The Political Economy of Thailand's International Trade Negotiations
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The Political Economy of Thailand’s International Trade Negotiations: Some Multilateral and Bilateral Issues by Wuthiya SARAITHONG Thesis submitted for the degree of Doctor of Philosophy Department of Economics School of Oriental and African Studies University of London 1999 ProQuest Number: 11010581 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a com plete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. uest ProQuest 11010581 Published by ProQuest LLC(2018). Copyright of the Dissertation is held by the Author. All rights reserved. This work is protected against unauthorized copying under Title 17, United States C ode Microform Edition © ProQuest LLC. ProQuest LLC. 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106- 1346 To my parents Veerapant and Paiboon Saraithong and in loving memory of my grandmothers 3 Abstract This thesis examines Thailand's international trade negotiations, using a political economy framework. It concentrates on the country's multilateral negotiations in the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) and bilateral negotiations with the United States on intellectual property protection. The objectives of this thesis are to analyse the role of the Thai private sector and the autonomy of the Thai government in the process of these negotiations. This study argues that, apart from the public sector, the Thai private sector also plays an important role in the country's trade negotiations. However, the level of its participation varies from one negotiating framework to another. Bilateral negotiations tend to draw more attention from the private sector, because they have more direct impact on individual businesses. This is a result of the high concentration of interest caused by the small number of negotiating issues and people involved in these negotiations. In the country's bilateral negotiations with the United States, Thailand's private sector actively engaged in the negotiating process through various kinds of lobbying activities. The Thai government had to respond to these activities and compromise interests among different groups. In contrast, the role of Thai private enterprises in the Uruguay Round negotiations was rather limited. This provided the Thai government with autonomy in formulating the country's negotiating positions and in implementing Uruguay Round commitments. This resulted in a higher degree of autonomy for the government in the Uruguay Round negotiations, compared with bilateral negotiations with the United States. Thailand's Uruguay Round negotiations and its bilateral negotiations with the United States carry some implications, both for government policy and agencies as well as for their relationship with private businesses. There have already been a number of changes not only in the Thai bureaucratic system but also in the general public's opinion regarding trade negotiations. Nevertheless, to improve the capability of Thai government officials in the negotiating process and to promote national interests, some further changes are still necessary. 4 Acknowledgements First and foremost, I would like to express my deepest thanks to my supervisor, Professor Anne Booth, for her helpful advice and patience. Without her help, this thesis may never be completed. I also greatly appreciate Professor Ben Fine for his advice. My gratitude goes to the Royal Thai Government for the scholarship, enabling me to complete my study. I am grateful to Professor David Wall, the Royal Institute of International Affairs; and Dr. Sheila Page, the Overseas Development Institute. I would like to thank the following people for their help during my fieldwork in Thailand, Dr. Medhi Krongkaew, Peter Mytri Ungphakom, and Dr. Nilsuwan Leelarasamee. I would like to express my gratitude to H.E. Kirk-krai Jirapaet, the Thai ambassador to the WTO, for his valuable advice. To finish this thesis, I am indebted to a number of people who provided me so much help throughout the past years, particularly Montira Suwanamas and Dr. Thanwadee Thanitsukkam. I am especially owed to Phuchphop Mongkolnavin and Janjao Sutiwaraphun for sharing with me so many useful discussions and helping me through good time and bad time. My sincere thanks go to my uncle and my aunt, Wirat and Corry Fuengshunut; to Atchara Chayakul, Chavanart Thangsumphant, Dr. Nadhawat Krishnamra, Suhat Sungchaya for their kind support; and to Dr. Suphanvasa Chotikajan for believing in me. I profoundly thank Ralph Vocke who has always been my strength since Canterbury's years. For my friend, Dr. Sakkarin Niyomsilpa, I cannot thank him enough for his inspiration, support, both technical and moral, and above all, his friendship. Lastly, I would like to express my appreciation to everyone mentioned earlier and to a number of people who lent me helping hands all through the past years. I thank them all for making this possible. Table of Contents List of Tables ......................................................................................................8 List of Abbreviations ............................................................................... 10 List of Interviewees ............................................................................................13 Chapter 1 Introduction ............................................................................... 14 1.1 The Objectives ...........................................................................................14 1.2 The Scope and Structure of the Study .....................................................15 1.3 Data Sources and Fieldwork ................................................................. 18 Chapter 2 The Thai Economy: The Structure and Overview ................ 19 2.1 Introduction ...........................................................................................19 2.2 The Structure of the Thai Economy before the 1960s 19 2.3 The Structure of the Thai Economy since the 1960s 23 2.4 Conclusions .......................................................................................... 35 Chapter 3 Review of Literature on Trade Policy 54 3.1 Introduction .......................................................................................... 54 3.2 Traditional Trade Theory ..............................................................................55 3.3 Import Substitution ..............................................................................56 3.4 Export Promotion.......................................................................................... 62 3.5 Strategic Trade Policy ..............................................................................72 3.6 The Political Economy of Trade Policy .....................................................76 3.7 Conclusions .......................................................................................... 88 Chapter 4 Economic Policy Planning and The Determinants of Economic Policy in Thailand ............................................................................................91 4.1 Introduction ............................................................................................91 4.2 The Process of Economic Policy Planning and Thailand's National Development Plan ............................................................................................91 4.3 The Public Sector ............................................................................................97 4.4 The Private Sector ..............................................................................109 4.5 The External Factors ..............................................................................116 4.6 Conclusions ...........................................................................................119 Chapter 5 Trade Policy Measures and Trade-Related Issues ............... 122 5.1 Introduction ...........................................................................................122 5.2 Trade Policy Measures .............................................................................. 122 5.3 Trade-Related Investment Measures (TRIMs)............................................ 148 5.4 Trade-Related Intellectual Property Rights (TRIPs) ............................155 5.5 Conclusions ...........................................................................................159 Chapter 6 Thailand’s Multilateral Trade Negotiations: The Case of the GATT and the WTO ..........................................................................164 6.1 Introduction ...........................................................................................164 6.2 A Brief Historical and General Background of the GATT and the WTO 165 6.3 Thailand's Negotiating Positions and Its Roles inthe Uruguay Round 172 6.4 The Implementation of Thailand's Uruguay Round Commitments .. 186 6.5 Conclusions ............................................................................................ 192 Chapter 7 Thailand’s Bilateral Trade Negotiations: The Case of Thai-US Negotiations on TRIPs ................................................................199 7.1 Introduction ...........................................................................................199 7.2 Thai-US Trade Relations ..............................................................................200