Thailand: June start eyed for FTA talks with EU
The Nation | April 12, 2010
June start eyed for FTA talks with EU
By PETCHANET PRATRUANGKRAI
The government is accelerating the process of establishing preliminary guidelines and conducting public hearings in order to launch free-trade agreement (FTA) talks with the European Union by June, a move seen as necessary to ensure the Kingdom remains competitive with potential rivals who are also looking to ink a pact with the bloc.
Unchana Withayathamthat, deputy director-general of the Trade Negotiations Department, said draft negotiation guidelines should receive Cabinet and parliamentary approval before June so that the department can finalise its plans for starting a first round of talks with the EU.
The EU seeks bilateral negotiations with Thailand, Singapore and Vietnam, after failing to forge an FTA with Asean as a whole. It is waiting for a clear decision from Thailand on whether to move ahead with bilateral talks, seeing the country as one of the most important markets in Asean. "However, if Thailand delays making a decision on starting bilateral talks with the EU, Malaysia could be the next country that the EU approaches," said Unchana.
The EU is also negotiating FTAs with Chile, Mexico and the Mercosur regional bloc, which comprises Argentina, Brazil, Paraguay and Uruguay. All are potential rivals to Thailand for supplying goods and services to the EU.
Currently, four ministry committees are holding public hearings on EU-Thai FTA talks with social organisations, the agricultural sector, the business community and state agencies. Participants are discussing whether it is suitable for Thailand to enter into an FTA with the EU. The opinions aired at these events will be presented to the Cabinet and Parliament for use in formulating a final decision.
"Although the FTA negotiations will benefit the country, we should consider how to achieve the maximum benefit by listening to all sectors involved," Unchana said.
The EU is a major export market for Thailand. Thai shipments to 15 countries in the EU were worth US$16.06 billion (Bt524 billion) last year, or 10.4 per cent of total export value.
