Thailand To Remove Alcohol, Tobacco From FTA

[webfact]

Thailand to remove alcohol, tobacco from FTA

BANGKOK (NNT) -- The Ministry of Commerce is revising frameworks of all Free Trade Agreements (FTAs) made with trading partners in order to remove alcoholic drinks and tobacco from the Inclusion List (IL) in a bid to prevent the flow of “vice” products into Thailand.

As detailed by Deputy Commerce Minister Alongkorn Ponlaboot, the Ministry is considering a possibility of excluding alcoholic drinks and tobacco from the IL frameworks which are awaiting negotiations such as the Thailand-EU FTA. The move is to protect the health of Thai consumers.

As for FTAs which have been implemented, the Department of Trade Negotiations has been tasked with revising the tax privileges. Thailand has nine FTAs giving tariff reduction privileges to alcoholic drinks and tobacco products. Five of them have been enjoying 0% tariff since 2010.

The five FTAs are ASEAN FTA, Thailand-Australia FTA, Thailand-New Zealand FTA, ASEAN-China FTA, and ASEAN-Republic of Korea FTA.

-- NNT 2010-08-02

[Phil Conners]

" .. in a bid to prevent the flow of “vice” products into Thailand."

Suuuure. Nothing at all to do with protecting Thailand's own alcohol industry!

[Phuket Stan]

If the tax for alcoholic drinks has been reduced to zero how come New Zealand and Australian wine prices have not dropped accordingly

[phuket Mike]

So much for free trade

[phuket Mike]

If they want to protect the health of Thai consumers put 200% tax on Lao Khao rice whisky that would cut alcohol consumption by half over night. Just about every man over the age of 18 drinks it down here in Trang, every night.

[Pib]

What a laugh...protect the health of Thai consumers. But it's OK to still sell alcohol and tobacco from Thai manufacturers. This is all about tax dollars and lobbying by the Thai alcohol and tobacco companies. I'm sure the organization called the Thailand Tobacco Monopoly http://www.thaitobacco.or.th/page/home.php is lobbying their butts off to keep competition out of Thailand. Thailand and Free Trade are words that just don't seem to go together.

[TAWP]

Protectionism clouded in a shroud of 'care'. Despicable.

[laocowboy2]

A free trade agreement is exactly that. One side cannot unilaterally change it. If Thailand does not agree the changes with the other parties, then they risk voiding the whole agreement.

The EU watches for this sort of thing very carefully, and I would be surprised if the others did not do so as well. If I was the OZ negotiator I would say "fine - but we want to remove these five items as well" - the five being Thailand's five top exports to Australia. Ditto Malaysis etc deleting car components from the free trade list - making Thailand a non-viable auto industry centre for components manufacture.

As someone said already in this thread, this is blatant protectionism masquerading as morality/grounds.

(Ref why the Oz and NZ wines were no cheaper despite the existing FTAs, my understanding is that the Thai side has failed to hounour the agreement from Day 1).

[Wozzit]

If the tax for alcoholic drinks has been reduced to zero how come New Zealand and Australian wine prices have not dropped accordingly

I suspect there are two taxes here - import duty and then the local alcohol tax. Ridiculously, the Thai tax system results in wine and beer being relatively far more expensive than hard liquor when compared to most other countries.

Edited August 2, 2010 by Wozzit

[blanco]

If the tax for alcoholic drinks has been reduced to zero how come New Zealand and Australian wine prices have not dropped accordingly

I suspect there are two taxes here - import duty and then the local alcohol tax. Ridiculously, the Thai tax system results in wine and beer being relatively far more expensive than hard liquor when compared to most other countries.

I think you're confused over taxations

[craigt3365]

If you can buy booze from a local cop cheaper than in the store (30% less), then you know there is a scam going on...

[BlackJack]

can i suggest leaving the red wine in as it is healthy for you and I like it with my meals

tax the cigs as high as u want

[Jingthing]

can i suggest leaving the red wine in as it is healthy for you and I like it with my meals

tax the cigs as high as u want

The Thai alcohol business does not want Thailand to be a wine drinking country. Thailand can't compete in wine; its too much of a threat to their chemically beer and rotgut whiskey empire.

[dttk0009]

Great.

[RKASA]

Upon a few visits to Iceland many people find the taxi drivers will sell Russian vodka for only a few dollars a bottle. Everything else cost a fortune.

Thanks to the fisherman from Norway.

I guess this is what they are shooting for a - new and profitable underground.

[hammered]

If they want to protect the health of Thai consumers put 200% tax on Lao Khao rice whisky that would cut alcohol consumption by half over night. Just about every man over the age of 18 drinks it down here in Trang, every night.

Agree. Lao Khao is th ebiggets problem drink in the whole country by a long way. Trouble is much of it is locally and illicitly made and sold at cheap prices with no tax. The problem certainly isnt imported wines and liquors and that is just about protectionism. No poltician would dare suggest taxing legal lao khaop to death and stamping down on illicit lao khao production.

Last time I was up the village a huge plastic bag containing 50+ litres of the stuff was going for 800 baht or something.

[MaxRobespierre]

Note that Thai Beverage makers of Chang beer and Mekhong whiskey and Sang Som whiskey as well as Mungkorn Thong and Hong Thong malt whiskey and Ruang Khao rice whiskey, are ultra big Yellow boy backers - so this can also be seen as a sweet little deal to protect the company that backs up the current Yellow-bellied cabal.

You scratch my back I'll scratch you'rn. Monopoly works best in the totalist mindset.

“Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power”. - Benito Mussolini quote

[rubl]

Note that Thai Beverage makers of Chang beer and Mekhong whiskey and Sang Som whiskey as well as Mungkorn Thong and Hong Thong malt whiskey and Ruang Khao rice whiskey, are ultra big Yellow boy backers - so this can also be seen as a sweet little deal to protect the company that backs up the current Yellow-bellied cabal.

You scratch my back I'll scratch you'rn. Monopoly works best in the totalist mindset.

“Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power”. - Benito Mussolini quote

Somehow I doubt this. The beer/whiskey monopoly has been in place since ages independent of the type of government ruling.

[surangw]

darn, up to now I thought FTA stood for fun, travel, adventure

[RKASA]

Note that Thai Beverage makers of Chang beer and Mekhong whiskey and Sang Som whiskey as well as Mungkorn Thong and Hong Thong malt whiskey and Ruang Khao rice whiskey, are ultra big Yellow boy backers - so this can also be seen as a sweet little deal to protect the company that backs up the current Yellow-bellied cabal.

You scratch my back I'll scratch you'rn. Monopoly works best in the totalist mindset.

"Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power". - Benito Mussolini quote

Somehow I doubt this. The beer/whiskey monopoly has been in place since ages independent of the type of government ruling.

Yes, you are right and that is the point - untouchables.

[rubl]

Note that Thai Beverage makers of Chang beer and Mekhong whiskey and Sang Som whiskey as well as Mungkorn Thong and Hong Thong malt whiskey and Ruang Khao rice whiskey, are ultra big Yellow boy backers - so this can also be seen as a sweet little deal to protect the company that backs up the current Yellow-bellied cabal.

You scratch my back I'll scratch you'rn. Monopoly works best in the totalist mindset.

"Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power". - Benito Mussolini quote

Somehow I doubt this. The beer/whiskey monopoly has been in place since ages independent of the type of government ruling.

Yes, you are right and that is the point - untouchables.

Not really, the point which MaxRobespierre was trying to make was these companies 'are ultra big Yellow boy backers'. I just want to say the companies mentioned and those not mentioned were into 'keep those foreigners out' ages already. That means BEFORE anyone was talking about yellow or red shirts.

[nisakiman]

Oh well - looks like it's back to the Lao run to pick up a few boxes of Aussie red.

[Rinrada]

If they want to protect the health of Thai consumers put 200% tax on Lao Khao rice whisky that would cut alcohol consumption by half over night. Just about every man over the age of 18 drinks it down here in Trang, every night.

Agree. Lao Khao is th ebiggets problem drink in the whole country by a long way. Trouble is much of it is locally and illicitly made and sold at cheap prices with no tax. The problem certainly isnt imported wines and liquors and that is just about protectionism. No poltician would dare suggest taxing legal lao khaop to death and stamping down on illicit lao khao production.

Last time I was up the village a huge plastic bag containing 50+ litres of the stuff was going for 800 baht or something.

50+ litres of the stuff was going for 800 baht or something.

That must have been the Premium stuff...

[buckhumyai]

If the tax for alcoholic drinks has been reduced to zero how come New Zealand and Australian wine prices have not dropped accordingly

The tax on Australian wine dropped from 54% to 40% immediately the FTA was signed and will be phased to 0% from 2015

[Thai at Heart]

Here is one of the purest examples of a government aiding and abetting those higher up over the interests of the people.

I can't quite reconcile how protecting TTM or Singha and Thaibev helps the Thai people one jot. This kind of naked policy corruption is not helpful one iota to the country or the people other than a couple of families. Of course, they could just change the foreign ownership laws, and these companies could be swallowed up by foreign multinationals and the families could get paid and do something more interesting with their money than make beer.

Oh, whoops, that was Thaksin's idea.

Ironically, it is these ridiculous foreign ownership and stock market laws that prevent the families from realising the value of their companies and so the have no better plan than to hide behind government protection. It is also funny how these families are so revered for their business nous (as was Thaksin) when they are simply operating government granted monopolies or oligopoly.

[SamritT]

Good job in purifying the Thai society. Well done Mark.

[Thai at Heart]

Good job in purifying the Thai society. Well done Mark.

Purifying it with what? Laokao and Krungthep? Outstanding effort at achieving precisely nothing other than helping the pooyais continue their effective monopoly to lever money out of the Thai population.

I will wait for the various countries in the reciprocal deals to whack Thai exports with duties and see this policy cave in.

I am sure you will be well rewarded in retirement if the Thai government can get away with this.

Edited August 3, 2010 by Thai at Heart

[SamritT]

Thailand being a Buddhist country can do without Alcohol and Tobacco.

[naiharn]

Thailand being a Buddhist country can do without Alcohol and Tobacco.

Or at least without that alcohol and tobacco not made by the local monopolies :-)

[elkangorito]

What a laugh...protect the health of Thai consumers. But it's OK to still sell alcohol and tobacco from Thai manufacturers. This is all about tax dollars and lobbying by the Thai alcohol and tobacco companies. I'm sure the organization called the Thailand Tobacco Monopoly http://www.thaitobac...h/page/home.php is lobbying their butts off to keep competition out of Thailand. Thailand and Free Trade are words that just don't seem to go together.

I fully agree!!!

What about all the other monopolies? The electricity monopoly is one.

This whole thing 'smacks' of segregation...yet another point to add to Thailand's desire to NOT be a part of the rest of the world.

Just when will the 'elite' grow a brain? Oops!! I forgot. Burma is a 'next door neighbour' & it would be pretty simple to join the Burmese 'ideal'.

BTW, I refuse to call Burma 'Myanmar', since the name Myanmar was introduced by the current Burmese junta.