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Published on March 15, 2008

Trade officials from Thailand and the US are scheduled to discuss ways to sort out trade issues next week. Barbara Weisel, assistant to the United States Trade Representative (USTR) for Southeast Asia and the Pacific, is scheduled to come to Thailand next week as part of the USTR's plan to rejuvenate trade talks with Thailand and pick up where they left off after the coup in Thailand.

The trip marks the first visit of a USTR delegate after relations between Bangkok and Washington became strained during the term of the military installed government. Thailand-US free-trade talks were paralysed following the coup.

The military-installed government was also criticised for some of its policies, such as the planned revision of the Foreign Business Act, its capital-control policy and the decision to temporarily suspend patent rights on certain drugs under compulsory licensing (CL).

Bangkok originally hoped that Thailand's status on the US's trade watch list would improve with the formation of the People Power Party-led government.

The USTR currently ranks Thailand third on its so-called Priority Watch List, largely due to the country's alleged widespread copyright violations of audio-visual products. Thai authorities have tried to solve the problem.

But just as the Commerce Ministry thought that the sharp reduction in the rate of copyright-violation cases in Thailand would help elevate Thailand's trade status on the US watch list, the public health minister decided to reverse the decision to revoke compulsory licensing.

Although Public Health Minister Chaiya Sasomsap said from his first days in office that he might not continue the CL policy imposed during the interim government after the coup, Chaiya was forced to change his mind due to strong pressure from the local medical community, which saw the CL policy as justified.

The Public Health Ministry's decision certainly was not welcomed by pharmaceutical companies, and there are fears that the CL policy might prompt the USTR to lower Thailand's trade status on its watch list to the level of "Priority Foreign Country" when it revises the list on April 30.

USTR officials have two options next week: they can take a hard-core approach to push for a massive suppression of violations, or find middle ground for both countries by showing sympathy.

The first official visit of USTR officials in at least 17 months marks a gesture from Washington to Bangkok.

The Nation