US President George Bush will propose at next week's summit of Apec leaders a trade liberalisation pact covering Asia-Pacific countries, a US official said yesterday.

"It's a long-term goal," the official said, adding that the idea is called a "free-trade agreement among Asia-Pacific countries".

The proposed pact may encompass several bilateral trade agreements but these should share common principles on issues such as rules of origin and government procurement, the official said.

Free-trade agreements among the members of the Asia Pacific Economic Cooperation forum may make trading activities more complex, like a "spaghetti bowl" of bilateral and regional trade deals. Therefore, the countries may need a common principle to make these pacts more coherent.

"We understand that this idea will be among the proposals that Washington may propose during the meeting," the US envoy said.

Virachai Plasai, director-general of the International Economic Affairs Department, said US Ambassador Ralph Boyce had floated the idea during a meeting with the Foreign Ministry two weeks ago. "We were surprised, the idea was something new," said Virachai, adding that it was still a long shot.

Chutima Bunyapraphasara, director-general of the Trade Negotiations Department, said if the idea were officially proposed, the interim government could only consider it at this time because it "doesn't have a mandate to negotiate new trade deals anyway".

Chile suggested the concept two years when it hosted the Apec meeting, but the idea was shot down because most Apec members were not quite ready to consider it, he said.

This time Apec's developed members such as the United States, Canada, Chile and New Zealand have picked up the idea as recommended by the Apec Business Advisory Council, the group of businesses under Apec.

"We haven't got any official proposal yet. The idea has just been floated around," he said.

Regional free-trade agreements will become a major agenda item for Apec this year as members will discuss the proliferation of pacts.

Prime Minister Surayud Chulanont is scheduled to attend the Apec summit from November 18-19 in Hanoi. He is expected to deliver a talk on "sufficiency economy" during the Apec CEO meeting, a parallel conference of Apec businessmen in Hanoi.

Virachai said Surayud might take this opportunity to clarify the concept of sufficiency economy, which does not mean that Thailand plans to go backward or is against development. The concept could go along well with modernisation, he added.

The interim government has taken up the concept because the idea fits the people's way of life. Surayud may want to inform foreign business leaders that the concept is intended to create immunity for the Thai economy.

A group of American businessmen - the US Apec Business Coalition - has also sought a meeting with Surayud in Vietnam, despite reservations from Washington. The US Trade Representative said earlier it would not proceed with FTA talks with Thailand until an elected government is in place.

Surayud will be accompanied by Foreign Minister Nitya Pibulsonggram and Commerce Minster Krirkkrai Jirapaet. Officials are arranging for Surayud to meet the leaders of Russia, South Korea, Japan, China and Peru.

Nitya is due to meet his counterparts from the US, Canada, Australia, New Zealand, South Korea, Japan, Peru, Chile and Russia.

Jeerawat Na Thalang

The Nation