Eu, Thailand Launch Free Trade Talks

[george]

EU, Thailand launch free trade talks

BRUSSELS, March 06, 2013 (AFP) - The European Union and Thailand on Wednesday announced the launch of talks on a Free Trade Agreement (FTA), seeking to boost annual commerce already worth some 30 billion euros ($39 billion).

"We are delighted to announce today the launch of free-trade negotiations between the EU and Thailand," European Commission head Jose Manuel Barroso told a news conference held along with Thai Prime Minister Yingluck Shinawatra in Brussels.

Yingluck, who was later to meet with EU President Herman Van Rompuy and EU Parliament head Martin Schulz, said that "Thailand hopes for quick conclusions" to the FTA.

The latest in a scramble for bilateral trade deals, the launch comes as EU leaders prepare to travel to Japan to start similar negotiations there, according to a Japanese daily.

Brussels is also hoping to take further steps towards an even bigger accord in the making with the United States, the world's largest economy, during an EU summit next week.

South Korea already has an FTA up and running with the EU, which is looking to do a deal with Singapore as well.
Thailand represents a strategic entry point to south-east Asia, with Brussels ultimately targeting broader cooperation with all countries in the region.

Thailand is "a central player in ASEAN," Barroso noted in reference to the Association of Southeast Asian Nations.
He added that "the EU wants southeast Asian integration to succeed" for wider stability.

Barroso presented a certificate to Yingluck, Thailand's first woman head of government, recognising Thai rice as protected under World Trade Organization geographical indicators -- a first for products from southeast Asia.

The EU accounts for 10 percent of Thailand's external trade and some 5.5 million people visit the country each year from Europe, Yingluck noted.

"We look forward to extending cooperation in other areas," she said.

-- (c) Copyright AFP 2013-03-07

[rubl]

We are delighted, truly and like PM Yingluck we wish for frank negotiations and quick conclusions. Most likely by the end of the year we'll be able to conclude the launch with a draft proposal itemizing areas of interest to both or one partner and areas of possible mis-alignment. It may be that some business practices in the EU block and in Thailand make a meaningfull 'free trade' somewhat difficult in the light of our legal frameworks which would require us to look more closely and lengthily at these aspects. Especially the 30% rule on projects comes to mind, and human rights, labour conditions, trade restrictions which seem somewhat contrary to the 'free trade' idea, use of pesticides and food safety, intellectual property safeguarding, etc., etc.

Nothing really blocking. WE have these type of talks regularly with our business partners in the USA, Japan, China, and others, and we always find friendly ways of working together. It's hardly ever we need to involve the WTO to get our way.

[JetsetBkk]

<snip>

human rights, labour conditions, trade restrictions which seem somewhat contrary to the 'free trade' idea, use of pesticides and food safety, intellectual property safeguarding, etc., etc.

<snip>

Don't forget the legal system, you know... rich kids not going to jail for deliberately crashing their car into a crowd of people at a bus stop.

[bigbamboo]

The EU must know about the current Thai rice shenanhigans.

I wonder if 'Thai rice is protected' actually translates to 'We're keeping a close eye on it'.

[RisqEM]

I doubt Thailand is more strategic than Singapore, Malaysia, Indonesia, and Hong Kong. Seems like Kuhn Y.L. Has been reaching miracle agreements and signing papers with every country she visits! Seems like another puff of hot air

[webfact]

Thai-EU FTA deal within two years
PIYANART SRIVALO
THE NATION
Brussels


Prime Minister Yingluck Shinawatra is welcomed by European Commission President Jose Manuel Barroso prior to a meeting at the European Commission headquarters, in Brussels, Belgium, Wednesday.//EPA/OLIVIER HOSLET

BRUSSELS: -- The Thai government delegation ended its visits to Sweden and Belgium with the announcement that the Thai-EU free trade agreement will be concluded in less than two years, as part of Thailand's commitment towards free trade and competitiveness enhancement.

Olarn Chaipravat, an economic adviser to Prime Minister Yingluck Shinawatra and chief of the Thailand Trade Representative, will head the Thai negotiating team. Aside from Singapore, which is the first Asean country to reach an agreement with the European Union, followed by Malaysia, Indonesia and the Philippines are set to start negotiations soon.

The Thai Cabinet on December 4 gave the go-ahead for FTA negotiations, despite public opposition amid fears that alcohol and pharmaceuticals would be included in the deal.

Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said here that to ensure public support, the government had promised not to put economic returns above the expense of human health.

"Most importantly, the government will maintain open access for representatives of the public to voice their concerns before and after each round of negotiation to ensure all sides have the same understanding of the issues involved," he said.

While the FTA will ensure free flow of goods and services, the Thai delegation also wooed foreign investment to Thailand, convinced that the Bt2-trillion infrastructure investment will bolster Thailand's competitiveness.

The first meeting between the Thai-EU trade delegation is scheduled for May in Brussels, with Bangkok hosting the subsequent meeting; there will be at least one meeting each quarter hosted alternately by the two sides. Kittiratt expects the negotiations to take a little more than a year to conclude the trade talks.

Yingluck yesterday had discussions with European Union Trade Commissioner Karel De Gucht.

According to Olarn who said he received and reviewed written concerns, the Thai FTA delegation will start off the discussions with Jose Manuel Barroso, president of the EU Commission.

Commerce Minister Boonsong Teriyapirom said permanent secretaries of all related ministries will join the negotiating team.

Thailand's exports to the EU will enjoy lower taxes under the Generalised System of Preferences (GSP) until 2015. If the FTA can be concluded then, there should be no impact on Thailand's export, he said.

Both Thailand and the EU have pushed hard for the bilateral agreement, believed to boost bilateral trade and investment. The Thai-EU Business Council warned recently that Thailand would see its gross domestic product stunted by 1.2 per cent if it does not sign a free-trade agreement (FTA) by 2015 when the European Union's tax breaks expire.

Thailand has bilateral agreements with Australia, India, New Zealand and Peru, while also being a part of the Asean-China FTA. According to the Foreign Trade Department, Thai exports under FTAs were worth US$41.7 billion last year, rising 4.41 per cent from $39.94 billion in 2011.


-- The Nation 2013-03-07

[laurentbkk]

Lets hope European wine or food will be Tax free in the future , big doubt ! Unless Thailand want a free trade for only Thai products entering Europe ? I wouldn't be surprise . Let see ...

[Payboy]

Guess Thai prawns are not going to be covered soon under this FTA.

http://www.thesundaytimes.co.uk/sto/public/article1220635.ece

[ronthai]

and while you are at it, how about the same deal for EU people for opening a business co.ltd in Thailand as the USA citizins have. 100% ownership instead of 51% Thai

[jamhar]

I know i wont be too popular with this post

But i have to give her, her due.

She is out there selling, and putting TL on the agenda of the EU and the world.

She seems to be working her fanny off. (And its a cute fanny at that !)

Maybe the requirements of the EU, US and the world for free trade will have a positive effect on TL.

I cant fault her for working hard and DOING something rather than waiting to react.

Like i said, i am an optimist.

[bigbamboo]

I know i wont be too popular with this post

But i have to give her, her due.

She is out there selling, and putting TL on the agenda of the EU and the world.

She seems to be working her fanny off. (And its a cute fanny at that !)

Maybe the requirements of the EU, US and the world for free trade will have a positive effect on TL.

I cant fault her for working hard and DOING something rather than waiting to react.

Like i said, i am an optimist.

Actually you do make a very good point.

She is always out there travelling and promoting Thailand to the world more than any political leader I've ever seen, anywhere.

I guess that's one advantage of not being the real PM....!

[rubl]

The Thai government delegation ended its visits to Sweden and Belgium with the announcement that the Thai-EU free trade agreement will be concluded in less than two years, as part of Thailand's commitment towards free trade and competitiveness enhancement.

Somehow I would like the other side to confirm that the agreement will be concluded in less than two years

[Arkady]

Why doesn't ASEAN negotiate with the EU as a block like it did with China? Individually SE Asian countries have very little bargaining power with the EU. I suppose they couldn't agree on anything.

[Arkady]

I hope they do something about the ludicrous tariffs on imported wine from the EU.

[h90]

Payboy, on 07 Mar 2013 - 09:32, said:

Guess Thai prawns are not going to be covered soon under this FTA.

http://www.thesundaytimes.co.uk/sto/public/article1220635.ece

prawns and antibiotics...shipped together...

[khunken]

Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said here
that to ensure public support, the government had promised not to put
economic returns above the expense of human health.


"Most importantly, the government will maintain open access for
representatives of the public to voice their concerns before and after
each round of negotiation to ensure all sides have the same
understanding of the issues involved," he said.

Both of the above would be firsts for Thailand, but coming from Kittirat, one needs to smell a rat.

[muttley]

The Thai government delegation ended its visits to Sweden and Belgium with the announcement that the Thai-EU free trade agreement will be concluded in less than two years, as part of Thailand's commitment towards free trade and competitiveness enhancement.

Somehow I would like the other side to confirm that the agreement will be concluded in less than two years

See thats the beauty of agreements between countries - what is said in an agreement is agreed upon by both sides. Oh the bitters are out tonight.

[rubl]

The Thai government delegation ended its visits to Sweden and Belgium with the announcement that the Thai-EU free trade agreement will be concluded in less than two years, as part of Thailand's commitment towards free trade and competitiveness enhancement.

Somehow I would like the other side to confirm that the agreement will be concluded in less than two years

See thats the beauty of agreements between countries - what is said in an agreement is agreed upon by both sides. Oh the bitters are out tonight.

It doesn't seem to be your day, now does it dear mutt.

There is a statement to start talking on a 'Free Trade Agreement'. When the agreement is reached it will (of course) be a mutual agreement otherwise it would not be an agreement. I was merely remarking on the The Thai delegation saying that the agreement would be concluded in less than two years and wondered if we could have such a statement from the other side as well.

PS the post you referred to was posted 12:53 (close to 1PM local Thai time), your reply from 5:20PM. Do the 'bitters in the night' refer to your mood, feel like barking at the moon perhaps?

[puipuitom]

I think, the EU first have to understand, Asians are not all fraudulous and... stupid natives from Apeland.

Here the translated text I got from the Dutch subsidiary of the EU food authorities NVWA ( between brackets, additional info from me) :

I'm talking only about the food certificates ( BRC, IFS, ISO 22000) which are issued in the Netherlands ( remark: 1/3 proves to be handed out incorrect ! ) .

If you want to rely on certificates from third countries, then you will agree with me that here even more often these could be classified as "unreliable", not to speak of "fraud".

signed: Ing. J.F.M. (Hans) Beuger Coördinerend Specialistisch Inspecteur voedselveiligheid Dutch food authority NVWA
So, in simple: the 103 certified Institutions worldwide for BRC, working in 115 countries, with 1511 registered auditors, certified 15.167 food companies, OR the 67 certified Institutions worldwide for IFS with over 1000 registered auditors, over 12600 certified food companies, 800 registered retail organizations and food service companies, are seen as not for sure correct, till even partial SWINDLERS)

Sorry, but.. when I was SGS, BVQI, Lloyds or how they all may be called, or auditor working at these organisations I would file a law suit against the Dutch NVWA for criminal defamation, also against Dutch Criminal Code art 261.)

[transam]

Are corruption payments written into any agreements. ?

[jbrain]

Lets hope European wine or food will be Tax free in the future , big doubt ! Unless Thailand want a free trade for only Thai products entering Europe ? I wouldn't be surprise . Let see ...

No need to worry about that, it will be as tax free as the import of alcoholic drinks from Asean countries is since that FTA was enforced

[jbrain]

Are corruption payments written into any agreements. ?

Yep, they will be tax free.

[onthemoon]

Why doesn't ASEAN negotiate with the EU as a block like it did with China? Individually SE Asian countries have very little bargaining power with the EU. I suppose they couldn't agree on anything.

In fact, it is a policy named in the AEC Blueprint: "ASEAN One Voice". Not sure why Thailand wants to break the spirit of it at this point in time.

[onthemoon]

Lets hope European wine or food will be Tax free in the future , big doubt ! Unless Thailand want a free trade for only Thai products entering Europe ? I wouldn't be surprise . Let see ...

No need to worry about that, it will be as tax free as the import of alcoholic drinks from Asean countries is since that FTA was enforced

The "tariff" is only the import duty. I believe it's "only" 60%. What makes imports of alcoholic beverages expensive are the other taxes levied, such as Excise Tax, Interior Tax, Broadcasting Tax (yes!), Health Tax, and VAT, all together adding up to 400% on average. FTAs cover only the import duties.

[ronz28]

Discussing potential free trade agreements with US now but may not comment specifically on Thailand

http://www.ecb.int/press/tvservices/webcast/html/webcast_130307.en.html

[jbrain]

Lets hope European wine or food will be Tax free in the future , big doubt ! Unless Thailand want a free trade for only Thai products entering Europe ? I wouldn't be surprise . Let see ...

No need to worry about that, it will be as tax free as the import of alcoholic drinks from Asean countries is since that FTA was enforced

The "tariff" is only the import duty. I believe it's "only" 60%. What makes imports of alcoholic beverages expensive are the other taxes levied, such as Excise Tax, Interior Tax, Broadcasting Tax (yes!), Health Tax, and VAT, all together adding up to 400% on average. FTAs cover only the import duties.

And that is exactly what I had in mind.When the mentioned trade agreemnet came in force, coincidental at the very same time they increased the excise tax on alcohol with a similar amount.

So far for Thailand respecting any FTA.