Thailand should not rush to join the US-backed Trans-Pacific Partnership (TPP), as it would bring many challenges along with its benefits, and its playing field would not be level, private enterprises and academics said.
At a seminar yesterday on "TPP: Hope or Political Games" organised by the Trade Negotiations Department of the Commerce Ministry, panellists shared similar views that the pact would create huge benefits for Thailand. However, there are also many issues of concern, mainly on different standards of protection of intellectual property, the environment and labour, and high competitiveness for some products important to Thailand.
Moreover, they warned that Asean might lose some attractiveness and impetus for pushing closer cooperation within the region, since many Asean members would focus more on the TPP, with its broader economic integration. Four Asean members--Brunei, Malaysia, Singapore and Vietnam--are already in negotiations with the US on joining the pact.
Prapat Thepchatri, director of Asean studies at Thammasat University, said Thailand should wait until other countries in Asia have decided to join the TPP before making its own move. Moreover, the country should carefully study what impact joining in the TPP negotiations would have on its relations with China.
Prapat pointed out that there would certainly be economic benefits from joining this multilateral pact and becoming a strategic partner of the United States. However, many sectors such as agriculture and some manufacturing c ould face negative impacts, and there could also be political ramifications from rushing into joining the TPP.
Piyanuch Malakul na Ayuthya, deputy secretary-general of the Federation of Thai Industries, said that if the Kingdom fails to join the TPP, it could fall behind Vietnam, which trades very similar goods. However, many Thai manufacturers are not ready to join the pact, as they need time to adjust and increase their competitiveness.
Sectors that want to join the TPP include textiles and garments, sugar, air-conditioning, electrical and electronics, foods, jewellery and rubber. Some of those enterprises are worried that they will lose tariff privileges under the US Generalised System of Preferences soon.
However, other sectors such as machinery, metals and some agricultural segments are highly concerned about the strong technological superiority of US industries, and therefore want no part of the TPP.
Still other sectors, including leather and leather goods, plastics, and automobiles and auto parts, are hesitant on the issue.
Piyanuch added that while considering whether to join the pact, the government should urgently help small and medium-sized enterprises improve their competitiveness before liberalising the market for other TPP members.
Srirat Rastapana, director-general of the Trade Negotiations Department, said the government would listen carefully to the views of private enterprises on whether they would like to join the agreement. It is conducting a feasibility study on the anticipated gains and losses from joining the TPP.
