Businessmen have called for the government to consider fairer non-tariff barriers and to negotiate with trade partners for more suitable NTBs that boost trade and investment growth in both domestic and overseas markets.

At a Trade Negotiations Depart-ment seminar on "Non-Tariff Barriers and Market Access of Non Agricultural Products under the World Trade Organisation" held yesterday, the forum concluded that WTO members should synchronise their NTBs on both trade and investment.

The seminar coincided with the Cabinet's decision yesterday to delay the implementation of special tariffs on vehicles imported from Malaysia. Government Spokesman Surapong Suebwonglee said that although Malaysia had reduced vehicle tariffs to between 0 per cent and 5 per cent, it still protects its local industry through the restriction of import licences.

"As long as there is a licence restriction, Thailand won't gain any benefits from the reduction in tariffs on Malaysian cars," Surapong said.

A representative from the Federation of Thai Industries (FTI) said the government must consider suitable NTBs that protect local industries while simultaneously attracting foreign investment.

"The government should develop a standardised system for attracting foreign investors. The restriction on shareholdings by foreign investors might decrease investment in the Kingdom," the source said.

The well-publicised case of Kularb Kaew Co is an example of a non-tariff barrier to investment. The Commerce Ministry is currently investigating whether the firm is a nominee of Temasek Holdings, the Singaporean firm that took over Shin Corp in January.

It has been speculated that if it is proven that Kularb Kaew is a nominee, the concession of Shin's mobile-phone arm, Advanced Info Service, could be revoked due to restrictions on shareholdings by foreigners in certain industries.

The controversy over Kularb Kaew highlights the fact that since the government has not clarified the country's investment rules, foreign investors might be afraid to come to Thailand in the future, he said.

The source said 90 per cent of Japanese companies in Thailand are nominees.

The government and the Board of Investment should come up with new, clearer restrictions that protect local industries while simultaneously encouraging foreign businesses to invest in the Kingdom, the source said, as the restriction on the amount of shares a foreign company can hold would put off investors.

Katiya Greigarn, chairman of the FTI's electronics and electrical appliances club, said other countries have also put up investment barriers to Thailand or other trading partners.

For instance, Australia requires that all importers trading under the free-trade agreement with Thailand be Australian citizens. That means Thai exporters can only export goods through local, Australian importers, hampering Thai trading opportunities with the country.

Katiya said the government should negotiate with trading partners to reduce trade barriers under the WTO's regulations, while maintaining some barriers to protect sensitive industries.

"The setting up of environmental, safety and labour standards is still required for maintaining our business competitiveness with some countries, particularly with China," he said.

China has lower production costs than Thailand. For example, the cost of producing electrical appliances there is 10-per-cent lower than in Thailand.

Katiya said Rules of Origin (ROO) and restrictions on import areas should be eliminated because they hinder trade growth globally.

Pornsilp Patcharintanakul, deputy secretary of the Board of Trade, said non-tariff barriers were necessary to protect the safety of consumers.

Thailand is still a developing country. The Kingdom should negotiate with developed countries to eliminate NTBs that could harm the country's economic growth, while the government should maintain the necessary conditions to protect Thailand's industries until local manufacturers are ready to compete, Pornsilp said.

Petchanet Pratruangkrai

The Nation