Yingluck, China's Wen To Witness Signing Of Rice Deal: Thailand

[webfact]

PM, Wen to witness signing of rice deal

Petchanet Pratruangkrai,

Piyanart Srivalo

The Nation

Wen Jiabao, Premier of China listens during the 7th East Asia Summit plenary session as part of the 21st Association of South East Asian Nations (ASEAN) summit in Phnom Penh, Cambodia, 20 November 2012. Cambodia is playing host to the 21st ASEAN summit

However, document will not specify precise amount Beijing will buy, despite earlier proposal for 5m tonnes a year

BANGKOK: -- Thailand and China will sign a memorandum of understanding on rice trading during Chinese Premier Wen Jiabao's visit today, but the document will not contain a commitment from Beijing on the quantity of rice it wants to buy.

Commerce Minister Boonsong Teriyapirom and his Chinese counterpart will ink the MoU, while Prime Minister Yingluck Shinawatra and Wen will witness the signing.

China will not specify an exact import volume from Thailand, rice being listed as a sensitive product under its commitments with the World Trade Organisation, a senior official said yesterday.

'Final contract'

Pranee Siriphand, director-general of the Foreign Trade Department, said the MoU would not be a final contract between the two countries, as officials would need to hold further talks on China's placing an order to purchase Thai rice.

It should, however, guarantee that Thailand is a priority country for China as and when it considers importing more rice to supply its domestic market, she said.

China is already a major importer of Thai rice. It imports a total of about 1 million tonnes annually, mainly from Thailand and Vietnam.

However, Thai rice exports to China dropped 57.8 per cent in the first 10 months of the year, to 91,460 tonnes.

Yingluck's government is facing major political difficulties due to its price-pledging scheme for rice.

The administration wants to release rice into foreign markets as soon as possible due to domestic market pressures of oversupply and declining prices, as well as political pressure from the opposition.

The Democrat Party will open a censure-motion debate on the government's rice policy next week.

A report by officials said the Commerce Ministry had previously requested Cabinet approval for signing an MoU to supply at least 5 million tonnes of rice to China from 2013 to 2015, at prices based on the market price at the time of shipment.

However, the Cabinet yesterday approved the ministry's proposal to sign the MoU during Wen's visit without any mention of the quantity of rice China might purchase.

The MoU indicates that both sides will develop rice trading for the benefit of good relations and mutual benefit. Both parties will cooperate on the basis of transparency, justness and fairness between their rice-trading agencies.

The two governments will support the proper management of rice trading in accordance with market principles, according to the government document released after yesterday's Cabinet meeting.

MoU can be changed

The MoU can be amended, or even revoked, with the consent of the contracting parties, the document said.

Wen landed in Bangkok yesterday for a two-day visit to firm up bilateral ties as a strategic partner of the Kingdom.

His visit is regarded as a balancing act to the high-profile visit by US President Barack Obama, who left Thailand on Monday.

Wen begins his activities today by jointly opening the Chinese Cultural Centre with Yingluck, before holding discussions with her at Government House.

The two leaders will discuss a wide range of bilateral and regional issues. Wen and Yingluck have both just completed a series of meetings in Phnom Penh during the Asean summits.

The Cabinet yesterday approved another MoU for the Foreign Ministry to sign with its Chinese counterpart on the forging of cooperation and the promotion of bilateral relations.

-- The Nation 2012-11- 21

[MikeOboe57]

As China has a long standing reputation of being a compassionate and generous business partner we can be sure that the Thai government can expect a huge profit from that deal.

And only the "cesspool of idiots" as one pro-government forum member fondly called them, will point out that:

1. China will not pay one cent above market price and, most likely

2. will demand a hefty discount for helping to clean out the ageing stiocks from Thai warehouses.

The Chinese Government just has to wait until the ever increasing lack of warehous space forces the Thais to accept their terms.

But that shouldn't be a problem as this government will declare the details of this deal as sensitive and confidential to avoid public scrutiny.

Let's see if any deal emerges from this vague MoU.

[Thai at Heart]

As China has a long standing reputation of being a compassionate and generous business partner we can be sure that the Thai government can expect a huge profit from that deal.

And only the "cesspool of idiots" as one pro-government forum member fondly called them, will point out that:

1. China will not pay one cent above market price and, most likely

2. will demand a hefty discount for helping to clean out the ageing stiocks from Thai warehouses.

The Chinese Government just has to wait until the ever increasing lack of warehous space forces the Thais to accept their terms.

But that shouldn't be a problem as this government will declare the details of this deal as sensitive and confidential to avoid public scrutiny.

Let's see if any deal emerges from this vague MoU.

Indeed, even the Chinese would have a hard time explaining the benefit of overpaying.

Funny. China has more transparency over an issue like this than Thailand.

[Mosha]

The fools have also signed a 3 year deal to sell rubber at 100 Baht/kg. So that's the rubber farmers screwed for 3 years

[dcutman]

Lets see here.

China imports a total of 1mil tons a year, a little more than 200k tons from Thailand. Now there is a proposal, they are going to buy 5 mil tons for LOS? Does China want to get into the rice storing biz? I think not, MikeO is right. China will make the terms of this deal, and not to concerned how much Thailand will lose.

Edited November 21, 2012 by dcutman

[MikeOboe57]

The fools have also signed a 3 year deal to sell rubber at 100 Baht/kg. So that's the rubber farmers screwed for 3 years

So Thaksin can come up with a rubber pledging scheme for the next election campaign.

[FOODLOVER]

It means nothing, absolutely nothing, just something to throw on the table when Yingluck bats her eyelashes in defense of her rice scam for the rich. Same as the ridiculous 300 baht by January first. It will not happen but another thing to say "Look at me i am a lovely PM" , during her "Truth" telling time. Must say she is transparent. Can see right through this ding bat.

[edwinchester]

Why not just swap the rice for some obsolete tablets?

[waza]

Wow, great news story, Thailand and China agree to a MOU on rice that says nothing except China will buy rice from Thailand. Yingluck and the PTP should pat themselves on the the back for achieving this historic nothing.

Meanwhile back at the ranch, the stockpile of expensive rice grows and rots in the wharehouses.

Edited November 21, 2012 by waza

[rubl]

The OP:

- document will not contain a commitment from Beijing on the quantity of rice it wants to buy.

- MoU would not be a final contract between the two countries, as officials would need to hold further talks on China's placing an order to purchase Thai rice

- China is already a major importer of Thai rice (91,460 tonnes in 10 months)

- The administration wants to release rice into foreign markets as soon as possible due to domestic market pressures of oversupply and declining prices, as well as political pressure from the opposition.

So, no commitment, no price indication. What's next, some ministry claiming Thailand is number 1 again with an unbelievable amount of rice sold ?

BTW "The Cabinet yesterday approved another MoU for the Foreign Ministry to sign with its Chinese counterpart on the forging of cooperation and the promotion of bilateral relations." For a moment the 'forging' made me think of the 'crackdown on fake good' :-)

[Moruya]

As China has a long standing reputation of being a compassionate and generous business partner we can be sure that the Thai government can expect a huge profit from that deal.

And only the "cesspool of idiots" as one pro-government forum member fondly called them, will point out that:

1. China will not pay one cent above market price and, most likely

2. will demand a hefty discount for helping to clean out the ageing stiocks from Thai warehouses.

The Chinese Government just has to wait until the ever increasing lack of warehous space forces the Thais to accept their terms.

But that shouldn't be a problem as this government will declare the details of this deal as sensitive and confidential to avoid public scrutiny.

Let's see if any deal emerges from this vague MoU.

Indeed, even the Chinese would have a hard time explaining the benefit of overpaying.

Funny. China has more transparency over an issue like this than Thailand.

Funny - and sad too.

[Stradavarius37]

Weevils weevils everywhere....

[Thai at Heart]

Reading this, this MOU really isn't worth the paper it's written on.

[smedly]

This just identifies why this government has to go

They want people to trust them yet they refuse to give details of deals and finacial matters

The government is run by a criminal fugitive residing in a foreign country

They are the most corrupt crowd I have ever seen here

They are filling their pockets with huge amounts of cash and refuse to answer questions about where the money is going. New cabinet arrived for their turn

They are going to bankrupt this country

They want to rewrite the constitution so they can steal even more

They want to bring back the most corrupt/richest prime minister ever seen here

They won an election by buying votes

Some simple things that would change Thailand for the good

Everybody answers to the law including the government

The Anti corruption court has limitless power

People in office must disclose past and current financial status every 6 months to include asset transfers to family and the gardner (criticle) even china are working this one.

Proper fiscal audits of all government departments (where did that 16b baht go)

No white lies when disclosing official government reports.

Total disclosure to the public concerning expenditure and borrowing

Government cannot interfere with the courts (including paying bail bonds for those waiting court <deleted>)

and you all wonder why anti government rallies are taking place ?

I honestly believe TS is driving this country into the ground on purpose and smart people are starting to realise and do something about it.

[Payboy]

Lets see here.

China imports a total of 1mil tons a year, a little more than 200k tons from Thailand. Now there is a proposal, they are going to buy 5 mil tons for LOS? Does China want to get into the rice storing biz? I think not, MikeO is right. China will make the terms of this deal, and not to concerned how much Thailand will lose.

Piece of cake, soon as China implements the ten-child per family policy.

[jcw]

This is really funny !!!

[ratcatcher]

Thailand:Too much rice...................Somalia: Not enough rice.

Perhaps our man in Dubai, the architect of this excess, can arrange for some help for these starving people.

Pigs flying?

[rubl]

No offence meant to Chinese Prime Minister Wen Jibao. It's just that the hype reminds me of a part in Isaac Asimov's Foundation ©1942:

""

"But then," interposed Sutt, "how would Mayor Hardin account for Lord Dorwin's assurances of Empire support? They seemed —" He shrugged. "Well, they seemed satisfactory."

"That," replied Hardin, "is the interesting thing. The analysis was the most difficult of the three by all odds. When Holk, after two days of steady work, succeeded in eliminating meaningless statements, vague gibberish, useless qualifications — in short, all the goo and dribble — he found he had nothing left. Everything canceled out."

"Lord Dorwin, gentlemen, in five days of discussion didn't say one damned thing, and said it so you never noticed. There are the assurances you had from your precious Empire."

""

[Ricardo]

So an overnight reduction, from a proposal of 5 million tons, to 260 thousand tons ?

But what is a 95% short-fall, amongst friends, a mere rounding-error perhaps ?