The Commerce Ministry will ask the Council for Democratic Reform under Constitutional Monarchy to compel retailers to halt their expansion for 30 days if the ministry fails to persuade them to sign a memorandum of understanding (MoU) today.

 Since some giant retailers have refused to ink the agreement, the ministry has decided to deal firmly with them. The exercise is aimed at finding the best way for small, local retailers to survive and expand.

 A senior official at the ministry said the signing of the MoU had been postponed from yesterday to today because Tesco Lotus, the Kingdom's biggest retail operator, had not confirmed whether it would sign the agreement.

The ministry failed to persuade all retail giants to ink the agreement during Tuesday's meeting. The plan is to seek cooperation from those retailers to suspend their aggressive investment plans in an attempt to help small shops.

 Local retailers believe that the soon-to-be appointed government will draw up protective measures for small players and will suspend expansion plans of giant supermarket chains.

Local retailers said they hoped the new government would accelerate the endorsement of draft retail business law to control foreign retailers' expansion.  At least 2,000 small retailers from around the country planned to stage a rally at the Commerce Ministry yesterday to urge the government to control the expansion of multinational retailers. But the coup on Tuesday night put a halt to their plans.

Karun Kittisaporn, permanent secretary of the Commerce Ministry, said he would seek cooperation from giant retailers to help smaller players.

 Despite the overthrow of the government, there will be a committee meeting to discuss competition on September 29. The meeting will consider the implementation of retail guidelines that control business expansion during the period of the Retail Business Act's draft-amendment process and also regulations on market dominance.

The ministry yesterday sent letters to manufacturers who produce 150 consumer goods on its watch list warning them not to use the coup as a pretext for increasing retail prices. Those who violate the restriction will be fined Bt140,000 or face seven years' imprisonment.

Protesters against Tesco Lotus in Tak's Mae Sot district are preparing evidence to file complaints with the Administrative Court to stop the expansion of the UK-based retail giant.

Ampon Chatchaiyaruk, chairman of Tak Chamber of Commerce, said the Commerce Ministry should take action to force retail giants to sign MoUs to suspend their expansion nationwide for 30 days.

 "We believe the military-led coup will consider stringent restrictions to stop expansion of those multinational retailers," he said, adding that their growth would destroy small businesses.

Petchanet Pratruangkrai

The Nation