The United States' decision to lift Thailand from the Priority Watch List of intellectual property (IP) violators will attract more foreign investment to the country, business and economic experts said yesterday.
The country still, however, remains on the Watch List (WL).
The move was announced by the US Trade Representative (USTR) yesterday after an out-of-cycle review of the country. Thailand was put on the Priority Watch List (PWL) for 10 years in 2007.
The US decision came just five days after the European Union announced it would resume political contact at all levels with Thailand.
"A key objective of the Trump administration's trade policy is ensuring that US owners of IP have a full and fair opportunity to use and profit from their IP around the globe," USTR ambassador Robert Lighthizer said in a statement.
"The key to promoting innovation is protecting intellectual property. We welcome the corrective actions that Thailand has taken and look forward to continuing to work with Thailand to resolve our remaining IP concerns."
He said US and Thailand engagement on improving IP protection and enforcement has yielded results across a range of issues, including enforcement, pharmaceutical patents, trademarks and copyright.
The USTR highlighted the establishment of an inter-agency national committee on IP policy and a subcommittee on enforcement against IP infringement as key steps in enhancing efforts to combat counterfeit and pirated goods throughout the country.
It said Thailand also has been taking steps to address a backlog of patent and trademark applications, including significantly increasing the number of examiners and streamlining regulations.
Other measures include a commitment from Thailand to improve transparency related to pharmaceutical issues, such as taking stakeholder input into account and providing regular consultation opportunities with the Thai Food and Drug Administration.
Prime Minister Prayut Chan-o-cha welcomed the USTR decision. Gen Prayut was very satisfied with his government's hard work in cracking down on all forms of IP violations, said government spokesman Sansern Kaewkamnerd.
"The prime minister would like to thank all parties involved in the hard work leading to this success," said Lt Gen Sansern.
Thanawat Pholvichai, an economist at the University of the Thai Chamber of Commerce, said the lifting of Thailand from PWL to WL level would not directly benefit international trade of the country.
This is because over the 10 years that the country was on the PWL the US did not enforce punitive trade measures against Thailand, he said.
Still, the lifting of PWL status would indirectly benefit the country and boost the its investment image, he claimed.
"Foreign investors and business operators will be more confident to invest in the country as they see the government has taken IP violation problems seriously," said Mr Thanawat.
Kalin Sarasin, chairman of the Thai Chamber of Commerce, echoed Mr Thanawat, saying the USTR's announcement would help boost foreign investment.
However, more progress still needs to be made on the issue, he said.
Meanwhile, Chen Namchaisiri, chairman of the Federation of Thai Industries, said the USTR's decision will ease foreign investors' concerns over IP violation in Thailand and help promote investment in the government's ambitious Eastern Economic Corridor project.
Commerce Minister Sontirat Sontijirawong said tough enforcement of IP violations which began in July has already led to the problem being stamped out in several areas.
He said an IP violation centre has been set up to specifically oversee the suppression of this crime in five major shopping centres, namely the MBK Centre, Chatuchak Market, Rong Kluea Market (in Sa Kaeo), Patong beach (in Phuket) and Karon beach (in Phuket).
In 2007, Thailand was downgraded to the PWL due to the then government declaring compulsory licensing for several US pharmaceuticals.