Thailand Eliminates US Corn Tariff, Boosts Imports to 1 Million Tons

Strengthening Trade Relations with the US

In a significant trade development, Thailand has agreed to remove tariffs on corn imports from the United States, as part of broader efforts to strengthen bilateral trade relations. The agreement, announced by Thai government spokesperson Siripong Angkasakulkiat, involves importing 1 million tons of US corn tariff-free between February and June 2026. This represents a substantial increase from the previous annual quota of 54,700 tons, which was subject to a 20% tariff.

Protecting Local Farmers Amid Increased Imports

To mitigate the impact on local farmers, the Thai government has implemented protective measures. Importers will be required to purchase three parts of local corn for every one part imported. Additionally, the import window has been limited to just five months to prevent oversupply and downward pressure on domestic corn prices. Siripong emphasized that these measures are designed to balance the need for expanded international trade with the protection of Thailand's agricultural sector, a critical component of the country's economy.

Broader Trade Implications

The decision on corn imports is part of a larger trade negotiation between Thailand and the US. The Thai cabinet has also approved soybean meal imports for the period 2026-2028 with a reduced tariff of 2%. These moves reflect Thailand's efforts to navigate its trade policies between expanding international trade opportunities and safeguarding domestic agricultural interests. The country's annual corn consumption stands at around 9 million tons, with import requirements ranging between 4 to 5 million tons.

Conclusion

Thailand's decision to increase corn imports from the US without tariffs marks a significant development in the trade relations between the two countries. While it presents opportunities for Thai businesses and consumers, the government remains committed to protecting local farmers through stringent conditions on importers. This balanced approach underscores Thailand's strategic management of its agricultural trade policies.