Thailand Urged To Open More Sectors To Foreigners

[george]

BUSINESS DEMANDS

US seeks more access

Opening more sectors would 'deepen ties'

BANGKOK: -- American trade officials yesterday urged Thai-land to open up tele-communications, transport, financial services and agribusiness sectors in order to deepen bilateral economic ties.

The call was made in Bangkok during the Thailand-US Business Summit, the first of its kind after Thailand returned to a democratically elected regime early this year.

Under-secretary of Commerce for International Trade Christopher A Padilla said American businesses are looking forward to the opening of these restricted sectors so as to leverage economic growth for both sides.

"The opening up of more sectors will show a willingness to open new opportunities to service providers through more ambitious offers in the Doha Round of negotiations at the World Trade Organisation," he said.

Padilla's delegation included more than 100 American businessmen attending the conference to mark the 175th anniversary of US-Thai relations.

Prime Minister Samak Sundaravej told the US delegation his administration had no policy to further restrict foreign ownership of businesses here.

He said the government would support more flexible conditions for businesses listed in Annex III of Thailand's Foreign Business Act in order to promote foreign investment.

Sectors subject to more liberalisation included advertising, hotel operations, beverage and food retailing, computer services, warehouse control services and entertainment businesses.

Pramon Sutivong, Board of Trade and Thai Chamber of Commerce chairman, said the latest decision by the US Trade Representative to keep Thailand on the Priority Watch List (PWL) should not hurt bilateral trade and investment ties.

However, some businessmen were more concerned over increased political uncertainties such as the proposed amendments to the Constitution, said Pramon.

Meanwhile, Prairash Burapachaisri, honorary secretary-general of the Joint Private Standing Committee on Commerce, Industry and Banking, noted that Thailand exported less to the US last year following the cancellation of generalised system preferences (GSP) privileges for some Thai goods.

"We would like to encourage you [the US government] to fully maintain our GSP status. We also hope a free-trade agreement between Thailand and the US will be completed soon so that exports to the US will be increased," he said.

Siam Cement Group president and CEO Kan Trakulhoon said his firm has entered into joint ventures with three US-based companies, including Dow Chemical, one of the world's leading petrochemical firms.

"We have been doing business with Dow Chemical for 20 years," he said, adding that the US partner has continually increased its investment.

At present, Dow Chemical holds a 33-per-cent stake in a joint-venture project worth US$1.5 billion (Bt47.5 billion).

--The Nation 2008-04-28

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Thai PM reaffirms govt policy to boost foreign investment

BANGKOK: -- Thailand's Prime Minister Samak Sundaravej reaffirmed US investors his government had eased investment and business regulations by lifting control on short-term capital inflow to promote more foreign investment in Thailand.

Speaking at a Business Summit to mark the 175th Anniversary of the establishment of Thai - US relations, Mr. Samak reassured American entrepreneurs Thailand’s elected government was committed to moving the country forward.

The premier said the government aimed to improve business conditions and the investment ambience by amending regulations and imposing no further restrictions.

"We are opening up for more foreign investment. There is no capital control and no intention to further restrict foreign ownership of companies," said the premier.

Mr.Samak added his government was aiming for 6.5 per cent economic growth for the year 2008, citing favourable and healthy factors.

US Under secretary of Commerce Christopher A. Padilla expressed delight in the more than century-long relationship between the two nations as well as Thailand’s return to democracy.

“America stands with your freely-elected government. America looks to invigorate and deepen our economic ties. And American business is back- and here to stay," said Mr. Padilla.

However, the Office of the US Trade Representative last Friday placed Thailand and other eight countries on a ``priority watch list'' which could eventually lead to economic sanctions due to concerns over intellectual property rights problems. The US said it wanted more action from Thai authorities to crack down on piracy.

In regards to the issue, Mr. Padilla proposed both countries forge a bilateral dialogue on International Property Rights to discuss an action plan which might result in Thailand being removed from the list.

--TNA 2008-04-28