Thailand seeks Japan’s support in joining TPP: Somkid

 “With more than one year left before the TPP is open to new member states, Thailand will take this opportunity to conduct a public hearing to voice opinion from all involved sectors before signing the agreement, in order to reduce conflict in society and find remedial measures or an ‘introduction programme’ in advance,” he explained.

 After meeting with FTA Watch yesterday, Commerce Minister Apiradi Tantraporn said her ministry would listen to all suggestions from government agencies, the business and farming sectors, academics and social sectors, as well as seek to improve competitiveness and identify remedial measures to mitigate any adverse impacts after joining the TPP.

 Thailand needs to improve its competitiveness as part of preparations for joining the TPP, as well as for other free-trade agreements, she stressed.

 A number of countries have already expressed interested in joining the partnership, including South Korea, Taiwan, the Philippines, Indonesia, Honduras and Columbia.

 Apiradi said the government would work out remedial measures for concerned sectors, on such issues as intellectual property rights on pharmaceuticals, plant variety protection, investors’ rights and the farming sector, in order to ensure the maximum overall benefits from the Kingdom’s membership.

 As it stands, the TPP is the biggest trade agreement in history, with a combine gross domestic product worth US$27.4 trillion (Bt997 trillion), accounting for 39.3 per cent of global GDP, while combined trade among the 12 members is worth $8.7 trillion, accounting for 26.17 per cent of global trading.

 The TPP, which aims to reduce tariffs and other forms of protectionism among its membership, came after more than five years of negotiations among the United States, Canada, Japan, Australia, Singapore, Brunei, Chile, Malaysia, Mexico, New Zealand, Peru and Vietnam.

For Thailand, an official study shows that the country could benefit in some sectors and lose in others as a result of TPP participation. 

Apiradi said that as more than 60 per cent of the national economy was reliant on exports, the TPP would definitely affect Thailand’s trading.

 FTA Watch spokeswoman Kannika Kittiwetchakun called for government agencies to reveal information about the potential TPP benefits and impacts on all sectors, so that a fair, weighted view could be reached on whether Thailand needed to join the agreement.

She said that if Thailand decided to join the TPP, it would need to accept the extension of medicine patent protection from one to 10 years, which could affect the national social health-guarantee programme.

 The Public Health Ministry would need to prepare a budget of up to Bt288 billion a year to remedy the problem, while the study found that Thailand’s TPP participation would promote economic growth by just 0.77 percentage point, she added.

 Moreover, the Kingdom would need to set up an Investor-State Dispute Settlement mechanism and amend many of its laws and regulations, Kannikar said.

 Other issues of concern are a TPP allowance for beef and pork imports from the US, the elimination of labelling on alcohol beverages, and labels on food supplements for babies. 

 She said that with so many risks and matters of concern for Thailand, the country should not rush into a decision to join the pact, but should carefully consider all impacts and create balance for all sectors.

 Nopporn Thepsithar, chairman of the Thai National Shippers Council, said the TPP should help support Thai trade growth, as was the case with other trade agreements.

 The government should prioritise on which pacts Thailand should focus, and then find remedial measures for negatively affected sectors, he said.

 The government stance in regard to applying for TPP membership is a good signal that will boost the confidence of foreign investors and encourage more investment, said Pimonwan Mahujchariyawong, deputy managing director of Kasikorn Research Centre.

 The Joint Standing Committee on Commerce, Industry and Banking also urged Thailand to join the TPP, with the government’s stance as stated by Somkid opening up further opportunities for exporters to the US.