Legislators face tough choice over Thai-Japan FTA
Legislators face tough choice over Thai-Japan FTA
BANGKOK, Feb 16 2007 (TNA) — Despite the government’s intense effort to press ahead with the draft free trade agreement with Japan, appointed members of the National Legislative Assembly remain divided as to its pros and cons.
During the house debate Thursday, Commerce Minister Krirkkrai Jirapaet said the bill was needed urgently because Thailand was not the only trading partners with whom Japan was keen to conclude the trade deal.
He added other five Asean founding members were at a different stage in their negotiation and ratification process of a similar pact with Japan. If Thailand clinched the deal now, it would have the precious head-start, he said, adding that Vietnam - a key trade rival - was also reportedly trying
to start free trade negotiations with Japan.
The proposed free trade agreement was submitted to the NLA for scrutiny but no vote was expected after the hearing. Prime Minister Surayud Chulanont also attended the session Thursday, chaired by NLA leader Meechai Ruchuphan.
Japan is Thailand’s second most important export market and the most important supplier of goods and services. It is the largest foreign investor in Thailand, accounting for 19 per cent of total foreign direct investment. Of 12 million visitors annually, about 20 per cent are Japanese.
He said it was hard to admit but Thailand needed Japan more than it was needed.
“ In entering into the agreement, the government has taken into account national interests, the rule of law and our international commitments under the World Trade Organisation but we must not overlook the need for compromise. There are gives and takes. No party can win all the time,” Krirkkrai said.
He added that some local industries might be affected by increased competition as restrictions on trade and investment with Japan were loosened up. Some sectors might need up 5-7 years’ grace period. But the commerce minister stressed that Thailand would also benefit from the trade and
economic partnership with Japan.
But critics of the proposed free trade agreement said that Thailand was not negotiating from the position of strength. As a weaker trading nation, it was bound to be taken advantaged by the economic superpower such as Japan in bilateral trade talks.
Narong Chokewattana, NLA member and advisor to the Pan industrial conglomerate, also criticised the secrecy surrounding the draft agreement.
He said the document should be disclosed to the public for consultation and debate.
“The draft agreement should have been disclosed in order to attract wider public participation. Its secrecy is its weakness. I don’t understand why we can’t tell Thai people what has been agreed in the trade talks with Japan. We are a democratic country,” Narong said.
But he commended the government for seeking the assembly’s opinions on the bill. It is the first free trade agreement that has come before the legislative branch for debate. Previous agreements with Australia, New Zealand and China were approved by the executive without scrutiny from the House.(TNA)-E110
