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30 Apr 2009

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ASEAN+1, +3, +6 Summits: To Boost Confidence & Relieve Economic Impacts (Business Brief No.2491)

คะแนนเฉลี่ย
The cancellation of the ASEAN+1 (with an individual partner, i.e., China, Japan, South Korea and India in attendance), ASEAN+3 (with China, Japan and South Korea in attendance) and ASEAN+6 (with China, Japan, South Korea, Australia, New Zealand and India in attendance) summits that were to be held in Pattaya on April 11, 2009, has resulted in a number of setbacks to ASEAN with external dialogue partners. Aside from the postponement of meetings wherein the leaders would have discussed and perhaps signed relevant agreements, emergency cancellations undermined investor and tourist confidence toward Thailand. Nonetheless, Thailand has rescheduled those summits for June 2009 to be held in Phuket, otherwise agreement signoffs will be postponed until the 41st ASEAN Economic Ministers Meeting (AEM) in August if there are any more delays.
The postponement of the summits and tentative agreements may inhibit trade and investment with the other ASEAN summit attendees, and this will likely cause a short-term setback to the Thai economy. Apparently, we will lose some export opportunities due to delays in market liberalization and actions toward lowering trade barriers. In addition, we may miss opportunities to further our food security, particularly in the establishment of a temporary ASEAN Secretariat of Emergency Rice Reserves, which would largely enhance our status as the world's largest exporter of rice, as well.
Also, we may lose some potential investors from China. Although Thailand is a preferred investment destination within our region, it is expected that Chinese investors will postpone investments into Thailand until the political situation returns to normal. Beyond that, the advantages derived from investment agreements that would help facilitate and safeguard Chinese investments into Thailand will also be delayed.
The cancellation of those summits due to political demonstrations will not only affect the Thai economy due to decelerating exports, investment and tourism, but also affect the economies of our neighboring countries, particularly Laos and Cambodia, because they are heavily dependent on our economy, trade, tourism and investment. These neighboring countries are new export markets, too, where our government is encouraging penetration to help Thai business survive the economic crisis. If neighbors are affected by the slowdown in the Thai economy, Thai exporters and manufacturers in those countries will also be hurt by the deceleration.

If the above ASEAN summits can be successfully held soon without further problems, it will allow the leaders of the 16 attending nations to discuss and sign pending agreements. This would help stem the loss of opportunities due to unsigned agreements, and will enhance trade and investment for our country amid the economic crisis.

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