FREE TRADE
Agreement with Japan will be signed next year: Pridiyathorn

Deputy Prime Minister Pridiyathorn Devakula yesterday said the free-trade agreement with Japan that has been on hold would be signed next year, the only bilateral trade pact that this government plans to pursue.
"We will speed up completing the FTA with Japan within this government," he told a public hearing on the Thai-Japan Economic Partnership Agreement. Thailand is negotiating bilateral free trade agreements with many countries including the US, but Pridiyathorn said he would focus on only Japan, besides the regional-to-regional deals under the Asean forum, such as that with the European Union. The government of deposed prime minister Thaksin Shinawatra wrapped up the talks with Japan, but sealing the agreement was delayed due to the political situation in Thailand. Pridiyathorn said the government planned to proceed with the FTA because it would be beneficial to local industries. The public hearing followed the recent study by the Thailand Development Research Institute, which gave high scores to the FTA with Japan. Pridiyathorn said exporters could sell more on the Japanese market under the agreement. Without it, countries like Singapore and the Philippines, which have already clinched deals with Japan, would enjoy a trading advantage over Thailand. He said the FTA approval process would be transparent. The Cabinet has yet to give the treaty a green light, pending the public hearing. During the public hearing held at Chulalongkorn University, non-governmental organisations and academics questioned the interim government's motives, saying the pact had not yet been made clear to the general public. They suggested the government hold a public hearing before making any decision. Somkiat Tangkitvanich, TDRI's research director, said the government would definitely be questioned by the public. though the process now was more transparent than the one used by the ousted government. In a bid to create public understanding, Somkiat suggested the government promulgate a trade act and conduct public hearings, which would set a precedent for a government to initiate and execute any bilateral trade pact. Democrat Party leader Abhisit Vejjajiva said that despite being an interim government, if the government could create public understanding, it would be able to ink the agreement. The government has plenty of time to study the details carefully and must clear up all public doubts before making a commitment, he said. Former senator Kraisak Choonhavan said the interim government should not enter into any free-trade agreements after the coup, for although the government would let the National Legislative Assembly vote on the pact, its members had been appointed by the coup-makers. Former economist Chirmsak Pinthong suggested the government hold a public hearing in separate sectors for all stakeholders. Democrat member Kiat Sitthee-amorn said the government should not rush into signing the pact. "It's an appropriate time for the government to review the nation's trade-negotiation strategies before making any additional commitment," he said. The Thaksin government initiated 11 bilateral and two regional trade negotiations, but they never followed transparent procedures. The incumbent government should slow down and formulate a strategic plan before moving on to the next step, he said. The government should not publicise only the good side of the pact, he added. Jade Donavanik, dean of the law faculty at Siam University, said the short-term government should not sign an agreement with long-term effects. A long-term government must be in place to assume responsibility for any fallout from the agreement, he said. At the forum, NGOs, including the FTA Watch, raised concerns over specific areas covered by the FTA, namely public healthcare, garbage imports, intellectual property rights and rising non-tariff barriers. Some small-scale industries have come out in support of the FTA. Banana-growers and shoe-manufacturers have said their industries will enjoy lower import tariffs. Pramon Suthivong, chairman of the Thai Chamber of Commerce, said the private sector backed the government's decision to sign the agreement, and although the government could not respond to the private sector's worries about some issues, this pact would benefit industry overall, though some exceptions would be steel and automobiles. Pisan Manawapat, chief negotiator of the FTA, said his team had often asked for opinions from the public as well as the enterprises that would be affected and the government was willing to disclose the details of both sides of the agreement to the public. "I have never said the agreement will create only good side effects, but we are sure that the impacted industries will get remedies and improve with the agreement's implementation," he said.
Wichit Chaitrong, Petchanet Pratruangkrai The Nation
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