During the meetings the association will also present the country's 10-year textile and garment industry plan and try to impress on the politicians that the domestic industry has a great opportunity to become the leader in the region.

Dej Pathanasethpong, president of the association, said on Thursday that the effort was aimed at convincing not only politicians but also the public about the real gains to be derived from liberalising trade.

The private sector is afraid that Thailand will be handicapped if export rivals clinch free-trade deals first. Exports also directly develop the grassroots economy and spawn new communities, Dej said.

All manufacturing sectors operate on a similar business platform that needs to achieve competitive production costs and be promoted with tax privileges, he said.

"We want the government and public to realise the necessity for Thailand to consider continuing to negotiate free-trade agreements with targeted export markets. We don't represent only the textile industry but also other exporters who have the same problem," he said.

Dej pointed out that the suspended negotiations with the US would open the way for Malaysia and Vietnam to conclude deals in the near future. Malaysia, which exports almost the same goods as Thailand, plans to wrap up bilateral talks with the US by the end of this year. Vietnam and the US have worked closely on a possible free trade pact.

The association's long-range plan lists FTAs as a major factor in helping its members achieve the group's goal of Thailand accounting for 30 per cent, or US$4.8 billion (Bt185 billion) of the $16 billion Asean textile market in 2016.

Thailand's exports to other Asean countries amounts to $100 million per year.

The plan outlines three steps to sharpen the industry's competitive edge - building up human capital, pursuing FTAs mainly with the US and Japan, and accessing the Asean green lane, which provides mutual recognition for cross-border shipments of goods.

Thailand has to produce 100 leading Thai fashion designers for the Asean market and 400 fashion retail and branding professionals. Of the 400, 200 would have to be experts in merchandising and operations, 100 pros in marketing and sales and 100 brand management gurus. For the garment industry, 500 new experts in sourcing, merchandising and production will be needed.

Dej pointed out that a Thailand-US FTA would boost Thailand's exports, but it still needs detailed consideration of the positive and negative effects. Also, the delay in signing the Japan-Thailand Economic Partnership Agreement (Jtepa) would lead to reduced exports.

"Exports to the US account for 50 per cent and Japan 8 per cent of our textile exports of $3.4 billion per year. Why don't we concentrate on the big markets?" he said.

In particular, the Jtepa was ready to be inked on April 3, but it was put off due after the House was dissolved. Thailand has to solve its political problems to pave the way for those two free-trade pacts to be successful, he said.

Former TGMA president Suchart Chantaranakaracha said the FTAs would be a springboard for the country to run faster than its rivals. The pacts would also enable "critical mass" production, which would force manufactures to quickly upgrade their factories.

"Critical mass production is the driver for manufacturers to achieve product development," he said, adding that for critical-mass orders, manufacturers must have competitive offerings, designs and services.

"Customers always come to you if you offer different things, handling as big a volume as they demand and service them," he said.

Dej said delays in both the FTAs had prompted local garment manufacturers to suspend expansion plans, which involve billions of baht in investment.

They are now exploring opportunities in China, India, Vietnam, Cambodia and Laos instead.

Prasop Jirawatwong, managing director of Nice Apparel Co Ltd, said the FTAs would help the company's exports grow fivefold.

Achara Pongvutitham

The Nation

Khon Kaen