Thailand is interested in joining the controversial Trans-Pacific Partnership (TPP) trade pact being touted by the United States, but needs to study the terms and conditions of the new trade bloc first, Deputy Prime Minister Somkid Jatusripitak says.
"We are very interested but we must weigh the advantages and disadvantages carefully," Mr Somkid told the Bangkok Post. The 12-member trade bloc's economic activities represent around 40% of the global economy. Expressing interest would put Thailand "on their radar screen", he said.
Since the May 2014 coup against the former Yingluck Shinawatra government, Thailand has experienced a restricted diplomatic relationship with Western democratic countries. The government of coup leader and Prime Minister Prayut Chan-o-cha has faced a diplomatic backlash from Washington to Brussels.
The United States kept Thailand on its bottom Tier 3 ranking in its report on human trafficking in July. It said Bangkok failed to "fully comply with the minimum standards for the elimination of trafficking, and is not making significant efforts to do so".
Last month, Gen Prayut poured cold water on a call by an American business lobby group urging Thailand to join the TPP.
A ministerial meeting in Hawaii in July failed to reach a deal on the new trade agreement, and no date has been set for future talks. "I need to be careful about what I say about such a critical agreement that could make or break Thailand. All parties must be consulted, especially the Ministry of Public Health," Gen Prayut said after he met some 60 executives from top American firms from the US-Asean Business Council.
The Hawaii talks -- which included trade ministers from Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam -- covered a wide area, from tariffs on automotive, rice and dairy products, to intellectual property protections for pharmaceuticals.
The US-Asean Business Council president and CEO Alexander Feldman said during a visit to Bangkok in August that Thailand's accession to the TPP would increase American investment in Thailand. He has welcomed Bangkok's interest in taking part.
"TPP is a 21st century trade agreement that will assist Thai companies that export both goods and services by opening new markets," Mr Feldman wrote in a email to the Bangkok Post.
"Thailand has globally competitive industries in cars, electronics, agriculture, healthcare services and tourism, just to name a few areas. The e-commerce chapter of the TPP also offers Thai companies, especially small and medium sized companies, an opportunity to access markets via e-commerce across the TPP economies and should be an important opportunity for future growth of these businesses," he said.
Mr Somkid's remarks echo what other cabinet ministers say about the potential benefits of TPP.
Commerce Minister Apiradi Tantraporn told reporters last month Thailand would have a much greater market for its products if it joins the multi-national trade bloc, but it should wait for the TPP to be firmly established by core members first.
Mrs Apiradi said the fate of pharmaceuticals and biodiversity under the agreement are potential concerns if Thailand was to join TPP. Mrs Apiradi's predecessor, Gen Chatchai Sarikalya, said last month TPP could yield greater benefits for Thai exports to the United States than Washington's tax privileges under the Generalised System of Preferences, which are reviewed periodically.
Critics have complained the deal is being negotiated in secret and it favours large corporations over workers and consumers. Local NGOs predict Thai consumers would have to pay much higher prices for patented medicines, though Mr Feldman said the TPP would benefit Thailand's booming medical tourism industry, in which patients would have access to the latest developed drugs.
An executive in the Thai auto parts industry also expressed concern local manufacturers could lose out if the country does not join the TPP. Rules-of-origin regulations could affect in particular Japanese investments, as sales to TPP markets would be constrained if the country did not join the treaty. Conversely, Thai suppliers would stand to benefit if the country joined the trade bloc.
Mr Feldman said Thailand needs approval by all 12 current TPP members to join.
"It is our understanding the current 12 members have agreed to finish negotiations and finalise the agreement before considering whether to let additional countries join the TPP," he said.