You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

May 22, 2026

US-Thailand Trade Meetings Increase Focus on Trade Enforcement

Thailand recently concluded the latest round of high-level trade discussions with its US trade counterparts. In addition to addressing concerns over claimed human rights abuses, forced labor, and the current trade imbalance with the US, one critical area of focus was US allegations of transshipment in Thailand’s import-export sector.

Transshipment is the practice of routing goods through a third country to circumvent duties or tariffs on goods exported to the receiving country. Specifically, the US alleges that many Thai exporters declare a Thai origin for goods to qualify for preferential duties or exemptions without meeting the legal standards for establishing Thai product origin—an act that it claims masks the goods’ true origin. This is a particular matter of concern for US authorities, since transshipment is perceived to be a means by which Thai origin is claimed for many Chinese goods exported abroad. This perception affects a wide range of otherwise legitimate Thai-origin goods.

The Thai trade delegation, led by Deputy Prime Minister and Commerce Minister Suphajee Suthumpun, met with counterparts from the Office of the United States Trade Representative (USTR) on May 3–6. A subsequent team of Thai trade representatives, led by the Thai Ministry of Commerce vice minister, met with the USTR on May 13–14. These discussions directly impact the trade enforcement environment in Thailand, potentially affecting numerous business operators involved in the manufacture, import, or export of goods and components.

Thailand’s position is that it strictly adheres to and enforces the legal standards for determining qualifying origin and that allegations of transshipment are largely unjustified. Nonetheless, it has agreed to increase its focus on trade compliance and enforcement in Thailand in return for commitments on reciprocal trade benefits with the US, including consideration of tariff exemptions on certain critical Thai imports into the US.

Notable Outcomes

There are two key takeaways for Thailand-based manufacturers, importers, and exporters:

  • Thailand agrees to increase cooperation with US Customs on origin verification: Thailand’s Department of Foreign Trade (DFT) confirmed that it is working closely with US Customs to monitor and prevent false claims of Thai origin on exports to the US. This amounts to a commitment to tighten audit scrutiny of certificates of origin and transshipment risk. This follows an already observed increase in origin scrutiny by Thai officials. It also involves more exercise of discretion in the conduct of origin investigations by the DFT and related authorities. It is important to note that his increased enforcement attention is not limited only to goods exported from Thailand to the US.
  • Thailand to upgrade certification standards for goods exported to the US: Thai officials confirmed that there is a commitment to upgrade standards for origin certification for exports to the US. While Thai authorities had already increased attention to the origin certification process and review, especially those involving Chinese inputs or business ties, the Thai delegation agreed to focus on an even more rigorous review of origin claims and supporting documents before exports are cleared.

The latest discussion with the USTR follows Thailand’s 2025 commitments on trade compliance during the tariff negotiation process. Thailand has been moving toward a stricter origin verification system since 2025, including strict evaluation of non-preferential certificates of origin, increased factory inspections, and greater scrutiny for products considered at risk of origin circumvention. In short, recent trade negotiations between the US and Thailand reinforce and, in fact, influence the increased enforcement trend observed in Thailand.

RELATED INSIGHTS​ 

May 27, 2025
With the fifth round of negotiations between Thailand and the EU for a free trade agreement (FTA) now complete and the sixth round scheduled for June, both sides appear to be well on the way to meeting the desired Christmas 2025 deadline. The latest discussions were held in Brussels, and Pichai Naripthaphan, Thailand’s commerce minister, announced that the two sides have reached agreement on two chapters: Customs and Trade Facilitation, and Sustainable Food Systems. No details have been released regarding what concessions were made to reach the agreement, but reports suggest that good progress is being made in all remaining chapters. Market access for goods has reportedly become the current focus of negotiations. The first draft of goods and services that will be exempted is expected in early June, which will be welcome news for importers. While the first draft cannot be expected to represent the finalized list, it will at least provide an indication of the goods and services likely to benefit from tariff exemption. Similarly, both sides have begun to share the geographical indications that they wish to be protected, which will be of great interest to producers and manufacturers in Thailand and the EU. This is especially true considering the upcoming amendments to the Geographical Indications Protection Act B.E. 2546 (2003) expected in Thailand, as one of the key changes under the prospective amendment is to enable easier registration for geographical indications protected under international agreements. Other updates from the intellectual property (IP) chapter show good progress in relation to copyright and civil and border enforcement of IP rights. Both sides are also continuing to examine possible bridging proposals for unresolved issues. Given the substantial differences in IP laws between Thailand and the EU, how negotiators will bridge this gap remains at the forefront of most
May 26, 2025
On May 21, 2025, the Trade Competition Commission of Thailand (TCCT) published a press release signaling heightened regulation of digital platforms in response to the influx of products from foreign countries being sold in Thailand via e-commerce platforms. In recent years, the rapid expansion of cross-border multi-sided e-commerce platforms has unlocked unprecedented growth, but it has also flooded Thailand’s digital marketplaces with low-cost imports sold by unregulated foreign vendors via these platforms, unfairly undercutting local merchants’ market share and exposing consumers to uneven product quality. According to the press release, the TCCT announced progress on drafting new guidelines on unfair trade practices, monopolistic conduct, and competition restraint by multi-sided e-commerce platforms at a recent meeting of the Management Committee for Addressing Issues of Foreign Goods and Businesses Violating Laws. This regulatory push is part of a broader governmental effort to tackle issues stemming from the foregoing that create uneven playing fields and undermine consumer welfare. The draft guidelines are designed to regulate platform operators and their complex and multidimensional trade relations that cause network effects and distort competition. The forthcoming guidelines, to be issued under the Trade Competition Act B.E. 2560 (2017), will undergo public consultation to ensure platform operators, the public, and other stakeholders will have an opportunity to provide input before they are finalized and enforced. The guidelines are seen as an important priority, with the minister of commerce urging swift implementation of the measures to achieve the government’s objectives. In addition to the legislative advancement, one of the TCCT commissioners has been appointed to advise a subcommittee on preventing nominee arrangements by foreign investors and a subcommittee dedicated to promoting Thai SMEs and eliminating poor-quality imports. The appointee will also support the nationwide task force against illegal foreign products in overseeing proactive field operations and comprehensive
May 6, 2025
On May 2, 2025, the Trade Competition Commission of Thailand (TCCT), in cooperation with the OECD, held a conference to discuss the results of the OECD Peer Review of Thailand’s competition law and policy. This review, conducted under the second phase of the OECD-Thailand Country Program, marks a significant milestone in Thailand’s ongoing institutional reform. Tilleke & Gibbins’ trade competition experts were invited to participate in both the program and the conference. The OECD Peer Review aimed to assess the current state of Thailand’s legal and regulatory environment surrounding competition law and policies, pinpoint strengths and weaknesses, and offer recommendations on potential future development. This article highlights the review’s key findings and recommendations, and their implications for businesses operating in Thailand. Institutional Framework: Room for Improvement Competition law in Thailand has undergone significant transformation, particularly since the enactment of the Trade Competition Act B.E. 2560 (2017) (TCA). This landmark legislation aimed to revolutionize the competition regime, notably by amending important legal provisions to enhance public enforcement capabilities and establishing the TCCT as an independent authority separate from government ministries, endowed with its own budget and powers to enforce competition law across key areas: anticompetitive agreements, abuse of dominant market positions, merger control, and unfair trade practices. The goal was to create a more efficient, flexible, and independent agency and to prevent political intervention. However, the OECD Peer Review points out a major impediment. The TCCT faces considerable budget and human resource constraints, which may impact its enforcement capacity. Its budget is comparatively low by international and regional standards, and only a fraction of its staff is dedicated to core competition enforcement (merger control and anticompetitive behavior). Furthermore, there is room for the TCCT to continue its improvements in expertise and efficiency—areas the TCCT has been attempting to shore up
May 2, 2025
Attorneys from Tilleke & Gibbins have updated the latest edition of Doing Business in Thailand, a Q&A-style guide from Thomson Reuters Practical Law that offers an overview of key legal considerations for companies operating in jurisdictions worldwide. The contribution outlines the country’s legal and regulatory framework for foreign investment and business operations and reflects the latest legislative developments. The chapter addresses the following core topics: Legal system: Structure of the courts and the codified nature of Thai law. Foreign investment: Business restrictions under the Foreign Business Act, sector-specific regulations, exchange control rules, and investment incentives. Business vehicles: Overview of partnerships, private and public limited companies, and other legal entities. Employment: Labor protections, employment contracts, foreign worker requirements, and termination procedures. Tax: Corporate and personal income tax, indirect taxes, and tax obligations for residents and non-residents. Intellectual property: Registration and enforcement of patents, trademarks, designs, and copyrights. Data protection: Key provisions of the Personal Data Protection Act and related compliance obligations. Competition law: Regulatory framework under the Trade Competition Act. Anti-bribery and corruption: Relevant legislation and enforcement mechanisms. E-commerce and digital business: Legal regime for online transactions and digital platforms. Marketing and advertising: Consumer protection laws and regulations affecting advertising and marketing practices. Product regulation and liability: Safety standards, liability regimes, and roles of enforcement authorities. Practical Law, a legal reference resource from Thomson Reuters, publishes a range of guides for hundreds of jurisdictions and practice areas. The insurance and reinsurance guide is a valuable resource for legal practitioners, covering numerous jurisdictions worldwide. To view the latest version of the guide, please visit the Practical Law website and enroll in the free Practical Law trial to gain full access.