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    Southeast Asia
     Apr 14, 2005
US deal rankles with Thais
By Marwaan Macan-Markar

BANGKOK - If critics of the Thai government's international trade policies have their way, the current negotiations for a free-trade agreement (FTA) between Bangkok and Washington could evolve into a constitutional crisis for this Southeast Asian nation.

Signs of such a political fallout emerged by the end of the third round of talks between Thai and US trade delegates, held last week in the popular resort town of Pattaya. Of particular worry is a signature campaign launched by critics to force the Thai government to have parliament and the public review the contents of the Thai-US FTA. This campaign, led by a group called FTA Watch, aims to collect at least 50,000 signatures.

"This campaign is just the starting point to challenge the constitutionality of the FTA negotiations," said Witoon Lianchumroon, a coordinator of the protest group, which has some 30 organizations encompassing grassroots activists to academics. "We will pressure the prime minister and ministers of commerce, public health and agriculture to make the FTA negotiations transparent."

What riles activists such as Witoon is that the FTA negotiations are shrouded in secrecy. "Communities that will be affected in Thailand if the FTA is signed are not aware of what is going on, like corn and soy farmers," he argued. It is a sentiment shared by members of the opposition Democrat Party, since the contents of this FTA and the trade-offs Bangkok has in mind with Washington have been kept secret from the 500-member legislature.

"We have not been informed about any details, nor is the government planning to do so in the future," said Kalya Sophonpanich, a second-term Democrat Party parliamentarian. "This lack of discussion and parliamentary review could affect not only the current generation of Thais but also those in the future," he said. According to Kalya, the government of Prime Minister Thaksin Shinawatra is violating a provision in the country's 1997 constitution by keeping the trade negotiations beyond the grasp of the parliament.

Under Section 224 of the constitution, the government needs parliamentary approval before signing international agreements that affect the laws of Thailand's sovereignty. FTA Watch is placing its faith in another constitutional provision as it seeks the signatures. Under that provision, which underscores the need for greater public participation in the country's political life, a minimum of 50,000 signatures is needed to sponsor a bill initiated by the public for parliamentary approval.

The Thaksin administration, however, views this dispute differently, having declared that the FTA will not affect laws protecting the country's sovereignty. Therefore, it said, parliamentary review is not relevant. Thailand asserted that position when it began free trade talks with China, Australia and New Zealand previously. "Those FTAs were approved by executive decree and not by parliament," said Sunai Phasuk, Thailand researcher for Human Rights Watch.

Such a lack of transparency resulted in a bitter harvest for vegetable growers in northern Thailand. Cheaper Chinese agriculture products flooded the local market last winter as a result of the Thai-Chinese FTA, leaving local growers with produce, including onions and garlic, which could not be sold. The call for transparency in the Thai-US FTA negotiations, which began two years ago, arises from concern over possible deals that could undermine Thailand's success at supplying cheap generic drugs, especially those relating to AIDS.

According to FTA critics, Washington is lobbying to enforce a 25-year period for drug patents as part of the trade deal with Bangkok, as opposed to the 20-year period under the prevailing international trade rules. US trade negotiators also want to restrict the use of "compulsory licensing", a provision by which governments can break the laws protecting patented drugs in order to produce cheaper generic versions to meet public health crises, such as AIDS. This Southeast Asian country has more than 600,000 people living with the human immunodeficiency virus (HIV) out of a 64 million population. More than 300,000 people have died because of AIDS since the killer virus was first detected here in the early 1980s.

Concern has also been expressed over agriculture products such as corn and soy, which are among the 20 items on the FTA agenda. "The US wants Thailand to open up its market for corn and soy. This would destroy the local farmers because US products are heavily subsidized and cheaper," said Witoon. Thailand is estimated to have 3 million farmers who grow corn in the northern and the central zones of the country. "This FTA will undermine Thailand's food security, for we will have no control of the structure of our food supply chain," said Jaroen Compeerapap, an international property-rights expert at Silpakorn University. "It will mark the end of Thailand's sustainable agriculture efforts."

Currently, the United States heads the list of Thailand's trading partners, while Thailand ranks as the 18th-largest partner of the US. The value of their two-way trade exceeded US$21 billion in 2003, with Thailand enjoying the edge over the two. In 2004, the total value of trade between the two rose to $22 billion.

Shortly after the third round of talks ended, the US Embassy in Thailand released a statement that conveyed Washington's optimism about the negotiations. Thailand stood to gain greater access to the US market than at present, the statement noted. For his part, Nitya Pibulsongram, Thailand's chief negotiator, has told the Thai media that Bangkok would not cave in to Washington's demand. Yet such words have failed to convince those amassing against the FTA, given the lack of information percolating to the Thai public about the trade details under review.

(Inter Press Service)


Thailand's free trade tactics under fire
(Jul 7, '04)

Fashionable trade agreements all the rage in Asia
(Mar 4, '04)

The US and economic stability in Asia
(Dec 6, '03)
 

 
 

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