Japan is stepping up efforts to complete its free-trade-agreement (FTA) negotiations with countries in Southeast Asia, excluding Burma, by the middle of next year. Successful negotiations will create a level playing field for all of Japan's trading partners to enjoy low import tariffs.

The Commerce Ministry, together with the Joint Public and Private Committee, held a seminar yesterday on "How to Utilise Benefits from the Japan-Thailand Economic-Partnership Agreement". The seminar aimed at enhancing Thai manufacturers' and exporters' preparedness to adjust their production ability to meet Jtepa requirements.

Commerce Minister Krirk-krai Jirapaet said that once Japan's FTAs with other countries came into effect they would reduce Thailand's export competitiveness as Japan's other trading partners (with FTAs) would enjoy the same low import tariffs as Thailand.

"Although the free-trade pact will provide low tariff privileges for Thai export goods to Japan, the benefits of the pact will not last long. To maintain the country's export competitiveness, all industries should cooperate with Japanese companies to develop business-management and manufacturing efficiency," he said.

Japanese free-trade pacts with Malaysia and Singapore have already taken effect. A Japanese-Philippine FTA is expected to be implemented this year.

Japan is also in talks with Indonesia, Brunei and Vietnam to create bilateral free-trade accords, which Japan hopes to finalise by next year. Jtepa's implementation is expected to take place in October, following ratification by the Japanese parliament.

Krirk-krai advised the Thai private sector to form business alliances or partnerships with their Japanese trading partners in order to gain more technology transfer and business-management know-how.

He said Jtepa had demonstrated Thailand's liberalised trade and investment policy and would convince Japanese investors to invest more in Thailand, whilst Thai manufacturers hoped to see more technology transfer from Japan.

Sectors that will reap advantages for business development are agriculture, processed food, textiles and garments, restaurants, healthcare and tourism, he said.

Suchart Chantaranakaracha, chairman of the Thai National Shippers' Council, said that despite a short period of enjoying tariff privileges, the more Thailand cooperated with Japanese companies, the more there would be for industry development.

Suchart added that Jtepa would help small and medium-sized enterprises to develop their business through joint ventures with Japanese partners and Thailand could learn from Japan's well-established logistic system in terms of management and technology development.

Rachane Potjanasuntorn, director-general of the Export Promotion Department, said Jtepa would encourage Thailand to achieve export growth to Japan beyond projected levels.

The country's exports to Japan are targeted to grow by 5.5 per cent this year. However, Thailand exports to Japan soared by 17.3 per cent to US$4.5 billion (Bt156 billion) in the first quarter of this year alone.

Santi Villassakdanont, president of the Federation of Thai Industries, said the government should arrange a business-matching forum between the two countries to give Thai investors sustainable benefits from the FTA.

Petchanet Pratruangkrai

The Nation