Thailand: Private sector pushes free trade with EU
Bangkok Post: 12/07/2012
Private sector pushes free trade with EU
With the euro-zone crisis likely to run into the fourth quarter next year, the government is being urged to step up Thailand-EU free trade agreement talks to allow Thai products to gain greater access to European markets.
The talks would also enable the government to raise existing trade disagreements such as the possibility of Thailand being graduated from tariff privileges under the Generalised System of Preference.
Phongsak Assakul, chairman of the Thai Chamber of Commerce, said the Thailand-EU free trade agreement, if implemented, would result in a deep cut in import tariffs to zero, leading Thai exports to generate more revenue from this market.
Malaysia and Singapore have already completed free trade agreements with the EU.
The Thai private sector has pushed for the FTA during the past three years so the government now needs to speed up as the negotiation process will take more time because it will require parliament’s approval under Section 190 of the constitution.
Mr Phongsak said the government should also speed up overcoming obstacles to facilitate exports and help cut costs of exporting.
At the export workshop on June 30, the government agreed to establish six committees to solve problems within two weeks and promised to tackle export obstacles within two months.
"We [the private sector] expect the government to solve problems within two months," said Mr Phongsak.
"Thai exports can meet 15% target growth this year, but it depends on the government’s ability to solve the problems."
The Thai Chamber of Commerce and the Customs Department established a single window agency to oversee export procedures three years ago, but it has not been implemented yet.
Mr Phongsak said the government should also issue laws to conform with the requirements of the Financial Action Task Force on Money Laundering (FATF) this year, or else the country is at risk of being upgraded from the high watch list to the blacklist.
He said the first draft deviated from the FATF’s requirements, increasing the risk of Thailand being blacklisted.
The FATF will meet next February, so any delay may have a dramatic impact on Thai business transactions as well as personal credit.
