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US Suspends Trade Talks With Thailand Over Peace Pact Halt

The United States has suspended trade negotiations with Thailand after the latter announced it was freezing all work on a peace agreement signed with Cambodia last month, the Ministry of Foreign Affairs said on Saturday.

According to ministry spokesman Nikorndej Balankura, Thailand received formal notice on Friday night from the Deputy US Trade Representative, who informed Thai officials that Washington planned a temporary pause in discussions on a reciprocal trade framework agreement.

He said the US conveyed that talks could resume once Thailand reaffirmed its commitment to the agreement reached in Kuala Lumpur last month in the presence of President Donald Trump.

Prime Minister Anutin Charnvirkul had earlier declared that Thailand would halt its participation in the peace pact following a landmine explosion on Monday that injured four Thai soldiers in Sa Kaeo province.

Speaking at a briefing on Saturday, Mr. Nikorndej said the Thai government was disappointed by the US decision.

“Thailand has consistently affirmed that security and safety issues, especially the bilateral issue between Thailand and Cambodia, must be considered separate from trade issues, which are a bilateral matter of mutual benefit between Thailand and the US,” he said.

News of the suspension came after President Donald Trump held phone calls late Friday with the Thai and Cambodian prime ministers, expressing concern over rising tensions in their border dispute.

While addressing reporters onboard Air Force One as he travelled to Florida, Trump struck an optimistic tone.

“I stopped a war just today through the use of tariffs, the threat of tariffs”, Trump said when asked if he was referring to Thailand and Cambodia.

“I spoke to the prime ministers of both countries and they’re doing great. I think they’re going to be fine,” he said.

During his discussion with Mr. Trump, Prime Minister Anutin reiterated Thailand’s commitment to peace but insisted Cambodia must acknowledge the facts and take responsibility for the latest landmine incident, including preventing further occurrences, Mr. Nikorndej said.

“Therefore, moving forward largely depends on Cambodia’s stance,” he said.

Following the call, Mr. Anutin contacted Malaysian Prime Minister Anwar Ibrahim, the current Asean chairman, and told him that landmine clearance is the “core of the agreement” outlined in the Joint Declaration signed with Cambodia.

Mr. Anwar later wrote on X that Cambodia and Thailand were ready to “continue choosing the space for dialogue and diplomatic efforts as an effective path to resolution”.

PM Aware of Potential Tariff Pressure

Earlier this week, Mr. Anutin acknowledged that President Trump might consider stronger tariff measures after Thailand suspended its participation in the US-backed peace deal.

If that scenario unfolded, he said during remarks at the National Defence College, Thailand would seek alternative trading partners.

In a message posted on the Bhumjaithai Party website, Mr. Anutin said the US president had asked him whether any issues had arisen in the bilateral trade negotiations.

“I told him that I would like him to lower the tariff rate for Thailand further. He cheerfully replied that the 19% rate that Thailand receives is very low,” he wrote.

“I told him that if it were really low, I would not have asked him in South Korea for a further reduction, because Thailand has cooperated well with the US in every aspect.”

According to Mr. Anutin, Mr. Trump then said he would consider reducing tariffs “if you do the demining work quickly”.

Cambodian Prime Minister Hun Manet said in a Facebook post on Saturday that his government would continue implementing the agreement and hoped both sides would remain engaged under the principles and mechanisms already agreed upon.