Private sector fully supports signing of Japan-Thailand FTA
Bernama, Malaysia
Private Sector Fully Supports Signing Of Japan-Thailand FTA
30 March 2007
BANGKOK, March 30 (Bernama) — The Joint Private-Sector Committee has supported the government’s decision to sign the Japan and Thailand Economic Partnership Agreement (JTEPA), saying Thailand would lose a market share in Japan if the signing was cancelled or postponed.
Quoting the Thai Chamber of Commerce’s Deputy-Secretary Pornsilp Patcharintanakul, Thailand News Agency (TNA) reported that the committee comprising representatives of TCC, the Federation of Thai Industries and the Thai Bankers’ Association had given full support for the signing of the agreement, which is scheduled to take place next week.
It viewed any cancellation or delay in the signing of the pact would make Thailand lose a market share in Japan to trade rivals in ASEAN such as the Philippines and Malaysia, which had already signed the free trade agreement (FTA) with Japan.
In addition, Vietnam and Indonesia, Thailand’s key rivals for farm product exports, are going to sign FTA with Japan soon. So, it is expected more Japanese investors would turn to invest in Vietnam.
Statistics on the Japanese-Thai trade show Thailand’s shipment of products to Japan accounts for 13 per cent of the country’s total exports.
Last year, the export value increased 8.3 per cent to US$16.4 billion. The value is expected to rise 6 per cent to around US$17.5 billion this year.
Should JTEPA be already signed, the export value to Japan is likely to increase by over US$1 billion or more than that.
Regarding a mounting concern over imports of industrial waste and micro-organism patenting, he said the committee had considered it and viewed it should not be worrying because such activities are regulated by Thai and international laws.
Pornsilp said the Thai private sector had seen Japan as Thailand’s key trade partner since more than 40 per cent of total investment in Thailand are made by Japanese.
With the signing of the FTA between both countries, more Japanese investors would expand investment in Thailand so that they could ship products for sale in Japan and other countries around the world.
Over the past five years, he said, the private sector had discussed the preparation of JTEPA with the state sector all along and was aware that the deal covers not only import tariff cuts in various product items, but also cooperation in various fields such as economic affairs and human resources development in the science and technology area.
He said industrial operators had already adjusted themselves to boost their competitiveness. Only had some been affected by the signing of JTEPA. But they had around 5-10 years to adjust themselves.
Thai farmers would benefit from import tariff cuts in many product items, such as shrimp, chicken, pineapple, and vegetable, under the agreement.
As Japan imports more than 60 per cent of farm and food products annually, the Thai farmers are set to benefit from the pact.
Overall, he viewed, Thailand would gain more pros than cons from the signing of the agreement. More importantly, it would help stimulate a continued growth of the economy.
