THURSDAY, March 28, 2024
nationthailand

Joint panel urges govt to join TPP

Joint panel urges govt to join TPP

The Kingdom's most powerful private-sector organisations have urged the government to consider joining the Trans Pacific-Partnership (TPP) and get moving on other free-trade talks to ensure the country's competitiveness in global trading, after 12 Pacif

After a monthly meeting of the joint standing committee comprising the Board of Trade, the Federation of Thai Industries (FTI) and the Thai Bankers Association, the chairman of the meeting, Isara Vongkusolkit, said private enterprises had expressed concern over the successful TPP agreement since it could affect Thailand’s competitiveness in the future.

The joint standing committee encouraged the government urgently to consider joining the US-led pact while moving ahead with other free-trade talks such as with the European Union. Negotiations with the EU have been suspended for more than a year.

"The [private sector] organisations will set up a working committee to study the impacts and benefits of the TPP and other FTA talks to propose for the government’s consideration soon," said Isara, chairman of the Board of Trade.

The panel is expected to complete its study within two months. The working committee will consist of five representatives from each private-sector organisation.

Isara said Thailand should join the TPP and carefully negotiate to ensure minimum losses and the utmost benefit for the country. The pact will create the world’s largest free-trade area and include many economic giants, mainly the United States, with which Thailand does not yet have a free-trade agreement.

He added that Thailand should complete FTA talks with Turkey, which would be a gateway to the EU, within six months.

Joint panel urges govt to join TPP

FTI chairman Supant Mongkolsuthree said the industrial sector was highly concerned about Thai enterprises’ competitiveness as four Asean states – Vietnam, Malaysia, Singapore and Brunei – have joined the TPP.

"Vietnam could draw more foreign direct investment from the US, Japan, and other TPP members under the closer ties. Thailand, which aims to be a centre of regional integration, should do something to ensure the country’s [status] as the region’s investment and trading hub," Supant said.

Boontuck Wungcharoen, chairman of the Thai Bankers Association, said Thailand needed to move on with free-trade talks to increase its competitiveness and emphasise its position as Asean’s centre.

The joint standing committee foresees that gross domestic product this year will grow more slowly than the previously expected 3-3.5 per cent. It now predicts growth of 2.5-3 per cent on the sluggish global economy and expected export contraction.

The committee projected that export value this year would shrink by 5 per cent, largely because of the baht’s weakness against the US dollar.

Meanwhile, the Commerce Ministry said the government was interested in joining the TPP, but needed to study the deal careful before proposing it to the Cabinet.

Pimchanok Vonkhorporn, the ministry’s deputy spokeswoman, said Commerce Minister Apiradi Tantraporn had instructed officials to analyse the details of the TPP.

She explained that the government had previously conducted a study on the pros and cons of the TPP. The ministry will make a further analysis now that 12 Pacific Rim countries have announced an agreement on the deal, since there are some sensitive issues for Thailand and the TPP pact has more than 30 chapters.

For instance, she said the country would carefully study the effects of automobile trade liberalisation after foreseeing that Japan has not got the market access to the US as Japan’s requirement. The government also needs to hear opinions from all involved sectors including the private and public sectors and non-governmental organisations.

Meanwhile, the US-Asean Business Council applauds the successful completion of the TPP negotiations, said Alexander Feldman, president and chief executive of the council.

"The TPP has grown to include nearly 40 per cent of the world’s GDP under a single high-standards trade agreement. It will open opportunities for American companies in 11 other important Pacific countries, creating a level playing field for US businesses looking to break into and/or expand their presence in some of the fastest-growing markets in the world. This agreement will improve intellectual property, environment, labour and e-commerce standards across the region," he said.

The Bank of Thailand said it was too early to calculate the effect of the TPP on trade and the economy as member countries still require ratification from their respective governments before any other progress can be made.

"Vietnam will benefit from the expected increase of trade and investment volume, since Vietnam did not have any FTAs with these TPP member states before, but Thailand does have FTAs with some of the members of TPP, excluding the US and Mexico," said BOT spokesman Chirathep Senivongs Na Ayudhya.

nationthailand