Asean+6 set to finalise free-trade pact by 2015

Petchanet Pratruangkrai

The Nation February 8, 2014 1:00 am

Talks making progress for seamless market of 16 countries

Asean and six of its major trading partners, China, Japan, South Korea, India, Australia and New Zealand,
have agreed to finalise the Regional Comprehensive Economic Partnership (RCEP) by next year, resulting
in the world's largest free-trade agreement.

The pact will create a seamless market among 16 countries, liberalising trade, services and investment,
as well as promoting closer economic cooperation, protection of intellectual property rights, increasing
competitiveness, and establishing a dispute-settlement mechanism.

After a recent meeting in Malaysia of the RCEP working committee, Somkiat Triratpan, deputy director-
general of the Thai Commerce Ministry's Trade Negotiations Department, said the talks had progressed
on many issues. The RCEP will group the existing bilateral trade agreements in the region and expand
some cooperation to ensure liberalisation in all areas.

The next meeting on the RCEP will be held in Nanning, China, in April.

According to the department, the value of total trade between Thailand and the RCEP group is about
US$255 billion (Bt8.36 trillion), or 56 per cent of all Thai trade. Once it is in place, the RCEP should be
able to increase that figure, according to its supporters.

A study by the department and the Thailand Development and Research Institute found that after the
RCEP is ratified, the country's gross domestic product would increase by 4.03 per cent. Thai products
that will enjoy more trade liberalisation are mainly processed fruits and vegetables, processed food,
electrical appliances, electronic goods, auto parts, rubber and plastic.

During the meeting in Malaysia, the committee discussed many issues such as market liberalisation,
tariff reduction, non-tariff measures, rules of origin, customs procedures, trade facilitation, sanitary and
phytosanitary standards, and industrial-goods standards.

They discussed the sectors that would be liberalised, and the pattern of investment liberalisation.
Moreover, they talked about technical and economic cooperation, intellectual-property rights, and
dispute settlement.

Investors looking for quick end to Thai political crisis as AEC looms
PETCHANET PRATRUANGKRAI

THE NATION February 10, 2014 1:00 am

INDIAN INVESTORS in Thailand are looking forward to a quick end to the political conflict and expect the
country to recover within six months

They believe Thailand can link India to Asean and serve as a second base of investment after the
motherland. However, if the crisis drags out to a year, some Indian investors may find alternative places
to do business.

Susheel Saraff, president of the India-Thai Chamber of Commerce, said last week that with the Asean
Economic Community (AEC) coming soon, other countries may likely offer more competitive and
conducive business environments in certain industries. But so far no members have indicated such plans
to move trade to other Asean countries, although some are exploring new ventures in other countries
post-AEC.

"Everybody and business people feel some problems and their businesses have been impacted by the
political conflict, particularly the tourism industry and trading. But history ensures that Thailand could
bounce back very fast. Indian tourists still come to Thailand, despite some worries. The Indian
government may be the last country that would issue a warning to its citizens," he said.

The Indian business community thinks that the current situation is a temporary phase and in the long
run the growth and investment scenario will be in favour of business especially after the integration into
the AEC region. Like other foreign businesses operating in Thailand, Indian firms look for political
stability and would like to see Thailand return to normal as soon as possible.

Besides their own assessment and perceptions in the foreign media, many news reports about
Thailand's situation make them worry.

According to the chamber, a million Indian tourists come to Thailand each year, while about 70,000
Thais travel to India. Susheel said that with the uncertainty in politics in Thailand, Indian tourists could
grow slower than the normal 10 per cent a year to only 3-4 per cent this year.

In terms of investment, there are several existing businesses that want to expand in Thailand and are
also looking forward to the AEC to explore other countries.

"Many Indian businesses are now looking to go global and the AEC, including Thailand. Thailand can
provide a great choice due to close proximity, lower costs of cargo movements and similar cultures," he
said.

Indian businesses that are looking to invest more and use Thailand as an Asean hub are in such
industries as in steel, electronics, motors, rubber tyres, jewellery, nylon, textile, medicine, real estate,
service and hospitality.
Recently Larsen & Toubro has participated in various tenders for EHV transmission lines and sub-station
projects held by Egat for Thailand.

Investment by Indian and Thai companies into both countries is growing. Indian FDI is estimated at
about US$2 billion since the 1970s. Approved Indian investment in 2011 was $56 million and in 2012
was $196.4 million.

Thailand has invested $139.2 million in India from April 2000 to last September. However, the real figure
is higher, as several Indian-Thai investors in Thailand are counted as Thai investors.

In 2011, 15 investment proposals from India worth $56 million were approved. In 2012, 25 proposals
worth US $200 million were approved. Thailand has invested $102.44 million in India.

The Thai Board of Investment has said Indian companies invested Bt30.2 billion in Thailand from 2007-
12 and it is seeking to attract more such investment.

Indian companies such as Aditya Birla Chemicals (Thailand), Apollo Tyres (Thailand), NTS Steel and Tata
Motors invested in 114 projects in the Kingdom during the period.

More Thai enterprises should |consider doing business and invest-ing in India, as demand there is high
in many areas, especially food processing, hydropower development and services.

Many leading Thai companies in the fields of agro-processing, construction, automobile manufacturing,
engineering and banking are active and growing their presence in India. Major Thai companies active in
India are CP Aquaculture (India), Ital Thai Development., Krungthai Bank, Charoen Pokphand (India),
Stanley Electric Engineering India, Thai Summit Neel Auto, Thai Airways International, Precious Shipping,
Dusit Group in the hotel and hospitality Industry, Pruksa Real Estate and Srithai Superware, a maker of
melamine tableware.

To promote more investment from India, the chamber called on the government and agencies to
encourage the signing of a comprehensive bilateral free-trade agreement this year after more than 29
rounds of negotiations.

Since the early harvest free-trade scheme came into effect in 2003, traders and investors have been
waiting for a comprehensive pact so that they can invest and do more business here.

Also, a roadway connecting Northeast India to Thailand should be developed to make trade, logistics
and investment easier.

Many regulations need to be made practical and flexible as some rules have hindered trading and
investment by foreigners including Indians, he added.
AEC tie-up is 'still on track'

PETCHANET PRATRUANGKRAI

THE NATION February 10, 2014 1:00 am

THAILAND has assured other Asean nations that the political unrest here will not upset the plan to
inaugurate the Asean Economic Community next year, while expecting to complete documentary
signing after getting a new government this year.

"Many Asean countries have expressed concern about the political situation in Thailand, and questioned
whether the unrest will affect the Kingdom's ability to proceed to regional integration. I insisted that
other activities are still operating as normal, except some documents that need to wait for the new
government to ink," Somkiat Triratpan, deputy director-general of the Trade Negotiations Department,
said last week.

Thailand is still moving on the regional integration pact under its commitment with Asean, he said after
attending the Asean Senior Economic Officials Meeting in Myanmar.

Indonesia is also changing its government and is scheduled to hold elections for parliament and
president in April and July, respectively. The signing of some Asean documents may be transferred to
other Asean countries before Thailand and Indonesia. After that both countries will sign them.

Documents that need the government's ratification include the ninth volume of the liberalisation of
service businesses, adjustment of investment regulations and reserved businesses, and the Asean-India
free-trade agreement on services and investment.

According to the department, Asean countries have made big progress in moving towards the AEC.
Among the 10 member states, Singapore has accomplished 79 per cent of the AEC plans, followed by
Thailand.

Some issues that Asean countries have delayed implementing by 2015 are transportation facilitation,
the setting of processed food standards and the negotiations for the 10th service business liberalisation.

Asean countries have also insisted that they will continue to move toward the AEC by 2015. During the
Asean Economic Ministers Meeting Retreat from February 26-27, they will discuss the headway in
solving problems with non-tariff barriers.

This year, Asean, which is chaired by Myanmar, plans to focus on supporting the development of small
and medium-sized enterprises. Asean also discussed how to deepen cooperation among the members
after the AEC is achieved next year.
Laos govt branches 'need to improve for AEC'

Vientiane Times

Asia News Network February 11, 2014 1:00 am

The government needs to improve in many fields in preparation for the country becoming a member of
the Asean Economic Community (AEC) next year.

Representatives from different sectors of the government and the private sector gathered in Vientiane
on Friday to deepen their knowledge about Asean issues under the second Asean awareness seminar.

The seminar comes under the umbrella of the Laos Pilot Programme for Narrowing the Development
Gap towards Asean integration (LPP project). Deputy Minister of Planning and Investment Bounthavy
Sisouphanthong spoke at the seminar.

He said the aim is to boost the preparedness of each branch of the government and the private sector
prior to Asean integration, especially in regard to the improvement of regulations, human resource
development, administrative institutes, financial systems as well as the standard and quality of goods
production.

Meanwhile, senior JICA representative Kimura Hironori reiterated the importance of focusing on
preparation for the AEC in Laos, introducing the policy measures and framework of the AEC in Thailand
and promoting the awareness of current Asean issues.

The LPP targets balancing development growth and environmental conservation and the harmonisation
of development with three components, these being environment, tourism and agriculture, he said.
Each of these components has made significant progress to date but the opportunities for Lao
counterparts of each component and the private sector were limited, especially on learning about Asean
integration, Hironori said.

Laos still has many challenges to integrate with Asean as the knowledge of key personnel in the
government and private sector in regard to trading and economics are still limited, Asean Department
director-general Khiane Phansourivong explained.

The ability of the country to compete with other Asean countries is still low, there is poor infrastructure
for products, transportation and services, while financial regulation is not strict and the trading and
banking system is not sufficiently strong, he noted.

Preparations by Laos to integrate with the AEC are currently focused on four areas of work. One is to
generate an understanding of the AEC to link with the region and the international economy, he said,
while the second is to create mechanisms to improve coordination between the various central
government sectors and local authorities.

The third is to study commercial production projects, goods lists, service systems and to increase
support to small and medium enterprises, and the fourth is the improvement of rules and regulations in
relation to setting up business operations. "We also want to develop human resources in each sector
from the central to the local levels to participate in international economic integration," said Khiane.

Asean agrees to push integration beyond AEC launch

PETCHANET PRATRUANGKRAI

THE NATION February 27, 2014 1:00 am

ASEAN permanent secretaries have agreed to continue promoting Asean trade and economic
integration even after the full realisation of the |Asean Economic Community next year. The "Asean
Miracle and AEC plus 2015" plan came out of the recent 25th Asean senior officials meeting in Yangon.

Srirat Rastapana, permanent secretary of the Thai Commerce Ministry, said |yesterday that the plan will
be proposed to the Asean Economic Ministers meeting in August.

It will continue to promote closer ties in all aspects, including trade, services, investment, trade
competitiveness, economic development and logistics linkages.

The Economic Research Institute for Asean and East Asia has drafted four key |proposals for post-2015
|Asean:

lContinue reducing and eliminating non-tariff barriers and increase trade facilitation.

lIncrease competitiveness for Asean investors by focusing on innovation, technology |and human-
resources development.

lStrengthen cooperation in food security, energy, disaster management and the development of SMEs.

lEnhance Asean's role on the global stage and amend each country's laws and regulations to be more
effective and up-to-date.