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13 Sep 2005

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Fifth Round of Thailand-US FTA Negotiations: Thailand's Stance Focused

คะแนนเฉลี่ย

Thailand's Prime Minister Pol. Lt. Col. Thaksin Shinawatra is scheduled to hold bilateral talks with Mr. George W. Bush, the US President in Washington D.C. on September 19, 2005. Between September 13-16, 2005, he will attend the 2nd ASEAN-UN Summit and the 60th session of UN General Assembly in New York. High on the agenda in the meeting between the two leaders are preparations for bilateral FTA agreement. The next round (5th) of Thailand-US FTA negotiations will take place in Hawaii between September 27 and October 5, 2005.

Key issues forming Thailand's stance in the negotiations for Thailand-US FTA accord that will bring mutual benefits to both countries on the basis of free and fair trade can be summarized as follows:

1. Agricultural sector

- Thailand should push for the US to reduce/scrap non-tariff barriers (NTBs), i.e., anti-dumping (AD) and subsidization in the US farm sector both in production and exports, which is to blame for the slump in prices of farm produce globally. Thai farmers have thus felt the pinch due to lower prices of exported agricultural products.

- Thailand should take into account food security in the light of the US wanting to see Thailand fully open its farm goods market that may eventually lead to the US monopolizing Thailand's farm sector.

2. Industrial sector

- Thailand should be prepared to make Mutual Recognition Arrangements (MRAs) for industrial products with the US. In so doing, the standard of Thai industrial products shipped to the US will be accepted, thus allowing Thai products to enter the US market without facing trade-related barriers, i.e., Technical Barriers to Trade (TBT).

-Thailand should push for the US to cancel or reduce tariffs for Thailand immediately, or as soon as possible for Thai potential industrial goods including gems and jewelry, shoes, canned tuna fish and automobiles. Meanwhile, sensitive industrial Thai goods that Thailand does not want to reduce the tariff to the US immediately, such as plastic, petrochemicals, steel, glass and aluminum, must be prepared for more intense competition and be ready should the US pressure Thailand to reduce the tariffs on these goods in exchange for mutual benefits.

3. Service sector

The US wants Thailand to liberate service sector fully and immediately which includes full liberalization of financial sector, EDS (Express Delivery Services) and the cancellation of some occupations including accounting, lawyers, engineers, architectural work concerning design and drawing, etc, that are now reserved for Thai people only under the Royal Decree on Aliens' Works B.E. 2522 (A.D.1979). Since Thailand wants to liberate its financial sector only gradually, negotiations with the US must be conducted with the maximum care. In the event of a full and immediate liberalization, the US would be in a position to take full and immediate advantage of its position in Thailand, whereas Thai entrepreneurs are still not ready to compete on the same scale immediately.

4. Intellectual property

Thailand should insist on the same stance concerning intellectual property protection by accepting the obligation of intellectual property protection that conforms with TRIPs agreement of WTO, particularly with regard to the point on drug patent protection period. Nothing must be done that would adversely affect drug accessibility of poor people and Thailand must insist on being able to use the "Compulsory Licensing" and "Parallel Import" so that drug prices are cheaper. Meanwhile, Thailand should adopt a proactive stance in requesting the US to provide protection on GI (Geographical Indication) on Thai goods; these are jasmine rice and Thai silk, which the Thai authorities want to include in the negotiations with the US at this time. It will be greatly beneficial if these goods can be clearly identified as being from Thailand.

5. Environment and workers

The US wants Thailand to provide protection of workers' rights and maintain environment by lifting the protection level of environment and domestic workers, including enforcing the law efficiently. The US may use the point of stricter environmental and labor standard to form trade barrier with Thailand. Thailand should have the power to supervise environmental and labor policies freely and the US should not attempt to use these two points to form trade barrier with Thailand.

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