Decision day imminent for TPP Farmers may protest if Thailand joins TPP

Bangkok Post 06 May 2016 

Groups representing farmers threaten anti-TPP rallies if the government decides to join the US-led Trans Pacific Partnership (TPP) trade treaty next month. The protest above was by 14 NGOs during the visit of US President Barack Obama in November, 2012. (Photo by Bangkok Post)

The government is likely to decide next month whether to take part in the Trans-Pacific Partnership (TPP) trade pact.

Farmers have threatened to organise protests if Thailand agrees to join the much-touted agreement.

Commerce vice-minister Winichai Chaemchaeng said the ministry was ready to propose a study on the impact of the TPP both in terms of possible benefits and losses to the International Economic Policy Committee chaired by Prime Minister Prayut Chan-o-cha today.

The meeting was adjourned from April 29.

The ministry will also propose a TPP study by an ad hoc committee representing the public and private agencies including the Agriculture Ministry, Public Health Ministry, Commerce Ministry, Federation of Thai Industries and Thai Chamber of Commerce.

It also wants to hear the suggestions and concerns of civil networks, particularly those in the pharmaceutical, farming and livestock sectors.

"If the International Economic Policy Committee decides Thailand should join the pact, the next step is to set up working panels to study remedy measures for the impact on each sector," Mr Winichai said. "Authorities will later start negotiating with the TPP's 12 founding members to ask for their support."

The TPP is a trade pact signed last October by 12 countries led by the US and including Canada, Mexico, Peru, Chile, Australia and New Zealand. The Asian members are Japan, Singapore, Malaysia, Vietnam and Brunei.

The economies of TPP signatories encompass 40% of global trade or US$295 trillion a year, with a combined GDP of $28.3 trillion representing 38% of the global total. The 12 TPP members account for 40% of Thailand's trade and 45% of foreign direct investment.

According to Mr Winichai, many TPP country members such as the US, Japan and Vietnam fully support Thailand joining the pact because the country is one of the world's key supply chains.

"Even if the government decides to take part in the TPP, it doesn't mean that Thailand would be automatically accepted," he said.

"Thailand needs to do a lot to make it ready as the pact is a comprehensive agreement and the most high-level liberalisation agreement in the world, featuring not only trade, investment and service liberalisation but also tighter regulations and requirements on e-commerce, government procurement, intellectual property, the environment, transparency and anti-corruption."

Mr Winichai said Thailand could still take about two years to consider joining the TPP, whose members will spend time seeking parliamentary approval.

He said the Commerce Ministry would continue holding meetings with farmers and civic groups to discuss the pros and cons of the TPP for their sectors.

The ministry will soon hold discussions with livestock farmers and farming networks nationwide.

Mr Winichai said the government had been trying to increase understanding of TPP issues among stakeholders including farmers, health activists and consumer protection groups.

The Agriculture Ministry revealed it would set up seedstock centres nationwide to gather and develop affordable high-quality seeds for sale to farmers. It would also amend the Plant Varieties Act to provide more protection for indigenous Thai plant varieties and prevent foreign exploitation.

National Farmers Council chairman Prapat Panyachatrak said he was worried the farming sector would bear the brunt of the impact if the government decided to join the TPP, resulting in the collapse of small and medium-sized farm operators.

The TPP might have a positive impact on certain sectors but huge negative impacts would follow for the farming sector, biodiversity, food security and the country's sovereignty, he said, adding the government should exercise extreme caution in considering the matter.

Sitthiporn Boorananath, secretary to the Beef Cattle Association of Thailand, said livestock farmers would have limited means to adjust to the agreement. Many would go out of business as they would be unable to compete with an influx of cheaper overseas products under the free trade deal.

The FTA between Thailand and Australia, completed in 2005, provides an example of the potential adverse effects as it caused a drastic reduction in the number of Thai cattle from 9 million to 5 million, he said.

Witoon Lianchamroon, director of Biothai, said the TPP would force the country to join international treaties that provide exclusive protections to foreign enterprises in relation to any biodiversity discoveries, preventing Thailand from sharing in the benefits.

It is estimated the country could lose 49 billion baht per year in biodiversity loss.

http://www.bangkokpost.com/news/asia/961497/decision-day-imminent-for-tpp