Reflections on the Human Condition - Api-fellowships.org

250 SESSION IV
Restructuring and adjustment processes in Thai
agricultural sector, especially for the empowerment of
Thai farmers, are of the essence in order to keep pace
with the rapid changes of the globalization and trade
and to gain more benefits from FTAs for the society.
The Thai government needs also to pay greater attention
in improving the effectiveness and competitiveness of
private businesses in the free trade. In addition, in the
efforts to develop its agricultural sector, Thailand has to
be aware on the distribution of benefits to each domestic
sector involved. The proportional attentions would be
creating a better welfare of its society. As one actor,
farmer especially the small one has to be intensively
empowered by creating their stronger bargains through
developing their productivity and increasing their
competitiveness in the international markets.
In the process of international trade or even free trade
we should think that the benefits of free trade should
be rest on the national context or national benefits in
total. It means even we win in the free trade it does
not completely mean that all people, all producers
(including farmers) will be better off, in one case, few
of them sometime are worse off. So, in the case of the
losers of free trade, the government should give any
compensation to the losers, let say small farmers through
some lead productive-competitive schemes.
ENDNOTES
1 The number of FTAs worldwide has increased from
only 79 in 1995 to be 208 in 2004 (The Nation, 2004c).
2 The slow movement and limited success of the
multilateral trade negotiations under the GATT-WTO
related to the more complicated problems arise in dealing
with these different interests from the large number of
its members. As a consequence, many countries that
are geographically close to each other and have similar
international trade policies have tended to arrange
regional trade agreements rather than tolerate the lengthy
and uncertain multilateral GATT negotiations.
3 Many industrial countries, including OECD countries,
have protected their agricultural products from free
competition, where about 24 percent of their domestic
productions are protected by tariff rate quotas (TRQs).
The condition in the developing countries remains
similar where they use tariffs to protect the domestic
markets. (Beghin, JC., and Aksoy, A., 2003)
4 With a total population of about 450 million people,
agriculture and food are the priority for most ASEAN
countries.
5 FAO showed that in 2002, the largest exporter of
Ref lections on the Human Condition: Change, Conflict and Modernity
The Work of the 2004/2005 API Fellows
agricultural products in Asia was China which accounted
of USD18 036.8 millions then followed by Thailand by
USD8 167.4 millions.
6 Field study was accomplished by conducting in-depth
interviews with the decision makers (government),
industries, trade association, Non-Governmental
Organization (NGO), farmers and academic experts in
Thailand. This type of data consists of its views of trade,
behavior and expectation regarding globalization in
agricultural trade. The secondary data are also collected
from the publications of government institutions such
as from the National Statistics Office of Thailand,
Department of Trade Negotiation, Ministry of
Commerce and Bank of Thailand.
7 The schedule of tariff reduction of five ASEAN
countries were on some agricultural products such
as for live animal, vegetable products, fats and oil,
prepared foodstuff, hides and leathers and wood and
wood articles. Singapore is the only country that has
not imposed tariffs on its trade. Then, from the initial
start of tariff reduction in ASEAN countries, the
less restrictive country is Malaysia. Malaysia’s tariff
reduction starting in 1996 up to 2003 has shown the
tariff level that always less than the ASEAN tariff on
average. Indonesia and the Philippines have imposed
relatively similar tariff levels on their agricultural
exports. Meanwhile, Thailand has been in the higher
tariff level in the agricultural products.
8 The ASEAN+3 was initiated by the signing of ASEAN-
China initiative in 2002; ASEAN-Japan economic
partnership in 2003; ASEAN-Korea economic
partnership in 2004. These efforts were to implement
the comprehensive economic integration among East
Asian countries towards the formation of free trade area
among them.
9 Apart from the AEC, there are also ASEAN Security
Community and ASEAN Social-Cultural Community
in order to perform the ASEAN Community.
10 The European Economic Community (EEC) was
formed in the 1950s, and then changed to be European
Union as a fully integrated common market in 1993.
11 As an example is China’s economy, at which according
to the United Nations Conference on Trade and
Development (UNCTAD), China is now the largest
recipient of foreign direct investment (FDI) flows in the
Asia-Pacific region. There is a growing perception that
China’s rapidly expanding economy would divert FDI
inflows away from ASEAN towards China.
12 This justification matches to the participation of
ASEAN in the development of APEC as multilateral
grouping.