The memorandum of understanding (MoU) on trans-border freight involving the customs authorities of Thailand and Cambodia does not require prior parliamentary approval to take effect, the Constitutional Court has concluded.
The court ruled yesterday the MoU does not need House approval to be legally binding as it does not affect the country's economic, social or trade security.
However, the court has determined the MoU to be an agreement under Section 178 of the constitution.
In May this year, Deputy Prime Minister Wissanu Krea-ngam explained that not all international agreements fall under Section 178.
The section requires international deals that might affect or have far-reaching implications on national and economic security, trade and investments to be approved by parliament before they are signed.
The court said in its ruling yesterday the MoU is an agreement pertaining to free trade as defined by the constitution.
Although the content of the MoU concerns free trade, it does not have a far-reaching impact on the economy, society or trade and so it does not have to be approved by the House.
On Nov 27, the charter court announced it had accepted a request by the cabinet to interpret whether the MoU required parliamentary approval.
Before the court passed its ruling, it consulted legal experts at the Constitution Drafting Committee.