Thailand will increase U.S. ethane imports by at least 1 million tons starting from the second quarter of this year to try to reduce its trade surplus with the United States, a Thai official said on Tuesday.
One million tons of ethane are worth $200 million, said Pongsarun Assawachaisophon, a deputy secretary-general to the prime minister.
"The government has discussed with petrochemical companies to increase U.S. ethane imports which will also help with trade negotiations with the United States," he told Reuters, adding Commerce Minister Pichai Naripthaphan was travelling to the country from Feb. 4-8.
Thailand had a trade surplus last year of $35.4 billion with the United States, according to the commerce ministry, which has cited challenges to growing Thai exports due to uncertain U.S. trade policies. The United States was Thailand's largest export market last year, accounting for 18.3% of total shipments, or $54.96 billion.
He has imposed tariffs on China and signalled the 27-nation European Union would be his next target, but he has suspended his threat of 25% tariffs on Mexico and Canada, agreeing to a 30-day pause.
"We'll see what we can import more from the U.S. and is a win-win for both sides," Thai official Pongsarun added.
"The private sector already has demand for ethane imports," he said.
Thai petrochemical firms will import at least 1 million tons more of U.S. ethane for both selling to other countries or using as a precursor, Pongsarun said.
