Bilateral FTAs with US, UK urged
The Joint Standing Committee on Commerce, Industry and Banking says Thailand should not only move ahead with multilateral free-trade talks, but also with bilateral trade deals with the United Kingdom and the United States to ensure the Kingdom’s competitiveness.
After the monthly meeting |of the committee, Chen Namchairisi, chairman of the Federation of Thai Industries, said the US withdrawal from the Trans-Pacific Partnership presented a good opportunity for Thailand to consider bilateral trade negotiations with the US, as Washington now will focus more on talks with individual trading partners.
“Besides emerging markets like Cambodia, Laos, Myanmar and Vietnam, the US economy has shown strong growth compared with other traditional markets such as the EU and Japan. Thus Thailand should move ahead with bilateral trade talks with the US and other potential countries such as the UK after the Brexit result,” he said.
Chen suggested that relevant government agencies take another look at the preliminary agreements struck with the US during three rounds of talks. A comprehensive free-trade agreement with the US should cover all sectors including goods, services and investment, as well as ensuring technology transfer.
On issues of concern such as intellectual-property rights and drug patents, the Thai government could conduct public hearings to ensure that all involved sectors, including non-government organisations, understand the situation.
In negotiations with the UK, that country might focus on service liberalisation, which Thailand needs to consider carefully and ensure balanced benefits for both sides, he added.
Board of Trade chairman Isara Vongkusolkit said the Joint Standing Committee was in agreement that Thailand should not only focus on multilateral pacts such as the Regional Comprehensive Economic Partnership, as these would take a long time to complete and implement.
He said a bilateral trade agreement with the US could help ensure access to that market long term despite uncertainty over President Donald Trump’s policies. “The RCEP is big but does not [include] the US. A bilateral pact could be an answer to ensure that Thai exports to the US grow.”
Thailand should also consider signing FTAs with Iran and Bangladesh, as both markets have high demand for Thai goods and exports of many other products have potential to grow in those destinations, he added.
The Joint Standing Committee has forecast Thai gross domestic product to grow by 3.5-4 per cent this year, while exports will expand by 1-3 per cent on many positive factors such as global trade growth, tourism, and consumer confidence.
