Thailand and the United States are seeking new channels to facilitate trade and encourage closer economic ties, following the halt to free-trade talks.

"It is not talks in preparation for an FTA. The visit to Washington of caretaker Commerce Minister Somkid Jatusripitak aims to create trade diversion rather than being part of Thailand-US FTA negotiations," Apiradi Tantraporn, director-general of the Trade Negotiations Depart-ment, said yesterday.

She said a planned road show aims to tighten cooperation with Thailand to create trade opportunities, focusing on small and medium-sized enterprises. In addition, both sides aimed to establish closer economic cooperation between private enterprises and government agencies.

Thailand cannot stand still when the US is rushing into bilateral

free-trade talks with export rivals such as Malaysia, Vietnam and South Korea.

The new business cooperation will create market access for the US instead of waiting for low import tariffs under any free-trade agreement.

Apiradi explained that the cooperation would concentrate on private companies in the two countries. Moreover, the US would help increase small and medium-sized Thai enterprises' production efficiency in certain manufacturing areas. The government is to be a middleman, organising business matches between Thai and US companies during the suspension of the free-trade talks.

Also, she said that despite being under a caretaker government, the FTA negotiation team could still hold talks with the US. However, the Thai team has not yet prepared for the opening of a new round.

"Even without the light at the end of the tunnel for Thai-US FTA, closer trade cooperation will strengthen the country's export competitiveness," she said.

Thailand-US FTA negotiations were launched in June 2004, but suspended last year after seven rounds of talks in Chiang Mai following disagreement on pharmaceuticals and financial services.

Also, the political disorder in Thailand has affected the negotiations because the caretaker government has no authority to sign international agreements.

Somkid and a team of leading Thai businesses are in the US until tomorrow. The delegation will have meetings with both concerned government agencies, such as the US Commerce Department and the US Trade Representative, and major US importers and traders.

Apiradi said that the US negotiation team understands well the country's situation.

"The two nations have not even decided yet when the next round of FTA talks will be held."

Petchanet Pratruangkrai

 The Nation