In Indonesia, Foreign Minister Hassan Wirayuda voiced concern about the economic policies of the Democrats, who are known to be protective about US labour rights. "From the perspective of Indonesian-US trade policies, like some other countries that are currently discussing free trade areas, we are very worried," Wirayuda told journalists.

These countries fear the US may, for instance, raise the issues of labour standards, workers' rights and the environment to block cheap imports from developing countries. In fact, the raising of labour and environmental issues is of global interest, but there is increasing concern that these may be protectionism in disguise.

Protectionism is not the way to correct deficits. Such action only exacerbates friction between the US and its partners. However, this is not to say that labour is not important. By many standards, Thailand is one of the world's most unequal societies, partly due to weaknesses in its labour laws and lack of protection for workers' rights. But there are proper channels and forums for labour and other issues to be raised, and trade discussions should not be one of them. The World Trade Organisation's meeting in Seattle in 1999 collapsed partly because US president Bill Clinton raised the issue of labour standards. The idea was good, but the move drew suspicion from the US's WTO partners.

Compared to the Republicans, the Democrats are less receptive to trade liberalisation initiatives. Besides, Washington is under pressure over its rising trade deficit with East Asian countries. Earlier, Senator Hillary Clinton assured American truck producers that the government would try to protect their business from cheaper products from other countries including Thailand. Nancy Pelosi, House Democrat leader, recommended that Washington not enter into new trade agreements with many developing countries, including Thailand.

As Washington heads toward a divided government, with the Democrats in a more powerful position, a source of concern in terms of trade policy is the US President's authority to negotiate trade agreements, as the Trade Promotion Authority is set to expire in July next year. With the Democrats now in charge of both houses of Congress, President George Bush could find it hard to convince them to approve the extension of the Trade Promotion Authority, an essential tool for the administration of trade talks. If this happens, the Bush administration may find it almost impossible to convince Congress to endorse trade agreements after the TPA expiration in the middle of next year.

Of course, the prospects of concluding the FTA between Thailand and the US before the deadline is impossible, because the US representative has made it clear the talks cannot resume until Thailand has a new democratically elected government. The importance of trade with the US cannot be emphasised enough and that's why it is a matter of concern for Thailand whenever there is a major political shift in America. It is quite clear that a comprehensive Thailand-US Free Trade Agreement could deliver significant gains for Thailand if handled properly. Both countries stand to gain from agricultural liberalisation, as barriers on both sides are quite high.

But it won't be a walk in the park. Thailand will have to keep pushing its concerns, primarily the issue of agricultural subsidies and anti-dumping procedures, which Washington tends to shelve for WTO negotiations. But the more worrisome issue for other developing nations is the conclusion of the World Trade Organisation's Doha round of talks, the most comprehensive recent negotiations aimed at establishing fair trade rules. To correct the global trade imbalance and raise standards of living in developing countries, the world needs fair trade rules. And it would be almost impossible to conclude the multilateral talks without the initiative and participation of the US.