The suspension should have a positive rather than negative effect on the country, representatives from both sectors said.

However, the Kingdom may enjoy a lower trade surplus with the US in the long term if the US achieves bilateral trade agreements with other Asian countries such as Malaysia, Vietnam or South Korea.

Thailand enjoyed a US$2.3 billion (Bt84.45 billion) trade surplus with the US last year. Exports to the US grew by 16.5 per cent to $14.69 billion, while imports dropped by 1.2 per cent to $6.4 billion in the first nine months this year.

Last week, the US announced it would only return to the free-trade negotiations once a democratic government was in place in Thailand.

Karun Kittisataporn, the permanent secretary at the Com-merce Ministry, said the government would use the suspension period to create understanding with the private and public sectors.

Neither the government nor the US wants to accelerate the talks. The halting of the talks will put no pressure on Thailand, he said.

The two country's became trapped in the sixth round of talks at Chiang Mai early this

year after 18 months of negotiations.

The talks were suspended after the Thaksin government dissolved Parliament.

There is opposition among several local groups to certain conditions of the agreement involving pharmaceutical patents and the opening of financial and telecommunications sectors for US investors.

Karun, who is also the chief Thai negotiator for the talks, said although the US President Pro-motion Authority expires in July next year, he did not want to accelerate the talks.

"If both countries would like to further the talks, that means the deal should be wrapped up by February, which is impossible for both countries," he said, adding that "a bad agreement is worse than no agreement at all".

He added that the US decision to suspend the talks should not affect the review of the Generalised System of Preferences for Thailand, as it is a separate issue.

Aat Pisanwanich, director of the International Trade Studies Centre at the Thai Chamber of Commerce, said all related sectors - farming, goods manufacturing, exporting, and services enterprises - would benefit by the suspension of the talks.

Aat said the US might shift some goods imports to their free-trade partners because of the lower tariffs.

Garment exports is one of the key sectors that is predicted to lose its competitiveness if the US achieved a trade pact with others countries before Thailand.

Dej Pathanasethpong of the Thai Garment Manufacturers Association said exporters would need to find a new market to compensate the loss of the export portion to the US market.

Garment exporters will eye the Chinese and Japanese markets because of the trade pacts with Thailand, he said.

n Petchanet Pratruangkrai

 The Nation