Australia's Kingsgate battles Thai government over gold mine closure

[samran]

10 hours ago, champers said:

I think I have read on another thread that siezure of Thai assets in Australia, to the value of monies due, is allowed. A similar event occurred in Germany a few years ago, I believe.

Well, Thai government assets. Not just the assets of anyone who happens to be thai. 

 

Via is the New York convention protocol, the arbitration decision can be enforced in other jurisdictions as well, so long as courts in those jurisdictions agree.

 

it is a long and drawn out process. Thai civil servants are used to that and will happily kick the can down the road under the guise they are going through due process. They need never have to renew Kingsgates licenses again. 

Edited December 12, 2017 by samran

[Srikcir]

43 minutes ago, samran said:

Via is the New York convention protocol

 

43 minutes ago, samran said:

it is a long and drawn out process.

A process that will surely award additional compensation to Kingsgate as approved by the tribunal for time value of money, additional expenses, etc. to  make Kingsgate whole.

 

However, the action taken by the Australian government in accordance to the TAFTA might be to immediately raise tariffs on imported Thai goods covered by the TAFTA and pay Kingsgate the excess payments. No need to get junta's cooperation nor wait for a new government.

 

Of course the junta can retaliate by further breaching the TAFTA and raising tariffs on imported Australian goods covered by the TAFTA - a trade war that will discourage any further foreign investment in Thailand, discourage any new free trade agreements, slow GDP growth, reverse export growth, increase Thai inflation, etc. - not to mention whether Thailand can be depended on honoring its other free trade agreements. (note I am not a trade expert)

 

As an aside, if the junta/military planned on participating with its own candidates in the next election, defaulting on a tribunal award and creating a trade war with Australia might not be a good political strategy for getting votes. Prayut needs to show leadership and accountability to resolve Kingsgate's claim before the tribunal and accept whatever binding decision the tribunal makes.

Edited December 12, 2017 by Srikcir
add m

[SupermarineS6B]

When are Farangs going to learn ?  " You bring your money to Thailand, give it all to us, then go home and get some more and come back"...... I'm just waiting for the order that all foreigners are to leave the country for security reasons..... also leave your houses, cars and bank accounts.........  or in this case a gold mine......

[samran]

52 minutes ago, Srikcir said:

 

A process that will surely award additional compensation to Kingsgate as approved by the tribunal for time value of money, additional expenses, etc. to  make Kingsgate whole.

 

However, the action taken by the Australian government in accordance to the TAFTA might be to immediately raise tariffs on imported Thai goods covered by the TAFTA and pay Kingsgate the excess payments. No need to get junta's cooperation nor wait for a new government.

 

Of course the junta can retaliate by further breaching the TAFTA and raising tariffs on imported Australian goods covered by the TAFTA - a trade war that will discourage any further foreign investment in Thailand, discourage any new free trade agreements, slow GDP growth, reverse export growth, increase Thai inflation, etc. - not to mention whether Thailand can be depended on honoring its other free trade agreements. (note I am not a trade expert)

 

As an aside, if the junta/military planned on participating with its own candidates in the next election, defaulting on a tribunal award and creating a trade war with Australia might not be a good political strategy for getting votes. Prayut needs to show leadership and accountability to resolve Kingsgate's claim before the tribunal and accept whatever binding decision the tribunal makes.

 

You are living in la la land if you think the Australian government would raise tariffs to compensate Kingsgate. Thai exporters and Australian importers would raise hell, not to mention legal cases.

 

You are also very mislead if you think that Prayuth picking a fight with Australia leading up to elections is anything other than good for him when it comes to getting the punters to support him.

[blackcab]

9 hours ago, wakeupplease said:

I just wish they would try in on Honda and the other big companies who invest and do so much for the country

 

Companies like Honda are smart. Their Thai subsidiaries license all technology, trade marks and know how from the parent company. Everything is delivered to the factory just in time.

 

If you seize their factory you get a few finished vehicles, and that's it really. No new parts are going to arrive just in time. The robots and the production line won't work because their programming would be remotely wiped.

 

You would be left with nothing that will earn you decent money.

 

On the other hand, open a gold mine, then train local staff to run mechanical equipment that whose concept hasn't changed for decades.

 

Get the mine to a profitable and smoothly operating state. You know the rest.

[Srikcir]

6 minutes ago, samran said:

You are living in la la land if you think the Australian government would raise tariffs to compensate Kingsgate. Thai exporters and Australian importers would raise hell, not to mention legal cases.

You simply fail to understand the purpose of a free trade agreement and the rights of the AUSTRALIAN government under a breached free trade agreement. There are no "legal cases." Only the arbitration tribunal. Please note that the Thailand-Australian Free Trade Agreement is between governments, not between private individuals and/or companies.

 

I use "raising tariffs" as an example from a layperson with no expertise in trade agreements. There might be other unilateral legal actions the Australian government can take in accordance with the TAFTA to make Kingsgate whole for any award from the tribunal.

 

I don't understand the significance of "la la land."  Maybe it's Prayut who is in la la land. But I'm sure breach of a free trade agreement (TAFTA was Thailand's first FTA) is a serious matter for any country that wants to conduct global trade.