After Prime Minister Thaksin Shinawatra dissolved Parliament last month, the government put on hold FTA negotiations with the United States and also the official signing of the Japan-Thailand Economic Partnership agreement (Jtepa).

Kartchai Jamkhajornkeiat, vice president of the Thai Garment Manufacturers Association, said yesterday that the suspension of free-trade talks would create a window of opportunity for the country's competitors.

The textile and garment industry has been expecting to reap big rewards from bilateral trade talks with the US and Japan.

 "Before the suspension of the FTA talks, many trading partners wanted access to contracts with Thai textiles and garment companies, but now they are silent," he said.

The country's textile exports were expected to grow 8 per cent to Bt290 billion this year, but that estimate took into account benefits from FTAs.

"The government and protesters should strike a compromise as quickly as they can, otherwise it might cause big business losses. All businessmen are worried about the situation, but all we can do is to wait and see. We hope the conflict will end up soon " he said.

The US might start FTA talks with Malaysia and Indonesia instead of Thailand if political strife continues.

Kartchai said if free-trade talks with the US are successful, Thai textile exports would grow by 50 per cent.

Meanwhile, the textiles and garment industry yesterday unveiled a plan to start the second phase of the Textile and Garment Development in Efficiency and Technology Project (T-det), which aims to boost the sector's potential and ensure access to major markets.

The second part of the project will start in the second half of the year and will focus on establishing an "excellence centre" and a pilot plan to improve production efficiency - particularly among small and medium-sized enterprises (SMEs). Foreign textile experts in brand building, design and marketing will be invited to dispense advice at the centre.

In addition, the pilot plant will focus on technology transfer from large local manufacturers to SMEs.

Kartchai, who is also executive director of the project, said the T-det committee had asked the Bangkok Fashion City for Bt120 million to build out the project.

The project has been designed to help more than 400 entrepreneurs improve the quality of their products.

But the current political tensions

may cut into work on the second phase because it needs funding from the government.

The first phase, designed to last 18 months, expires in July. T-det received Bt168 million for the first phase, in which 184 SMEs participated.

During the upcoming Bangkok Fashion Week from March 15-19, T-det will introduce new brands as part of its brand-development initiative, Kartchai said.

The new brands are Transit, Rebel, Spun, Ciera Active, La Belle, S@ss, and Bluenose Monster.

He added that the owners of those brands were in talks to open outlets in shopping centres around the country, including Siam Paragon, Central and The Mall. 

Petchanet Pratruangkrai

The Nation