With Thailand set to join numerous trading blocs, it is essential that
the govt opens a public discussion, as this issue will affect everyone
The Cabinet recently endorsed a
draft of the Thailand-European Union free-trade agreement (FTA), reasoning
that, without such an agreement, Thai traders and exporters could lose their
competitive edge to other countries in the region. Neighbouring countries are
also involved in free-trade talks with Thailand.
Asean and the EU previously
discussed the idea of creating a bilateral free-trade agreement, but those
talks collapsed because of problems in dealing with Myanmar when it was still
regarded as a pariah state, despite being a member of Asean.
Although the Myanmar question is
no longer on the table, the EU has pursued bilateral trade deals with
individual Asean countries. The Thai government will have to consider whether
to actually proceed with its bilateral FTA to prepare for the end of the
European Union's privileges under the Generalised System of Preferences. But
the FTA covers not only trade - there are other issues, such as investment,
competition policy and intellectual-property rights.
While the scope of the proposed
FTA is diverse, to make the talks meaningful, the Thai government needs to
arrange a proper public debate. Some consumer groups have voiced concern over
the FTA's possible effects on ordinary Thais. How long, for example, will
Thailand's new pharmaceutical products be protected? The government has so far
failed to address this. It can argue that details of the talks have yet to
emerge, but it is better nevertheless to communicate with all stakeholders from
an early stage about potential gains and drawbacks.
Thai trade negotiators must
inform the public of the current situation, listen to its opinion and address
its concerns. If they do not, they will lose public support. Of course, it may
indeed be too early to speculate on the fine details, since talks have not yet
started, but the government must bring the public into the discussion
immediately.
An exchange of views is essential
to ensure the public is well informed and prepared for the consequences. Otherwise,
the discussion will be one-sided, or could be easily manipulated by those who
most fear losing their advantage due to more-open competition. Such individuals
and organisations tend to cite nationalist sentiments when protecting their
interests.
Thailand will need negotiators of
the calibre and integrity of the late Bajr Issarasena, former permanent
secretary to the Commerce Ministry, and Krirkkrai Jirapaet, former trade
representative. The government has recently assigned Trade Representative Nalinee
Taveesin to oversee the EU talks. However, Nalinee's controversial past
business links in Zimbabwe raise the question of her suitability to represent
the country's interests.
But it is not only in the Thai-EU
FTA talks that the government must be more active in communicating with the
public. Such communication must cover all prospective trade agreements.
Thailand is poised to enter three other major free-trade pacts, including the
Trans-Pacific Partnership and the Asia Regional Comprehensive Economic Partnership.
This is not to mention our obligations under the Asean Economic Community due
to debut in 2015.
Thailand cannot ignore global
evolution, in which countries are forming trade blocs while multilateral talks
under the Doha Round of the World Trade Organisation remain stalled.
Unfortunately, as things stand
now, the government has yet to prepare the best resources and strategies to
participate in these talks. Trade negotiations are complicated in nature and
can be easily manipulated politically if the government does not take a firm
stance and get feedback from the public. To avoid such discussion will not
allow for the best alternative options to be heard and perhaps adopted. Even if
the government decides to ignore the public, its decisions should be based on
thorough strategic study and discussion with experts. We cannot allow ignorance
or arrogance to dictate our economic future.
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