Thailand: Background and U.S. Relations

Publication Date: April 2009

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Government

Type:

Coverage: Thailand

Abstract:

U.S.-Thailand relations are of particular interest to Congress because of Thailand's status as a long-time military ally, a key country in the war against terrorism in Southeast Asia, and a significant trade and economic partner. A proposed U.S.-Thailand Free Trade Agreement (FTA) would require implementing legislation to take effect. However, the recent ouster of Prime Minister Thaksin Shinawatra by a military coup has cast uncertainty on how these U.S. priorities will fare in the near future. Future U.S.-Thai relations will likely depend upon how quickly the military rulers fulfill their promise to restore democratic rule.

Despite differences on Burma policy and human rights issues, shared economic and security interests have long provided the basis for U.S.-Thai cooperation. Thailand contributed troops and support for U.S. military operations in both Afghanistan and Iraq and was designated as a major non-NATO ally by President Bush in December 2003. Thailand's airfields and ports play a particularly important role in U.S. global military strategy, including having served as the primary hub of the relief effort following the 2004 Indian Ocean tsunami. The high-profile arrest of radical Islamic leader Hambali in a joint Thai-U.S. operation in 2003 underscores Thailand's role in the U.S.-led war on terrorism. The U.S.-Thai bilateral trade total is $25 billion; Thailand is the United States's 19th largest trading partner.

Until the political turmoil of 2006, Thaksin and his populist Thai Rak Thai party had consolidated broad control of Thai politics. Before his ouster, opposition parties and international watchdog organizations had criticized his strongman style as a threat to Thailand's democratic institutions. Thaksin's response to a counterinsurgency in the southern majority-Muslim provinces also came under fire. A series of attacks by insurgents, which has reportedly claimed over 1,700 lives since January 2004, has renewed concerns about both indigenous and, potentially, transnational terrorism in the country. The new government now faces the challenge of dealing with the ongoing unrest.

With its favorable geographic location and broad-based economy, Thailand is among the most likely countries to play a major leadership role in Southeast Asia and has been an aggressive advocate of increased economic integration in the region. A founding member of the Association of Southeast Asian Nations (ASEAN), Thailand maintains close ties with China, has reached out to India, and is pursuing FTAs with a number of other countries. Given its ties with the United States, Thailand's stature in the region may affect broader U.S. foreign policy objectives and prospects for further multilateral economic and security cooperation in Southeast Asia. In the context of the Pentagon's transformation and realignment initiatives, current logistical facilities in Thailand could become more important to U.S. strategy in the region. This report will be updated periodically.