CHIANG RAI,
Thailand - An independent Asia Pacific Economic
Cooperation (APEC) assessment has concluded that despite
the recent economic crisis, Thailand is halfway toward
achieving its free-trade goals only seven years into the
set 24-year reform and liberalization schedule.
The findings were presented in the "Individual
Action Plan Study Report" on Thailand's progress toward
APEC's "Bogor Goals" of free and open trade and
investment by the year 2020. Presented to a peer review
session of representatives of APEC member economies in
the northern city of Chiang Rai, the report is an
assessment of how well individual APEC member economies
have progressed toward the Bogor Goals.
Agreed
by APEC leaders in Bogor, Indonesia, in 1994, the Bogor
Goals set the target of free and open trade and
investment in the APEC region to be achieved by 2010 for
industrialized economies and 2020 for developing
economies.
The report prepared by independent
expert Peter Clark, president of Grey, Clark, Shih and
Associates from Ottawa, praised Thai officials for their
"exemplary cooperation" with the peer review team and
said Thailand "had passed all tests with by a healthy
margin".
"Thailand is the first APEC developing
economy to volunteer for the more rigorous peer review
process," Clark said. "Thailand was universally
commended by representatives of all economies who spoke
for the excellence of their presentation and the
comprehensive study report. The well-coordinated,
comprehensive and high-tech presentation was greeted
with applause. Such a warm response is most unusual for
presentations on subjects involving tariff reform and
product standards."
Clark said that concerns
about specific issues and a tariff reduction request
made by APEC economies were positively responded to by
Thai officials.
"Areas which require improvement
were noted in the report. These include textiles,
agriculture and steel and are seen to be politically
sensitive and resistant to change. However, market
opening is anticipated as a result of the ASEAN China
Free Trade Agreement that will create the competitive
environment to promote reforms. This will enable
Thailand to better address these pockets of protection
to the benefit of both Thai industry and consumers.
"It is in Thailand's interest to liberalize its
trade and investment rules. In the contemporary global
economy, competition for investment funds means that
economies with the least complicated and more
transparent rules will be more attractive to
international investment."
At the same time
public service and regulatory reform and more open trade
and investment systems will enhance Thailand's
competitive standing, Clark said.
Highlights of
the Individual Action Plan (IAP) Study Report on
Thailand included major actual and planned reductions in
average tariffs; improved economic performance,
including early repayment of IMF loans; public service
reform; the Customs Master plan for reform;
corporatization of state enterprises; new laws and
regulations to help Thailand cope with globalization and
the emergence of China as a major competitor for
investment and markets; and liberalization of foreign
investment, government procurement and trade in services
rules.
Clark said the peer review process must
be adapted to the needs and limited human and financial
resources available to developing economies and offered
a number of suggestions to the participants. "Thailand's
review was a mutual learning experience for both
Thailand and the peer review team which should be shared
with other developing economies in order to optimize the
benefits of peer review for all APEC economies."
Every APEC member economy submits an annual IAP
that provides details of how that economy expects to
reach the Bogor Goals. Other economies being reviewed in
2003 are Canada and Australia. These reports have also
been presented to representatives of APEC member
economies on the eve of the first 2003 APEC Senior
Officials meeting in Chiang Rai this week.
The
reviews are conducted by a team comprised of an
independent expert, a moderator who is usually a senior
official from an APEC economy, a discussant and a
representative of the APEC Secretariat.
This
article was provided by the APEC Secretariat. The full
text of the "Individual Action Plan Study Report -
Thailand 2002" is available on the Secretariat's
website,http://www.apecsec.org.sg/
