By Bai Eason TPMA 17 th APIC in Japan.

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1 By Bai Eason TPMA 17 th APIC in Japan

2 2

3 FTA of APEC TPP (Trans-Pacific Partnership) Further discussion from P4 (The Pacific-Four FTA) Initiated by Singapore, NZ,Chile & Brunei Comprised of 12 economies ( Aus, NZ, Canada Chile, Peru,Mexico, USA, Japan, Brunei, Malaysia, Sing, Vietnam TPP may lead to FTAAP (Free Trade Area of the Asia Pacific) which will include all APEC members Source : Ministry of Commerce 4

4 Trans-Pacific Partnership: TPP Roadmap 16.7% TPP 12:Aus, NZ, Canada Peru, Chile, USA, Mexico, Japan, Malay, Sing, Vietnam Brunei Cover 40.0% of Global Trade P4 : Aus, USA, Peru, Malaysia, Vietnam(Signed up on July18, 2003 TPP9 TPP12 FTAAP P4 : Free Trade Area of the Asia Pacific รวม 21 Economic Zone Brunei, Chile, NZ, Singapore 2.8% Source : Ministry of Commerce 47.8% % of Global trade proportion in

5 Average Import duty of TPP members Average Import duty MFN Applied (Thailand) 11.4% 6

6 Latest agreement 1. Intensive Free trade covers Merchandise goods, Service & Investment including reform to align the economic Act. 2. TPP is comprised of 30 issues which has been announced the accomplished on Oct 5 th 2013 Source (Oct 6th 2015) : Ministry of Commerce 6

7 High light of TPP 1. Initial Provision and General Definition Aligned with WTO & Regional FTA 2. Trade in Goods Terminate both Tariff & NTB of industrial goods. Terminate / Reduce import tax of Agriculture products. Terminate all existing rules which were not aligned with WTO. Set timing Schedule to implement per this agreement. Terminate the Quota measure. ต องยอมร บส นค า remanufactured goods ในภาษ 0% ซ งความเห นในป 2552 กล มยานยนต และช นส วน ยานยนต เคร องจ กรกล ไม เห นด วย 7

8 TPP context 3. Textile & Garment Immediate terminate Tariff & determine the exact timing to terminate the tariff for all items in sensitive list. Define the ROO for both Yarn and Fabrics to encourage all supply chains in the region. 4. Rules of Origin: ROO All members shall apply common rule. Accumulation of ROO among members shall be allowed, simplified,practical & efficient 8

9 TPP Context 5. Supportive Custom Management : Transparent & predictable, Rules & regulations shall be prior announced. Rules & regulations shall be announced in advance to public. Efficient service including express shipping per request. 6. Sanitary and Phyto sanitary: SPS: It shall be Transparent with no Bias based on Scientific principle in order to protect human life, animal & plant. (Food Safety to Animal and Plant). All members shall agree to adopt the Equivalence,Transparency with common procedure of Imports Checks and Verification. 9

10 TPP Context 7. Technical Barriers to Trade: TBT The local regulators shall facilitate trade & avoid creating barrier to trade by adopting the common Assessment procedures of international Standard to determine the Conformity Co operate with all other members to regulate under the same International Standards.(Regulatory Cooperation) with transparency. Central point of inquiry shall be set up for member economies List of items which shall be prior determined the TBT are Cosmetics Medical supplies, ICT parts, food additives & Organic agriculture products. 10

11 TPP Context 8. Curing policy to minimize the loss of local biz shall be with transparent process & not impact the right of other members per WTO rules. ( no more than 2 years ) 11

12 TPP Context 9. investment 1. The road map was dominated by USA Investment Direction context very similar to NAFTA 2. Definition of Investment also covers subjective items such as intellectual properties, patent,etc 3. Investors shall be treated the same level as TRIM Agreement or at least Minimum Standard of Treatment to build up investors confidence. 12

13 Context 9. Investment (Continue) 4. Not only protect foreign investors, but also imported goods 5. Local Government shall not take away the biz of foreign investors without justified reason. Compensation policy shall be applied. 6. However, members are entitled to turn down privilege to Foreign investors. 7.Incase of conflict, it shall be enter the Investor-State Dispute Settlement (ISDS) 13

14 Context 10. Cross-Border Trade in Services Members shall apply the National Treatment the same way with Foreign investors who are members of TPP (Most-Favored-Nation Treatment) 11.Financial Service (Cross border Trade in Financial Services) (Non-discriminati (Fair Treatment of New Financial Services) 12. Temporary Entry for Business Persons 13. Telecommunication) (Transparency of the Regulatory Process) Minimize cost of International Mobile Roaming 14

15 Context 14. E-Commerce Allow flow in flow out of information & develop to be Digital Economy, Digital custom service Authentication of electronic transaction consumer protection Information Flow Treatment of Digital Products 15.Government Procurement Based on WTO Principle. All foreign investors shall have the same opportunity to make proposal the same as local. ไทยย งไม เคยเป ดเสร จ ดซ อ จ ดจ างภาคร ฐ ใน WTO/FTA 15

16 Context 16. Competition Policy Covers all Commitments to enforce the Competition Law & Supported by related organizations as Technical Cooperation 17. State-Owned Enterprises and Designated Monopolies 16

17 Context 18. Intellectual Property Definition Cooperation Trade mark Patent, unrevealed data, Local Intellectual properties. Industrial Design Enforcement and measure at Borders Patent of Partial design shall be protected Extend the Patent duration. Source: WikiLeaks, 16 October

18 19. Labor Freedom of Union for negotiation Labor by Force are not allowed. Child labor not allowed at all kinds 18

19 20. Environment All members agreed to adopt MARPOL & CITES Principle to regulate the Environment issues in response to Global warming & Fishery Most context were proposed by USA to promote their biz within Asia-Pacific region 19

20 21.Cooperation and Capacity Building 22. Competitiveness and Business Facilitation 23. Development 24. Small and Medium-Sized Enterprises Development 25. Regulatory Coherence 26. Transparency and Anti-Corruption 20

21 27. Administrative and Institutional Provision 28. Dispute Settlement 29. Exception 30. Final Provisions 21

22 Comment from Thai Industries to TPP Industries Positive Negative 1. Textile 2. Garment 3. Machineries & Equipments 4. Sugar 5. Electronic parts 6. Air Condition ท มา: ข อม ลจากสมาช กสภาอ ตสาหกรรม โดยท มงานดร. ป ยะน ช ให ข อม ล ณ ป

23 กล มอ ตสาหกรรม เห นด วย ไม เห นด วย 7. Leather Plastic Steel แต ม เง อนไข 10. Vehicles Auto parts Food แต ม เง อนไข ท มา: ข อม ลจากสมาช กสภาอ ตสาหกรรม โดยท มงานดร. ป ยะน ช ให ข อม ล ณ ป

24 4.Pro & Con for Thailand 24

25 Concern 25

26 What If Thailand is not TPP member 26

27 What If Thailand is not TPP member 27

28 Major concern TPP is beyond the local state enforcement. Most context was dominated by USA. 28

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