Will the TPP Free Trade Agreement have a negative effect on Thailand?

[buksida]

AFTER five years of secretive negotiations, the terms of the Trans-Pacific Partnership (TPP) were recently agreed on by the 12 countries involved: US, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru. In a press conference announcing the agreement on 5 October, trade ministers from the US, Australia and Japan called the agreement “ambitious” and “challenging” adding that it will cut red tape globally and “set the rules for the 21st century for trade”.

One notable absentee was Thailand, with Prime Minister Prayuth Chan-ocha quoted as saying “there are many parts to look at as we don’t want to add a burden to the country.”

While the TPP will take many years to actually implement, it is likely to mean a major change in trade relations between the USA and TPP members. Nonetheless, the fact that Thailand is not presently set to join the TPP has caused concern and confusion among Thailand’s business leaders.

With these concerns in mind, Dataconsult in Bangkok invited Dr. Rachda Chiasakul, a specialist in Thai FTAs and advisor to the present government, to host November’s event under the title: ‘The Conclusions of TPP: What is next for Thailand?’

Full Story: Asia Correspondent

[migrant]

Have not read the whole agreement, but when the US entered into NAFTA with Canada and Mexico it included an easing of rules between the countries, therefore making it cheaper to do business. If the TPP has the same, then it could cause signing countries to tend to do more business with each other.

[oakdale160]

Ihave not ben following te TPP trade deal too carefully. I see its first signing was in NZ this week. Malaysia, VN, S;pore and Brunei have signed up but not Thai. Did Thai withdraw or were they never participants. From my reading it could help coutries manufacturing cars and also countries exporting
food, Thai does both of those things.

[PeteC]

Thailand was never a participant as I think they declined at the beginning. Now they are thinking about joining as their new finance minister and others see benefits. Nothing more than that in the news that I've seen. Don't know where they are in the decision making process. Pete

[oakdale160]

It looks as if VN is going to inherit the role played by Japan and later by Taiwan and South Korea as the leader in technology, manufacturing and exporting. With membership in AEC and TPP they are likely to become the power-house in SE Asia. Cant see how Thai can avoid becoming anything but the poor neighbor.
One of the factors in VN is that the Western raised children of the boat people are returning with a good education, entrepreneurial drive, money and fluency in English. They are setting up businesses. The same happened in China. The only Thai reurnees that I have met are retirees, but perhaps that because I am in HH.

[J.J.B.]

Thai protectionism could ultimately be its downfall. The forum is littered with examples of cultural pressures that encourage a narrow education, a low proficiency in English and a lack of any concept of consequence other than disproportionate and often violent retribution.

The TPP represents a pivot towards or away from being a performer on the global stage. Thailand can carry along its current course and be sidelined as a backwater, developing country as its neighbours rapidly out-pace it, or it can throw off its shackles and be a genuine star. Much has to change, however, and one must remember that a culture's main purpose is to resist change.

There's a TPP conference in London this week, it will be interesting to see how this is developing.

[oakdale160]

To J.J.B.
Change JJB?? Q. How many Thais does it take to change a light bulb?
A. It doesnt matter how many you have, they are not going to change anything.

[Bristolian]

^ agree. How often are the traffic lights allowed to change irrespective of the flow.
The TPP will over the next few years impact greatly on Thailand but most foreign businesses here think that Thailand will react, if at all, far too slowly.
In my own particular industry I see investment moving out of Thailand, sad but true.
In the late 90s (post financial crisis) we saw the economy moving from a domestic, inward looking economy to an export driven Dynamo. Everyone now sees the reverse trend where focus becomes inward once more and that's a great pity. Local peer countries are now outstripping the Teflon Kingdom.

Let's focus on internal mega projects... That has to be the way forward??

[usual suspect]

I doubt Thailand will sign up to any trade-agreement just now in case it upsets China..
Plus as has been stated before this nation does seem to be isolating itself somewhat lately with a strange idea that it can follow in the footsteps of N.Korea..