US Halts Trade Deal Talks With Thailand Amid Dispute Over Cambodia Ceasefire

BANGKOK: The United States has temporarily suspended negotiations on a new reciprocal trade framework with Thailand, saying talks will only resume once Bangkok reaffirms its commitment to implementing a ceasefire agreement with Cambodia, Thai officials said on Saturday.

Foreign Ministry spokesperson Nikorndej Balankura confirmed that Thailand received a formal letter from the Office of the U.S. Trade Representative (USTR) on Friday night notifying them of the suspension. According to Nikorndej, the letter stated that Washington expects Thailand to uphold its obligations under the U.S.-brokered ceasefire intended to stop renewed border clashes with Cambodia.

Thailand recently claimed that the ceasefire could not move forward due to alleged violations by Cambodia, including accusations that Phnom Penh had laid new landmines that injured Thai soldiers, allegations Cambodia has strongly denied.

The USTR message indicated that trade discussions would resume once Thailand recommits to carrying out the joint ceasefire declaration.

Under the trade framework announced last month, the U.S. would maintain a 19% tariff on Thai products, while both sides would identify categories of goods where tariff reductions, including possible cuts to zero, could be explored. The two countries were still negotiating key details needed before the deal could be signed and enforced.

Meanwhile, U.S. President Donald Trump held phone calls on Friday night with the leaders of both Thailand and Cambodia following an escalation of border tensions earlier in the week. Trump told reporters he believed the two countries were “going to be fine,” though he made no mention of the USTR’s decision to freeze trade talks. The suspension also did not appear on official USTR or White House communication channels.

During the call, Thai Prime Minister Anutin Charnvirakul briefed Trump on Thailand’s concerns and the alleged landmine incidents. According to Nikorndej, Trump expressed understanding. In a Facebook post following their conversation, Anutin said he requested a reduction in the 19% U.S. tariff on Thai goods. He said Trump responded that the tariff rate was already relatively low but signaled he might reconsider if Thailand and Cambodia completed landmine removal along their shared border swiftly.

Thailand earlier this week suspended its participation in the ceasefire agreement and demanded an explanation from Cambodia over the alleged landmine deployment.