of heightened policy uncertainty, increased cost pressures, and intensified regulatory scrutiny underscores the imperative for proactive compliance, rigorous strategic planning, and the full integration of legal considerations into business decision-making.

Author: Panisa Suwanmatajarn, Managing Partner.

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IP: Strengthens Intellectual Property Governance Through Reform of the National IP Policy Committee

On 17 March 2026, the Thai Cabinet approved in principle a draft amendment to the Regulation of the Office of the Prime Minister on the National Intellectual Property Policy Committee (No. ..) B.E. .…, as proposed by the Ministry of Commerce. This reform constitutes a measured and forward-looking step to modernize Thailand’s intellectual property (“IP”) governance architecture and to position IP more centrally as a driver of long-term economic competitiveness and innovation-led growth.

The amendment principally revises the composition of the National Intellectual Property Policy Committee (the “IP Policy Committee”), which is chaired by the Prime Minister. The updated membership structure integrates representatives from newly restructured government agencies and introduces, for the first time, senior leaders from prominent private-sector organizations. These changes aim to deepen public–private coordination and to ensure that national IP policy more closely reflects contemporary economic realities and commercialization realities.

Historical Development of the Framework:

The IP Policy Committee was formally established in 2011 (B.E. 2554), with the original Regulation taking effect on 2 September 2012 (B.E. 2555). The Regulation defined the Committee’s composition (initially comprising the Prime Minister as Chairperson and 23 ex-officio government members), its operational rules, and its core mandate to formulate, coordinate, and oversee national IP policy and strategy.

Previous amendments were incremental:

  • Regulation (No. 2) B.E. 2556 (2013) adjusted membership and added procedural rules for meetings in the Chairperson’s absence.
  • Regulation (No. 3) B.E. 2559 (2016) further refined the composition without altering the Committee’s fundamental powers or structure.

The 2026 amendment departs from this pattern by introducing more substantial changes designed to align the Committee with Thailand’s current administrative organization and strategic economic priorities.

Principal Revisions to Committee Composition:

  1. Update of Existing Government Positions (3 positions)
The following reflect current ministerial and institutional nomenclature:
  • Permanent Secretary of the Ministry of Higher Education, Science, Research and Innovation
  •  Permanent Secretary of the Ministry of Digital Economy and Society
  •  Director of the National Higher Education, Science, Research and Innovation Policy Council
  1. Addition of Six New Ex-Officio Members
  • Permanent Secretary of the Prime Minister’s Office — to improve whole-of-government coordination of IP policy
  • Permanent Secretary of the Ministry of Tourism and Sports — to advance IP commercialization in tourism and sports industries
  • Permanent Secretary of the Ministry of Interior — to strengthen promotion and protection of geographical indications (GIs)
  • Chairman of the Federation of Thai Industries — to bring industrial-sector expertise and foster public–private collaboration on industrial property matters
  • Chairman of the Thai Chamber of Commerce — to support Thai businesses in extracting greater economic value from IP assets
  • Director of the National Innovation Agency (Public Organization) — to promote innovation policy alignment and execution

As a consequence, the number of ex-officio members rises from 18 to 24.

Anticipated Institutional and Economic Benefits:

The revised structure is expected to deliver several concrete improvements:

  • Strengthened public–private dialogue, enabling policies to better address real-world business needs and commercialization barriers
  • Reduced inter-agency fragmentation through broader and more balanced representation
  • More coherent and expedited decision-making and policy implementation
  • Closer integration of IP strategy with national priorities in innovation, digital economy, tourism, regional development, and industrial competitiveness

While the larger membership enhances inclusiveness, it also necessitates clear internal governance procedures to preserve operational efficiency.

Key Takeaways:

  • The 2026 amendment marks a significant evolution in Thailand’s IP governance, moving beyond minor compositional tweaks to embed meaningful private-sector participation.
  • By expanding the IP Policy Committee to include leaders from industry associations and innovation agencies, Thailand seeks to create a more collaborative, responsive, and commercially oriented IP ecosystem.
  • The reform aligns national IP policy more closely with broader economic development objectives, particularly in innovation-driven growth and value creation from intellectual assets.
  • Successful implementation will depend on effective coordination mechanisms to manage the enlarged Committee without compromising decisional speed or clarity.
  • Overall, the measure reflects a deliberate policy commitment to elevate intellectual property as a strategic pillar of Thailand’s future economic competitiveness.

Author: Panisa Suwanmatajarn, Managing Partner.

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IP Enforcement in Thailand: Strengthened Multi-Agency Operations and Significant Results in 2025–2026

Thailand has significantly advanced its intellectual property (“IP”) enforcement framework through coordinated efforts led by the Department of Intellectual Property (“DIP”), in close collaboration with the Economic Crime Suppression Division (“ECD”) of the Royal Thai Police, the Customs Department, the Department of Special Investigation (“DSI”), and private-sector IP rights holders. These joint initiatives target counterfeit and infringing goods across physical retail locations, storage facilities, border checkpoints, and online marketplaces, with the dual objectives of disrupting illicit supply chains and protecting both consumer safety and legitimate commercial interests.

Enforcement Outcomes in 2025:

Between January and November 2025, integrated operations produced the following results:

  • 1,132 cases of IP infringement
  • 3,344,841 infringing items seized
  • Estimated economic damages exceeding THB 1.14 billion

Compared with the equivalent period in 2024, the number of cases decreased by 16.15%, while the volume of seized items rose by 21.35% and the value of damages increased by 63.89%. This shift indicates greater focus on high-impact interventions and upstream disruption. Contributions by agency were as follows:

  • ECD: 789 cases, 1,820,574 items seized
  • Customs Department: 336 cases, 571,675 items seized
  • DSI: 7 cases, 952,592 items seized

The DIP structured its enforcement activities through three dedicated task forces:

  • Mobile Patrol Units conducting frequent inspections (at least three days per week) in key Bangkok commercial districts, including MBK Center, Platinum Fashion Mall, Pratunam, Sampheng, Silom, Phrom Phong, and Sukhumvit.
  • Regional Task Forces performing bi-weekly operations in provincial high-risk zones, particularly tourist destinations, wholesale markets, and distribution warehouses.
  • Inspection and Evaluation Units carrying out monthly reviews in designated “red-zone” tourist provinces: Bangkok, Chonburi, Chiang Mai, Phuket, Surat Thani (Koh Samui), Songkhla, Krabi, and Prachuap Khiri Khan.

Key Enforcement Actions in Early 2026:

Enforcement momentum continued into 2026 with intensified targeted operations.

  • DIP and ECD Operations (15–31 January 2026): Thirty-two joint actions across Bangkok shopping malls, retail outlets, and northern and eastern provincial markets resulted in the seizure of 11,802 infringing items (estimated damages over THB 14.9 million) and the arrest of 25 individuals. Seized products included counterfeit footwear, apparel, bags, perfumes, and accessories bearing trademarks of Chanel, Louis Vuitton, Gucci, Adidas, Nike, and others. A notable warehouse raid in Samut Sakhon Province on 30 January 2026 recovered 223,404 items valued at more than THB 63.2 million in damages, consisting primarily of substandard consumer goods (shampoo, body lotion, facial cream, toothpaste, and motorcycle spark plugs) that present potential health and safety risks.
  • Border Enforcement with the Customs Department (13 January–6 February 2026): Inspections at Laem Chabang Port, Bangkok Port, Si Racha Free Zone, and Aranyaprathet Customs House led to the interception of 42,451 infringing items (estimated damages THB 223.21 million). Goods included counterfeit luxury bags, shoes, watches, perfumes, automotive components, and solar lamps. For fiscal year 2026 up to 6 February, Customs reported 38 cases with total damages exceeding THB 885 million.
  • Online Platform Measures: Pursuant to Memoranda of Understanding with major e-commerce platforms (Lazada, Shopee, TikTok Shop, NocNoc, and Nex Gen Commerce), authorities secured the removal of 2,867 infringing product listings. Efforts are underway to extend similar arrangements to additional providers.

Strategic Direction:

The Intellectual Property Development Plan B.E. 2569–2570 (2026–2027) coordinates more than 30 government agencies to implement sustained, proactive suppression measures. Core elements include targeting upstream manufacturers and distributors, leveraging ancillary legislation (anti-money laundering, taxation, immigration), expanding online enforcement partnerships, holding property owners accountable for tenant infringements, addressing software piracy, and deploying technology to monitor digital infringement channels.

Key Takeaways:

Ongoing multi-stakeholder cooperation, including public reporting through hotline 1368 or www.ipthailand.go.th, will be essential to sustaining progress, enhancing investor confidence, and supporting long-term economic development.

Thailand’s IP enforcement has become markedly more effective, evidenced by higher seizure volumes and damage valuations despite fewer reported cases, reflecting a strategic emphasis on quality over quantity of interventions.

Operations now systematically address the entire supply chain—from importation and warehousing to retail and online distribution—thereby reducing the availability of counterfeit products.

Consumer protection remains central, with authorities repeatedly highlighting the health and safety hazards posed by unregulated, substandard goods.

Rights holders and businesses operating in Thailand are advised to maintain rigorous supply-chain oversight, secure appropriate authorizations, and proactively protect their intellectual property to minimize exposure to enforcement action.

Author: Panisa Suwanmatajarn, Managing Partner.

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International Trade: Updates to Thailand’s Certificate of Origin Issuance under TCFTA and AKFTA

The Department of Foreign Trade (DFT) of Thailand has prepared draft notifications to revise the rules, procedures, and conditions for issuing preferential Certificates of Origin under two significant Free Trade Agreements (FTAs). These amendments primarily align the Product Specific Rules (PSRs) with the Harmonized System (HS) 2022 tariff classification, thereby preserving the eligibility of qualifying Thai-origin goods for reduced or exempted customs duties in the respective markets.

1.  Thailand-Chile Free Trade Agreement (TCFTA)
The draft notification governs the issuance of Form TC for goods exported from Thailand to Chile (or vice versa, where applicable). It updates procedures to reflect the transition of PSRs from HS 2012 to HS 2022, following formal decisions by the Thailand-Chile Free Trade Commission, Cabinet approval, and completion of diplomatic note exchanges in late 2025.
Principal features include:

       •  Electronic application submission via the DFT system or authorised agencies.

       •  Mandatory supporting documents: commercial invoice, transport document (e.g., Bill of Lading or Air Waybill), and origin qualification evidence, differentiated for agricultural and industrial products.

       •  Indication of origin criteria in Box 8 (e.g., WO, PE, CC, CTH, CTSH, QVC, SP).

       •  Validity period of 12 months from the date of issuance.

       •  Special provisions covering retroactive issuance (within 1 year, marked “Issued Retroactively”), non-party invoicing, de minimis deviations (DMI ≤10% FOB), accumulation (ACU), exhibition goods, corrections, and replacements.

       •  Retention of supporting documents for 5 years.
The notification is scheduled to enter into force on 1 April 2026, replacing the existing notification dated 2015.

2.  ASEAN-Korea Free Trade Agreement (AKFTA)
The draft notification pertains to the issuance of Form AK for goods originating in Thailand and exported to the Republic of Korea or other AKFTA member countries. It updates PSRs from HS 2017 to HS 2022, in accordance with joint decisions of relevant ASEAN-Korea sub-committees in mid-2025.
Principal features include:

       •  Electronic submission through the DFT system.

       •  Documentation requirements aligned with those under TCFTA, with specific procedures for agricultural goods (HS Chapters 01–24) and industrial goods (HS Chapters 25–97).

       •  Origin criteria to be indicated in Box 8 (e.g., WO, CTH, RVC 40%, CTC, WO-AK, RVC with actual percentage, CTH+RVC, Specific Processes).

       •  Validity period of 12 months.

       •  Mechanisms for retroactive applications (within 1 year, marked “ISSUED RETROACTIVELY”), back-to-back certification, exhibition goods, third-country invoicing, and replacements (marked “CERTIFIED TRUE COPY”).

       •  Retention of supporting documents for at least 3 years.
The notification is expected to take effect on 1 May 2026, superseding the 2015 notification.

Possible Public Impact:

These revisions are anticipated to deliver net positive outcomes for Thai exporters by ensuring continued and accurate access to preferential tariff treatment under TCFTA and AKFTA, thereby preserving cost competitiveness in the Chilean and Korean markets. Exporters may encounter short-term transitional requirements, including re-assessment of product HS classifications against the updated PSRs, recalculation of regional value content (where relevant), and verification of supply chain documentation. Any delay in adaptation could temporarily jeopardise eligibility for duty reductions or exemptions on specific shipments. Nevertheless, the sustained use of the DFT’s electronic issuance platform is expected to streamline processing, lower long-term administrative costs, and improve overall trade facilitation.

Key Takeaways:

•  The updates align Thailand’s Certificate of Origin procedures with HS 2022 under TCFTA (effective 1 April 2026) and AKFTA (effective 1 May 2026).

•  Exporters must promptly review and adjust HS classifications, origin calculations, and supporting documentation to maintain preferential tariff benefits.

•  The electronic submission system remains central, supporting greater efficiency and compliance.

•  Proactive preparation is essential to avoid disruptions in claiming duty preferences in Chile and Korea.

Author: Panisa Suwanmatajarn, Managing Partner.

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U.S. Tariff Policy Shift Following Supreme Court Ruling: Thailand Monitors Impact and Prepares Strategic Response

U.S. Supreme Court Limits Presidential Authority to Impose Global Tariffs

On 20 February 2026, the Supreme Court of the United States issued a significant ruling in Learning Resources, Inc. v. Trump by a 6–3 majority. The Court held that the International Emergency Economic Powers Act (IEEPA) does not authorize the U.S. President to impose broad global import tariffs.

The Court reasoned that the imposition of tariffs constitutes a fiscal power that is constitutionally vested in the United States Congress rather than the executive branch.

As a consequence, the Court invalidated the Reciprocal Tariff measure previously implemented under IEEPA. The decision could potentially result in the refund of tariffs already collected, estimated at approximately USD 175 billion.

U.S. Introduces Temporary Global Tariff under Trade Act of 1974

Following the ruling, the U.S. President issued a proclamation on the same day invoking authority under Section 122 of the Trade Act of 1974 to impose a temporary import surcharge of 10% on goods imported from all countries for a period of 150 days, citing concerns related to balance-of-payments pressures.

The measure took effect on 24 February 2026. However, on 21 February 2026, the President announced an increase in the tariff rate to 15%, the maximum level permitted under Section 122, effective immediately.

This temporary tariff measure replaces the Reciprocal Tariff framework but includes exemptions for certain strategic goods, including:

  • Certain critical minerals
  • Metals used in currency and bullion
  • Energy and energy products
  • Certain agricultural products
  • Pharmaceuticals and pharmaceutical ingredients
  • Certain electronics
  • Passenger vehicles, certain light trucks, medium- and heavy-duty vehicles, buses, and related parts
  • Certain aerospace products

Potential Impact on Thailand

The Vice Chairman of the Thai Chamber of Commerce stated that the U.S. court decision does not disrupt the ongoing trade negotiations between Thailand and the United States. Instead, the ruling provides greater legal clarity regarding U.S. trade policy.

From a commercial perspective, the new tariff rate of 15% is lower than the effective tariff rate of approximately 19% previously faced by Thai exports. Consequently, the short-term impact on Thai exporters is expected to be manageable.

In addition, the temporary nature of the measure may create short-term export opportunities, as U.S. importers may accelerate purchases during the 150-day implementation period in anticipation of potential policy changes.

Nevertheless, Thailand may still need to address longstanding U.S. concerns in several areas, including:

  • Production cost structures
  • Government subsidies
  • Anti-dumping issues
  • Labour standards
  • Environmental standards
  • Food safety regulations
  • Intellectual property protection

These issues may become increasingly relevant in the context of future trade policy reviews.

Thai Government Response

The Prime Minister has instructed the Thailand–U.S. trade negotiation team, including the Deputy Prime Minister and Minister of Finance, together with the Minister of Commerce, to closely monitor developments following the transition from the Reciprocal Tariff framework to the 15% global tariff measure.

While the reduced tariff rate may provide short-term benefits for Thai exports, policymakers recognize the possibility of further U.S. trade measures and will continue to maintain close bilateral engagement.

Thailand’s Strategic Response

To mitigate potential risks and strengthen economic resilience, Thailand is pursuing several strategic initiatives.

1. Continued Engagement with U.S. Trade Authorities

Thailand will continue discussions with the Office of the United States Trade Representative (USTR) to safeguard Thai export interests and manage potential tariff risks.

2. Expansion of Free Trade Agreements (FTAs)

The government is accelerating negotiations on free trade agreements in order to diversify export markets and reinforce Thailand’s position as a regional trade and investment hub.

Current priorities include:

  • Implementation of FTAs with Sri Lanka and the European Free Trade Association (EFTA), which have already been signed and are awaiting domestic approval
  • Targeting the conclusion of FTA negotiations with South Korea and the European Union by 2026
  • Advancing trade cooperation between the Association of Southeast Asian Nations (ASEAN) and Canada

3. Support Measures for Businesses

The Ministry of Commerce has established a consultation centre to provide guidance to businesses affected by evolving global trade policies.

4. Investment Promotion and Supply Chain Relocation

Thailand is also working to remove regulatory barriers to investment in order to attract supply-chain relocation into Thailand and the broader ASEAN region.

The Prime Minister has tasked the Office of the Council of State of Thailand with accelerating legal reforms affecting investors, while the Thailand Board of Investment continues to expedite investment approvals under the Board of Investment (BOI) Fast Pass policy.

Author: Panisa Suwanmatajarn, Managing Partner.

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Update on Thailand–United States Tariff Negotiations and the New 15% Global Import Tariff

Update on Thailand–United States Tariff Negotiations

On 19 February 2026, the Minister of Commerce provided an update on Thailand’s ongoing tariff negotiations with the United States, confirming that discussions remain underway despite several substantive issues on which the parties continue to hold differing positions.

Earlier, on 12 February 2026, Director-General-level consultations were convened to discuss the proposed timeline and structural framework of the contemplated agreement. Both sides reaffirmed their shared objective of concluding the negotiations in a timely and orderly manner. The United States indicated that it would not object to Thailand submitting, in advance, a proposed list of goods for exemption from the Reciprocal Tariff (“RT”) under Annex 3. However, approval of any such exemptions will ultimately depend on the overall balance and final outcome of the negotiations. The Ministry of Commerce has expressed its intention to conclude the negotiations by July 2026.

Thailand’s Tariff Position within ASEAN and Structural Parity under the RT Regime

Thailand currently maintains a tariff position equivalent to that of other ASEAN Member States under the RT framework and is therefore not at a structural disadvantage from a comparative tariff perspective.

Eligibility for exemptions under Annex 3 will depend on the specific terms secured through each country’s bilateral negotiations with the United States, as the United States applies differentiated conditions on a case-by-case basis. Importantly, any preferential treatment granted under Annex 3 does not take effect automatically upon the conclusion of negotiations. Rather, it remains subject to compliance with applicable domestic legal processes and formal procedural requirements.

By way of illustration, in the case of Malaysia, tariff exemptions become operative only after sixty (60) days have elapsed from the date on which the relevant agreement enters into force under Malaysia’s domestic law, together with formal notification to the United States. During this interim period, goods listed under Annex 3 remain subject to the RT in the ordinary course until all requisite procedures have been completed and the exemption becomes fully effective.

U.S. Supreme Court Ruling on Presidential Authority under IEEPA

On 20 February 2026, the Supreme Court of the United States, by a 6–3 majority, affirmed a lower court ruling that the U.S. President’s reliance on the International Emergency Economic Powers Act (“IEEPA”) as authority to impose the RT was unlawful. The Court held that IEEPA does not authorize the imposition of tariffs, as such authority is constitutionally vested in Congress.

This decision clarified the constitutional allocation of tariff authority and directly affected the legal basis underpinning the previously imposed RT measures.

Imposition of a Global Tariff under Section 122 of the Trade Act of 1974

Following the Supreme Court’s ruling, on 21 February 2026, the U.S. President announced the immediate imposition of a 15% global import tariff pursuant to Section 122 of the Trade Act of 1974.

The Minister of Commerce confirmed that Thailand is not required to reopen or renegotiate its ongoing discussions in light of this measure, as the tariff rate has been unilaterally determined by the United States. Certain categories of goods remain exempt, and the overall impact has not been assessed as materially adverse.

In the short term, Thailand may derive relative benefits from this development. The previously applicable tariff rate of 19% on Thai goods has been reduced to 15%, resulting in immediate cost savings for Thai exporters. Key sectors expected to benefit include rubber products, frozen seafood, and electronic components—each representing significant export categories to the United States market.

Ongoing Monitoring and the 150-Day Statutory Review Period

Notwithstanding the foregoing, the Thai Government will continue to monitor the implementation and legal trajectory of the measure, particularly in light of the 150-day period prescribed under Section 122 of the Trade Act of 1974. During this statutory period, the United States retains the authority to modify, extend, or terminate the measure.

Benefits and Risks Arising from the U.S. Tariff Measures

Short-Term Benefits


The reduction of the import tariff rate from 19% to 15% enhances the price competitiveness of Thai goods in the United States market and provides immediate cost relief to Thai exporters.

No Requirement for Renegotiation


As the United States has unilaterally determined the applicable tariff rate and granted exemptions for certain categories of goods, Thailand is not required to reopen negotiations, thereby reducing the administrative and diplomatic burden associated with prolonged discussions.

Opportunity for Market Expansion


Thai exporters may capitalize on the current tariff environment by accelerating exports during this period of reduced rates, ahead of any potential regulatory changes.

Long-Term Risks


If the United States increases tariff rates or introduces additional trade measures following the statutory review period, Thailand may face renewed competitive pressure. It is therefore prudent to prepare contingency strategies, including diversification of export destinations, particularly within ASEAN and the European market.

Conclusion

Recent developments in U.S. tariff policy reflect continued legal and policy volatility—from the Supreme Court’s clarification of presidential authority under IEEPA to the subsequent imposition of a 15% global import tariff under Section 122 of the Trade Act of 1974.

While Thailand is not required to renegotiate its position and stands to benefit in the short term from the reduced tariff rate, the uncertainty inherent in the 150-day statutory framework remains a material risk factor. Accordingly, the Thai Government should closely monitor further developments in U.S. trade policy, while private sector stakeholders strategically leverage the current window of opportunity to expand exports, enhance product value, and diversify market exposure in order to strengthen Thailand’s long-term trade resilience.

Author: Panisa Suwanmatajarn, Managing Partner.

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US Special 301: Thailand’s Continued Watch List Status and Strategic Efforts Toward Removal

The Office of the United States Trade Representative (“USTR”) annually publishes the Special 301 Report to evaluate the adequacy and effectiveness of intellectual property (“IP”) protection and enforcement in U.S. trading partners, pursuant to Section 301 of the U.S. Trade Act of 1974. On 29 April 2025, the 2025 Special 301 Report was released, maintaining Thailand’s placement on the Watch List—a designation Thailand has held since 2017, following a period on the Priority Watch List from 2007 to 2016.

While the Watch List status remained unchanged, the USTR acknowledged Thailand’s notable progress in several areas, including legislative initiatives and enhanced enforcement activities. Key advancements recognized include the publication of a draft Patent Act in December 2024 to streamline patent registration, reduce examination backlogs, and facilitate accession to the Hague Agreement Concerning the International Registration of Industrial Designs; proposed amendments to the Copyright Act to support accession to the WIPO Performances and Phonograms Treaty (“WPPT”); and strengthened enforcement measures against IP infringements, coordinated by the Department of Intellectual Property, the Royal Thai Police, and the Customs Department, resulting in increased seizures of counterfeit and pirated goods.

On 26 August 2025, the National Intellectual Property Policy Committee approved the Thailand Intellectual Property Work Plan (“IP Work Plan”), developed in collaboration with the USTR. This plan outlines concrete, time-bound measures to address the deficiencies identified in the 2025 Report and supports Thailand’s objective of removal from the Watch List. Complementing this, the Intellectual Property Development Plan for 2026–2027 was formalized, structured around four core pillars:

1.  Legislative Development: Updating and modernizing IP laws to align with international best practices.

2.  Enforcement Enhancement: Improving inter-agency coordination, implementing robust measures, and imposing stricter penalties to combat infringement.

3.  Public Service Optimization: Enhancing the efficiency and accessibility of IP registration, examination, and related administrative processes.

4.  Stakeholder Engagement and Awareness: Increasing public awareness and fostering a culture of respect for IP rights through education and participation.

These efforts are further supported by strategic initiatives aimed at elevating Thailand’s performance in the Global Innovation Index, including increased investment in research and innovation, development of financial mechanisms for innovation, promotion of innovation scaling, cultivation of skilled talent, and improved data management for innovation activities.

On 3 February 2026, the Thai Cabinet formally acknowledged Thailand’s status under the 2025 Special 301 Report, as presented by the Ministry of Commerce. This acknowledgment reaffirms the government’s commitment to implementing the IP Work Plan and advancing reforms in close coordination with the USTR. The focus has shifted from policy formulation to measurable implementation and enforcement outcomes.

The forthcoming 2026 Special 301 Report, anticipated at the end of April 2026, will evaluate the effectiveness and sustainability of these measures. Successful execution of the IP Work Plan is expected to demonstrate sufficient progress to warrant removal from the Watch List, thereby strengthening bilateral trade relations with the United States and enhancing protections for domestic and international IP holders.

For a detailed analysis of Thailand’s status in the 2025 Special 301 Report and initial reform strategies, please refer to our previous article: [Thailand’s 2025 Special 301 Report on Intellectual Property Protection and Enforcement Released (Thailand’s 2025 Special 301 Report on Intellectual Property Protection and Enforcement Released – The Legal Co., Ltd.).

Key Takeaways:

  1. Thailand remains on the U.S. Watch List in the 2025 Special 301 Report, reflecting ongoing concerns despite recognized progress in IP protection and enforcement.
  2. The jointly developed Thailand Intellectual Property Work Plan, approved in August 2025, and the Intellectual Property Development Plan for 2026–2027 provide a structured framework to address USTR-identified deficiencies through legislative, enforcement, service, and awareness initiatives.
  3. Cabinet acknowledgment on 3 February 2026 underscores Thailand’s commitment to implementation, with the 2026 Special 301 Report serving as a pivotal assessment of these efforts.
  4. Effective execution holds the potential to secure removal from the Watch List, bolster international trade confidence, and support innovation, particularly for small and medium enterprises.

Related Article: Thailand’s 2025 Special 301 Report on Intellectual Property Protection and Enforcement Released – The Legal Co., Ltd.

Author: Panisa Suwanmatajarn, Managing Partner.

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Legal Update: Recent Revisions to the United States–Thailand Joint Statement on Reciprocal Trade

The Joint Statement on the Framework for the United States–Thailand Agreement on Reciprocal Trade (the “Joint Statement“) has been revised in certain non-material respects, as proposed by the Ministry of Commerce of Thailand. Such revisions were made pursuant to authority previously granted by the Cabinet and do not alter the core principles approved at the policy level.

Cabinet Approval and Delegated Authority

The Cabinet of Thailand (the “Cabinet“) initially approved the Joint Statement on 1 August 2025 (B.E. 2568). Concurrently, the Cabinet delegated authority to the Ministry of Commerce to make revisions to non-essential provisions of the Joint Statement, provided that such revisions remain consistent with the principles approved by the Cabinet. The Ministry of Commerce was further required to subsequently report such revisions to the Cabinet, together with the rationale for and benefits arising from them.

Modifications Proposed by the United States

Following further discussions, the United States proposed several revisions to both the substance and wording of the Joint Statement to more accurately reflect prevailing factual circumstances and the current status of implementation. The key modifications are summarized below:

  • The reciprocal trade tariff, which had not previously been specified, was fixed at a rate of 19 percent.
  • The Joint Statement was revised to include a reference to Annex III of Executive Order No. 14346, dated 5 September 2025 (B.E. 2568), entitled “Potential Tariff Adjustments for Aligned Partners.” This annex addresses the identification of categories of goods that may be eligible for tariff exemptions for trading partners that successfully conclude negotiations with the United States. The inclusion of this reference enhances legal clarity, as the original text did not expressly refer to the relevant executive order.
  • Provisions relating to rules of origin were removed. This issue remains under consideration by the United States, and no definitive policy or implementation framework has yet been finalized.
  • Certain wording in the Joint Statement was refined to more accurately reflect the status and progression of negotiations between Thailand and the United States.

Thailand’s Representation and Formalization of the Joint Statement

The Prime Minister of Thailand appointed the Deputy Prime Minister as the representative of the Thai Government to engage in discussions with the United States regarding the Joint Statement through a conference meeting. During these discussions, Thailand formally confirmed the revised Joint Statement.

Subsequently, the United States publicly released the Joint Statement on the White House website during the 47th ASEAN Summit held in Kuala Lumpur, Malaysia, on 26 October 2025, which was attended by the President of the United States.

Consideration by the Ministry of Commerce

The Ministry of Commerce concluded that the revisions proposed by the United States constituted non-material adjustments to the Joint Statement. Such revisions were intended to enhance clarity and ensure consistency with prevailing factual circumstances and international practice and did not conflict with the principles previously approved by the Cabinet.

Key Takeaways

Thailand is expected to derive substantial benefits from the reduction of the reciprocal tariff from 36 percent to 19 percent, particularly in light of Thailand’s export value to the United States, which exceeds USD 56 billion.

The reciprocal tariff rate was fixed at 19 percent, a level broadly comparable to those applied to other ASEAN countries.

Author: Panisa Suwanmatajarn, Managing Partner.

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Institutional Cooperation Between the DIP and Thai FDA: A New Framework for Health Product Innovation

On 8 September 2025, the Department of Intellectual Property (“DIP”) and the Thai Food and Drug Administration (“Thai FDA”) entered into a Memorandum of Understanding (“MOU”) to enhance cooperation on patent capacity building and regulatory governance for health products. Recognizing patents as a fundamental legal mechanism for protecting innovations from unauthorized imitation, this initiative aims to strengthen Thailand’s health product industry, promote exports, and enhance global competitiveness.

Key Areas of Cooperation

Under the MOU, the two authorities will collaborate to integrate intellectual property protection with regulatory oversight across the product lifecycle:

  • DIP: The DIP will provide access to comprehensive, accurate, and up-to-date patent and intellectual property information to support innovation planning, research and development (“R&D”), and strategic decision-making.
  • Thai FDA: The Thai FDA will promote regulatory compliance and health product registration knowledge, particularly in relation to medicines and other regulated health products, and support coordination with patent-related processes where relevant.
  • Joint Initiatives: Both authorities will engage in technical and academic cooperation, including expedited registration of patents, petty patents, and trademarks relating to medicines and health products through the DIP’s Fast Track services.

Implementation Plan for 2026

To ensure practical and measurable outcomes, the MOU establishes concrete implementation measures for 2026, including:

  • The exchange of information relating to health product registration and patent applications to improve efficiency and policy coordination;
  • Joint training programs on patent information searches, covering both theoretical and practical aspects, to strengthen integrated operational capacity; and
  • The deployment of patent expiration and near-expiration alert systems to ensure that rights holders receive advance notification, enabling timely patent renewal and continued product protection.

The initial phase of implementation will focus on pharmaceutical products as a pilot area, with the scope potentially expanding to other health products regulated by the Thai FDA in subsequent phases.

Key Benefits for Businesses

The integration of data and workflows between the DIP and the Thai FDA is expected to generate tangible benefits for businesses operating in Thailand’s health product sector, including:

  • Faster and more efficient access to regulatory and intellectual property-related public services;
  • Improved alignment between patent strategies and regulatory approval pathways; and
  • Enhanced support for R&D, intellectual property protection, and commercialization of health products in both domestic and international markets.

Conclusion

The MOU between the DIP and the Thai FDA represents a significant advancement toward closer integration of intellectual property protection and regulatory governance for health products in Thailand. By strengthening institutional coordination, streamlining information exchange, and aligning patent management with regulatory processes, the framework establishes concrete implementation measures for 2026 While the initial phase provides a clear implementation roadmap, the cooperation plans for subsequent phases have not yet been announced. Accordingly, further developments and any expansion of the scope of cooperation will need to be closely monitored

Author: Panisa Suwanmatajarn, Managing Partner.

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