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Published on December 11, 2007

The Commerce Ministry will make a strong effort to ensure that the Foreign Business Act (FBA) and the Retail Business Act (RBA) pass second and third readings by the National Legislative Assembly (NLA) next week.

Otherwise, problems concerned with nominee issues and markets dominated by retail giants will not be solved.

The two Acts must win NLA approval and be implemented prior to December 23, the date of the general election.

Thailand's regulations to manage fair practices between foreign and Thai investors will be set back if the laws are not passed. The new government will consider changing details or dropping laws to facilitate businessmen who have raised their voices against them.

Internal Trade Depart-ment director-general Yang-yong Phuangrach said there would be a meeting of the subcommittee for the RBA next week. Then the department will propose the RBA for

NLA approval on December 19.

"We're worrying about the NLA consideration, as many groups who resist the RBA are sitting on the subcommittee. However, we tried to convince them," he said.

In addition, the department will propose about 20 businesses be put on an "exception list", asking ministry permission for special operating hours. So far, only three businesses - category killers, speciality shops and supermarkets- are excepted from the draft RBA.

The department will also consider changing details about restricted retailers defined under the law. Total sales were changed from Bt1 billion to Bt2 billion and floor space from 1,000 square meters to 2,000 square meters.

Yangyong said any changes would not affect small retailers, because big retailers' total sales had exceeded those restrictions. For instance, the biggest retailer, Tesco Lotus reported annual sales of Bt90 billion, followed by Big C with Bt70 billion, 7-Eleven convenience stores and Macro wholesalers with Bt60 billion each and Carrefour with Bt40 billion.

Business Development Department director-general Kanissorn Navanugraha said the House committee to draft the FBA today would consider the remaining details, particularly for Annexes I, II and III.

However, there are two different ideas about Annex III: one seeks no change and another would withdraw businesses in which Thais could not compete with foreigners.

"We hope we can reach a conclusion in the meeting today and propose the Acts to the NLA for approval before December 23," Kanissorn said.

NLA member Somchai Sakulsurarat said today's House Committee meeting would be the last time to make a final decision on whether to amend Annex III.

So far, the committee has two choices: finalise every argument by this government or let the new government consider the amendment. The committee will propose its comments to the new government, in order to facilitate further amendment.

Petchanet Pratruangkrai

 The Nation