Long Road To Joining Trans-Pacific Partnership Negotiations: Thailand

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COMMENTS

Long road to joining TPP negotiations

Business Reporters

The Nation

Members of the Thai Civic Network and Free Trade Agreement Watch (FTA Watch) protested over the arrival of US President Barack Obama beside a street near Don Muang Airport yesterday.

Govt says no commitment yet; banking sector fears loss of capital controls

BANGKOK: -- If members of the Trans-Pacific Partnership (TPP) Agreement welcome Thailand's bid to join the exclusive trade pact, it would be just the first step for the government, which would have to seek approval from the Parliament to begin negotiations.

"The Thai government has to proceed according to Article 190 of the Constitution and other related processes before joining in the negotiations," said Foreign Affairs Minister Surapong Towichukchaikul.

A senior source at the Trade Negotiation Department added that the Cabinet's recent approval was only intended to announce Thailand's interest in joining the TPP negotiations, and did not commit the country to anything. In addition, the US would need to propose Thailand's interest to the TPP's other 10 members for a consensus agreement.

If Thailand receives the consensus nod, the government could start its internal process, most importantly seeking Parliament's approval, as well as conducting public hearings and preparing for the Kingdom's negotiations, and finally getting approval for the talks.

The source added that the department had already studied the potential positive and negative impacts of joining the TPP agreement.

In fact, ahead of US President Barack Obama's arrival yesterday, the Commerce Ministry raised the issue with the Foreign Affairs Ministry. The Commerce Ministry's view is that with the US having approached Thailand to join the free-trade pact many times, the visit is a good opportunity to discuss it.

The same source pointed out that there will be losers and gainers in every free-trade negotiation, but the department will try to minimise any loss. For instance, the private sector has expressed concern over such sectors as telecommunications, information and communications technology, finance and intellectual property. Ultimately, businesses must adjust to cope with competition, the source said.

A source who formerly worked as a senior trade negotiator said the government should consider carefully before joining the TPP negotiations, and seriously weigh the potential losses and gains. For decades, 25-30 per cent of Thailand's exports went to the US market, but the ratio has declined in recent years, since the government shifted to focus more on new markets. The Kingdom's exports to the US accounted for 10 per cent of its total export value during the first nine months this year.

"We should seriously consider what the US' real demands are, as [previously] our obligations under international free-trade agreements mainly focused on goods, rather than services such as information technology, finance and others, for which we would need to consider the timeframe involved," said the source.

Vallop Vitanakorn, chairman of Hi-Tech Group, a leading garment exporter, said rising non-tariff barriers in global trade could force Thailand to join the TPP. The US is still a major garment export market, so the privileges under the TPP would strengthen the country's export competitiveness.

Buntoon Wongseelashote, chairman of the Board of Trade's Trade Issues Monitoring Committee, said Thailand needs to negotiate entry into the TPP as it will open a new opportunity for Thailand to access not only the US market, but also those of Canada and Mexico. If the country delays in making a decision to join the TPP, Thailand could lose competitiveness to other TPP members, and investors would give preferences to TPP members as new bases of investment in order to access the US market.

Thai bankers and economists also pointed out that the government must ensure platforms are in place that allow local regulators to control financial stability in a bid to tackle the negative risks of the TPP.

Banking is one sector that will be impacted by the TPP. Bankers said they can accept liberalisation, even the arrival of the TPP, but the government must take strong action to protect local financial stability.

Banluesak Pussarangsi, an economist at CIMB Thai Bank, said that associations in the financial sector including the Thai Bankers' Association have agreed with the Bank of Thailand, Office of Insurance Commission and the Finance Ministry to work together on negotiations with the US on the TPP. The US must allow Thailand to control capital flows, Banluesak said.

Among the negative risks of joining the TPP is the fact that in the area of capital controls, the US may have the right to file legal charges with local regulators.

Chansak Fuangfu, senior executive vice president of Bangkok Bank, said the TPP is part of the liberalisation process, which all players should accept.

"We [in the financial sector] have to look beyond the reason of why we have to be a member or not be a member in the TPP. We must think about the preparations to reduce certain obstacles," he said.

According to the FTA Watch Group, the TPP negotiations would have a direct negative impact upon the affordability of medicines and access to health care in developing countries.

The TPP would expand the scope of pharmaceutical patents and create new drug monopolies by lowering patentability standards and requiring that patents be available for surgical and treatment methods as well as minor variations on old medicines - even if they do not enhance efficacy.

This negotiation would also lengthen the drug monopolies by requiring countries to extend patent terms if a review at the patent office of the regulatory authority exceeds a prescribed period.

Additionally, it would eliminate safeguards against patent abuse, including among others, the rights of those with third-party status (patent linkage). Under patent linkage, even spurious patents may function as barriers to generic drug registration.

TPP would extend commercial control over regulatory information or data exclusivity as well by providing at least five years' exclusivity for information related to new products and three more in cases of new uses for old medicines - even when that information is in the public domain.

-- The Nation 2012-11-19

[RisqEM]

"For instance, the private sector has expressed concern over such sectors as telecommunications, information and communications technology, finance and intellectual property." - Seems like they're more worried about their underground economy of burned software and DVD's at MBK, JJ, Silom, and Sukhumvit. Not to mention having to actually acknowledge all of the music they rip off for their commercials and tv shows. (Heard an Aerosmith song in one of those girly drink commercials on the BTS for a few months). Seems like they might actually be forced to get with program and stop their bickering and actually install a reliable, up to date telecom industry here.

"According to the FTA Watch Group, the TPP negotiations would have a direct negative impact upon the affordability of medicines and access to health care in developing countries." - I've lived in some of the TPP member countries, and medicine and healthcare were always affordable. According to the article, they don't want int'l patents or extended patents coming here. Wow, Thailand not respecting patents or copyright???

All in all, TPP doesn't trump the local laws of the land, it just increases access to foreign markets, but you have to meet certain criteria. Seems to me Thailand doesn't want to meet those criteria and is already looking for excuses to bow out. Seems to me like it would force an increase in standards across the board from medicine, finance, technology and telecom, to copyright and patent enforcement.

It's a shame because economic blocs like ASEAN, TPP, and NAFTA really help increase jobs, trade, and opportunity. What could one expect from a gov't after they signed the agreement for a shared visa with LAOS, Cambodia, Myanmar, and Malaysia only to back out during the week it was supposed to take affect.

Edited November 19, 2012 by RisqEM

[Thai at Heart]

When you talk about liberalizing banking and telecoms, you are messing with some of the biggest string pullers in the country. They will never allow Thailand to accept this treaty if it means that they face increased international competition.

[asiawatcher]

The only decisions that will be made will be ones that do not affect the ability to strip funds from projects. Corruption is the factor behind motivation of commitments and anything that threatens that will be pushed aside very quickly.

[RaoulDuke]

All of these free trade agreements are merely a means to the end by a handful of multinational corps to completely usurp governments, as they become bigger and more powerful than the governments. It is nothing but a handout to big business. It destroys local business, local merchants, local farmers, etc. Not to mention that it devastates the economies of the developed nations, as they lose all their jobs and production to developing nations, who do everything for less money and with greater ecological impact, as they do not have to deal with pesky things like workers' rights and environmental regulations. The people who get the jobs are exploited and practically enslaved, while the people who lose the jobs become impoverished. Most importantly, the CEO's continue to reap record profit margins while slashing pay and benefits across the board. Without any tariffs or protectionism, it is a race to the bottom for every country not already there, and the countries who 'benefit' in the short term will eventually lose the jobs to a poorer nation just as soon as they start to show signs of progress. Meanwhile, companies like Monsanto will start taxing every single farmer in the world, as they will 'discover' their patented GMO products in every farm on earth, just like they already do in the USA. And big Pharma will destroy all of the low cost generics, charging absurd USA prices across the globe. Governments may be far from perfect, but at least the people have some remote level of influence on them. We have absolutely no recourse or influence with corporations, who will enslave the entire world if there is no one to stand up to them.

[Yme]

"For instance, the private sector has expressed concern over such sectors as telecommunications, information and communications technology, finance and intellectual property." - Seems like they're more worried about their underground economy of burned software and DVD's at MBK, JJ, Silom, and Sukhumvit. Not to mention having to actually acknowledge all of the music they rip off for their commercials and tv shows. (Heard an Aerosmith song in one of those girly drink commercials on the BTS for a few months). Seems like they might actually be forced to get with program and stop their bickering and actually install a reliable, up to date telecom industry here.

"According to the FTA Watch Group, the TPP negotiations would have a direct negative impact upon the affordability of medicines and access to health care in developing countries." - I've lived in some of the TPP member countries, and medicine and healthcare were always affordable. According to the article, they don't want int'l patents or extended patents coming here. Wow, Thailand not respecting patents or copyright???

All in all, TPP doesn't trump the local laws of the land, it just increases access to foreign markets, but you have to meet certain criteria. Seems to me Thailand doesn't want to meet those criteria and is already looking for excuses to bow out. Seems to me like it would force an increase in standards across the board from medicine, finance, technology and telecom, to copyright and patent enforcement.

It's a shame because economic blocs like ASEAN, TPP, and NAFTA really help increase jobs, trade, and opportunity. What could one expect from a gov't after they signed the agreement for a shared visa with LAOS, Cambodia, Myanmar, and Malaysia only to back out during the week it was supposed to take affect.

You seem very misinformed about the TPP, but then again that's not your fault as the trade negotiators refuse to release any details of the 26 provisions of the pact.

So secretive is it that members of the US Congress a couple of months ago wrote to the chief US trade negotiator insisting they be told details of the IP provisions.

The Electronic Frontiers Foundation says the TPP "threatens to extend restrictive intellectual property (IP) laws across the globe and rewrite international rules on its enforcement”

Amnesty International says the TPP “neglects protections for fair use and standard judicial guarantees – such as the presumption of innocence – and includes copyright provisions that could compromise free speech on the internet and access to educational materials.

Nature magazine says: "The TPP looks likely to strengthen patent protection for drugs more than any trade agreement so far".

MSF says "generic Abacavir sells for $139 per year, but in Malaysia, signatory to the TPP pediatric Abacavir sells for $1,200 a year. About 80% of donor supplied AIDS treatment drugs for adults and 92% for children are generic drugs."

Would you like to tell me how countries and NGOs will be able to continue supplying these drugs if they are forced to buy US patented drugs?

"I've lived in some of the TPP member countries, and medicine and healthcare were always affordable" by what benchmark? On the salary of the lowest 20% of the population?

The TPP was first formed in 2007 and in 2009 the US stepped in and over the four original signatories and have basically hijacked the negotiations since.

Google Thailand's TPP application threatens to overshadow US Presidential elections for what I think is a pretty good story on the TPP with lots of links off to the sources quoted.

The TPP is about propping up a lame US economy at the expense of weaker nations under the guise of being a trade deal and is about more than a few coped CDs and DVDs on Sukhumvit, Silom, or MBK