Commerce Minister Krirk-krai Jirapaet said yesterday the agreement should benefit both nations.

He said the government would wrap up its study early next year so that the agreement could be implemented soon.

However, he said that in case the NLA did not back the agreement, Thailand would be able to tell the negotiation partner soon in order to preserve their good relationship.

Thailand and Japan finalised negotiations of the agreement in April. However, due to the political situation in the country the previous caretaker government could not ink the agreement. After the interim government was authorised to decide whether to go ahead with the trade pact, it ordered the Commerce Ministry to study the advantages and disadvantages of the pact.

The ministry will also next year propose its project to set up an Adjustment Fund in order to compensate those who suffer in the early stages of the FTA implementation.

Krirk-krai insisted the government would pursue the ongoing FTA negotiations as long as export was major factor driving the Kingdom's economic growth. Exports account for 60 per cent of the total GDP growth of the country.

Speaking yesterday at a seminar on "The Pathway to Set Up the FTA Adjustment Fund", Krirk-krai said the ministry would try to encourage setting up the project early next year to alleviate problems for sectors affected.

The government will encourage the private sector and peoples' participation in the negotiations to create more understanding among the public, he said, but he did not clarify whether public hearings would be conducted or only some groups of people would be allowed to participate in the negotiation.

Chutima Bunyapraphasara, director-general of the Trade Negotiations Department, said the government would operate the fund in the first stage and after that hand over responsibility to the private sector.

Initially, the government will give financial assistance and ask for voluntary contributions from the private sector.

The government will help sectors affected by giving in-kind support for each business sector's development, Chutima said.

As an example, she said sectors that would be affected by the trade liberalisation negotiations were dairy products, electronic appliances, ceramics, and automobiles.

Meanwhile, Thailand Development Research Institute (TDRI) director Somkiat Tangkitvanich urged the government to draw up a draft of the International Trade Negotiations Act in a bid to control the Kingdom's negotiations and ensure the country benefited from the negotiations.

The act will create a basis for all trade negotiations aimed at preventing future problems.

Somkiat added that the government should ask for parliamentary approval before starting any trade negotiation in order to make the agreement more transparent than the previous government.

Asked about the Adjustment Fund, Somkiat said the government must provide an evaluation programme for the fund's operation in order to follow up whether the fund was efficient enough to help those who would suffer by the pact.

Virachai Vongbunsin, vice chairman of the Board of Trade committee on trade rules and international trade, said the government would set up not only the Adjustment Fund to help sectors affected but also a special task force to encourage enterprises to benefit from each agreement.

He said the Adjustment Fund should be a prevention programme instead of a remedy programme for enterprises which would suffer by trade liberalisation.

Soonthorn Nikomrut, president of the Beef Cattle Association of Thailand, called for more participation in the government's negotiation process by the public and by all enterprises involved.

Petchanet Pratruangkrai

The Nation