Thailand plans to apply to join TPP within 3 months or benefit Japanese companies
Thailand plans to apply to join the Trans-Pacific Partnership Agreement (TPP) within 3 months.
According to a report from Japan’s “Kyodo News Agency” on March 2, the Director of the International Trade Negotiation Office of the Thai Ministry of Commerce, Volamon, recently revealed that Thailand plans to apply to join the TPP within March. Thailand is a major base in Southeast Asia's automobile industry known as "Asian Detroit." If Thailand joins, it will also benefit Japanese manufacturers that build a component supply chain centered on that country.
However, Thailand is also one of the few rice exporters in the world. The participation of Thailand in the TPP may trigger discussions in Japan.
In the ASEAN region, neighboring countries such as Malaysia and Vietnam, which are expected to join the TPP, are expected to increase their competitiveness, and Thailand's status is gradually being threatened.
Volamon stated that he would submit an application for membership before the scheduled election of the House of Commons in Thailand on the 24th, saying that he "will become the fifth country in ASEAN to apply for membership", demonstrating his willingness to maintain competitiveness.
In Thailand, the pro-military government party and the pro-former prime minister Thaksin’s party are starting an election battle. There are also concerns that the policy will be changed due to regime change, but Volamon stated that "no matter which side is very active in joining the TPP, it is no different from the current military government policy." However, be wary of delays in submitting applications for membership due to election chaos.
Thailand’s deputy prime minister in charge of economic affairs, Som Ki, has expressed his willingness to join the TPP. It is expected that the Ministry of Commerce will formally apply in the near future after the application materials are prepared and approved by the cabinet meeting.
On the other hand, regarding Thailand’s participation in the East Asia Regional Comprehensive Economic Partnership (RCEP) negotiations, as a reason for not being able to reach a substantive compromise in 2018, Volamon cited India’s cautious attitude towards tariff cuts in order to protect its own industries.
She also emphasized that, as the chairman of ASEAN this year, which occupies a corner of RCEP, Thailand will negotiate with India and other relevant countries separately to strive for a settlement within this year.