The Jtepa signing ceremony will be held in Tokyo early next month in spite of concerns of non-governmental organisations in Thailand over a possible hidden agenda in the agreement relating to bio-organisms and toxic waste.

Some NGOs will today file a petition at the Administrative Court against three Foreign Affairs Ministry officials as well as call on the government to suspend the signing ceremony on April 3.

However, the pact was welcomed by the business sector. They said it would significantly increase exports to Japan, by an average of 25 per cent a year. In addition, it is expected to boost investment from Japan, which has dropped from Bt61 billion in 2001 to Bt25 billion in 2005.

Japan is Thailand's second-largest export market after the United States. Last year, two-way trade was valued at US$41.9 billion (Bt1.6 trillion). Exports to Japan rose 8.8 per cent to $16.4 billion, while imports dropped 2.1 per cent to $25.4 billion.

Sectors that will benefit from the agreement include garments and textiles, shrimp and seafood, fresh fruits, chicken, jewellery, leather goods and shoes, and agricultural goods, except rice.

Suchart Chantaranakaracha, chairman of Thai National Shippers' Council, said the government should take the opportunity to sign the contract with the Japanese government to ensure Thais enjoy the same competitive edge as others who have reached similar agreements with Japan.

Japan has wrapped up trade pacts with Malaysia, the Philippines, Singapore and Mexico. It is also negotiating free-trade deals with Indonesia and Vietnam.

"If the agreement is delayed, or without the FTA, certain Thai industries will be affected," Suchart said. He said NGOs had the right to oppose the pact but the private sector did not see any harmful impact to Thailand.

In fact, if Thailand loses from the agreement, the country has the authority to cancel the pact by giving one year's notice, he said.

Surapon Vongvadhanaroj, adviser to the council, said the pact should eliminate tariff barriers. Japan will also refocus Thailand as their investment target country and give technology transfer to many industries such as textiles and apparel, and automobile development, he said.

Paiboon Ponsuwanna, chairman of the Food Processing Industry Club of the Federation of Thai Industries, said direct investment from Japan should increase.

He said logistics development would receive more cooperation from Japan after the execution of the bilateral trade agreement. "We have talked with the logistics businesses from Japan and they are willing to assist in terms of investment and management to reduce the logistics cost. At present, the logistics cost of business in Thailand accounts for 23 per cent of GDP. The council aimed to cut the cost to 15 per cent in the first phase of cooperation.

Dej Pathanasethpong, 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 their competitive edge in the next three to four years because neighbouring countries are fast catching up in this sector, he said.

The association predicted that exports of garments to Japan should double in the first year of the pact implementation.

Rachane Potjanasuntorn, director-general of the Export Promotion Department, expected export growth of 6 per cent to $17.5 billion this year if the agreement is implemented within this year.

Exports to Japan account for 13 per cent of the Kingdom's total export value.

The Japanese government is debating the agreement in parliament. If the pact is signed in early April, it should be implemented within July this year.

Santi Villassakdanont, chairman of the Federation of Thai Industries, said that exporters were very optimistic of the results of the agreement for short-term and long-term benefits.

For instance, shrimp exports to Japan would grow by 30 per cent, food exports would increase by 10 per cent and in the first year garment exports would jump significantly by 35 per cent.

Petchanet Pratruangkrai

Watcharapong Thongrung

The Nation