Private sector urges govt move for TPP

Speaking on the sidelines of the 60th-anniversary celebrations of the International Trade Promotion Department yesterday, exporters shared the view that it would be hard for overseas sales to grow as significantly as they had in the past because of slower global economic expansion, while fuel prices and production costs are expected to rise.

   They urged the government to accelerate the promotion of Thailand’s growth by tightening cooperation with trading partners and taking measures to support export expansion.

   Payungsak Chartsuthipol, chairman of the Federation of the Thai Industries, said the government should urgently join the TPP negotiations, otherwise the country could lose competitiveness to its rivals.

   The leaders of the nine TPP countries – Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam and the United States – last year agreed on the outlines of an ambitious pact that would enhance trade and investment among partner states, promote innovation, economic growth and development, and support the creation and retention of jobs.

   Payungsak said the Thai industrial and farming sectors stood ready to develop and compete during a period of enhanced liberalisation. The government should urgently help small and medium-sized enterprises improve their competitiveness before the market is liberalised for other TPP members.

   The government should also provide more financial support to enterprises, in particular for SMEs, in preparation for increased minimum wages in April, since they would face more difficulty in adjusting their operations after the rise in labour costs.

   Exports are expected to recover to growth in the second quarter after some plants that were damaged by last year’s severe floods restart operations soon, he said.

   “The country’s [overseas] shipments are expected to grow by 10-15 per cent this year after exports in the first quarter post negative growth,” he said, adding that automobile production should hit 1.2 million units this year.

   Somchai Phornchindarak, president of the Thai Gems and Jewellery Traders Association, said the government should rapidly move on free-trade negotiations to open up more opportunities for export expansion amid a slowing global economy.

   “Joining the TPP should be considered soonest in order to ensure Thailand is not left behind its export rivals. 

   The TPP will help drive exports to the United States, which is one of Thailand’s major export markets with high purchasing power,” he said.

   Somchai said exports of gems and jewellery could face flat growth this year, as the pace of sales to major markets including the United States and the European Union has been 

dropping.

   Moreover, the association is very concerned that Thailand will lose export privileges to 

the US under the Generalised System of Preferences this year.

   Jirabul Vitayasingh, secretary-general of the Lifestyle Products Association, said more SMEs in the sector would face bankruptcy this year due to low financial support from the government, the impact of last year’s flooding and increasing labour costs.

   He said that although SMEs used less labour, their supply-chain industries would face higher labour and production costs. 

   SMEs need to increase their prices, but will face tougher competition in overseas markets, he added.

   Jirabul urged the government to ease problems for SMEs by helping them seek more funding sources and encouraging them to adopt new technology and become more innovative.

   He said the Kingdom should join the TPP to ensure proper access to larger markets. However, the government must also have measures in place to encourage SMEs to reap the benefits and adopt technology transfer as a result of the pact.

   Meanwhile, Deputy Commerce Minister Poom Sarapol said yesterday that Thai exports should expand by 10-15 per cent to US$263 billion (Bt8 trillion) 

this year.

   Although shipments in the current quarter will shrink by 1-2 per cent, exports in the second three months of the year are expected to post growth, he said.