Downgrade threatens ties with US

Downgrade threatens ties with US

Slavery report spurs export fears

Questions are being raised over the future of relations with the United States after Washington delivered a damning report detailing rampant exploitation of migrant workers in Thailand.

Foreign Ministry permanent secretary Sihasak Phuangketkeow said the Kingdom “regretted” the findings of the latest Trafficking in Persons (TIP) report, released on Friday night, which demoted Thailand from the Tier 2 watch list to Tier 3, the lowest ranking.

“I would like to ask the US to consider whether Thailand is serious about this problem,” Mr Sihasak said. “I would like the US to consider whether it would like to continue having close cooperation with Thailand, as Thailand is ready to cooperate, and whether the US decision reflected that Thailand is an important friend who shares many mutual benefits.”

He insisted the government had made “full efforts” both at the policy and operational levels to tackle human trafficking.

“We disagree with the US evaluation, which was not in line with what Thailand has tried to do to suppress human trafficking,” he said.

Sihasak: Thailand disagrees with United States evaluation. (Photo by Tawatchai Kemgumnerd)

“We also find it wrong that any country would evaluate another country on human trafficking on its own and based on its own standards.”

The report detailed accounts of widespread and systematic forced labour, often with involvement from “corrupt law enforcement officials”, and concluded that Thailand was “not making significant efforts to comply with the minimum standards” for the elimination of trafficking.

The decision to drop Thailand to Tier 3, where it joins the likes of Syria, Iran and North Korea, came after four consecutive years of being held on the Tier 2 warning list and urged to take action.

The TIP downgrade also follows sharp criticism from Washington over the May 22 military coup, which prompted a mild downgrading of defence ties.

But the report was compiled between April 1 last year and March 31 this year, meaning the May 22 coup had no bearing on the downgrade.

“The downgrading has nothing to do with recent political events in Thailand,” the US embassy said.

The announcement has drawn concern from the business community, which fears potential sanctions as well as damage to the country’s image abroad.

Commerce permanent secretary Srirat Rastapana said she has ordered commerce officials in Washington to work closely with their US counterparts to clarify the issue and work with the private sector including retailers and importers to prevent impacts on trade.

As an urgent measure, the Commerce Ministry will organise visits to various cities in the US in the next few months to clarify the issue to importers and consumers.

Ms Srirat sought to allay fears that the downgrade will affect the tax privileges granted under the Generalised System of Preferences (GSP). She said the GSP would not be affected because under the Trafficking Victims Protection Act 2000, it could not be suspended by US administrators.

The US can cut or withhold non-humanitarian and non-trade-related foreign assistance to Tier 3 countries. But most observers believe sanctions of any kind are unlikely, and US President Barack Obama likely to cite “national security interests”, as he did last year for China, Russia and Uzbekistan.

Col Winthai Suwaree, a spokesman for the National Council for Peace and Order (NCPO), said the junta has placed labour issues, including trafficking, among its top priorities.

But he conceded Thailand will have to do more than clarify the situation to the US, and solid evidence of efforts to address the problem will be needed.

Pornsil Patchrintanakul, vice-chairman of Thai Chamber of Commerce, said direct impacts from the downgrading might not be immediately obvious, but said the key damage was to the country’s image, which would affect buyers’ decision to purchase Thai products.

Labour rights activist Andy Hall said the TIP downgrade was necessary to encourage Thailand’s industry and government to effectively put measures in place to address human trafficking, particularly for forced labour.

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