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Reflections on the Human Condition - Api-fellowships.org

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244 SESSION IV<br />

any benefits from going into <strong>the</strong> FTA with developed<br />

countries. If Thailand’s prosperity depends <strong>on</strong> <strong>the</strong><br />

global trading system, <strong>the</strong>n FTA should not damage <strong>the</strong><br />

country’s ec<strong>on</strong>omy and <strong>the</strong> Thai government should<br />

manage it well.<br />

In Sou<strong>the</strong>ast Asia, Thailand has worked closely with<br />

<strong>the</strong> ASEAN members to create <strong>the</strong> AFTA and now has<br />

been proceeding forth with <strong>the</strong> establishment of <strong>the</strong><br />

ASEAN Ec<strong>on</strong>omic Community (AEC). As proposed by<br />

Thai Prime Minister Thaksin Shinawatra, <strong>the</strong> AEC will<br />

turn ASEAN, with over 500 milli<strong>on</strong> c<strong>on</strong>sumers, into a<br />

single market and producti<strong>on</strong> base by <strong>the</strong> year 2020.<br />

Under <strong>the</strong> AEC initiative, 11 priority sectors have been<br />

identified for comprehensive ec<strong>on</strong>omic integrati<strong>on</strong>.<br />

These sectors include wood-based products, automotives,<br />

rubber-based products, textiles and apparels, agro-based<br />

products, fisheries, electr<strong>on</strong>ics, e-ASEAN, healthcare,<br />

and air travel and tourism. By intensifying its efforts<br />

under ASEAN commitment, Thailand would get larger<br />

markets. This is because with <strong>on</strong>ly a limited market of<br />

63 milli<strong>on</strong> people, Thailand would expand to a market<br />

of 500 milli<strong>on</strong>s. (Soesastro, H., 2003)<br />

Under <strong>the</strong> Thaksin government, in order to reduce<br />

<strong>the</strong> export vulnerability, Thailand has announced its<br />

Figure 1: Bilateral FTAs between Thailand and Its Trading Partners.<br />

EU<br />

BIMSTEC<br />

India<br />

Bangladesh<br />

Bangl g adesh<br />

SriLanka SriLanka<br />

Bahrain<br />

ASEM<br />

Brunei<br />

Ind<strong>on</strong>esia<br />

Malaysia<br />

Philippines<br />

Singapore<br />

Vietnam<br />

Cambodia<br />

Laos<br />

Yunan<br />

ASEAN<br />

�ailand<br />

Burma<br />

GMS<br />

APEC<br />

Source: Bangkok Post, Mid-year ec<strong>on</strong>omic review, 2004b.<br />

Ref lecti<strong>on</strong>s <strong>on</strong> <strong>the</strong> <strong>Human</strong> C<strong>on</strong>diti<strong>on</strong>: Change, C<strong>on</strong>flict and Modernity<br />

The Work of <strong>the</strong> 2004/2005 API Fellows<br />

intenti<strong>on</strong> to pursue bilateral free-trade agreements<br />

outside ASEAN. As a way, <strong>the</strong> intensive talks are being<br />

held with many countries from developed to developing<br />

countries, such as with Australia, New Zealand, <strong>the</strong> US,<br />

Japan, China, India and a number of countries in <strong>the</strong><br />

Middle East and South America.<br />

As an ASEAN founding member country, Thailand has<br />

c<strong>on</strong>nected to o<strong>the</strong>r free trade agreements around <strong>the</strong><br />

globe, as ei<strong>the</strong>r bilateral or multilateral agreements. As a<br />

whole, <strong>the</strong> picture of <strong>the</strong> involvement of Thai ec<strong>on</strong>omy<br />

into <strong>the</strong> world of FTA can be drawn in Figure 1.<br />

Thailand has set up trade negotiati<strong>on</strong>, outside ASEAN-<br />

AFTA deal, as multilateral agreements under World<br />

Trade Organizati<strong>on</strong> (WTO), Asia Pacific Ec<strong>on</strong>omic<br />

Cooperati<strong>on</strong> (APEC), BIMSTEC, GMS and AFTA-Closer<br />

Ec<strong>on</strong>omic Relati<strong>on</strong>s (CER). In additi<strong>on</strong>, Thailand has<br />

also been settled <strong>on</strong> <strong>the</strong> bilateral agreements with some<br />

trading partners. Thailand should adjust its free-trade<br />

negotiati<strong>on</strong> strategy and start focusing <strong>on</strong> <strong>the</strong> whole<br />

packages instead of pushing for immediate tariff cuts<br />

for some selected items before completing <strong>the</strong> entire<br />

agreements. To date, <strong>the</strong> Thai government has already<br />

signed <strong>the</strong> two early-harvest agreements with China and<br />

India even <strong>the</strong> rest of <strong>the</strong> FTA discussi<strong>on</strong>s with <strong>the</strong> two<br />

countries remain unfinished. (The Nati<strong>on</strong>, 2005b)<br />

China<br />

Japan<br />

Korea<br />

AFTA-CER<br />

Russia<br />

Chile<br />

PNG<br />

Peru<br />

Mexico<br />

Canada<br />

US<br />

Australia<br />

New Zealand<br />

FTA<br />

CER<br />

Bilateral Agreement<br />

Pending Negotiati<strong>on</strong>

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