Therefore, the downgrade will not affect Thailand's dealings with the Washington government.

Ambassador Ralph Boyce yesterday met with Commerce Minister Krirk-krai Jirapaet in an attempt to create understanding on several issues, including the

downgrade of Thailand's trade status to Priority Watch List, compulsory licensing and the Foreign Business Act amendment.

Krirk-krai quoted Boyce as saying the US government would not impose "any retaliation measures" against Thailand's compulsory licensing and nor would the downgrading affect the upcoming revision of the Generalised Systems of Preferences (GSP) on Thai exports.

However, Boyce expressed concern on the rising number of piracy cases here, which was a major factor for the US when considering to downgrade Thailand.

Krirk-krai said the government had launched stringent measures to crack down on counterfeit goods in a bid to restore its trade status.

"What the government has launched to suppress piracy is a concrete and effective plan to stamp down on the violations," he said.

In addition, Krirk-krai warned Thai exporters not to rely too heavily on the GSP because it is a temporary trade benefit.

Trade under tariff privilege accounts for 20 per cent of total trade with the US. Exporters must develop their competitiveness rather than focus on impermanent benefits, he said.

Petchanet Pratruangkrai

The Nation