Rivals to gain in absence of thai endorsement

Thai farm and industrial goods risk losing market share to their rivals following the failure of the Parliament to meet yesterday to endorse the free-trade agreements (FTA) under Asean.

Commerce Minister Chaiya Sasomsub will tomorrow brief the Cabinet on the problems arising from Parliament not endorsing the FTA pacts as scheduled. He hopes to pressure the Cabinet to facilitate the agreement signing.

Under the new Constitution Act 2550 Article 190, any negotiations which will create and change Thailand's territory, economic security, social as well as oblige to budget spending and trade and investment, would need endorsement from Parliament.

The Federation of Thai Industries (FTI) has expressed worry that political violence will affect Thailand's trade and tariff benefits, which will be discussed during the upcoming Asean Summit in Chiang Mai next month.

Protests by the People's Alliance for Democracy in front of Parliament prompted House Speaker Chai Chidchob to postpone the joint session of the House-Senate yesterday.

Santi Vilassakdanont, president of the FTI, said yesterday that without endorsement from the Parliament, Thai exporters cannot apply for tax privileges and other benefits from the free-trade agreements that Asean has already inked with trading partners, China, Japan, India, Australia and New Zealand.

"The government should find a way to have a session of Parliament to forward its endorsement during the Asean Summit next month," Santi said.

Pornsilp Patcharintanakul, deputy secretary-general of the Board of Trade of Thailand, said yesterday that rubber, palm oil, sugar, seafood, electronic, garment and car export will be hurt if Thailand cannot ink any FTA under the Asean scheme.

"Thailand will lose competitiveness to other Asean countries if it cannot join this time to ink the agreement with trading partners," Pornsilp said, adding Parliament should endorse the agreement.

"Thailand would miss the opportunity to sign many agreements, which Asean members are scheduled to sign during the summit," Pornsilp pointed out.

Weerachai Wongboonsin, chairman of the subcommittee to monitor impacts from the free trade agreement of the Board of Trade of Thailand, said the private sector is worried about investor confidence if Thailand cannot sign any FTA pacts during the Asean Summit.

"Not having endorsement from Parliament would mean Thailand lacks stability and it will also affect our credibility," Weerachai said.

Chana Kanarattanadilok, deputy director-general of the Trade Negotiations Department, said the House-Senate joint session cannot endorse the FTA agreement at this present session.

However, the government should manage a one-day session to consider the agreement and endorsement.

There are many agreements under FTA awaiting Parliament's endorsement such as Asean Trade in Goods Agreement and Asean-Korea FTA.

Thanavath Pholvichai, director of the Economic and Business Forecasting Centre of the Thai Chamber of Commerce University, said the country is facing high risk and exports could face negative growth of 10 per cent.