Anti-FTA activists air their disappointment outside the Japanese Embassy in Bangkok yesterday.

About 50 activists rallied outside the Japanese Embassy in Bangkok yesterday in a last-ditch effort to protest against the signing of the Japan-Thailand Economic Partnership Agreement (JTEPA).

The protest happened concurrently with the signing of the pact, widely referred to as a free-trade agreement (FTA), between Prime Minister Surayud Chulanont and Japan's Prime Minister Shinzo Abe in Tokyo.

The agreement is expected to come into effect next year after the Japanese parliament ratifies it.

During an address to the Japan National Press Club yesterday, Surayud described Thai-Japanese relations as "the greatest strategic importance and the signing today of JTEPA, which can be described as an 'FTA plus', underscores the fact that this view is shared by both countries."

He said Japanese foreign direct investment has played a pivotal role in Thailand's rapid industrialisation. Last year, bilateral Japan-Thailand trade amounted to nearly US$42 billion (Bt1.4 trillion), making Japan the Kingdom's second-largest export market.

"No sector better illustrates the success of our partnership than the automotive industry," he said. "Today, Thailand is the largest vehicle manufacturer in Asean and a global production base for most of the world's major automobile manufacturers. In 2007 we expect to export some 600,000 vehicles around the world, over 80 per cent of which are made by Japanese companies." Japan has historic political and economic ties with the Kingdom, with many Japanese firms such as auto giants Toyota, Nissan and Honda using Bangkok as a regional production hub.

Under the agreement, Tokyo and Bangkok will decrease tariffs on more than 90 per cent of trade in terms of value within 10 years, and Bangkok has vowed to increase transparency and legal protections to facilitate Japanese investors.

The agreement will also be part of the celebration of 120th anniversary of diplomatic relations between the two countries this year.

The nations hope the agreement will boost trade and investment, as Japan is the largest foreign investor in the Kingdom. Surayud's government hopes that the agreement will be a gesture to the international community that it is foreign investment-friendly after a series of policy mishaps.

The agreement was initiated and wrapped up during the time of the ousted Thaksin Shinawatra government, which had also planned to sign the deal on April 3 last year.

However, Thai protesters yesterday called for a delay in signing the agreement, unless both countries amend issues of concern, such as possible toxic waste imports from Japan and intellectual property right violations against Thai bio-organisms.

The activists, representing non-governmental organisations and allies - the Alternative Agriculture Network, the Network of People Living with HIV/Aids, the Consumers Network, and the Four Regions Slums Network - burned the 942-page JTEPA document in front of the embassy.

They also burned the names of officials involved in the agreement.

The activists claimed that the pact should be called the "Japan-Thailand Exploitative Partnership Agreement" since it has not been through the process of a public hearing.

Saree Ongsomwang, secretary-general of the Foundation for Consumers, said the pact would generate negative impacts on Thailand rather than positive results such as export growth.

The activists proposed three suggestions for the Thai government.

First, they called for it to amend the agreement by removing issues concerning toxic waste. Second, they said the level of intellectual protection should not exceed the World Trade Organisation standard.

And thirdly, they asked at least 20 members of the National Legislative Assembly to petition the Constitution Tribunal to see whether it was legal for the JTEPA signing to be undertaken by the interim government.

According to Deutsche Presse-Agentur, Japanese leaders expressed hope the agreement would come into effect in Japan's fiscal year 2008, which begins next April.

The bilateral accord also includes cooperation in other fields, such as education, human resources, development of science and technology, energy and the environment, said Surayud.

Under the agreement, Japan will eliminate 92 per cent of tariffs on imports, and Thailand is to cut taxes on 97 per cent of goods from Japan.

Tokyo will immediately make all industrial products from the Kingdom duty-free, and Bangkok will lift tariffs on Japanese auto parts within five years of enactment.

With the trade agreement in place, Japanese companies with branches in Thailand would be able to reduce the cost of importing auto parts.

While some agricultural products and seafood are also subject to the cutting of tariffs, the two governments agreed to exclude sensitive products such as rice, wheat and dairy products, according to the Japanese Foreign Ministry.

Besides the trade in goods, Japan and Thailand plan to promote the exchange of human resources.

State-qualified Thai chefs will be able to work in Japan after five years' experience, which is half of what has been previously required.

The Japanese Chamber of Commerce in Bangkok yesterday supported its government's inking of the trade pact, saying it is a long-cherished desire and another great step in the economic relationship between two countries who are the best of friends.

Tetsuji Banno, president of the chamber, said he believed the JTEPA would bring economic benefits not only to Thailand and Japan but also to neighbouring countries.

Enterprises in Thailand will be able to import materials from Japan, making them into semi-processed and finished products for export to neighbouring countries and Japan.

"In these sense, I have the confidence to say that the JTEPA will surely become a high-level FTA model," he said.

Petchanet Pratruangkrai

The Nation