The Thai-EU Business Council hailed the government's plan yesterday to begin bilateral free trade talks with the European Union, saying the trade pact would boost Thailand's long-term competitiveness and investment.
Chansak: The faster the better for talks
"The faster the talks start, the more benefits for trade and investment between the two regions," said Chansak Fuangfu, president of the council.
Mr Chansak said the council together with the Joint Private Standing Committee would soon issue their reaction to Thai-EU FTA talks through the Joint Public Private Consultative Committee. The committee includes the Federation of Thai Industries, the Thai Chamber of Commerce and the Thai Bankers' Association.
Mr Chansak said Thailand would lose its edge if the government ignored the bilateral trade talks with the EU.
"We believe if the government proposes a framework for the talks this month and conducts the talks over the next year or two, it would help ease the impact on Thai shipments, as the Generalised System of Preferences
[GSP] privileges for Thai exports are set to expire in 2015," he said.
He added the private sector would brainstorm ideas from all stakeholders during talks in March, proposing them to the government for consideration.
Mr Chansak said bilateral trade with EU should be gradual, in line with Thailand's potential and competitiveness.
The government should study the direct and indirect effects from recognition of Thailand's commitments beyond the World Trade Organisation's Trade-Related Aspects of Intellectual Property Rights (Trips) agreement, or the so-called Trips-plus provisions, he said. Trips-plus refers to additional provisions that are more stringent than the Trips agreement. They include data exclusivity, the extension of drug patent protection periods, and stricter intellectual property protection enforcement.
Mr Chansak said the government should also provide assistance measures to ease the impact to the private sector affected by the pact.
Krisda Piampongsant, chairman of the committee on trade and environment of the World Trade Organisation and advisor of the Thai-EU Business Council, said a trade pact with the EU is essential, as Thailand is expected to lose an 80 billion baht, about 1.2% of GDP, once the GSPs for Thai goods expire, notably for shrimp, auto parts, jewellery and electronics.
Jingjai Hanchanlash, co-chairman of the council, said the absence of a Thai-EU FTA could be expected to lead foreign investors to move from Thailand to Asean neighbours with better incentives. The EU is also negotiating FTAs with Malaysia, Indonesia and Vietnam. Late last year the EU concluded an FTA with Singapore.