In view of GSP reform, EU pushes for trade talks

The EU ambassador to Thailand, David Lipman, said this was one of the countries that could lose privileges as the union reforms its Generalised System of Preferences (GSP) soon. A free-trade agreement (FTA) with the bloc would help ensure continued export privileges with the EU, which is Thailand’s second-largest trading market.
“I hope that Thailand will not be left behind other Asean countries,” Lipman said. “The EU still considers Thailand one of its most important markets and trading partners. The FTA would help promote mutual benefits on trade, investment, and services liberalisation, and ensure Thailand’s competitiveness.”
He acknowledged that amid the EU’s current financial difficulties, the FTA should help stimulate trade and investment. The slowdown in the union’s economic growth has encouraged it to open up more. Thailand, as one of its major trading partners, should urgently move forward on talks with the union as a strategy to drive trade growth with the EU market, he said.
The EU plans to reform its GSP in 2014, which is expected to cut the number of countries that benefit from the privileges to 80 from 176 currently. Thailand is one of the countries that could lose privileges, since its economy has strengthened, Lipman noted.
He pointed out that the EU would soon wrap up FTA talks with Singapore, while talks with Malaysia have progressed strongly. The union is preparing for negotiations with Vietnam and expects to start the first round of talks soon.
The EU has a policy to look East, as this region has shown the world’s strongest growth, he noted. The EU will thus focus on the Asia market, which is considered the future driver of the global economy.
Asked about the issues of concern for Thailand in any FTA, including intellectual property, alcoholic beverages, and different levels of development, Lipman said he expected that every issue would be on the table, as any agreement would not only promote trade, but also boost investment and pave the way for advanced development.
Rolf-Dieter Daniel, head of the German-Thai Chamber of Commerce, said many European investors would like to invest in Thailand and do more business here. However, the lack of an FTA has obstructed the growth of trade and investment between the Kingdom and the EU.
As an early step to promote trade and investment, the first European-Asean Business Centre (EABC) in Thailand was established yesterday.
Daniel, who is also the president of the EABC, said the centre would serve as the platform for business to interact with authorities and counterparts to promote European investment in Thailand and other Asean countries.
The EABC is also a strategy of the EU to encourage its small and medium-sized enterprises to invest overseas.
The EABC office is in Empire Tower, Bangkok.