With the National Legislative Assembly  today debating the Thai-Japanese free-trade pact, the Board of Trade of Thailand and 16 business associations yesterday came out in full force to urge the government to speed up signing the agreement.

Pornsilp Pacharintanakul, secretary-general of the Board of Trade, warned that if the interim government failed to sign the agreement, Thai manufacturers, already hit by the appreciation of the Thai baht, would lose their competitive edge to other Asian countries which have already made similar agreements with Japan.

Japan is also negotiating trade deals with Indonesia and Vietnam.

"If the agreement is delayed for three years, half of all Thai exporters will be affected by the absence of the FTA," Pornsilp said.

The bilateral free-trade pact, or Japan-Thailand Economic Partnership Agreement (JTEPA), is the first free-trade bill the current government has presented to the national legislative body for scrutiny.

Although no vote will be called for after the hearing, members' opinions are expected to influence the decision of the government of Prime Minister Surayud Chulanont on whether or not Thailand should adopt the deal.

Akrapol Sorasuchat, spokesman for the assembly's Committee on Public Participation, told Thai News Agency that many members have expressed their interest in debating the draft agreement.

"At least 30 members have registered an interest in taking part in the debate. I expect more to come forward. There won't be any time limit on each speaker," Akrapol said.

When asked if the content of the draft agreement could be made public, Akrapol said the full text had been forwarded to the national legislature for consideration, but some sections contained sensitive information that could not be disclosed.

According to the legislator, the agreement was divided largely into trade in services, technical cooperation and investment such as agriculture, forestry, fishery, education, human resources development, financial business development, IT, science and technology, energy and the environment, small and medium industry, tourism, and investment promotion in areas such as steel, automobiles, textiles and energy-efficiency technology.

In fact, Bangkok and Tokyo wrapped up the talks in 2005 and had planned to sign the agreement in February last year. However, the signing was delayed because of the political situation in Thailand.

The 16 business associations which support the agreement include groups of producers of foods, frozen food, garments, jewellery and shoes. They said the government should sign the JTEPA as soon as possible, or within this year.

After the agreement moves through the National Legislative Assembly, it will take around 90 days to consider the details before sending confirmation to the Japanese government.

Dej Pathanaseth-pong, president of

the Thai Garment Manufacturers Association, said the agreement with Japan should promote technological development through bilateral cooperation. Without an agreement, Thai producers would lose a competitive edge to others in the next three to four years because neighbouring countries are fast catching up with Thailand in this sector.

Vilai Kiatsrichart, president of the Thai Food Producers Association, said the agreement, which should open up more markets for Thai food exporters, should help sustain the situation for food exports. Other countries in the region are making the same agreement with Japan because they expect this benefit.

Thamrong Tritipresert, president of the Shoe Producer Association, said Japan had a high consumption of shoes, with people buying 4.5 new pairs of shoes on average a year. Now the market had become very competitive because Japan had imposed quotas and high import tariffs of US$4 (Bt143) to $6 each. The FTA should clear the tariffs and boost Thai shoe exports to Japan by 30 per cent.

"Without the agreement, Thailand will lose the market to Vietnam and Malaysia, our direct competitors," he said.

Montri Netkanthee, a director of the Thai Jewellery Trade Association, said Thai jewellery was still competitive in the Japanese market but the situation would not stay that way for long because of fierce competition from China and India.

However, environmental and anti-free trade campaigners warned Thailand that the draft agreement with Japan could pave the way for the dumping of toxic waste and hazardous chemicals in the country.

Pornsilp said the government should look at the overall picture, adding that the concerns of environmentalists can be addressed by environmental laws. Besides, the private sector has an obligation to protect the environment under international trade rules.

Chutima Bunyapraphasara, director-general of the Trade Negotiations Department, said the ministry would seek a budget of Bt250 million from the Cabinet to assist those affected by the FTA.

Petchanet Pratruangkrai,

Jeerawat Na Thalang

The Nation