THURSDAY, March 28, 2024
nationthailand

Turning international ‘threats’ into economic opportunity

Turning international ‘threats’ into economic opportunity

The military-led government has been walking a tightrope over the past two years amid threats and pressure from the US, European Union and International Civil Aviation Organisation (ICAO) concerning human rights, people trafficking, illegal labour and fis

Next month, the EU is set to decide whether to lift its “yellow card” warning on the Thai fishery sector for illegal, unreported and unregulated (IUU) fishing practices.
Then, in June or July, the US State Department will release its annual Trafficking in Persons (TIP) report on various countries around the world, including Thailand. Last year, Thailand was kept at Tier 3, the lowest ranking of countries which the US says have not done enough to combat human trafficking and illegal labour practices.
And later this year, the ICAO, a United Nations agency, will review the progress of Thailand’s measures to tackle aviation safety and related issues, after the country was red-flagged in 2015.
It seems the country needs a lot of hard work and also good luck if it is to survive all these threats and escape punishment such as trade sanctions while also improving the tarnished international reputation of its seafood, tourism and other industries.
Thai seafood exports to the 28-country EU market are worth more than Bt20 billion annually. A red card from the EU over the IUU issue could lead to an import ban on Thai seafood.
EU officials have indicated they need to maintain the warning due to insufficient action by Thai authorities to combat illegal labour and fishing practices that take a heavy toll on migrant workers from neighbouring countries, especially Myanmar, Cambodia and Laos.
While new fisheries and labour laws have been enacted, enforcement and follow-up measures remain inadequate, so EU authorities might not remove the yellow-card warning during their review later this year.
The general expectation is for the status quo to be maintained, but more pessimistic analysts are suggesting that Thailand could face a “red card”, or import ban. The uncertainty has prompted major Thai seafood exporters to use smaller operators in other Asean member-countries to process their raw materials, so as to minimise the impact of a possible import ban by the huge EU market.
For aviation safety and related issues, the outlook is similar, since it will take time to overhaul the regulatory framework on airline licensing, auditing and other matters after years of high growth for low-cost, chartered and other airline sectors.
Aviation services have a direct bearing on the tourism industry, which is a major source of revenue for the country, with visitor arrivals forecast to top 30 million this year.
Both tourism and seafood exports are crucial pillars of Thai economic growth at a time when overall exports have slowed due to the sluggish global economy.
As such, many Thais are dismayed at the growing threats and pressures being applied by the US, the EU and the ICAO since the May 2014 coup. However, these “outsider” actions have a significant upside. They serve as powerful leverage for positive changes that could lead to more sustainable economic growth in the future.
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