Container trucks arrive at and depart from Laem Chabang deep-sea port in Chon Buri.

Trade associations say the dissolution of parliament could hinder the implementation of key economic policies, and have called for the formation of a new government with full authority within the legal timeframe.

Dhanakorn Kasetrsuwan, chairman of the Thai National Shippers’ Council (TNSC), said the private sector is concerned about policy continuity and investor confidence.

"The House dissolution during economic recovery has created anxiety among both domestic and international businesses about the stability of economic policies, especially in trade, investment, and ongoing stimulus efforts," he said.

He said political uncertainty could undermine investor confidence, potentially delaying new investment decisions, particularly for large-scale projects.

Budget allocations crucial to economic progress could be postponed under a caretaker government.

"The business sector needs policy stability and clear communication from the government to mitigate uncertainty," Mr Dhanakorn emphasised.

Regarding the ongoing US tariff negotiations, the council is concerned that the caretaker administration may face challenges in advancing new policies or modifying existing ones. This could lead to delays in significant trade negotiations, particularly those on tariffs and market access. The delays directly affect Thai exporters, who are already grappling with rising costs from foreign tariffs and higher logistics expenses.

TNSC called on government agencies to continue executing urgent tasks within the legal framework to avoid policy gaps during this transitional period.

Mr Dhanakorn said that if border incidents prevent the election from occurring within the legal timeframe, the impact on the economy could be severe, as investor confidence may plummet amid growing uncertainty about future government direction and economic policy.

This could delay or indefinitely postpone both domestic and foreign investments, with logistics projects, infrastructure investments, and export-related initiatives facing significant interruptions.

He added that orders may shift to more stable competitor nations such as Vietnam and Indonesia, while financial markets might experience volatility, impacting the baht and driving up costs for the private sector.

Poj Aramwattananont, chairman of the Thai Chamber of Commerce, said the chamber understands the political necessity behind the dissolution of the House amid the high volatility of both domestic and international economic conditions.

He said that current geopolitical conflicts, border disputes and global economic risks are significantly impacting the country’s stability and operations.

The chamber called for accelerating the election process within the legal timeframe to establish a new government with full authority.

He said several significant laws and international trade negotiation frameworks are pending parliamentary consideration and approval.

There are key issues that must be addressed, including tariff negotiations with the US and free-trade deal talks with partners such as the EU, both of which are critical to enhancing the nation’s competitiveness.

He added that the caretaker government has the legal ability to implement existing policies and measures previously approved by the cabinet.

These measures include economic stimulus initiatives, assistance and relief programmes for residents and businesses in southern provinces affected by the floods, and management strategies for border area situations.

"The chamber is confident that the caretaker government, civil servants and the private sector will work together seamlessly to bolster the economy leading up to the new election and the formation of a new government, despite existing constraints," Mr Poj said.

Commerce Minister Suphajee Suthumpun said the ministry’s legal team is in discussions with the Office of the Council of State (OCS) to clarify what the government can do when it comes to the ongoing US tariff negotiations following the House dissolution. She will inform the public once the ministry receives the OCS’s recommendations.

She confirmed that Thailand would be able to deliver 280,000 tonnes of pending government-to-government rice to China, in accordance with existing guidelines. The ministry is currently awaiting a recommendation from the OCS on another 220,000 tonnes of rice, which is scheduled to be sold to China.