Q1. New airports have opened throughout the region, raising the competitive stakes for both tourism-related and cargo-transport air traffic.
Predictions on the overall effect of new airports, new terminals and other expansions across the region, from South Korea to Japan to Thailand.
Response:
Overall effect should be positive.
Undoubtedly, the growth of new airports and terminals across the region will have a tremendous effect on the economies of countries in the region, both positively and negatively. New airports will mean not only more flights into and out of the region but also more travelers into the region. For Thailand, this would be a boost to our tourism sector, create employment, and subsequently increase our foreign reserve earnings. However, it would also mean that our national carrier, Thai Airways International would have to face a more competitive airline market, which I believe would not only lead to increased air traffic efficiency but also benefit consumers in terms of better service at more reasonable prices. In addition, more terminals would help to resolve existing port congestion problems and would also increase the flow of air cargo into and out of the region. This would in turn boost trade within the region.
Commercial benefits that could derive from the expansion of Thailand s transport infrastructure from sea ports to airports to land travel (i.e. the Bangkok to Kunming railway line).
Response:
Commercial Benefits
The expansion of Thailand s transportation infrastructure has been a continuous process, which has been urgently carried forward through past governments. The establishment of transportation linkages and networks between key destinations and ports in the region has been recognized as a priority task for both past and present Governments to achieve, which will have a direct effect on the rate of growth and development in the respective areas. The construction of Thailand s second major international airport near Bangkok will undoubtedly increase Thailand s potential as a commercial center for the region. The new airport would be able to handle 50 million passengers and 1.46 million tons of cargo per annum. Likewise, the expansion and improvements of Thailand s sea ports and land transport infrastructure will also help to strengthen our capacity as a commercial center by creating an environment which facilitates an efficient flow of goods and people. Construction of new roads, highways, and railways will certainly attract new business activity along its routes and would play a supportive role for the new airport. Bangkok s location would be envied by others in the region. It is somewhat closer to Europe and not too far from the western part of the US.
Q2. Inception of the ASEAN Free Trade Area and effects on Thailand s development.
Reflections on Thailand s role in setting goals and priorities for the ongoing
construction of ASEAN s Free Trade Area.
Response:
Thailand s role has been actively and constructively.
In 1992, Thailand s Prime Minister of that time, Anand Panyarachun, had initiated the ASEAN Free Trade Area (AFTA) aimed at establishing a free trade area within 15 years (1 January 1993 | 1 January 2008). The initiative was supported by the other ASEAN Leader which at that time, comprised 6 countries, namely Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore and Thailand.
Two years later, in 1994 the ASEAN Economic Ministers (AEM) agreed to accelerate the implementation of AFTA from 15 years to 10 years (1993-2003) and to also include Unprocessed Agricultural Products (UAPs) into the AFTA scheme.
Amidst the economic crisis in the region, the ASEAN Leaders in 1998 further shortened AFTA by one more year from 2003 to 2002. Although Thailand had been severely affected by the crisis, we nevertheless supported this decision.
In 1999, ASEAN agreed to turn AFTA into real free trade area by reducing tariffs on all tariff lines to 0% by 2010 for the six original members and by 2015 for the four new members. Furthermore, the six original member would be required to reduce 60% of their tariff lines to 0% by the year 2003. Such arrangements had been push by Thailand.
We believe that the acceleration of AFTA will not only help to regain business confidence, but it would also increase competitiveness of ASEAN product in the world economy and boost economic recovery within ASEAN.
The practical and economic effects of AFTA on the Thai economy, both short-term and long-term.
Response:
AFTA brings trade expansion to the Thai economy.
Prior to the establishment of AFTA in 1992, ASEAN ranked fourth among our export destinations. After the implementation of AFTA in 1993, Thai exports to ASEAN has increased impressively. It increased by 175% from USD 4,490.2 million in 1992 to USD12,342.6 million in 2000, and became Thailand s first ranked export market from 1995-1997 (21% of total export value) and second ranked market during 1998-1999 (18% of total export value) due to the economic crisis in Asia.
The jump in exports comprised of both manufactured and agricultural products such as automatic data processing machines and parts, electronic integrated circuits, polymer of ethylene, propylene, motor vehicles parts and accessories, rice and sugar.
As for Thailand s imports, ASEAN was the third ranked import sources until 1998 (13% of our total imports) and moved to second place from 1998-2000 (approximately 15% of our total imports in 1998-2000). In 2000, the value of Thailand s imports from ASEAN was USD 9,545.50 million, up 20.73% from USD 7,906.4 million in 1999 and up 72.26% from USD 5,541.4 million in 1992.
Thailand s major imports from ASEAN include electrical machinery and parts, electronic integrated circuits, computer part and accessories, chemical products, metal manufactures, benzine and similar oil for engine, cathode-ray tubes, crude oil, wood in rough, sawn or chipped wood, industrial machine, other metal waste and scrap, electrical appliances, plastic products, coal, pencils, ball pen, printing ink and printing accessories.
From 1981 up until 1992, Thailand had faced a trade deficit with ASEAN. However, in 1993 a trade surplus had emerged and continued thereafter. In 2000, Thailand had a trade surplus of US$ 2,825.5 million. Both exports to and imports from ASEAN has grown but the growth of exports was more rapid. Most of imports consisted of raw materials for production of export products.
Some products were adversely affected from the AFTA scheme such as palm oil and petrochemicals. In the beginning, AFTA temporarily excluded palm oil from the scheme while at the same time, we had planned to reduce tariffs on petrochemical products as slowly as possible in order to allow sufficient transitional period for the domestic industry. However, the tariffs on both products would eventually be brought down to between 0-5% by the year 2003.
Another important advantage of AFTA is that it makes the Thai market diversified and so people would have more choices. In addition, during the crisis, tariff reduction on consumer products under AFTA helped to reduce the rate of inflation. Such rate reached two digits for only three months in 1998 although economists had forecasted that it might be longer.
ASEAN s long term goal to be achieved by 2020, which would effectively transform ASEAN into an economic region where there would be a free flow of goods, services and investments and a freer flow of capital, would also make the principles of comparative advantage and division of labor in ASEAN more visible. Therefore, producers and service providers in Thailand who produce and provide services most efficiently and with minimum cost will be able to compete in the ASEAN market. Protection for domestic industry would therefore be abolished.
Q3. With a new change in Government, what can investors expect from Thai economic policies?
Response:
The Government maintained an open economic policies.
At present, the expansion of international trade faces certain limitations. As a consequence, the Thai government has had to adopt strategies aimed at stimulating the domestic economy in terms of consumption and investment, as well as enhancing the capability of revenue collection from exports and tourism. This will eventually lead to the resuscitation and strengthening of the economy.
? Regarding trade and investment policies, the government maintains its support for the principles of free trade, and in systemizing the fundamental structure of the economy in order to facilitate entrepreneurs. Progress under the new government will be seen in the form of improving laws considered as an obstacle to the country's development. These improvements will be carried out by committees established to deal with those prohibitive laws.
Likely priorities for legislative action regarding commercial and investment policies.
Response:
Possible legislative action that need to be addressed.
? Many laws which need urgent considerations and modifications to provide fairness to all parties concerned such as the Bankruptcy Act, the Corporatization Act, the Amendment to the Civil Procedure Code on Petty Case and the Foreign Business Act will be examined. In addition, laws involving e-commerce need to be ratified urgently. These include such laws as e-criminal laws, privacy-protected laws, electronic money transfer laws, and laws concerning IT infrastructures in accordance with the constitutional law, section 78.
Spotlight on economic sectors, such as mobile and fixed-line telephony, expected to experience the most growth in the near future.
Response:
Potential high growth industries.
? With respect to the real sector of the economy, the government has policies to restructure the domestic industry and to promote investments in order to conform with the established targets and development strategies of the government. Moreover, the policies should be based on such factors as natural resources, labor skills, traditional wisdom, production and marketing, and the balance of domestic and foreign raw materials. Many potential industries are expected to gain high growth, including food, automotive, and electronic industries.
Macroeconomic outlook for the next three years.
Response:
Macroeconomic outlook for the next three years.
? Due to the economic slowdown since the second half of the 2000, the economy in 2001 is still projected to be on a downward trend. Apparently, the slowdown is attributable to the large dependence on the United States and Japanese markets. As a result, Thailand s growth figure for 2001 is expected to range between 3.5 - 4.0 percent.
Regarding the macroeconomic outlook for the next three years, we anticipate that the rate of economic growth will be around 4.5 | 5.0 percent in 2003 and will further improve in the following two years. This estimation would be based on the endeavors of the government in successfully implementing action in various key sector including, resolving the problems of NPLs in the banking sector, resolving problems in the real estate sector, restructuring the agricultural sector, and alleviating the overall debt burden. Furthermore, liberalization under AFTA in 2003 will have a positive bearing on the expansion of trade and investment, not to mention on the expected increase in employment that would result. The combination of government action in these areas will undoubtedly contribute to the sustainable growth of the Thai economy well into the distant future.
Q4. Changes in the bilateral trade relationship with the United States and the new Bush Administration.
Expectations of US foreign and trade policy under the Bush Administration.
Response:
US needs to be more open and fair.
Thai exports depend significantly on the US market in order to sustain economic growth. To enhance market access for Thai products into the US market, The United States needs to be more open and fair with respect to trade transactions with Thailand.
The US government has strictly imposed trade regulation on imported products including such measures as AD/CVD, Safeguard laws, Trade laws under section 301, sanitary and phytosanitary measures, and combining trade and labour issues from its trading partners, which have had a negative impact on our economy. However, Thailand expects the Bush Administration to cease import protection practices for at least the next four years, and to set favorable trade measures for its trading partners, particularly developing countries that will be affected.
Top priorities for trade talks with US Trade Representative.
Response:
AD/CVD Measures
From Thailand s point of view, US Antidumping and countervailing duties remain the main impediments to Thai exports. Currently, The US Department of Commerce remains determined to extend the imposition of AD/CVD on canned pineapple fruit, hot-rolled steel products, Pipes and Tubes, Carbon Steel Butt-Weld Pipe Fittings, and Furfuryl Alcohol.
At present, the Bush Administration wants to help the ailing US steel industry through a difficult period of transition. It seems that President Bush is working more on antidumping measure and steel issues than the Clinton Administration had done. There is no doubt that the US market will continue to prevent the importation of steel products and that will affect Thailand s steel exporters.
Child Labor law affected to GSP beneficiary
The Trade and Development Act of 2000 (TDA) has recently established a new eligibility criterion concerning efforts to eliminate the worst forms of child labor, upon receipt of these trade benefits. The TDA requires the Secretary of Labor to make findings with respect to implementation by beneficiary countries implementation of their international commitments to eliminate the worst forms of child labor by countries seeking benefits under the Generalized System of Preferences (GSP). The law applies to merchandise produced either “in whole or in part ” with prohibited labor. A product must be free of components made with forced or indentured labor to quality for admission into the United States.
GSP has been an important factor contributing to the economic development of Thailand. At present, Thailand has been offered trade preferences under the GSP program granted to developing countries by the U.S. Such preferences help to promote bilateral trade by strengthening the competitiveness of Thai products in the U.S. market. Meanwhile, The US. has been trying to use the child labour protection issue against its trading partners by way of unilateral action, such as (1) provisional detention of the merchandise, or (2) a more formal finding that the class of merchandise is the product of forced or indentured child labour.
Labour issues should not be combined with trade issues since it was agreed at the WTO Ministerial meeting in Singapore in December of 1996, that the ILO (International Labor Organization) would be the body which sets and deals with labour standards Additionally, member countries agreed to reject the use of labour standards for protectionist purposes. Moreover, labor standards in each individual country varies depending on the stage of social and economic development. However, the present Government has a policy and resolution to eliminate the child labor problem and to protect and provide fair treatment for working children. It also contributes to the development of children by expanding educational opportunities and extending compulsory education government policy also aims to uproot poverty and decrease the gap of income distribution.
Child Labor Protection
The Labor Protection Law has a certain prescription regarding the protection of child labor against unsuitable working conditions and environment which is routinely inspected by labour inspectors. However, the existence of unfair treatment and exploitation to child labor have increased. In dealing with the problem, the number of inspections would be increased and if the law is violated, the violators will be severely prosecuted.
Furthermore, the Information Center on Child Labor Exploitation was set up to receive grievances through a 24 hour Hot Line service a day and to collaborate with labor inspectors, the Labor Protection and Welfare provincial offices, and other organizations concerned, to assist children who need any assistance.
To encourage help from people in preventing and solving the child labor problem, the Ministry of Labor and Social welfare has issued the Regulation Concerning Reward for Child Labor Exploitation Information to those who supply information that leads to the prosecution of those who violate the law.
Market Access for Thai Chicken Meat
Thailand has not been permitted to export fresh, chilled or frozen poultry products to the US due to US claims that the Viscerothropic Velogenic Newcastle Disease (VVND) exists in Thailand. However, in 1991 , Thailand sought approval from FSIS to export cooked poultry to the US. However, since no information concerning Thailand s thermal processing controls and procedures for reportable and canned products, and poultry nutrition labeling requirements were submitted as requested by FSIS, Thailand s request has not yet been approved.
In 1995, the Department of Livestocks started negotiations with the U.S. federal agencies for market access of chicken meat. A Thai delegation, later proceeded to the U.S. for further negotiations and to follow-up on its request for consideration of chicken meat imports and other related information that was provided. However, the desired outcome has not been achieved.
Thailand is one of the major poultry exporters to the world market, and maintains quality and sanitary product at the average level of international standards. Thai chicken products have been exported to the EU and Japan where stricter SPS regulation and highly supervised and controlled sanitary standards are enforced. Also Thailand s boiled chicken is allowed entry in Canada where SPS systems are equivalent to those in the U.S.
The pattern of US investment, and how that might be changing as the regional economic recovery.
Response:
The US FDI in Thailand
The US Ministry of Commerce statistics show that US foreign direct investment in Thailand in the first quarter was $ 216 million. Thailand ranked 3rd among ASEAN nations after Singapore and Indonesia, and 5th in Asia Pacific Rim in terms of attracting investment. Statistics also reveal that of the total number of FDI projects by foreign companies approved by the Thai Board of Investment during January-June last year, US investors ranked 4th among major investors while the 1st, 2nd and 3rd largest investors came from Japan, Taiwan and Singapore. In terms of project amount, US investment was ranked 1st in 1999, but declined to 3rd after Japan and Taiwan which had an investment value of 10% of the total foreign direct investment approved by the Thai Government.
Trend on Investment : Increased US investor s confidence due to Thailand s economic recovery.
It is expected that there will be an increase in US investment in Thailand in the second half of 2000 after completely having announced new promotion investment procedures. An investor who wants to get the existing benefit package must submit the request before the new benefit package is introduced this August. Particular industries have higher investment interests than others including Electronics and Electrical Appliances, and computer components and peripherals, which is in responses to the demands for Information Technology in the world market. Investment in the Automobile industry seems to have expanded because of higher domestic demand. However, this can be achieved unless fuel price is not extremely accelerated. The Agricultural sector and agricultural products tend to have received more requests for benefit packages since new promotion investment procedures will give special preferences to the Agricultural industry and its related products. Besides this, Thai Officials will have new service sectors including E-commerce Businesses, Regional Headquarters, and Regional Distribution Centers that are expected to definitely attract heavy US investment.
กรมเศรษฐกิจการพาณิชย์ กระทรวงพาณิชย์ โทร. 281-9723, 282-6171-9 : 1176-7 โทรสาร. 82-6623--
-สส-
Predictions on the overall effect of new airports, new terminals and other expansions across the region, from South Korea to Japan to Thailand.
Response:
Overall effect should be positive.
Undoubtedly, the growth of new airports and terminals across the region will have a tremendous effect on the economies of countries in the region, both positively and negatively. New airports will mean not only more flights into and out of the region but also more travelers into the region. For Thailand, this would be a boost to our tourism sector, create employment, and subsequently increase our foreign reserve earnings. However, it would also mean that our national carrier, Thai Airways International would have to face a more competitive airline market, which I believe would not only lead to increased air traffic efficiency but also benefit consumers in terms of better service at more reasonable prices. In addition, more terminals would help to resolve existing port congestion problems and would also increase the flow of air cargo into and out of the region. This would in turn boost trade within the region.
Commercial benefits that could derive from the expansion of Thailand s transport infrastructure from sea ports to airports to land travel (i.e. the Bangkok to Kunming railway line).
Response:
Commercial Benefits
The expansion of Thailand s transportation infrastructure has been a continuous process, which has been urgently carried forward through past governments. The establishment of transportation linkages and networks between key destinations and ports in the region has been recognized as a priority task for both past and present Governments to achieve, which will have a direct effect on the rate of growth and development in the respective areas. The construction of Thailand s second major international airport near Bangkok will undoubtedly increase Thailand s potential as a commercial center for the region. The new airport would be able to handle 50 million passengers and 1.46 million tons of cargo per annum. Likewise, the expansion and improvements of Thailand s sea ports and land transport infrastructure will also help to strengthen our capacity as a commercial center by creating an environment which facilitates an efficient flow of goods and people. Construction of new roads, highways, and railways will certainly attract new business activity along its routes and would play a supportive role for the new airport. Bangkok s location would be envied by others in the region. It is somewhat closer to Europe and not too far from the western part of the US.
Q2. Inception of the ASEAN Free Trade Area and effects on Thailand s development.
Reflections on Thailand s role in setting goals and priorities for the ongoing
construction of ASEAN s Free Trade Area.
Response:
Thailand s role has been actively and constructively.
In 1992, Thailand s Prime Minister of that time, Anand Panyarachun, had initiated the ASEAN Free Trade Area (AFTA) aimed at establishing a free trade area within 15 years (1 January 1993 | 1 January 2008). The initiative was supported by the other ASEAN Leader which at that time, comprised 6 countries, namely Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore and Thailand.
Two years later, in 1994 the ASEAN Economic Ministers (AEM) agreed to accelerate the implementation of AFTA from 15 years to 10 years (1993-2003) and to also include Unprocessed Agricultural Products (UAPs) into the AFTA scheme.
Amidst the economic crisis in the region, the ASEAN Leaders in 1998 further shortened AFTA by one more year from 2003 to 2002. Although Thailand had been severely affected by the crisis, we nevertheless supported this decision.
In 1999, ASEAN agreed to turn AFTA into real free trade area by reducing tariffs on all tariff lines to 0% by 2010 for the six original members and by 2015 for the four new members. Furthermore, the six original member would be required to reduce 60% of their tariff lines to 0% by the year 2003. Such arrangements had been push by Thailand.
We believe that the acceleration of AFTA will not only help to regain business confidence, but it would also increase competitiveness of ASEAN product in the world economy and boost economic recovery within ASEAN.
The practical and economic effects of AFTA on the Thai economy, both short-term and long-term.
Response:
AFTA brings trade expansion to the Thai economy.
Prior to the establishment of AFTA in 1992, ASEAN ranked fourth among our export destinations. After the implementation of AFTA in 1993, Thai exports to ASEAN has increased impressively. It increased by 175% from USD 4,490.2 million in 1992 to USD12,342.6 million in 2000, and became Thailand s first ranked export market from 1995-1997 (21% of total export value) and second ranked market during 1998-1999 (18% of total export value) due to the economic crisis in Asia.
The jump in exports comprised of both manufactured and agricultural products such as automatic data processing machines and parts, electronic integrated circuits, polymer of ethylene, propylene, motor vehicles parts and accessories, rice and sugar.
As for Thailand s imports, ASEAN was the third ranked import sources until 1998 (13% of our total imports) and moved to second place from 1998-2000 (approximately 15% of our total imports in 1998-2000). In 2000, the value of Thailand s imports from ASEAN was USD 9,545.50 million, up 20.73% from USD 7,906.4 million in 1999 and up 72.26% from USD 5,541.4 million in 1992.
Thailand s major imports from ASEAN include electrical machinery and parts, electronic integrated circuits, computer part and accessories, chemical products, metal manufactures, benzine and similar oil for engine, cathode-ray tubes, crude oil, wood in rough, sawn or chipped wood, industrial machine, other metal waste and scrap, electrical appliances, plastic products, coal, pencils, ball pen, printing ink and printing accessories.
From 1981 up until 1992, Thailand had faced a trade deficit with ASEAN. However, in 1993 a trade surplus had emerged and continued thereafter. In 2000, Thailand had a trade surplus of US$ 2,825.5 million. Both exports to and imports from ASEAN has grown but the growth of exports was more rapid. Most of imports consisted of raw materials for production of export products.
Some products were adversely affected from the AFTA scheme such as palm oil and petrochemicals. In the beginning, AFTA temporarily excluded palm oil from the scheme while at the same time, we had planned to reduce tariffs on petrochemical products as slowly as possible in order to allow sufficient transitional period for the domestic industry. However, the tariffs on both products would eventually be brought down to between 0-5% by the year 2003.
Another important advantage of AFTA is that it makes the Thai market diversified and so people would have more choices. In addition, during the crisis, tariff reduction on consumer products under AFTA helped to reduce the rate of inflation. Such rate reached two digits for only three months in 1998 although economists had forecasted that it might be longer.
ASEAN s long term goal to be achieved by 2020, which would effectively transform ASEAN into an economic region where there would be a free flow of goods, services and investments and a freer flow of capital, would also make the principles of comparative advantage and division of labor in ASEAN more visible. Therefore, producers and service providers in Thailand who produce and provide services most efficiently and with minimum cost will be able to compete in the ASEAN market. Protection for domestic industry would therefore be abolished.
Q3. With a new change in Government, what can investors expect from Thai economic policies?
Response:
The Government maintained an open economic policies.
At present, the expansion of international trade faces certain limitations. As a consequence, the Thai government has had to adopt strategies aimed at stimulating the domestic economy in terms of consumption and investment, as well as enhancing the capability of revenue collection from exports and tourism. This will eventually lead to the resuscitation and strengthening of the economy.
? Regarding trade and investment policies, the government maintains its support for the principles of free trade, and in systemizing the fundamental structure of the economy in order to facilitate entrepreneurs. Progress under the new government will be seen in the form of improving laws considered as an obstacle to the country's development. These improvements will be carried out by committees established to deal with those prohibitive laws.
Likely priorities for legislative action regarding commercial and investment policies.
Response:
Possible legislative action that need to be addressed.
? Many laws which need urgent considerations and modifications to provide fairness to all parties concerned such as the Bankruptcy Act, the Corporatization Act, the Amendment to the Civil Procedure Code on Petty Case and the Foreign Business Act will be examined. In addition, laws involving e-commerce need to be ratified urgently. These include such laws as e-criminal laws, privacy-protected laws, electronic money transfer laws, and laws concerning IT infrastructures in accordance with the constitutional law, section 78.
Spotlight on economic sectors, such as mobile and fixed-line telephony, expected to experience the most growth in the near future.
Response:
Potential high growth industries.
? With respect to the real sector of the economy, the government has policies to restructure the domestic industry and to promote investments in order to conform with the established targets and development strategies of the government. Moreover, the policies should be based on such factors as natural resources, labor skills, traditional wisdom, production and marketing, and the balance of domestic and foreign raw materials. Many potential industries are expected to gain high growth, including food, automotive, and electronic industries.
Macroeconomic outlook for the next three years.
Response:
Macroeconomic outlook for the next three years.
? Due to the economic slowdown since the second half of the 2000, the economy in 2001 is still projected to be on a downward trend. Apparently, the slowdown is attributable to the large dependence on the United States and Japanese markets. As a result, Thailand s growth figure for 2001 is expected to range between 3.5 - 4.0 percent.
Regarding the macroeconomic outlook for the next three years, we anticipate that the rate of economic growth will be around 4.5 | 5.0 percent in 2003 and will further improve in the following two years. This estimation would be based on the endeavors of the government in successfully implementing action in various key sector including, resolving the problems of NPLs in the banking sector, resolving problems in the real estate sector, restructuring the agricultural sector, and alleviating the overall debt burden. Furthermore, liberalization under AFTA in 2003 will have a positive bearing on the expansion of trade and investment, not to mention on the expected increase in employment that would result. The combination of government action in these areas will undoubtedly contribute to the sustainable growth of the Thai economy well into the distant future.
Q4. Changes in the bilateral trade relationship with the United States and the new Bush Administration.
Expectations of US foreign and trade policy under the Bush Administration.
Response:
US needs to be more open and fair.
Thai exports depend significantly on the US market in order to sustain economic growth. To enhance market access for Thai products into the US market, The United States needs to be more open and fair with respect to trade transactions with Thailand.
The US government has strictly imposed trade regulation on imported products including such measures as AD/CVD, Safeguard laws, Trade laws under section 301, sanitary and phytosanitary measures, and combining trade and labour issues from its trading partners, which have had a negative impact on our economy. However, Thailand expects the Bush Administration to cease import protection practices for at least the next four years, and to set favorable trade measures for its trading partners, particularly developing countries that will be affected.
Top priorities for trade talks with US Trade Representative.
Response:
AD/CVD Measures
From Thailand s point of view, US Antidumping and countervailing duties remain the main impediments to Thai exports. Currently, The US Department of Commerce remains determined to extend the imposition of AD/CVD on canned pineapple fruit, hot-rolled steel products, Pipes and Tubes, Carbon Steel Butt-Weld Pipe Fittings, and Furfuryl Alcohol.
At present, the Bush Administration wants to help the ailing US steel industry through a difficult period of transition. It seems that President Bush is working more on antidumping measure and steel issues than the Clinton Administration had done. There is no doubt that the US market will continue to prevent the importation of steel products and that will affect Thailand s steel exporters.
Child Labor law affected to GSP beneficiary
The Trade and Development Act of 2000 (TDA) has recently established a new eligibility criterion concerning efforts to eliminate the worst forms of child labor, upon receipt of these trade benefits. The TDA requires the Secretary of Labor to make findings with respect to implementation by beneficiary countries implementation of their international commitments to eliminate the worst forms of child labor by countries seeking benefits under the Generalized System of Preferences (GSP). The law applies to merchandise produced either “in whole or in part ” with prohibited labor. A product must be free of components made with forced or indentured labor to quality for admission into the United States.
GSP has been an important factor contributing to the economic development of Thailand. At present, Thailand has been offered trade preferences under the GSP program granted to developing countries by the U.S. Such preferences help to promote bilateral trade by strengthening the competitiveness of Thai products in the U.S. market. Meanwhile, The US. has been trying to use the child labour protection issue against its trading partners by way of unilateral action, such as (1) provisional detention of the merchandise, or (2) a more formal finding that the class of merchandise is the product of forced or indentured child labour.
Labour issues should not be combined with trade issues since it was agreed at the WTO Ministerial meeting in Singapore in December of 1996, that the ILO (International Labor Organization) would be the body which sets and deals with labour standards Additionally, member countries agreed to reject the use of labour standards for protectionist purposes. Moreover, labor standards in each individual country varies depending on the stage of social and economic development. However, the present Government has a policy and resolution to eliminate the child labor problem and to protect and provide fair treatment for working children. It also contributes to the development of children by expanding educational opportunities and extending compulsory education government policy also aims to uproot poverty and decrease the gap of income distribution.
Child Labor Protection
The Labor Protection Law has a certain prescription regarding the protection of child labor against unsuitable working conditions and environment which is routinely inspected by labour inspectors. However, the existence of unfair treatment and exploitation to child labor have increased. In dealing with the problem, the number of inspections would be increased and if the law is violated, the violators will be severely prosecuted.
Furthermore, the Information Center on Child Labor Exploitation was set up to receive grievances through a 24 hour Hot Line service a day and to collaborate with labor inspectors, the Labor Protection and Welfare provincial offices, and other organizations concerned, to assist children who need any assistance.
To encourage help from people in preventing and solving the child labor problem, the Ministry of Labor and Social welfare has issued the Regulation Concerning Reward for Child Labor Exploitation Information to those who supply information that leads to the prosecution of those who violate the law.
Market Access for Thai Chicken Meat
Thailand has not been permitted to export fresh, chilled or frozen poultry products to the US due to US claims that the Viscerothropic Velogenic Newcastle Disease (VVND) exists in Thailand. However, in 1991 , Thailand sought approval from FSIS to export cooked poultry to the US. However, since no information concerning Thailand s thermal processing controls and procedures for reportable and canned products, and poultry nutrition labeling requirements were submitted as requested by FSIS, Thailand s request has not yet been approved.
In 1995, the Department of Livestocks started negotiations with the U.S. federal agencies for market access of chicken meat. A Thai delegation, later proceeded to the U.S. for further negotiations and to follow-up on its request for consideration of chicken meat imports and other related information that was provided. However, the desired outcome has not been achieved.
Thailand is one of the major poultry exporters to the world market, and maintains quality and sanitary product at the average level of international standards. Thai chicken products have been exported to the EU and Japan where stricter SPS regulation and highly supervised and controlled sanitary standards are enforced. Also Thailand s boiled chicken is allowed entry in Canada where SPS systems are equivalent to those in the U.S.
The pattern of US investment, and how that might be changing as the regional economic recovery.
Response:
The US FDI in Thailand
The US Ministry of Commerce statistics show that US foreign direct investment in Thailand in the first quarter was $ 216 million. Thailand ranked 3rd among ASEAN nations after Singapore and Indonesia, and 5th in Asia Pacific Rim in terms of attracting investment. Statistics also reveal that of the total number of FDI projects by foreign companies approved by the Thai Board of Investment during January-June last year, US investors ranked 4th among major investors while the 1st, 2nd and 3rd largest investors came from Japan, Taiwan and Singapore. In terms of project amount, US investment was ranked 1st in 1999, but declined to 3rd after Japan and Taiwan which had an investment value of 10% of the total foreign direct investment approved by the Thai Government.
Trend on Investment : Increased US investor s confidence due to Thailand s economic recovery.
It is expected that there will be an increase in US investment in Thailand in the second half of 2000 after completely having announced new promotion investment procedures. An investor who wants to get the existing benefit package must submit the request before the new benefit package is introduced this August. Particular industries have higher investment interests than others including Electronics and Electrical Appliances, and computer components and peripherals, which is in responses to the demands for Information Technology in the world market. Investment in the Automobile industry seems to have expanded because of higher domestic demand. However, this can be achieved unless fuel price is not extremely accelerated. The Agricultural sector and agricultural products tend to have received more requests for benefit packages since new promotion investment procedures will give special preferences to the Agricultural industry and its related products. Besides this, Thai Officials will have new service sectors including E-commerce Businesses, Regional Headquarters, and Regional Distribution Centers that are expected to definitely attract heavy US investment.
กรมเศรษฐกิจการพาณิชย์ กระทรวงพาณิชย์ โทร. 281-9723, 282-6171-9 : 1176-7 โทรสาร. 82-6623--
-สส-