NEWS THINK

INTERIM GOVT MUST DEAL WITH THE CONSEQUENCES OF FTA

Administration should consider how to prevent expected problems

ACHARA ASHAYAGACHAT

Now that Prime Minister Gen Surayud Chulanont has signed the controversial Japan-Thailand free trade agreement, the interim government must consider how best to deal with the consequences. It can delay ratification of the agreement until the next government is formed, or risk further damage to its political legitimacy by rushing into the ratification process without regard for criticism.

At the same time, the government should consider how it can prevent problems expected to arise.

For instance, it can reform state agency regulations.

It should also advise entrepreneurs and small and medium-sized enterprises (SMEs) on how they can benefit from the trade pact, formally known as the Japan-Thailand Economic Partnership Agreement (JTEPA).

It would not be gentlemanly for government officials to repeat what they did when free trade agreements with China and Australia had adverse impacts on entrepreneurs _ that is, blame SMEs and businessmen for failing to take advantage of the agreements.

The government should set up a committee to monitor implementation of the JTEPA and then recommend what should be altered when the pact is reviewed in three or five years' time.

The committee should bring together political appointees as well as permanent state officials who are knowledgeable and respected. The ministries of industry, commerce and agriculture should quickly and carefully expedite adjustment funds to affected farmers and entrepreneurs.

But post-JTEPA action should not stop with the government. It should also extend to constitution drafters, members of the National Legislative Assembly (NLA) and universities.

Constitution drafters should ensure that the country's most important source of law requires international agreements like free trade pacts to be subjected to checks and balances by parliament.

NLA members should think when they recommend what is to be done. They should also actively contribute to what is to be done, or they will be considered rubber stamps of the military-installed government.

Many educators have this week expressed concern that the free trade agreement will give Japan access to Thailand's biological resources.

Mahidol University lecturer Sansanee Chairoj said universities and researchers should be extremely cautious when conducting joint research with Japanese partners as their access to medical information could adversely affect Thailand's security.

Jaras Suwanwela, who heads Chulalongkorn University's council, called for measures to protect information that is sensitive to national security.

Phatra Research Centre reported that more Japanese suppliers will relocate to Thailand in order to take advantage of lower production costs, and this will have a significant impact on domestic parts makers, especially the tier-two (SMEs) and lower suppliers who will probably lose market share to the newcomers.

A Thailand Development Research Institute (TDRI) study has said that Thailand would gain more benefits if 58 additional items including sugar, which accounts for 3% of Thai exports to Japan, were included in the pact.

The think-tank proposed that officials try harder to push for lower barriers to Thai exports. It cited measures like anti-dumping, countervailing duties, technical standards, sanitary and phytosanitary standards.

The TDRI also emphasised the importance of conflict prevention, suggesting that hearings be conducted with experts and consultations with non-partisans or members of the public.

The signing of the agreement in Tokyo yesterday was quite a party, with toasts in Japanese and Thai. Now that the party is over, the clearing up must begin.

Bangkok Post

Wednesday April 04, 2007