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Published on April 29, 2008

Petchanet Pratruangkrai

Chalida Ekvitthayavechnukul

The Nation

American trade officials yesterday urged Thai-land to open up tele-communications, transport, financial services and agribusiness sectors in order to deepen bilateral economic ties.

The call was made in Bangkok during the Thailand-US Business Summit, the first of its kind after Thailand returned to a democratically elected regime early this year.

Under-secretary of Commerce for International Trade Christopher A Padilla said American businesses are looking forward to the opening of these restricted sectors so as to leverage economic growth for both sides.

"The opening up of more sectors will show a willingness to open new opportunities to service providers through more ambitious offers in the Doha Round of negotiations at the World Trade Organisation," he said.

Padilla's delegation included more than 100 American businessmen attending the conference to mark the 175th anniversary of US-Thai relations.

Prime Minister Samak Sundaravej told the US delegation his administration had no policy to further restrict foreign ownership of businesses here.

He said the government would support more flexible conditions for businesses listed in Annex III of Thailand's Foreign Business Act in order to promote foreign investment.

Sectors subject to more liberalisation included advertising, hotel operations, beverage and food retailing, computer services, warehouse control services and entertainment businesses.

Pramon Sutivong, Board of Trade and Thai Chamber of Commerce chairman, said the latest decision by the US Trade Representative to keep Thailand on the Priority Watch List (PWL) should not hurt bilateral trade and investment ties.

However, some businessmen were more concerned over increased political uncertainties such as the proposed amendments to the Constitution, said Pramon.

Meanwhile, Prairash Burapachaisri, honorary secretary-general of the Joint Private Standing Committee on Commerce, Industry and Banking, noted that Thailand exported less to the US last year following the cancellation of generalised system preferences (GSP) privileges for some Thai goods.

"We would like to encourage you [the US government] to fully maintain our GSP status. We also hope a free-trade agreement between Thailand and the US will be completed soon so that exports to the US will be increased," he said.

Siam Cement Group president and CEO Kan Trakulhoon said his firm has entered into joint ventures with three US-based companies, including Dow Chemical, one of the world's leading petrochemical firms.

"We have been doing business with Dow Chemical for 20 years," he said, adding that the US partner has continually increased its investment.

At present, Dow Chemical holds a 33-per-cent stake in a joint-venture project worth US$1.5 billion (Bt47.5 billion).