Joint panel urges Thai govt to join TPP

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TPP REACTION
Joint panel urges govt to join TPP
Petchanet Pratruangkrai,
Erich Parpart
The Nation


Isara

BANGKOK: -- The Kingdom's most powerful private-sector organisations have urged the government to consider joining the Trans Pacific-Partnership (TPP) and get moving on other free-trade talks to ensure the country's competitiveness in global trading, after 12 Pacific Rim countries agreed on Monday to create the world's largest free-trade area.

After a monthly meeting of the joint standing committee comprising the Board of Trade, the Federation of Thai Industries (FTI) and the Thai Bankers Association, the chairman of the meeting, Isara Vongkusolkit, said private enterprises had expressed concern over the successful TPP agreement since it could affect Thailand's competitiveness in the future.

The joint standing committee encouraged the government urgently to consider joining the US-led pact while moving ahead with other free-trade talks such as with the European Union. Negotiations with the EU have been suspended for more than a year.

"The [private sector] organisations will set up a working committee to study the impacts and benefits of the TPP and other FTA talks to propose for the government's consideration soon," said Isara, chairman of the Board of Trade.

The panel is expected to complete its study within two months. The working committee will consist of five representatives from each private-sector organisation.

Isara said Thailand should join the TPP and carefully negotiate to ensure minimum losses and the utmost benefit for the country. The pact will create the world's largest free-trade area and include many economic giants, mainly the United States, with which Thailand does not yet have a free-trade agreement.

He added that Thailand should complete FTA talks with Turkey, which would be a gateway to the EU, within six months.

FTI chairman Supant Mongkolsuthree said the industrial sector was highly concerned about Thai enterprises' competitiveness as four Asean states - Vietnam, Malaysia, Singapore and Brunei - have joined the TPP.

"Vietnam could draw more foreign direct investment from the US, Japan, and other TPP members under the closer ties. Thailand, which aims to be a centre of regional integration, should do something to ensure the country's [status] as the region's investment and trading hub," Supant said.

Boontuck Wungcharoen, chairman of the Thai Bankers Association, said Thailand needed to move on with free-trade talks to increase its competitiveness and emphasise its position as Asean's centre.

The joint standing committee foresees that gross domestic product this year will grow more slowly than the previously expected 3-3.5 per cent. It now predicts growth of 2.5-3 per cent on the sluggish global economy and expected export contraction.

The committee projected that export value this year would shrink by 5 per cent, largely because of the baht's weakness against the US dollar.

Meanwhile, the Commerce Ministry said the government was interested in joining the TPP, but needed to study the deal careful before proposing it to the Cabinet.

Pimchanok Vonkhorporn, the ministry's deputy spokeswoman, said Commerce Minister Apiradi Tantraporn had instructed officials to analyse the details of the TPP.

She explained that the government had previously conducted a study on the pros and cons of the TPP. The ministry will make a further analysis now that 12 Pacific Rim countries have announced an agreement on the deal, since there are some sensitive issues for Thailand and the TPP pact has more than 30 chapters.

For instance, she said the country would carefully study the effects of automobile trade liberalisation after foreseeing that Japan has not got the market access to the US as Japan's requirement. The government also needs to hear opinions from all involved sectors including the private and public sectors and non-governmental organisations.

Meanwhile, the US-Asean Business Council applauds the successful completion of the TPP negotiations, said Alexander Feldman, president and chief executive of the council.

"The TPP has grown to include nearly 40 per cent of the world's GDP under a single high-standards trade agreement. It will open opportunities for American companies in 11 other important Pacific countries, creating a level playing field for US businesses looking to break into and/or expand their presence in some of the fastest-growing markets in the world. This agreement will improve intellectual property, environment, labour and e-commerce standards across the region," he said.

The Bank of Thailand said it was too early to calculate the effect of the TPP on trade and the economy as member countries still require ratification from their respective governments before any other progress can be made.

"Vietnam will benefit from the expected increase of trade and investment volume, since Vietnam did not have any FTAs with these TPP member states before, but Thailand does have FTAs with some of the members of TPP, excluding the US and Mexico," said BOT spokesman Chirathep Senivongs Na Ayudhya.

Source: http://www.nationmultimedia.com/business/Joint-panel-urges-govt-to-join-TPP-30270316.html


-- The Nation 2015-10-07

[terryp]

do it thailand ..then you will see how much power you have to control foreign international companys and YOUR laws inside your own country....we will then truly see the elite donkeys of thailand at play (and it will be TOO LATE as you signed the agreement)

[bamnutsak]

I'm not certain they understand that this means dropping a lot of trade barriers?

Better to hunker down, count on domestic consumption and rely on the well-regarded "Sufficiency Economy".

Let Malaysia, Vietnam and Singapore follow the "riskier" path of actually joining the global economy.

[oneday]

This government is not equipped with the knowledge or expertise to understand the benefits.

It's more important to save face, by standing alone and proud rather than join in.

[Usernames]

Sorry, Thailand, you are out. Only members with stable governments and laws/regulations that cannot be changed on someone's personal whim. Look for a lot of current Thai industry to complete its shift to Vietnam.

[selftaopath]

do it thailand ..then you will see how much power you have to control foreign international companys and YOUR laws inside your own country....we will then truly see the elite donkeys of thailand at play (and it will be TOO LATE as you signed the agreement)

I agree, but since when does Thailand/Thais stand behind any agreement? Is "their word their bond"? lol yea right....

[DP25]

TPP is designed soley to benefit international corporations at the expense of workers. It is a tragedy if this bill comes in to force anywhere. Thailand is well to stay as far away from this as possible. It would destroy Thailand's health system, hurt farmers and workers, and hand over national sovereignty to benefit a global corporate elite. International corporations would gain the right to sue Thailand if it passed any law that hurt their profits. Unfortunately if a Thaksin aligned party ever comes to power again, Thailand will join in a heartbeat. Joining TPP would instantly cause a 180 in relations with the US and cause Thailand to become best buds with them again, so unfortunately it is a threat even with this government.

Hopefully Bernie Sanders will win the Presidential race in the US and the US itself will back out of this treaty designed solely to increase profits of global corporations at the expense of workers, health care, and the environment.

[greenchair]

The only benefactor of the tppa is America.

It was a good idea when the smaller countries decided to join forces.

Until America poked their nosey noses in.

But but but we're special, we should get more and lead and control everything because, because, we are America.

[Srikcir]

The Thai government would be smart to join TPP now when it most needs capital investment for economic growth. It can still hedge its economic options with its trade relationship with China.

Yes, TPP will eliminate existing Thai import tariffs and protectionist regulations, and stregthen corporate intellectual property that will challenge Thai-manufactured products in its domestic market. But given greater access to some of the world's largest economies in exchange is worth the risk.

[Praematura]

TPP is designed soley to benefit international corporations at the expense of workers. It is a tragedy if this bill comes in to force anywhere. Thailand is well to stay as far away from this as possible. It would destroy Thailand's health system, hurt farmers and workers, and hand over national sovereignty to benefit a global corporate elite. International corporations would gain the right to sue Thailand if it passed any law that hurt their profits. Unfortunately if a Thaksin aligned party ever comes to power again, Thailand will join in a heartbeat. Joining TPP would instantly cause a 180 in relations with the US and cause Thailand to become best buds with them again, so unfortunately it is a threat even with this government.

Hopefully Bernie Sanders will win the Presidential race in the US and the US itself will back out of this treaty designed solely to increase profits of global corporations at the expense of workers, health care, and the environment.

Well none of the 30 chapters has been made public so not sure where your conclusions came from. However, there are specific provisions stopping US tobacco companies from using the legal systems to reverse restrictive smoking legislation. Your opinion on how it will destroy Thailand's health system seems dubious as the patent protection for medications is only 5 years vs the 12 in the USA. I don't see how it would hurt farmers as we know Thailand isn't a big consumer of dairy or cheese. Some workers could be hurt but look at the Canadian auto industry for a speculative analysis on the winners and losers (today's New York Times.)

Thailand currently could not join because of the covenants against slave labor, but more importantly they are at the lowest rank on the TIP report. Thus it's impossible for them to join, full stop.

[phoenixdoglover]

Not surprised the business community wants to be in the TPP. Being left out does put Thailand at a disadvantage.

(yes, lots to discuss about the TPP provisions, but it is the game in play, and I don't buy the notion that it is entirely one-sided, favoring only the US. )

The Commerce Minister does not appear to have any sense of urgency. Probably needs a word from the boss, one way or another.

Perhaps the NCPO has a different trade strategy. In another news item today, it was reported that the PM instructed the Cabinet to prepare information packets for other countries, so they can understand better the unique situation in Thailand.

I would suggest a coloring book format, for ease of use. The red and yellow parts could be pre-colored.

[selftaopath]

The Thai government would be smart to join TPP now when it most needs capital investment for economic growth. It can still hedge its economic options with its trade relationship with China.

Yes, TPP will eliminate existing Thai import tariffs and protectionist regulations, and stregthen corporate intellectual property that will challenge Thai-manufactured products in its domestic market. But given greater access to some of the world's largest economies in exchange is worth the risk.

I agree with you. This would benefit the Thai population, but they are not in charge. They do not - necessarily - benefit from the monopolies that are Thailand. I don't believe the "owners" of Thailand will allow any competition to even remotely diminish their profits. They - the owners - do not really care about the country but only in their own "fiefdom."

[englishoak]

They can want what they like it isn't going to happen. Thailand dosnt tick anywhere near enough boxes to even be eligible, no planning no progress.

[d2b2]

The TTP hardly seems beneficial to the Thai people. If in doubt look at those powers that are pushing for it, The uber wealthy Thais, just can't get rich enough at the expense of the Thai citizenry.

The pharmaceutical protections contain loopholes allowing for very minor tweaks to the medication and being granted additional patent extensions on drugs which remain basically the same. The current practice of Thai medical system to provide copycat drugs to save lives (i.e. HIV meds) at reasonable costs will be eliminated by TTP.

The secrecy and backroom dealing involved with TTP should be enough to make one realize it is not on the up and up. My parents taught me that if you have to hide what you are doing, you probably shouldn't be doing it..

[Thai at Heart]

Minimum losses and utmost benefit to the country. So actually, a lop sided free trade agreement is what they really want......these guys never understood comparative advantage did they....

Edited October 9, 2015 by Thai at Heart

[sugarcane24]

TTP like GATT and the WTO yet more corporate tyranny in the making. The people who push for Thailand to sign it should in my estimation be jailed for treason.