Thailand reiterates that it will not allow SpaceX to establish a company in Thailand or hold a 100% stake, stating that the satellite business is a matter of national sovereignty.
Thailand reiterates that it will not allow SpaceX to establish a company or hold 100% ownership, even though this issue is on the trade negotiation table with the United States. It affirms its readiness to open its market and reduce tariffs on several US goods to keep tariff rates below 19%.
On August 5, 2569, at 10.12:XNUMX a.m., Bloomberg News reported that The Thai government has confirmed that it will not allow any US company to hold a 100% stake in a low Earth orbit (LEO) satellite communications service business. Although this issue was raised during trade negotiations with the United States under President Donald Trump's administration, citing concerns of national sovereignty and security.
Kirida Paochit, Deputy Minister of Commerce. He revealed in an interview that this issue will be on the agenda of trade negotiations between Thailand and the United States, which are scheduled to resume at the end of August.
He also stated that while Thailand is ready to welcome investment from the United States in many sectors, the government does not want to allow foreigners to hold wholly ownership of the low-orbit satellite telecommunications service business.
"There's only one sector we don't want full-scale foreign investment in, and that's low-orbit satellite telecommunications services, because it's a matter of national sovereignty. And the only US company wanting to invest in this area is SpaceX."
Elon Musk's SpaceX, which operates the Starlink satellite internet business, is currently working to expand its services to Thailand. However, Thai law restricts foreign ownership of certain types of telecommunications infrastructure to a maximum of 49%.
The Deputy Minister of Commerce stated that Thailand is ready to increase imports of goods from the United States to help reduce the trade imbalance, including aircraft, liquefied natural gas (LNG), soybeans, and corn.
In addition, Thailand is ready to reduce import tariffs on certain items to 0% and accept US standards for the import of beef, lamb, and alcoholic beverages.
However, Thailand is not yet ready to open its market to pork from the United States under the same conditions. The goal is to keep tariffs below 19%. Thailand aims for the outcome of negotiations with the United States to result in an overall tariff rate not exceeding 19%, the level agreed upon by both sides last year before the US Supreme Court ruling forced the Trump administration to adjust its tax policy.
To maintain its authority to impose tariffs, the U.S. Trade Representative (USTR) has launched Section 301 investigations against several countries, citing unfair trade practices.
Currently, Thailand is still subject to a 12.5% tariff under the USTR measures applied to 60 countries, which are considered insufficient in preventing goods produced under forced labor from entering the supply chain. Furthermore, Thailand is undergoing further investigation regarding excess production capacity.
Back in late 2025, the Thai government rejected SpaceX's proposal to establish a wholly-owned subsidiary in Thailand. The Ministry of Digital Economy and Society cited concerns about national telecommunications infrastructure and security as reasons for the rejection, citing Thai law's restrictions on foreign ownership.
refer : bloomberg.com
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