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Thailand looks to join US-led TPP

BANGKOK — Thailand is interested in joining the ambitious Trans-Pacific Partnership (TPP) trade pact being touted by the United States, but needs to study the terms and conditions of the new trade bloc first, Deputy Prime Minister Somkid Jatusripitak has said.

BANGKOK — Thailand is interested in joining the ambitious Trans-Pacific Partnership (TPP) trade pact being touted by the United States, but needs to study the terms and conditions of the new trade bloc first, Deputy Prime Minister Somkid Jatusripitak has said.

“We are very interested, but we must weigh the advantages and disadvantages carefully,” Mr Somkid told the Bangkok Post. The 12-member trade bloc’s economic activities represent about 40 per cent of the global economy. Expressing interest would put Thailand “on their radar screen”, he said.

Since the May 2014 coup against the former Yingluck Shinawatra government, Thailand has experienced a restricted diplomatic relationship with Western democratic countries. The government of coup leader and Prime Minister Prayuth Chan-o-cha has faced a diplomatic backlash from Washington to Brussels.

The US kept Thailand on its bottom Tier 3 ranking in its report on human trafficking in July. It said Bangkok failed to “fully comply with the minimum standards for the elimination of trafficking, and is not making significant efforts to do so”.

Last month, General Prayuth poured cold water on a call by an American business lobby group urging Thailand to join the TPP.

A ministerial meeting in Hawaii in July failed to reach a deal on the new trade agreement, and no date has been set for future talks. “I need to be careful about what I say about such a critical agreement that could make or break Thailand. All parties must be consulted, especially the Ministry of Public Health,” Gen Prayuth said after he met some 60 executives from top American firms from the US-Asean Business Council.

The Hawaii talks — which included trade ministers from Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam — covered a wide area, from tariffs on automotive, rice and dairy products, to intellectual property protections for pharmaceuticals.

The US-Asean Business Council president and chief executive Alexander Feldman said during a visit to Bangkok in August that Thailand’s accession to the TPP would increase American investment in Thailand. He has welcomed Bangkok’s interest in taking part.

“TPP is a 21st century trade agreement that will assist Thai companies that export both goods and services by opening new markets,” Mr Feldman wrote in an email to the Bangkok Post.

“Thailand has globally competitive industries in cars, electronics, agriculture, healthcare services and tourism, just to name a few areas. The e-commerce chapter of the TPP also offers Thai companies, especially small and medium-sized companies, an opportunity to access markets via e-commerce across the TPP economies and should be an important opportunity for the future growth of these businesses.”

Mr Somkid’s remarks echo what other Cabinet ministers say about the potential benefits of the TPP.

Commerce Minister Apiradi Tantraporn told reporters last month that Thailand would have a much greater market for its products if it joins the multinational trade bloc, but it should wait for the TPP to be firmly established by core members first.

Mrs Apiradi said the TPP’s protection of US pharmaceutical companies and biodiversity are potential concerns if Thailand was to join. Her predecessor, Gen Chatchai Sarikalya, said last month that the TPP could yield greater benefits for Thai exports to the US than Washington’s tax privileges under the Generalised System of Preferences.

Critics have complained that the deal is being negotiated in secret, and it favours large corporations over workers and consumers. Local NGOs predict Thai consumers would have to pay much higher prices for patented medicines, though Mr Feldman said the TPP would benefit Thailand’s booming medical tourism industry, in which patients would have access to the latest developed drugs.

An executive in the Thai auto parts industry also expressed concern that local manufacturers could lose out if the country does not join the TPP. Rules-of-origin regulations could affect Japanese investments in particular, as sales to TPP markets would be constrained if the country did not join the treaty. Conversely, Thai suppliers would stand to benefit if the country joins the trade bloc.

Mr Feldman said Thailand needs approval by all 12 current TPP members to join. “It is our understanding that the current 12 members have agreed to finish negotiations and finalise the agreement before considering whether to let additional countries join the TPP,” he said. BANGKOK POST

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