Thailand will import more U.S. Ethane in order to reduce its trade surplus

A Thai official announced on Tuesday that Thailand would increase its U.S. imports of ethane by at least one million tons, starting in the second quarter this year, to reduce the trade surplus it has with the United States.

Pongsarun, deputy secretary-general of the prime minister, stated that one million tons of ethane is worth $200 million.

The government is working with petrochemical firms to increase U.S. imports of ethane, which will help in trade negotiations with the United States," said he. He added that Commerce Minister Pichai Nairapthaphan would be visiting the country between February 4-8. According to the Commerce Ministry, Thailand's trade surplus with the United States was $35.4 billion last year. The ministry cited the uncertainty of U.S. policies as a reason for the challenges in growing Thai exports. Thailand's biggest export market was the United States, which accounted for 18.3% or $54.96billion of its total shipments.

Last month, President Donald Trump signed a trade memo ordering federal agencies complete comprehensive reviews on a variety of trade issues before April 1, including analyses about persistent U.S. deficits. He has already imposed tariffs against China, and has indicated that the European Union of 27 nations would be his next goal. However, he has agreed to a 30 day pause on his threat to 25% tariffs.

Pongsarun, a Thai official, added: "We will see what we can do to import more from America. It is a win for both sides."

He said that the private sector has already expressed a demand for ethane.

Pongsarun, a Thai petrochemical firm, said that Thai firms would import an additional 1 million tonnes of U.S. Ethane to sell abroad or use as a pre-cursor.

(source: Reuters)