BANGKOK (Reuters) -Thailand is negotiating trade rules with the United States covering rules of origins and regional value content, and expects to finalise them by the end of the year, Commerce Minister Suphajee Suthumpun said on Thursday.
Negotiations with Europe on a free trade agreement are also expected to be completed by the end of the year or early 2026, she said at a business forum.
Thailand’s sluggish economy has been struggling with U.S. tariffs, onerous levels of household debt and a high-valued currency that is weighing on exports.
Suphajee said the baht had been driven up in value by lower Fed rates as well as capital inflows.
“U.S. interest rates have declined (causing) capital to flow into Thailand, with the strong baht hitting exporters,” she said.
There were also aspects that affected the currency.
“There may be other factors too, making (the baht) stronger than neighbouring countries, which reduces Thailand’s competitiveness.”
She also warned that Thailand needed a demand boost, saying that after six consecutive months of negative inflation, the economy was facing deflationary risks.
(Reporting by Reporting by Kitiphong Thaichareon, Panarat Thepgumpanat, Chayut Setboonsarng; Editing by David Stanway)
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