Thais push for regional rice cooperation

Thailand yesterday pushed rice trade cooperation onto the agenda for the Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS) group, in a bid to strengthen the region’s production base and food security.

The matter was discussed during a meeting of the region’s foreign ministers in Laos yesterday, ahead of the 5th summit of ACMECS leaders, due today.

Prime Minister Yingluck Shinawatra arrived in Vientiane yesterday evening for the summit.

Countries in mainland Southeast Asia, notably Thailand and Vietnam, are major rice producers and exporters but compete with each other and thus lower the price in the market.

“In fact, we are in different segments of the market and don’t need to compete with each other,” said Foreign Minister Surapong Towichukchaikul, who led the Thai delegation at the ministerial meeting yesterday.

The planned cooperation aims to share information, cooperate to improve quality, use price references and divide up of the market, but there would be no solid agreement this time, according to a senior official with knowledge of the talks.

Cambodia, which is increasingly exporting rice via Thai and Vietnamese markets needed assistance to develop its stock, rice mill and export channel, Surapong said.

Myanmar and Laos had asked for technical assistance to improve their respective production, he added.

The ministers also considered a new action plan for 2013-2015 to implement a number of development projects to facilitate trade, investment and tourism across borders, notably along the east-west, north-south and southern regional economic corridors.

The ministers discussed connectivity within the region in a bid to pinpoint missing links and border bottlenecks that obstruct the free flow of goods and people. Surapong updated the meeting on a plan to upgrade temporary border checkpoints with Cambodia, Laos and Myanmar.

Surapong also discussed the road link between Kawkareik and Mawlamyine in Myanmar and the fifth Mekong bridge to link Thailand’s Bueng Kan and Bolikhamxai in Laos.

“The major problem now is that we have many developed roads and bridges which are under-utilised,” Surapong told reporters.

Thailand is making efforts to improve agricultural trade and production in the region, and will today sign a bilateral memorandum of understanding for a contract-farming scheme with Laos. As part of the scheme, Thailand will agree to buy farm products from Laos with tariff exemption. The Thai private sector has already been involved in the scheme for more than a decade. 

The MOU, to be signed by foreign ministers of the two countries, would help provide a consultation forum to solve the problem, Surapong said.

“Tariffs are no longer an issue but we need special measures to respond to seasonal domestic oversupply which might affect Lao production under the contract-farming scheme,” he said, “With the MOU, we have to consult with Laos in advance.”

The foreign ministers of the ACMECS countries also discussed tourism cooperation to link regional destinations, notably ancient capitals such as Bagan, Luang Prabang, Siem Reap, Hue and Chiang Mai.

Thailand and Cambodia have already launched a single visa scheme to facilitate tourism and wanted to persuade other countries to join. Surapong hinted Laos might be interested in joining soon.

Established since 2003, ACMECS, made up of Cambodia, Laos, Myanmar, Thailand and Vietnam, is the brainchild of former Prime Minister Thaksin Shinawatra, with an objective of bridging development gaps within the region.