"Tesco has yet to cooperate with the Commerce Ministry [by agreeing to sign the memorandum of understanding to suspend its expansion for 30 days]," he said. "Tesco should not have brought British Embassy officials to lobby the government while it still refuses to sign the MoU."

As of press time, Tesco Lotus was the only retail giant that had not acknowledged that it would sign a statement saying they will suspend all expansion including ongoing construction of stores.

The ministry's move came in reaction to small retailers' assertions that their businesses were adversely affected by giant retailers' ongoing expansions.

 "Why did they bring the British officials to the meeting?" Preecha continued. "Whoever comes to Thailand is considered a Thai juristic person and is subject to Thai law."

Preecha yesterday met with hypermarket operators to discuss the MoU signing scheduled for today. Representatives from Big C Superstore, Carrefour and Siam Makro came to the meeting at the Internal Trade Department. "British Embassy officials wanted to hear from the ministry what the problem with Tesco is and why the company has to sign the MoU, because so far Tesco [in the company's words] has been helping Thai society all along," said Vatchari Vimooktayon, deputy director-general of the Internal Trade Department.

Tesco Lotus released a statement yesterday, saying it had received an official copy of the proposed MoU.

"Tesco Lotus is very willing to participate in discussions and collaboration with the government to seek a solution to the concern of small retailers. However, we have not received an official invitation from the ministry to attend the meeting called for tomorrow," the statement said.

Meanwhile, the Thai Retailers Association (TRA) released a statement yesterday that its 107 members would support the government's effort and adhere to any laws and regulations governing retail businesses.

However, the association, which represents "modern" rather than "traditional" retailers, said it would not advise its retail members on whether they should sign the MoU today.

"It will depend on [individual members'], whether they sign the MoU with the ministry or not. We have no right to interfere," said TRA president Thanapon Tangkananan.

Thanapon said the retailers' association and all its members had agreed to provide information to the authorities related to both the modern retail industry and the overall retail market, so that all legislation being considered would be fair to all parties, both big and small.

Internal Trade Department director-general Siripol Yodmuangcharoen, said that after the MoU had been signed, a working committee would be set up and within one month, it would create a fair wholesale and retail system. Also, new retail business rules would be imposed to control large retailers and reduce any advantages they have over small retailers, he said.

He said Thai consumers must be confused, because many of them are in favour of big modern retailers, where they can buy products conveniently at cheaper prices.

"In England, Japan and Taiwan, fair and systematic treatment is given to all retail operators. Each large retailer is allowed a market share not higher than 10 per cent," Siripol claimed, adding that the number of "modern" retail outlets in Thailand had increased from 1,822 in 2002 to more than 4,000 today.

Krairit Boonkiart, adviser to the Marketing Association of Thailand, said he agreed with local authorities effort to write retail business legislation to control big retailers. Many retail giants have relied on their bargaining power to gain the upper hand over suppliers.

"The authorities should closely monitor the situation, so that all retailers are treated equally, and to ensure that small traditional vendors are protected," Krairit said, adding that the opening hours of giant stores should be strictly controlled.

Meanwhile, 2,000 small retailers plan to rally outside the ministry today when the chain stores are scheduled to sign the MoU.

Kwanchai Rungfapaisarn,

Petchanet Pratruangkrai

The Nation