WT/TPR/M/400
15 January 2021
(21-0487) Page: 1/59
Trade Policy Review Body 24 and 26 November 2020
TRADE POLICY REVIEW
THAILAND
MINUTES OF THE MEETING
Chairperson: H.E. Mr Harald Aspelund (Iceland)
CONTENTS
1 INTRODUCTORY REMARKS BY THE CHAIRPERSON ...... 2 2 OPENING STATEMENT BY THE REPRESENTATIVE OF THAILAND ...... 4 3 STATEMENT BY THE DISCUSSANT ...... 8 4 STATEMENTS BY MEMBERS ...... 10 5 REPLIES BY THE REPRESENTATIVE OF THAILAND AND ADDITIONAL COMMENTS ..... 52 6 CONCLUDING REMARKS BY THE CHAIRPERSON ...... 57 7 ADOPTION OF TPRB'S ANNUAL REPORT FOR 2020 ...... 59
Note: Advance written questions and additional questions by WTO Members, and the replies provided by Thailand are reproduced in document WT/TPR/M/400/Add.1 and will be available online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.
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1 INTRODUCTORY REMARKS BY THE CHAIRPERSON
1.1. The eighth Trade Policy Review of Thailand was held on 24 and 26 November 2020. The Chairperson, H.E. Mr. Harald Aspelund (Iceland), welcomed the delegation of Thailand, headed by Mr. Rachavitch Piyapramote, Minister, Permanent Mission of Thailand to the WTO and WIPO (Bangkok Office), who participated online from Bangkok; H.E. Ambassador Sunanta Kangvalkulkij, Permanent Representative of Thailand to the WTO; and the discussant, H.E. Ambassador Silvia Elena Alfaro Espinosa (Peru).
1.2. The Chairperson was pleased that, in addition to physical presence, the meeting also benefited from the Interprefy online connection, allowing for a wider participation of the Membership, in particular of Thai officials who could not make the journey from Bangkok given the current circumstances.
1.3. The Chairperson took this opportunity to remind Members that, as indicated in the addendum to the airgram for this meeting (WTO/AIR/TPR/98/Add.1, distributed on 15 October 2020), at the end of the second day, the TPRB would be invited to adopt its Annual Report for 2020.
1.4. The Chairperson recalled the purpose of TPRs, and the main elements of procedure for the meeting. The report by Thailand was contained in document WT/TPR/G/400 and that of the WTO Secretariat in document WT/TPR/S/400.
1.5. Questions by the following delegations were submitted in writing before the deadline: Hong Kong, China; Peru; Israel; Australia; Norway; Canada; Chile; United States; China; United Kingdom; Korea, Republic of; European Union; Myanmar; Chinese Taipei; Singapore; Ukraine; Japan; India; Colombia; Brazil; and Turkey. The following delegations submitted written questions after the deadline: Switzerland; Russian Federation; Malaysia; New Zealand; Philippines; Ecuador; and Mexico.
1.6. At the time of its previous Review in 2015, Members had commended Thailand for its strong macro-economic fundamentals and appropriate policy mix that had helped maintain financial stability and ensure the resilience of its outward-oriented economy. However, Members had also encouraged Thailand to pursue structural reforms in areas such as taxation, competition policy, state-owned enterprises and transparency, and removing existing FDI restrictions. Actions to improve transport infrastructure, focus on a digital economy, and move manufacturing capacity up the value chain had also been suggested in order to promote growth.
1.7. The Chairperson focused on developments since its previous Review. According to the Secretariat Report, after three years of solid growth, in 2019, the Thai economy entered a downturn due mainly to the global economic slowdown and international trade tensions, leading to a contraction in exports, private investment and consumption. In addition, the economy continued to face structural challenges, such as low levels of public and private investment, income and regional disparities, and the need to complete fiscal reform and address labour market problems. In 2020, the COVID-19 pandemic exacerbated the problems facing the economy. To mitigate the economic effects of the pandemic, the Government implemented monetary and fiscal policy measures, through a three-stage relief package worth 14% of GDP.
1.8. Regarding trade policies, Thailand improved its customs regime and adopted a new Customs Act during the review period. The tariff structure appeared to remain relatively complex, and Thailand maintained a myriad of tax and non-tax investment incentive schemes. New legislation on government procurement was enacted to increase transparency, but preferences were still given to certain domestic suppliers. Thailand also adopted a new Trade Competition Act in 2017, covering, for the first time, SOEs and other public entities. However, many products and services remained subject to price controls. Concerning intellectual property, the Trademark Act was amended to provide for the registration of sound marks, and the Copyright Act and the Computer Crime Act were amended to better address online IP infringement. However, concerns regarding certain enforcement issues remain. Agriculture received more trade protection than the rest of the economy and, in services, while regulatory regimes had been modernized, caps on FDI are in place in several subsectors.
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1.9. The Government Report highlights various economic plans, such as the 20-Year National Strategy (2018-37), the Twelfth National Economic and Social Development Plan (2017-21), Thailand 4.0, and the Seven-Year Investment Promotion Strategy (2015-21). The Report also indicates that the Government set "10 Targeted Industries" to be promoted. Members wished to know more about these policies through their discussions.
1.10. A quick survey of the advance questions submitted for this Review showed the wide range of topics of interest to Members regarding Thailand's trade and investment regimes, including its participation in regional trade agreements, its investment regime, including foreign business licensing requirements, customs procedures and trade facilitation, its use of trade measures such as import licensing, standards and technical regulations, SPS measures, and the protection of intellectual property rights.
1.11. In total, Thailand received 622 advance written questions from 29 delegations for this Review, covering a broad range of topics. Of the 450 advance written questions submitted before the deadline of 20 October 2020, Thailand had responded to the majority before noon on 23 November 2020. However, there were several outstanding replies to advance questions submitted by Members within the established deadline, and the Chairperson looked forward to hearing Thailand's updates on these issues.
1.12. This meeting was a good opportunity for Members to discuss in greater detail issues of interest to them and of systemic importance to the multilateral trading system. It was also an opportune moment for Thailand to update the Membership on the impact of COVID-19 on its economy, and measures it had taken in response. The Chairperson looked forward to a fruitful exchange.
1.13. The Chairperson closed his introductory remarks by wishing Thailand a very successful eighth Trade Policy Review.
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2 OPENING STATEMENT BY THE REPRESENTATIVE OF THAILAND (MR. RACHAVITCH PIYAPRAMOTE)
2.1. Good morning excellencies and distinguished guests. On behalf of the Royal Thai Government, it is my great honour and pleasure to be here today. This is the 8th Trade Policy Review of Thailand and the first time for Thailand to have a virtual TPR meeting. Please allow me to introduce the agencies, the Thai delegation in Bangkok today. We have around a dozen line agencies with us in Bangkok, comprising representatives from the Department of Trade Negotiations, the Department of Intellectual Property, the Department of International Trade Promotion, the Department of Internal Trade, and the Trade Policy and Strategy Office. We also have representatives from the Export-Import Bank of Thailand, the Office of Insurance Commission, the Customs Department, the Fiscal Policy Office, the Board of Investment of Thailand, the National Bureau of Agriculture Commodity and Food Standards, and the Department of Livestock Development.
2.2. First and foremost, I would like to thank the WTO Secretariat for a thorough report of Thailand's trade policy and their hard work during unprecedented challenges of COVID-19 leading up to this meeting. I also would like to thank our discussant, Ambassador Silvia Elena Alfaro Espinosa of Peru, for taking the time to participate in this meeting.
2.3. In this Trade Policy Review, Thailand has received more than 500 questions from 29 Members. We sincerely thank the Members for showing their interest in Thailand's trade policy. In this connection, our agencies have tried their best to respond to those questions in writing. So far, we have responded to 414 questions already. Please be assured that we will answer all of them as soon as we could.
Economic Environment (2015–2019)
2.4. During the past five years (2015–2019), Thailand has experienced with several important changes. The passing of His Majesty King Bhumibol Adulyadej in 2016 was a great loss to all Thais. Since the passing of our beloved King Bhumibol Adulyadej, Thailand has been under the reign of His Majesty King Maha Vajiralongkorn Bodindradebayavarangkun. In 2017, Thailand adopted a new Constitution. And in 2019, we had a general election and a new Government was formed.
2.5. Early in 2020, our world was hit by the novel COVID-19 pandemic. Thailand was the first country with a COVID-19 case outside of China and we have put our best efforts to control the spread of the virus. So far, Thailand has less than 4,000 cases and is the first country to review our health system and our success in COVID-19 management through an Intra Action Review, developed by World Health Organization.
2.6. Although we have successfully controlled the spread of the virus, our economy, like many other Members, has been hit hard by the pandemic. The National Economic and Social Development Council projected that the Thai economy will contract by 6% this year, mainly because of the drop of export and private consumption which accounts for 53% and 54% of Thailand's GDP respectively. Total investment is also expected to decrease by 3.2%. In terms of job market, our unemployment rate is still comparatively low at 1.9%.
2.7. Next year Thai economy is expected to expand approximately 3.5% to 4.5%, driven by the increases of private consumption at 2.4%, government consumption at 4.7%, total investment at 6.6%, and export at 4.2%.
2.8. To mitigate the adverse effects of the pandemic, the Government has launched 3 phases of COVID-19 Relief Package comprising monetary and fiscal policies, to urgently help vulnerable people affected from the lockdown and business closure particularly informal workers, increase liquidity especially for SMEs, and stimulate domestic consumption. The Government has organised occupational training and community activities to improve skills of the recent graduates looking for jobs. The policies have satisfactory result as our economy has shown better performance in Q3/2020 compared to the previous quarter. The Government continues its work to bring our economy back to normalcy as soon as possible.
2.9. In 2021, Thailand will focus on "Resilience", emphasizing on strengthening the local economy and SMEs and to decrease the risks from overdependence on external economy. Moreover, in order
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Regional Trade Arrangements and Economic Cooperation
FTA
2.10. At present, Thailand has 13 regional and bilateral free trade agreements (FTAs) in effect with 18 trading partners. Thailand is in the process of negotiating FTAs with Pakistan, Turkey, and Sri Lanka. On 15 November 2020, Thailand and 14 countries' Trade Ministers signed the Regional Comprehensive Economic Partnership (RCEP) agreement and agreed to expedite ratification process for the early implementation of the agreement. The RCEP is the world's largest free trade agreement, covering 30.2% of world population, 30% of global GDP, and 27.4% of global trade. We are positive that the RCEP will enter into force soon.
WTO
2.11. Thailand has always actively and constructively engaged in the multilateral trading system and regional economic cooperation. At multilateral level, Thailand constantly participates in discussions on key issues such as fisheries subsidies, agriculture and e-commerce including WTO reform. In April 2019, Thailand tabled a proposal on the dispute settlement system of the WTO to facilitate discussions and resolve the Appellate Body Impasse which is Thailand's top priority. During 2018 to 2019, Thailand's Ambassador and Permanent Representative to the WTO and WIPO, Ambassador Sunanta Kangvalkulkij, had the honour of serving as the Chair of the Dispute Settlement Body and General Council, undertaking a crucial role on supporting Members to advance WTO on- going work and uphold the rules-based multilateral trading system.
Regional Economic Cooperation
2.12. For regional economic cooperation, Thailand, as the ASEAN Chair in 2019, successfully delivered a number of key achievements under the theme of "Advancing Partnership for Sustainability". The examples are future-orientation such as ASEAN Digital Integration Framework Action Plan (or DIFAP) 2019-2025, enhancing connectivity via the ASEAN Single Window, and promoting sustainability in all dimension such as sustainable fisheries and clean energy. The conclusion of the text-based negotiation on RCEP was a key success during Thailand's ASEAN Chairmanship.
2.13. In addition, Thailand has been an active member of the Asia-Pacific Economic Cooperation (APEC). We have joined APEC economies on supporting the multilateral trading system and WTO related-work such as e-commerce discussions and promoting transparency and notification especially on TBT measures. Thailand also supports the final review of the Bogor Goals in 2020 and will continue to work closely with APEC economies to fulfil APEC's unfinished business.
Thailand's Successes During 2015-2019
Combat IUU Fishing
2.14. Since 2015, Thailand has taken significant steps to combat Illegal, Unreported and Unregulated Fishing (IUU Fishing) and was successfully delisted from the list of possible countries that do not cooperate under the IUU regulation of the European Union in 2019 (yellow card). Thailand has created a system to tackle IUU fishing such as adopting new legal frameworks, improving fleet and fishery management, developing monitoring, control and surveillance system (MCS) which allows for traceability in fishery products. These measures aim to create sustainability for the fisheries sector through ensuring sustainable fishery management and improving the quality of life of fishermen and farmers.
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Removal of Red Flag Status
2.15. For civil aviation, Thailand was listed as a "Red Flag" country by the International Civil Aviation Organization (ICAO) in 2015. The Government worked hard to solve the problems and improved all operation. Finally, Thailand was removed from the red flag list in 2017.
Promotion of Competition
2.16. To create a free and fair competition and enhance transparency, Thailand has enacted a new Trade Competition Act in 2017 which regulates anti-competitive practices more effectively. Thailand has also established a new Office of Trade Competition Commission as an independent organization to ensure its independence and transparency in enforcing competition policy.
BCG Economy
2.17. Thailand places importance on environmental and sustainability issues. The Government has launched a policy to promote Bio-Circular-Green or BCG Economy, which is driven by science, research, and innovation, to support Thai industries to achieve a balanced and sustainable growth and fulfil the United Nation's Sustainable Development Goals (SDGs). Thailand believes that the BCG economy will move the Thai economy towards a resource efficient, sustainable, and innovation-driven economy.
Intellectual Property Rights
2.18. Thailand has continued its effort to develop an effective and robust intellectual property regime. In 2016, the National Committee on Intellectual Property Policy, which is chaired by the Prime Minister adopted a 20-Year (2016-2036) IP Roadmap which covers six areas, namely: (1) IP creation; (2) IP protection; (3) IP commercialization; (4) IP enforcement; (5) geographical indications; and (6) genetic resources, traditional knowledge and traditional cultural expressions.
2.19. With respect to legislative development, Thailand has amended its Trademark Act and Copyright Act.
2.20. In terms of IP enforcement, Thailand has continued to intensify its efforts in combatting IPR infringements in both physical and online marketplaces as well as other forms of infringements such as online piracy.
2.21. Thailand also recognizes the importance of joining IP agreements to ensure that our IP system is in line with international standards. In 2016, Thailand deposited its instrument of acceptance for the 2005 Protocol Amending the TRIPS Agreement. In addition, Thailand deposited its instruments of accession to the Madrid Protocol in 2017 and to the Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled in 2019.
Trade Facilitation and Ease of Doing Business
2.22. Thailand has ratified the WTO agreement on Trade Facilitation (TFA) in 2015 and has implemented 97.1% of its commitment in June 2020. Several measures were taken by responsible authorities to comply with the TFA. In order to guarantee effective implementation of the TFA, Thailand has established a National Committee on Trade Facilitation (NCTF) to oversee and coordinate with relevant agencies. Thailand has adopted action plans to improve the effectiveness of pre-arrival process such as e-Bill payment and e-Tracking systems.
2.23. Thailand also adopted several measures to enhance the ease of doing business for foreign investors. The Department of Business and Development (DBD) regularly reviews the list of exempted businesses from the foreign business license requirement in order to facilitate business operations and promote trade and investment in Thailand. The DBD has also launched the e-Registration System and single-service platform to facilitate business registration and reduce the cost of business operation. Thailand is ranked 21st out of 190 countries by the World Bank in its Doing Business 2020 publication.
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2.24. To this end, let me assure that the Royal Thai Government has been working diligently and will put its best efforts to drive economic recovery after COVID-19 under the key principle of transparency, as well as to strengthen competitiveness and resilience of the country.
2.25. Thailand welcomes the valuable engagement and comments by Members, and we are looking forward to the productive exchanges during this two-day meeting. Thank you for the floor.
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3 STATEMENT BY THE DISCUSSANT
3.1. Thank you Chair and good morning to those of you in Geneva and good afternoon to those in Bangkok.
3.2. I would like to begin by welcoming the Thai delegation, headed by His Excellency, Mr Rachavitch Piyapramote, Minister of the Permanent Mission of Thailand to the WTO and WIPO in Bangkok, who is leading the delegation, and to extend special greetings to my distinguished colleague and friend, Ambassador Sunanta Kangvalkulkij. I would also like to thank you, Chair, for the opportunity and the honour of serving as discussant.
3.3. I would first like to express my sincere condolences on the death of King Bhumibol Adulyadej in 2016, and to wish His Majesty King Maha Vajiralongkorn Bodindradebayavarangkun a long and prosperous reign.
3.4. Before proceeding, I would like to commend the willingness of the Government of Thailand to accept alternative timelines for the consideration of Members' questions for this Review, which will facilitate constructive dialogue at this meeting. Similarly, I would like to commend Thailand's decision to proceed with this review despite the severe health and economic conditions that the world is currently facing, proof of its commitment to the proper functioning of this Organization's trade policy review mechanism.
3.5. As is customary in this body, we have before us two very comprehensive reports that serve as the basis for this review, and many questions that reflect the Members' great interest in the economic and trade policies of Thailand. Needless to say, the entire membership's interest is the result not only of Thailand's rich culture and famous geographical beauty —which undoubtedly play an important role in its trade in tourism services— but also of the important role played by Thailand in the world economy and trade, as I will outline now.
3.6. Thailand remains one of the 20 economies most involved in international trade in the world. This is exemplified by the fact that, in 2019, the value of trade in goods between Thailand and the rest of the world totalled over USD 470 billion. Its trade links appear to be fairly diversified: while Asia is the main destination for Thailand's exports and the main source of its imports, as is to be expected given its location, it nevertheless has important trade relations with the United States, the European Union, Latin America, Oceania and other regions of the world, and is emerging as a player in global trade. I also believe that the interest in Thailand has been sparked by its participation in the Association of South-East Asian Nations (ASEAN), an international organization that enjoys worldwide recognition for its innovative and determined international economic cooperation efforts. In addition, Thailand has sought to avail itself of other agreements and forums that promote preferential economic and commercial integration, such as the recently signed Regional Comprehensive Economic Partnership (RCEP), news of which has reverberated around the world, or Asia-Pacific Economic Cooperation (APEC). This shows Thailand's interest in continuing to actively deepen its trade links and improving its economic and trade competitiveness in general. In the area of investment, it is a major recipient, but at the same time it has become a source of foreign direct investment, particularly for ASEAN member countries, demonstrating the value of its impact in terms of economic integration. In short, Thailand is a major player in international trade, both regionally and extra-regionally, and as the reports prepared for this review point out, it is very active in the multilateral trading system, which demonstrates in a practical manner the high esteem in which Thailand holds this Organization.
3.7. When preparing my comments as discussant I was guided by the outcome of Thailand's previous Trade Policy Review, which took place in 2015. In that year, for example, Thailand's sound macroeconomic policy was recognized. It appears that Thailand has continued to follow this path during the period under review, rapidly implementing countercyclical measures to address both the slight slowdown in growth in 2019 and the much more severe economic depression that occurred as a result of the COVID-19 pandemic this year. Recourse to countercyclical measures was made possible by the strong fiscal position of the Thai government. In this regard, I am sure that measures to bolster the economy in the context of the pandemic are a matter of interest to Members and it has already been interesting to hear the comments that have been made and about the preliminary results achieved by Thailand, as well as those expected in the future.
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3.8. During its last review, some delegations pointed out that Thailand might be falling into the middle-income trap, and therefore encouraged it to undertake structural reforms. According to Thailand's report, it is clear that the Government has been working hard on this issue, drawing up a comprehensive strategy to become a high-income economy by 2036, a strategy imbued with a vision of the country's development not only with regard to economic matters, but also in the social and environmental fields, setting specific objectives in these areas.
3.9. Furthermore, in 2015, Thailand was invited to improve its production capacity for goods with a high technological content, as a tool that could help it avoid the middle-income trap. This element has also been taken up by the current economic strategy, geared towards industrial development in digital technology, aviation, logistics, robotics, among others. It would be interesting to know more about the measures Thailand plans to implement to develop these industries.
3.10. Similarly, Thailand has taken action to respond to requests from the membership to reduce barriers to investment. Central to this response has been the ease of doing business, the reduction of licensing requirements for starting businesses in certain sectors and the implementation of investment e-registration systems, among other measures described in the report of the Member under review.
3.11. Thailand has also continued to pursue its trade facilitation efforts, either at the national level or in conjunction with ASEAN countries. For example, there have been developments in the single window policy to reduce costs and simplify procedures using electronic tools. These and other aspects of trade facilitation may well merit comments from the delegations present here.
3.12. Conversely, the complex structure and level of tariffs have largely been maintained or even increased with respect to 2015, and their eventual simplification or liberalization remains a subject of interest among the Members of this Organization, according to the questions submitted for this review. Meanwhile, the Secretariat's report suggests that an eventual tariff reform could be an element that would help the competitiveness of the Thai economy, and it would be interesting to know the opinion of the Member under review on this matter.
3.13. I also noted that export duties are levied on certain products, duties which are not necessarily applied in practice in most cases according to the Secretariat's report. It is only natural that these duties should create uncertainty and it would be useful to know the reasons behind and scope of this special application, as well as how these measures are expected to be used in future.
3.14. In the area of trade defence measures, some safeguards have continued to be used in the period under review, and a new investigation is underway. It would be interesting to know in more detail the rationale behind the application of these measures.
3.15. Furthermore, as in 2015, Members have continued to submit questions to Thailand regarding technical, sanitary and phytosanitary standards for exports to Thailand. The report prepared by the WTO Secretariat notes that only 37.4% of national technical standards are identical or similar to international standards and it seems to me that it might be relevant to know Thailand's overall approach to this aspect of its policies.
3.16. Before I conclude, I would like to say that I have been very impressed by Thailand's approach to preparing its report for this review, a report which in my view reflects the fact that Thailand has addressed a number of the issues raised by the membership of this body five years ago, as can be seen from recent developments in its economic and trade policies. Likewise, as this was the first time I have served as discussant, I have had the opportunity to learn about the complexity and depth of the preparatory work and exchanges for this meeting, so I am sure that the ensuing dialogue will lead us to the culmination of an excellent exercise to increase knowledge and understanding of Thailand's trade policies, for the benefit of all participants. Lastly, I am confident that the delegation of Thailand will be receptive to the comments of the delegations gathered here so that in a few years' time we will be able to see specific developments in Thailand's trade policy in this WTO body, thanks to the dialogue at this meeting. Thank you very much.
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4 STATEMENTS BY MEMBERS
HONG KONG, CHINA
4.1. I would like to extend a warm welcome to Thailand's delegation led by Mr Piyapramote. I would also like to thank the discussant, Ambassador Silvia Elena Alfaro Espinosa of Peru for sharing with us her insights, and the Secretariat for their comprehensive report.
4.2. Hong Kong, China (HKC) and Thailand have long been enjoying fruitful bilateral trade and economic relations. We always treasure Thailand as a valuable trading partner and the development of two-way trade between us has been encouraging. In 2019, Thailand was HKC's 10th largest trading partner in merchandise trade, and Thailand ranked the 4th among the ten ASEAN Member States in terms of trade in goods with HKC. In services trade, Thailand was our 10th largest trading partner in 2018.
4.3. Since the entry into force of the ASEAN-HKC Free Trade Agreement and the related Investment Agreement in June 2019, HKC has been working closely with Thailand and other ASEAN Member States to ensure smooth implementation of the two Agreements. We look forward to further strengthening our economic ties with Thailand by facilitating flow of goods, services and investment under the two Agreements.
4.4. Now I would like to turn to our observations on some specific areas in Thailand's trade policies.
4.5. We appreciate Thailand's active engagement in the WTO work and good record of notifications to the WTO.
4.6. On trade facilitation, we commend Thailand's continued efforts in simplifying and modernizing its customs procedures in response to a rapidly changing economic and technological environment to facilitate trade. Thailand has adopted a new Customs Act in November 2017 to modernize its customs laws and introduced several action plans to improve customs processes that allow for electronic submission of customs registrations, declarations and documents.
4.7. Thailand has maintained an Authorized Economic Operator Programme and has signed Mutual Recognition Arrangements on this Programme with other Members, including one with HKC since June 2015. We are pleased to note that Thailand has implemented more than 97% of its commitments and has fulfilled its obligations in submitting transparency notifications required under the Agreement on Trade Facilitation.
4.8. On tariffs, while Thailand has lowered the applied MFN tariffs on agricultural products from 34.7% in 2014 to 32.7% in 2020, it is still substantially higher than that of non-agricultural products at 11.8%. Thailand also applies import surcharges on certain agricultural products (such as soya bean cake and maize for feedstuff). The agricultural sector continues to be relatively protected and we would encourage Thailand to further liberalize its agricultural sector by reviewing its existing market access measures.
4.9. We are glad to note that Thailand has submitted updated notifications on export subsidies and market access, and that it did not provide any export subsidies during the review period. Thailand did not invoke any special safeguard even though it has reserved the right to do so for 55 tariff line items. Nevertheless, Thailand's last notification on domestic support to the WTO covers only up to calendar year 2016. We would encourage Thailand to submit the outstanding notifications on domestic support to facilitate a more up-to-date and effective review on its implementation of commitments by Members.
4.10. Services continue to be the main contributor of Thailand's economy and account for a significant share of Thailand's GDP and employment. We appreciate Thailand's effort in reducing market entry restrictions and equity limitations for various sectors during the review period, and would encourage Thailand to consider further liberalizing its trade regime so as to tie in with its national polices and development plans to attract foreign investments and strengthen international cooperation.
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4.11. HKC looks forward to further fostering the bilateral trade and economic relations with Thailand. We thank Thailand for its replies to part of our written questions and would look forward to receiving replies to the remaining questions. I wish Thailand a successful trade policy review.
PERU
4.12. The Peruvian delegation presents its compliments to all those present, and extends a warm welcome to the delegation of Thailand, in particular to Mr. Rachavitch Piyapramote, Minister of the Permanent Mission of Thailand to the WTO and WIPO in Bangkok, who is leading the delegation, and to Ambassador Sunanta Kangvalkulkik.
4.13. We would also like to express our appreciation for your commitment to the work of this Body, Chair, as well as the work undertaken by the Secretariat for this Review.
4.14. First, Peru would like to convey its condolences for the death of King Bhumibol Adulyadej in 2016. Peru shares the grief of the Thai people and wishes King Maha Vajiralongkorn Bodindradebayavarangkun a long life and prosperity.
4.15. Next, my delegation would like to acknowledge the important steps taken by Thailand in the period under review, in terms of macroeconomic soundness, attracting foreign investment, trade facilitation, regional trade integration, among other issues. In this last area, it is worth noting the recent signing of the RCEP, which will promote greater trade flows in one of the world's fastest growing and most promising regions. Similarly, Peru notes Thailand's work in the area of planning, as evidenced in Thailand's report for this review, which seeks to enhance industry diversity, productivity and innovation, with a view to becoming a high-income economy by 2036.
4.16. Peru welcomes Thailand's considerable commitment to the work of this Organization, including its participation in the negotiations on fishing, e-commerce and agriculture subsidies, and, recently, in the negotiations on services domestic regulation. Peru also wishes to express its thanks to Ambassador Kangvalkulkij for her genuine commitment as Chair of the Dispute Settlement Body in 2018 and, subsequently, of the General Council in 2019, at a particularly complex moment in the history of this Organization.
4.17. Within the framework of a bilateral strategic partnership, Peru and Thailand are preferential trading partners, following the entry into force in 2011 of the Protocol between the Republic of Peru and the Kingdom of Thailand for Accelerating the Liberalization of Trade in Goods and Trade Facilitation. Under this instrument and its complementary protocols, we have managed to liberalize 75% of the tariff schedule. Within this framework, bilateral trade currently stands at around USD 600 million per year, with great potential to be exploited in the future.
4.18. At the same time, Peru and Thailand are cooperating within the framework of APEC, a forum in which important initiatives have been carried out over the course of this year to facilitate the flow of goods in the context of the ongoing pandemic, coordinate positions in relation to the WTO, and develop a broad agenda that covers the digital economy, energy efficiency, waste management and the economic empowerment of women, among other issues. Likewise, the Economic Leaders' Meeting, held last week, has confirmed the central role of APEC as a forum for the co-ordination of policies and future projects that will effectively consolidate the Asia-Pacific region as an open, dynamic, resilient and peaceful community.
4.19. With regard to the questions submitted by Peru as part of this review, my delegation thanks Thailand for the replies provided, which have allowed us to learn about the policies of the Member under review that promote the economic empowerment of women, especially through trade.
4.20. Having said this, I wish to conclude this statement by wishing Thailand a successful Trade Policy Review.
AUSTRALIA
4.21. At the outset, I want to express our thanks to both our Thai colleagues and also Her Excellency Ambassador of Peru, serving as the discussant. Having done the first of these virtual trade policy
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4.22. We wish to congratulate Thailand on its larger approach to the containment of COVID-19. The recovery from COVID-19 will be long, and the economic impact has been disproportionately felt by Thailand's rural and lower income communities. It is important that we work together to support our respective COVID-19 economic recoveries, including with respect to supply chain resilience and vaccine development.
4.23. Australia and Thailand have a long history of friendship and cooperation, and we are pleased to elevate relations to the level of a Strategic Partnership, as was announced earlier this month. We both have a strong commitment to economic cooperation through forums such as the WTO, the East Asia Summit, APEC and the Regional Comprehensive Economic Partnership which we both recently signed.
4.24. We have a strong trade and economic relationship with Thailand, and it has grown significantly since the entry into force of the Thailand-Australia Free Trade Agreement, or TAFTA, in 2005. In 2019, Thailand was Australia's fifth highest goods import source, our 10th largest goods and services trading partner, and our third-largest trading partner in ASEAN.
4.25. Australia is strongly committed to working with Thailand to boost bilateral trade and investment under our new Strategic Partnership.
4.26. Trade and investment liberalization, together with a pro-business regulatory environment, have and will continue to play a key role in ensuring sustained growth in Thailand. We encourage Thailand to continue its economic and trade policy reform, which will pave the way for greater productivity gains, increased competitiveness and further economic integration.
4.27. Thailand has, of course, achieved significant efficiencies during COVID-19 that have made doing business easier, particularly on issues like e-documentation and e-commerce. We encourage Thailand to keep these efficiencies in place and expand them further, where possible.
4.28. Australia welcomes Thailand's relatively liberal foreign investment regime in manufacturing, which has resulted in significant levels of foreign investment. Easing limitations for foreign firms on land ownership and on retaining majority shareholdings would promote investment further and stimulate Thailand's economy.
4.29. There are complex regulatory frameworks governing the services sector, including foreign ownership restrictions. Australia has strong interests in expanding business links in the Thai services sector, including in financial services, telecommunications, transport and logistics, education, professional services, construction, services incidental to mining, environmental services and business mobility. We encourage Thailand to continue undertaking reforms that are necessary to increase competition, productivity and innovation in key services sectors.
4.30. Australia welcomes Thailand's announcement earlier this month that it will join the Services Domestic Regulation Joint Statement Initiative. Australia looks forward to working closely with Thailand to see these negotiations through to a successful conclusion and hopes that Thailand's participation will demonstrate the value of the Initiative to non-participating Members, including other ASEAN Members.
4.31. We also want to acknowledge that agricultural trade has been liberalized through the implementation of tariff reductions agreed under TAFTA and the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA). Regular meetings of the SPS Expert Group on SPS Measures and Food Standards established under TAFTA have fostered dialogue and cooperation between the Thai and the Australian government regulatory agencies to deliver positive outcomes for agricultural trade.
4.32. As one of the world's leading exporters of agricultural products, particularly of rice and rubber, Thailand has much to gain from policies that promote a stable, predictable and market-based agricultural trading system, and constantly improve innovation and efficiency in the sector. Australia appreciates Thailand's efforts to progress agricultural reform at the WTO as a key member of the Cairns Group alongside Australia. Thailand's globally competitive agriculture sector has benefitted
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- 13 - greatly from the open global trading system. Nevertheless, there are a number of protections remaining in the Thai agriculture. To enhance Thailand's efficiency and success in this sector and to demonstrate Thailand's commitment to free and open trade and investment in agriculture, we urge Thailand to commit to further reforms in this sector and to eliminate protective measures that do not align with the WTO Agreement on Agriculture's long-term objective of progressive reductions in support and protection.
4.33. We acknowledge Thailand's commitment to achieving balanced and sustainable management of agriculture resources and the environment, including adaptation to climate change to ensure a viable agriculture sector into the future.
4.34. We also welcome Thailand's active participation in the WTO fisheries subsidies negotiations, particularly as a significant producer through marine capture fishing. Thailand has much to contribute in these negotiations to help us find a strong outcome.
4.35. Australia welcomes Thailand's active engagement in the WTO and its clear support for the role of the Organization in promoting trade, trade liberalization and inclusive economic development. Thailand's commitment is demonstrated by its membership of the WTO ‘Friends of the System' group. In the period covered by this review, Thailand has ratified the Trade Facilitation Agreement and is well on the way to implementing all of its commitments. It has also implemented its ITA2 commitments. Thailand, of course, is actively engaged in the E-commerce JSI. As a fellow Cairns Group member, we particularly welcome Thailand's support in developing a Framework for Negotiations in Domestic Support in agriculture and active outreach, particularly with other ASEAN Members.
4.36. We want to emphasize the active and excellent working relationship with Thailand. We want to encourage Thailand to continue its good work with its COVID-19 recovery and want to thank Thailand for the many wonderful responses to the questions. We will review these responses very carefully in the days and weeks to come.
NORWAY
4.37. Let me join others in welcoming the delegation from Thailand to this review of Thailand's trade policy and thank the Secretariat and the Government of Thailand for their reports.
4.38. Norway and Thailand have excellent bilateral and economic relations that we highly appreciate. Norway has substantial interests as an investor in several industries in Thailand, including in telecommunications. Thailand is also a significant export market for Norwegian seafood, fertilisers and other products.
4.39. Let me start by congratulating Thailand for having adopted a national action plan on Business and Human Rights. This underscores the good intentions of Thailand's authorities to combat corruption and strengthen labour rights.
4.40. I would also like to congratulate Thailand for having improved its ranking on the "Ease of doing business" index in recent years. This is positive for economic growth, for trade and for attracting foreign direct investments. This does not, however, mean that there are no room for improvements.
4.41. Norwegian investors in Thailand are pointing out that Thailand's Foreign Business Act is still restrictive, especially as regards the number of professions reserved for Thai nationals, as well as the number of industries deemed not yet ready to compete with foreigners. While some constraints for inter-company activities have been eased lately, these changes are minor in real terms and do not in our view address the situation for the majority of foreign businesses.
4.42. In order for a company to be able to operate as a 100% owned foreign entity in restricted fields, a Foreign Business Licence is required. Unless the investment involves setting up manufacturing plants mainly for export, often granted through Thailand's Board of Investment, applying for a foreign business licence can be a bureaucratic and lengthy process.
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4.43. Applying for visas and work permits for foreign staff is seen as a laborious process. For a foreign company to be allowed to operate in Thailand, strict requirements need to be fulfilled as to the ratios between local staff and foreigners. We would encourage Thailand to move towards a less restrictive approach with no restrictions on foreign ownership.
4.44. International shipping is very important to Norway, and maritime transport is an important facilitator of world trade. Four-fifths of world trade by volume is carried by sea. The challenges related to the Covid-19 pandemic accentuate the importance of open and efficient global supply chains. Commitments in maritime transport contribute to stable and predictable terms and conditions for the service providers and their customers, in addition to the economic benefits for the society as a whole. It is therefore essential that more member states join us in taking commitments in maritime transport services.
4.45. We therefore appreciate that Thailand - like Norway - has undertaken bound commitments for international maritime transport services in the schedule under the GATS agreement, and for core transport services that is delivery mode 1 - cross border supply.
4.46. On this background we have noted information in the Secretariat's report, in paragraph 4.193, regarding the existence of restrictions on maritime transportation of government cargoes imported to Thailand, and question whether such restrictions are in conformity with Thailand's GATS commitments. This issue has been addressed in our written questions, and we are eagerly looking forward to receiving a response to our questions.
4.47. Let me conclude by commending the delegation of Thailand to the WTO in Geneva for their active and constructive engagement in support of a rules-based multilateral trading regime, under the able leadership of my good colleague and friend Ambassador Sunanta.
4.48. I wish the delegation of Thailand a successful TPR.
CANADA
4.49. We welcome this opportunity to participate in the 8th Trade Policy Review of Thailand.
4.50. First, we would like to acknowledge Thailand's commitment to rules-based trade, particularly at this time when global collaboration is necessary to address economic challenges and prepare for post-pandemic recovery. Furthermore, we acknowledge Thailand's support for the WTO Working Group on Micro, Small and Medium Enterprises (MSMEs) statement highlighting the importance of MSMEs in COVID-19 recovery and the Statement on COVID-19 by APEC Ministers Responsible for Trade.
4.51. We commend Thailand's continuing improvements on its intellectual property system. Predictable, transparent, and robust intellectual property systems are key to economic development and support growth in innovative industries. We also congratulate Thailand for its recent accession to the World Intellectual Property Organization's Madrid Agreement Concerning the International Registration of Marks in 2017 and to the Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled in 2019. We also support Thailand's continuing efforts to accede to other WIPO instruments, which complement and support predictable and transparent IP administration and by extension rules-based trade.
4.52. We appreciate Thailand's ongoing efforts to advance a possible Canada-ASEAN FTA. During Thailand's ASEAN Chairmanship in 2019, Canada and ASEAN announced the successful conclusion of FTA exploratory discussions. We look forward to continuing to engage with Thailand on this important initiative and to working with Thailand to promote the open, rules-based trading system.
4.53. This review period also saw Thailand serve as the 2019 ASEAN Chair. We are grateful for the leadership taken by Thailand in advancing its various sustainability goals for the region and for its support to Dialogue Partners.
4.54. As Thailand strives to improve different aspects of its economic and market environment, there are four areas on which it may wish to focus.
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4.55. Firstly, while we are aware of Thailand's efforts to address pervasive corruption, including through the enactment of the 2017 Public Procurement and Supplies Administration Act, efforts to tackle the problem are still necessary as the Kingdom continues to fare poorly on international corruption indexes. We encourage Thailand to continue pursuing concrete measures to address corruption with a view to improving confidence for those seeking to do business in the country, especially in the context of its Thailand 4.0 policy and the development of the Eastern Economic Corridor (EEC).
4.56. Secondly, on government procurement, we recognize that Thailand is an observer to the WTO Government Procurement Committee and has included provisions on cooperation and information sharing in some of its FTAs. Going forward, we would encourage Thailand to consider expanding these obligations to also cover market access commitments.
4.57. Thirdly, on financial services, we acknowledge Thailand's effort to remove foreign banks, and life and non-life insurance businesses from the list of restricted activities. We also recognize Thailand's ongoing liberalization of its banking sector through bilateral negotiations with ASEAN members. We would appreciate clarification of the application and specifications of Thailand's liberalization efforts in order to better understand the scope of these reforms.
4.58. Fourthly, Thailand's WTO notifications record is very good. In doing so, Thailand is supporting the WTO's monitoring function and the ability of other Members to understand its policy actions. One area where we encourage Thailand to do further work is in regard to notifying its agriculture domestic support for the years 2009 to 2013. Canada and Thailand share the common objective of undertaking reforms to global agriculture trade as Members of the Cairns Group and as illustrated by their co-sponsorship of the Framework on Domestic Support agreed by Cairns Groups Ministers in January 2020.
4.59. We would like to thank Thailand for its inclusion of MSME-related information in its Government report. The voluntary provision of this information is an important contribution that supports analysis and discussion of MSME-related issues in WTO Councils and Committee. Building on its constructive participation in the Joint Statement Initiatives (JSI) on e-commerce and on services domestic regulation, we also encourage Thailand to participate in the JSI on investment facilitation, as well as support the Joint Declaration on Trade and Women's Economic Empowerment.
4.60. We have submitted written questions that reflect some of the concerns raised today. We look forward to Thailand's responses, and to a constructive exchange of views on all aspects of Thailand's trade policy.
CHILE
4.61. We extend warm greetings to the large Thai delegation, led by the Minister of Trade, Mr. Rachavitch Piyapramote, whom we welcome to the WTO.
4.62. We note and appreciate the work being done by the Permanent Representative of Thailand to the WTO, Ambassador Sunanta Kangvalkulkij, and her Alternate Permanent Representative, Chakarin Komolsiri, and the members of the active Thai delegation to the WTO. We also thank Silvia Alfaro, the Ambassador of Peru, for her detailed report which illustrates quite well the trade reality in Thailand. We also thank the Thai authorities for the replies to the questions submitted by Chile.
4.63. The relationship between Chile and Thailand is longstanding. The link between the two countries has been one of growing collaboration and understanding, born of similar public policies and a shared vision of the benefits of free trade. We are both members of the Asia-Pacific economic forum, APEC.
4.64. In 2019, Thailand was the main destination for Chilean exports to the entire ASEAN bloc.
4.65. I would like to draw attention to the Free Trade Agreement between Chile and Thailand, which came into force on 5 November 2015 and covers preferential trade in goods and services. The Agreement granted immediate preferential access to more than 90% of products, without any exceptions.
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4.66. The third meeting of the Administrative Commission of the FTA was held in Bangkok in June 2019. The Committee on Sanitary and Phytosanitary Measures and the Committee on Goods, Rules of Origin and Customs Procedures met on that occasion.
4.67. During 2019, trade amounted to USD 1,075 million, down 24% compared to 2018. Total exports were USD 381 million, a contraction of 8.9% compared to the same period in 2018. Imports totalled USD 694 million.
4.68. Between January and August 2020, bilateral trade was USD 598 million, down 17% on the same period in 2019.
4.69. During the first 8 months of 2020, Chilean exports reached USD 233 million, which represents a decrease of 1.8% compared to the same period in 2019. Mining exports as a whole, valued at USD 112 million, account for most of Chile's shipments. With regard to imports (CIF), an amount equivalent to USD 365 million was recorded between January and August 2020. There is no doubt that the negative effects of the pandemic on world trade are also reflected in our bilateral trade relationship.
4.70. Meanwhile, Chilean investment in Thailand is valued at more than USD 190 million, mainly in the service sector, especially in the marketing of agro-industrial products, and in the industrial sector, particularly in chemicals and metalworking.
4.71. As I mentioned, the third meeting of the Free Trade Commission of the FTA was held in Bangkok, Thailand, on 20 and 21 June 2019. The details of the Code of Conduct for Dispute Settlement Procedures were agreed upon at the meeting, with the Code to be adopted through the exchange of diplomatic notes. We hope that Thailand will be able to make progress on this matter as well.
4.72. It was agreed to transpose the specific rules of origin from HS 2012 to HS 2017. On 17 December 2019, Chile sent a draft diplomatic note and we also hope that Thailand can move forward on this matter.
4.73. Chile hopes to make progress on licensing for the agricultural sector, especially for shipments of pears. At the third meeting of the Free Trade Commission, Thailand reported that the relevant analysis had not yet been completed and no date has been given as to when it might be made available.
4.74. Some certificates for trade in sheep by-products and salted sheepskins are also pending. It is also important to know the requirements for the export of bovine plasma and haemoglobin.
4.75. Meanwhile, the Chilean authorities, together with the Thailand International Cooperation Agency (TICA) and the Mekong Institute, are organizing a training workshop for ASEAN government officials on international trade negotiations. The parties have agreed to hold the workshop during the first quarter of 2021.
4.76. In addition, in June 2020, Mr. Kanit Si was appointed as Chair of the Thai-Chilean Business Council for the period from 1 May 2020 to 30 April 2022. In 2020, it will be 6 years since the creation of this Council, which has more than 33 members and has helped to generate a growing understanding and mutual cooperation between both countries, in support of the necessary strengthening of economic, trade and business relations between Chile and Thailand.
4.77. We reiterate our thanks to Thailand for the efforts made to improve and deepen our bilateral relationship, especially in the area of trade.
4.78. We have much work to do together for the mutual benefit of our peoples.
UNITED STATES
4.79. We welcome Thailand's delegation led by Minister Piyapramote, and we appreciate the reports prepared by the WTO Secretariat and the Government of Thailand for Thailand's eighth Trade Policy Review (TPR).
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4.80. Thailand is an important economic partner of the United States, and we have a long trade relationship dating back to the 1833 U.S.-Thailand Treaty of Amity and Commerce. In 2019, U.S. goods and services two-way trade with Thailand totalled an estimated USD 52.7 billion. The United States continues to work closely with Thailand through our Trade and Investment Framework Agreement (TIFA) to enhance our bilateral trade relationship and address priority issues.
4.81. The United States commends Thailand for maintaining macro-financial stability and solid economic growth since its last TPR, though we take note of Thailand's recent economic slowdown in 2020, which has been aggravated by the impact of the COVID-19 pandemic. The United States supports the Royal Thai Government's active engagement in WTO negotiations and notifications to the WTO, as well as its efforts to enact new and amended domestic trade-related legislation and regulations.
4.82. Thailand is a significant player in global trade and is well-integrated into the trading system. In 2019, it accounted for nearly 1.3% of global merchandise trade. In part for this reason, we call on Thailand to no longer seek special and differential treatment in current and future WTO negotiations. By taking this step, Thailand would make a significant contribution to ensuring that the WTO remains a viable forum for meaningful trade negotiations.
4.83. As was the case during Thailand's previous Trade Policy Reviews, we remain interested in Thailand's plans for further customs reforms. The United States welcomes Thailand's efforts to implement the Trade Facilitation Agreement and appreciate the updates from the Royal Thai Government that it has implemented 97% of its provisions. We also recognize the efforts by Thailand to enact incremental customs reforms through the amendments to the Customs Act in 2017. However, we remain concerned with penalties regime of Thai Customs and the continued use of commission payments for customs officials and informants. Although the reduction in per penalty commission range and cap were an improvement, we were disappointed that the Customs Act amendments did not eliminate the use of commission payments. We would appreciate an update from the Thai delegation on the Government's plans to enact further customs reforms in this area.
4.84. We also have concerns about aspects of Thailand's regime for agriculture products and SPS measures maintained by Thailand to restrict trade. For example, we are interested in better understanding the import fees and approval procedures for live animals and/or animal products. We would also like a better understanding of Thai standards on food safety, in addition to applications and procedures for genetically engineered products.
4.85. We applaud the efforts by the Royal Thai Government to strengthen elements of its intellectual property rights system, including the amendment of the Trademark and Copyright Acts, the establishment of a National Committee on Intellectual Property Policy, addressing backlogs for patent and trademark applications, as well as sustained enforcement efforts to combat counterfeit and pirated goods. As Thailand works to strengthen its IPR framework, we would be interested in hearing about its plans for improvements in other areas. We also would appreciate updates on Thailand's progress in amending its Patent Act and acceding to the Hague Agreement and WIPO Internet Treaties.
4.86. The United States supports Thailand's efforts over the past decade to liberalize its telecommunications market and improvements in Thai implementing domestic legislation on foreign equity limitations. We encourage Thailand to revise its WTO General Agreement on Trade in Services (GATS) schedule to reflect these higher foreign-equity limits, as it pledged to do in its 1997 schedule. The United States would welcome an update from Thailand on its plans to amend its GATS schedule to reflect its current level of market access.
4.87. Finally, I wish to note that the United States submitted 53 advanced written questions to the Royal Thai Government. However, we receive replies to less than half of them – 26, and there is no indication when we will receive the remaining responses. Unfortunately, this prevents the United States from fully engaging in this TPR, as we do not have the benefit of the expected exchange of information on trade policy and may not have an opportunity to ask follow-up questions. Transparency is a cornerstone of this exercise, and an important indicator of a successful TPR. We ask that the remaining questions be answered prior to Day 2.
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4.88. Nevertheless, we appreciate the opportunity provided by this meeting to discuss Thailand's trade and investment policies. We look forward to receiving Thailand's responses to our advanced written questions, to working together to address outstanding issues and further strengthen our bilateral relationship, and to continue our cooperation here at the WTO and in ASEAN, APEC, and other fora.
CHINA
4.89. China warmly welcomes the delegation of Thailand to this virtual Trade Policy Review and would also like to express our appreciation to the Discussant, Ambassador of Peru for the detailed report and insightful comments and also the Secretariat's efforts and contributions to this TPR.
4.90. China and Thailand are close neighbours with a long history of close and vibrant economic relationship, which are underpinned by strong trade and investment flows. China has been the largest trade partner of Thailand and was the biggest investment source of Thailand in 2019. Thailand is the third largest trading partner of China in ASEAN. Despite the negative impact on trade brought by the covid-19 pandemic, the bilateral trade continues to keep growing. For the first three quarters of this year, we are pleased to see the bilateral trade reaching USD 71.8 billion, up 8.1% year on year.
4.91. China highly commends Thailand's firm commitments to the rules-based multilateral trading system especially in the current difficult situation, when WTO is facing the biggest existential challenges since its establishment. We recognize Thailand's constructive participation in the WTO work, especially during this review period, its active participation in ITA expansion negotiation and its implementation of the Agreement, as well as Thailand's early ratification of Trade Facilitation Agreement with high commitments in category A. We also appreciate Ambassador Sunanta for her contribution esp. As the GC chair last year.
4.92. Thailand's active role in the regional cooperation has also been well recognized. Among all those FTAs and regional cooperation with Thailand as a member or party, China would specifically commend Thailand's active engagement in the Regional Comprehensive Economic Partnership negotiation and its signature on it ten days ago together with other 14 parties after 8 years of negotiations. We are looking forward to the RCEP early entry into force and believe this would not only benefit RCEP parties but would also bring significant opportunities and benefits to other countries both in the region and outside the region. In the meantime, participation in the RCEP also shows Thailand's firm belief in trade liberalization and openness, especially during the time when the global trade is suffering unilateralism and protectionism.
4.93. Finally, we would like to thank Thailand for its written replies to our written questions and wish Thailand a full successful trade policy review.
UNITED KINGDOM
4.94. On behalf of Her Majesty's Government, I am pleased to add my welcome to the delegation of Thailand, led by the Honourable Mr Rachavitch Piyapramote. The UK is encouraged by the improvements made during the previous review period, such as the consideration of ways to strengthen protection of intellectual property rights. We likewise appreciate Thailand's responses to our written questions.
4.95. I would also like to thank Her Excellency Sunanta Kangvalkulkij (the Permanent Representative of Thailand to the WTO and WIPO) for her leadership, and Her Excellency Silvia Alfaro Espinosa (Peru) for her insightful and illuminating remarks as discussant.
4.96. The COVID-19 pandemic has created difficult circumstances for us all. We note that Thailand has taken recent steps to stimulate its economy and has implemented a number of measures to facilitate the movement of goods during the pandemic. We welcome this commitment to keeping global value chains open.
4.97. 2020 marks the 165th year of diplomatic relations between the UK and Thailand. Our two countries have had a long and historic relationship, with shared values and, particularly, an interest in mutual prosperity and maintaining the rules based international system. Thailand is one of the
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UK's most valued trading partners. Our total bilateral trade in goods and services was £6.2bn in the four quarters to the end of Q1 2020, an increase of £20m from the previous year.
4.98. The UK is pleased to be conducting a bilateral Joint Trade Review with Thailand, due to conclude this year. Through this, both sides are identifying opportunities to enhance bilateral trade relations and set the groundwork for future cooperation, supporting the UK's ambition to use our voice as a new independent trading nation to champion free trade, strengthen the rules-based international system, fight protectionism and reduce trade barriers, including by working specifically with our closest trading partners.
4.99. We enjoy extensive trade and diplomatic collaboration, particularly within the WTO where we are both founding Members. An example of a service sector where we have close collaboration is education. The British Council has worked in Thailand for over 60 years and has six offices in the country providing English courses, teacher training and collaboration in the arts and creative industries. The UK now has an Education cooperation MOU with Thailand which was signed in 2016 and around 6,500 students take part in educational programmes in the UK each year. We are also keen to collaborate with Thailand on tech, through the UK's new Digital Trade Network in the Asia Pacific region, an investment of £8m with one of our key resources based in Thailand.
4.100. The United Kingdom looks forward to continuing to collaborate with Thailand as our bilateral Joint Trade Review process nears conclusion. In closing, allow me to extend our warmest wishes for a successful WTO Trade Policy Review and to thank you for your engagement with this process and the World Trade Organization.
EUROPEAN UNION
4.101. On behalf of the European Union, I would first like to welcome the delegation of Thailand led by Mr. Rachavitch Piyapramote (Minister, Permanent Mission of Thailand to the WTO and WIPO, Bangkok Office). I would also like to thank the WTO Secretariat and the Government of Thailand for their reports. Let me extend also our appreciation to the discussant, H.E. Ms Silvia Elena Alfaro Espinosa (Ambassador of Peru) for giving us her views on the main economic and trade trends in Thailand and on the opportunities and challenges ahead. The EU welcomes this opportunity to discuss developments in Thailand's trade and economic policies and business environment since its previous WTO Trade Policy Review in 2015.
4.102. The EU and Thailand have a long-standing and well-developed economic relationship. The EU continues to be among Thailand's top trading partners, and our bilateral trade flows continue steadily increasing. To give some examples, from 2014 until 2018, both EU exports to Thailand and EU imports from Thailand increased by around 28%, and continued growing in 2019 (based on EU-27 data). The EU remains one of the four biggest Thailand's exports destination (9.6%) and shares 8.8% of total Thailand's imports. At the same time, Thailand is one of the most important destinations of EU investments within ASEAN countries and the fifth largest source of FDI inflows in Thailand.
4.103. The EU and Thailand also share a strong commitment to the WTO, and we look forward to further working together to strengthen the rule-based multilateral trading system. We would like to congratulate Thailand for the ratification of the WTO Trade Facilitation Agreement in 2015 and for the acceptance of the Protocol Amending the TRIPS Agreement in 2016. We also welcome Thailand's engagement in the WTO on-going discussions on e-commerce.
4.104. The COVID-19 pandemic is a far-reaching shock bearing serious short and long-term consequences on the economy and on trade worldwide. It has strongly hit the traditional growth engines of Thailand's economy, relying on exports, tourism and private consumption. The Thai authorities reacted quickly in adopting short-term measures to address the economic and social fallout of the crisis.
4.105. In terms of medium and long-term perspectives, the Thai Government has called for amending the 20-Year National Strategy, launched in 2017, which aims to achieve high-income status by 2036 and transform Thailand into a digital, value-added, innovative and knowledge-based economy, notably through the Thailand 4.0 strategy. In this respect, Thailand has identified as key
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4.106. The EU commends this reorientation of Thailand's economic policies and encourages Thailand to ensure that these overarching directions are translated into concrete actions delivering tangible results. Notably, the EU wishes to highlight the key importance of carrying out deeper structural reforms in order to achieve long-lasting impacts, contribute to a sustainable socio-economic recovery from the pandemic and enable growth in the longer run, avoiding the middle-income trap.
4.107. In this regard, in our written questions we have flagged a number of issues on which the EU has questions or concerns, and we call on Thailand to review its relevant policies and measures with a view at furthering the openness, effectiveness and predictability of its trade environment – and in turn strengthen its position in the global economy.
4.108. Our written comments cover several areas of Thailand's economic and trade policies, among which let me recall some issues that would represent crucial enabling factors for a stronger economic and business environment in Thailand.
4.109. Namely:
• for services and investment, lifting foreign ownership restrictions (notably concerning the Foreign Business Act and specific regulations) and opening up to new technology and knowhow-based investment; • For government procurement, ensuring transparency, non-discrimination, competition and fairness in procurement processes.
4.110. On the regulatory environment, including on taxation and on competition, having in place robust legal frameworks, developed in a transparent manner and with the involvement of all concerned stakeholders, and ensuring their effective and impartial implementation and enforcement.
4.111. While we note ongoing efforts to pursue targeted initiatives in specific sectors or geographical zones, for instance through investment incentives, we call on Thailand to broaden and simplify them so to cover the whole economy, thereby maximizing their intended outcomes. We also welcome initiatives undertaken by Thailand to reform and modernize the regulatory environment in various areas, such as the adoption of new regulations on procurement and competition over the last years. However, the discretionary space left to the administration in establishing secondary legislation and managing enforcement continues to be a concern for foreign economic operators. Reducing such discretionality, including through enhanced transparency and digitalisation, would play a key role in establishing a more attractive business environment.
4.112. The EU is confident that this TPR will help Thailand in reviewing its own policies. Looking ahead, we hope that Thailand will continue to increase liberalization in the sectors that can most contribute to enhancing its competitiveness and to further integrating in international supply chains – to the benefit of the Thai economy and society as a whole.
4.113. On behalf of the EU, I wish Thailand a very productive and successful Review.
REPUBLIC OF KOREA
4.114. I would like to extend a warm welcome to the delegates who are in Geneva as well as in Bangkok for the 8th (eighth) Trade Policy Review of Thailand. In particular, I would like to thank Minister Rachavitch Piyapramote, Permanent Representative of Thailand to the WTO and WIPO in Bangkok Office, for his comprehensive presentation.
4.115. My special appreciation also goes to Ambassador Silvia Alfaro for her contribution as a discussant and Ambassador Sunanta and her team for their hard work.
4.116. Turning to the Thai economy, Korea is pleased to note that the Thai economy grew at an annual average rate of 3.4% between 2015 and 2019.
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4.117. However, the Thai economy faced an economic downturn in 2019 and this year, its economic difficulties have been exacerbated by the adverse impact of the COVID-19 pandemic. To mitigate the pandemic's effects, the Thai Government has taken various actions including the COVID-19 Relief Package as well as monetary measures.
4.118. It is our sincere hope that Thailand will address this unprecedented challenge in a cooperative way through the multilateral trading system.
4.119. In addition to responding to the immediate threats of the pandemic, Thailand has implemented the Twelfth National Economic and Social Development Plan (NESDP) 2017-2021, in line with the 20-Year National Strategy (2018-2037), which is a long-term vision for structural reform to address challenges such as domestic constraints.
4.120. In terms of international fora, Korea takes note of Thailand's efforts to support the rules-based multilateral trading system. Thailand has played a pivotal role in trade cooperation, both as the chair of the ASEAN Committee in Geneva and the chair of the WTO General Council during the review period. Since its 7th (seventh) TPR, Thailand has concluded two Free Trade Agreements, with Chile and with Hong Kong, China, respectively.
4.121. Korea and Thailand have maintained a strong bilateral economic relationship with the Korea-ASEAN FTA. The Regional Comprehensive Economic Partnership, which was recently signed by Asian leaders, will provide an opportunity to strengthen the relationship among participating countries.
4.122. Between Korea and Thailand, the bilateral investment treaty and double taxation avoidance agreement entered into force in 1989 and 2007, respectively.
4.123. In terms of more specific sectoral cooperation, both countries' customs agencies have signed a mutual recognition arrangement for the Authorized Economic Operator program in 2006, which facilitates international trade. Going forward, Korea has high hopes that this bilateral relationship will keep growing through various kinds of cooperation.
4.124. Korea has submitted written questions on various aspects of Thailand's trade policy including anti-dumping measures and specific trade concerns and is grateful for Thailand's timely written response.
4.125. I would like to take this opportunity to reiterate some points which we further seek Thailand's productive and positive responses to.
4.126. First, Korea notes that about 70% of the anti-dumping measures currently in force in Thailand are those that have been extended beyond their sunset period. Taking into account these measures' adverse effects on trade, taking more prudent approaches in the anti-dumping review process would be recommended.
4.127. Second, we are concerned that foreign securities companies which operate their businesses in Thailand are subject to frequent audits by the Securities and Exchange Commission. We would like to kindly request Thailand to consider providing audit guidelines for better predictability.
4.128. Lastly, many Korean companies are facing difficulties in exporting medical equipment and wireless communication equipment to the Thai market due to non-tariff measures, especially owing to the excessive costs and complexities caused by the certification process. In this regard, Korea would like to encourage Thailand to improve its institutional framework for standards and conformity assessment.
4.129. Korea would like to once again highlight Thailand's efforts to make the overall trading environment more open, transparent, and efficient. Let me conclude by expressing my deep appreciation to the delegation of Thailand for its hard work and wishing the delegation every success in this TPR.
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MYANMAR ON BEHALF OF ASEAN
4.130. On behalf of ASEAN, Myanmar is honoured to deliver the ASEAN Statement.
4.131. We would like to extend a very warm welcome to His Excellency Mr. Rachavitch Piyapramote and his delegation. We also thank the Secretariat for their effort in preparing comprehensive review reports, and the discussant, H.E. Silvia Alfaro of Peru for her insightful comments.
4.132. Thailand is a founding Member of the Association of Southeast Asian Nations (ASEAN). ASEAN was established with the signing of the ASEAN Declaration in Bangkok, Thailand on 8 August 1967. Since then, Thailand has actively contributed to ASEAN's regional integration and cooperation efforts as set out in the ASEAN Economic Blueprint (AEC) 2025 Blueprint.
4.133. During its ASEAN chairmanship in 2019, driven by the theme of "Advancing Partnership for Sustainability", Thailand successfully facilitated the accomplishment of key priority economic deliverables, such as:
i. ASEAN Digital Integration Framework Action Plan; ii. ASEAN Innovation Roadmap 2019-2025: Partnering for Innovative Community; iii. Guidelines on Skilled Labor/Professional Services Development in Response to the Fourth Industrial Revolution (4IR); iv. ASEAN Declaration on Industrial Transformation to Industry 4.0; v. Digitalisation of ASEAN Micro Enterprises; vi. ASEAN Single Window (ASW); vii. Promoting Sustainable Fisheries through ASEAN Cooperation; and viii. Roadmap for ASEAN Sustainable Capital Markets.
4.134. In addition to this, Thailand together with other ASEAN Member States had worked tirelessly towards the substantial conclusion of the 20 Chapters under the Regional Comprehensive Economic Partnership (RCEP), and was also instrumental towards the full conclusion and signing on the RCEP Agreement during the 37th ASEAN Summit on 15 November 2020,
4.135. Thailand is the seventh-largest economy in Asia, and the second largest in ASEAN. In 2019, Thailand's total trade amounted to USD 483.2 billion, increasing by 15.8% from 2015. Thailand's two-way trade in goods and services represented 110% of its GDP in 2019, reflecting the country's outward-orientation and integration into global value chains.
4.136. Between 2015 and 2019, Thailand's trade with other ASEAN Members accounted for 27.6% of its total trade volume. It has continued to pursue its economic integration agenda within ASEAN where progress is being made towards the consolidation of the ASEAN Economic Community.
4.137. Since its last Review in 2015, Thailand has reported changes in its customs regime and adopted a new Customs Act (2017) to simplify customs procedures and improve transparency. It also ratified the WTO Trade Facilitation Agreement and has now implemented 97.1% of its commitments. In addition, Thailand has implemented reforms to its IP system, aimed at boosting performance in the areas of science, technology and innovation.
4.138. ASEAN notes the issuance of the National Strategy (2018-2037) by the new Thai Government, which underpins the country's development policy, Thailand 4.0. The latter aims at transforming Thailand into a value-added, innovative, and knowledge-based economy through the promotion of innovation and development of new technology-based industries.
4.139. ASEAN recognizes the active engagement and commitment of Thailand to the rules-based multilateral trading system, which enables stable and sustainable international economic growth. Over the review period, Thailand actively engaged in various WTO negotiations, discussions and regular work, including on WTO reform, fisheries subsidies, electronic commerce and domestic regulation. The Chairmanship of Thailand's Permanent Representative to the WTO, H.E. Sunanta Kangvalkulkij, in the Dispute Settlement Body in 2018 and the General Council in 2019 demonstrates the significant contribution of Thailand to the WTO. During Thailand's ASEAN Chairmanship year in 2019, Thailand also successfully chaired the ASEAN Committee in Geneva.
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4.140. Together with Thailand, ASEAN reaffirms our strong commitment to uphold an open, inclusive, transparent, non-discriminatory and rules-based multilateral trading system as embodied in the WTO. During this time difficult time caused by the unintended consequences of the COVID-19 pandemic, Thailand together with ASEAN are committed towards building economic resilience within the region through the newly adopted ASEAN Comprehensive Recovery Framework (ACRF) that was launched by the ASEAN Leaders during the recent 37th ASEAN Summit on 12 November 2020. One of the commitments made by ASEAN is to keep our market opens especially on essential goods and to ensure uninterrupted supply chain within the region.
4.141. Some ASEAN Member States have submitted written questions to Thailand and we would like to express our appreciation in advance and look forward to their written responses.
4.142. We would also like to thank the delegation for their constructive engagement, and we wish Thailand a successful eighth Trade Policy Review.
MYANMAR
4.143. Myanmar aligns itself with the ASEAN Statement.
4.144. At the outset, on behalf of Myanmar delegation, I wish to welcome the Secretariat report and the report of the Royal Thai Government to this 8th Trade Policy Review.
4.145. We also wish to express our appreciation to Thailand for its comprehensive responses to the written questions of Myanmar.
4.146. Secondly, Myanmar commend Thailand for its key Development Policies and related Strategies in implementing its National Economic and Social Development Plan (NESDP) 2017-2021, Industrial Development Plan (2017-2036) and COVID-19 related Trade and Investment Policies and Measures.
4.147. Myanmar and Thailand have long standing good neighbourliness relationships and mutual beneficial cooperation in the areas of economic and social developments since historical times.
4.148. The bilateral trade between Myanmar and Thailand has been growing gradually with the increased imports from Thailand to Myanmar.
4.149. Globally, Thailand is Myanmar's second largest trading partner and third largest investor in the country whereas Thailand is Myanmar's top trading partner in the region.
4.150. Both countries have also been cooperating in bilateral, regional and multilateral fora. We believe that there still exist potentials to further enhance bilateral trade between our two countries.
4.151. Through this TPR process, we have seen Thailand's commitment for progressive liberalization in its trade and investment regime. We congratulate Thailand for its World's No.3 position among 190 countries in the World Bank's Doing Business Report 2020.
4.152. Before I conclude, I wish to express our appreciation to Thailand for its support in multilateral trading system, necessary reform measures and transparency in the WTO while taking into consideration of the LDC's vulnerability and requirements.
4.153. Finally, I wish to express our thanks to Thailand for its comprehensive responses to our questions and wish its 8th Trade Policy Review a great success.
SINGAPORE
4.154. The Singapore delegation welcomes the Thai delegation, including those who are participating virtually from Bangkok. We thank Thailand for the comprehensive Government report and statement. We also thank TPRB Chair, Ambassador Harald Aspelund, the Secretariat, and the discussant, Ambassador Silva Alfaro Espinosa of Peru, for their insightful perspectives.
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4.155. At the outset, Singapore commends Thailand for supporting the "hybrid" TPR of the WTO. The monitoring function is a critical pillar of the WTO and the continuation of these activities, despite the ongoing pandemic, signals the organisation's resilience. Allow me to make three points.
4.156. First, on the multilateral front, Singapore applauds Thailand for its firm commitment in upholding the rules-based multilateral trading system, as embodied in the WTO. In particular, we commend Ambassador Sunanta for her leadership as Chair of the General Council and the Dispute Settlement Body. Thailand has been a constructive voice in the WTO's regular committees. Thailand is also active in the Joint Statement Initiatives, which have made significant headway this year, despite the challenging circumstances.
4.157. Second, on the regional front, Thailand has made significant contributions within ASEAN. Under its Chairmanship in 2019, we concluded key elements of the Regional Comprehensive Economic Partnership (RCEP) Agreement, which was signed last week (16 November). RCEP covers close to 30% of the global population and 29% of global GDP, and is testament to the value of multilateralism, free and open trade, and connected supply chains. During Thailand's Chairmanship of ASEAN, all ASEAN Member States came onboard the ASEAN Single Window and signed the ASEAN Protocol on Enhanced Dispute Settlement Mechanism.
4.158. Thailand also advanced ASEAN's digital integration agenda. This was done through the Digital Integration Framework Action Plan 2019–2025 and deliverables on the Fourth Industrial Revolution. These initiatives strengthen ASEAN cooperation in areas such as industrial transformation, digital trade facilitation, data connectivity and payments, and provide a strong foundation towards a single regional digital economy in ASEAN.
4.159. Third, on the bilateral front, Singapore and Thailand share warm and longstanding bilateral relations. Our bilateral trade remains robust, despite the COVID-19 pandemic. In the five-year period from 2014 to 2019, bilateral trade grew by 3.2% to USD 23.4 billion in 2019. Our companies remain keen to invest in Thailand. In 2018, Singapore's stock investments in Thailand amounted to US 19.3 billion, representing a 28.9% increase since 2014. Additionally, Singapore and Thailand share close people-to-people relations. In 2019, there were around 1 million visitors from Singapore to Thailand, and around half a million visitors from Thailand to Singapore.
4.160. To conclude, Singapore will continue to strengthen our cooperation with Thailand, on the multilateral, regional and bilateral fronts. We wish Thailand every success for this TPR.
UKRAINE
4.161. Our delegation is pleased to participate in the 8th Trade Policy Review (TPR) of Thailand, which gives a good opportunity to understand the full range of the country's trade policies and practices, recent economic developments since its last Review in 2016 and their impact on the functioning of the multilateral trading system.
4.162. I would like to warmly welcome the delegation of Thailand led by Mr. Rachavitch Piyapramote, and express appreciation to the Thai team for its constructive engagement in this TPR exercise. Ukraine also appreciates the substantial work of the TPRB Chair and the WTO Secretariat, the meaningful analysis of the discussant, H.E. Ms. Silvia Elena Alfaro Espinosa.
4.163. Ukraine commends Thailand for its positive economic performance represented by solid growth of the Thai economy till 2019, intention to meet the target of free and open trade and investment, reduction of some of tariff rates for goods that are subject to tariff peaks.
4.164. Ukraine also acknowledges efforts of the Government of Thailand in implementation of accommodative fiscal and monetary policies to support economic growth and measures taken to tackle difficulties caused by the adverse impact of the COVID-19 pandemic during 2020. We wish Thailand to successfully address current threats to its economic performance and challenges and to achieve its structural reform for further sustained economic growth by increasing investment, implementing policies to enhance innovation, productivity and competitiveness, and pursuing the liberalization of trade.
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4.165. Ukraine notes importance of international trade in the Thai economy and maintaining position of Thailand as the world's 19th largest exporter and the 17th largest importer of goods, and the 12th and 16th among the world's top exporters and importers of commercial services. We believe that Thailand will keep its market open and predictable, despite the pandemic.
4.166. The Ukrainian side recognizes Thailand`s commitment and strong support of the rules-based multilateral trading system providing for stability and sustainability of international economic growth. We highly value active engagement of Thailand in WTO activities and participation in discussions under the Work Programme on Electronic Commerce, co-sponsored the Joint Statement on E-commerce Initiative etc. We note achievement of Thailand in the implementation of Trade Facilitation Agreement - at a rate of more than 94.1%.
4.167. Thailand is an important partner of Ukraine. In 2019 the Ukrainian-Thai trade in goods amounted to USD 540.0 million (↑ 26.4% comparably to 2018), exports - USD 322.1 million, imports - USD 217.9 million. However, due to the COVID-19 crisis, as of January-July 2020, our bilateral trade contracted by 41.7% (USD 186.6 million), exports of goods decreased by ↓ 59.2%, (USD 79.8 million), imports by ↓ 14.3% (USD 106.8 million).
4.168. As of the 1st July 2020, Thailand's investment to Ukraine amounted to USD 5.1 million.
4.169. For both trade and investment flows, Ukraine believes that the potential for further expansion remains substantial. Inauguration of work of the Joint Commission on Trade Issues shall become an effective instrument for the development of bilateral trade and economic relations between the two countries and give a powerful impetus to enhancing of bilateral trade.
4.170. The reports of the Government of Thailand and the WTO Secretariat raised questions in a number of areas – as detailed in Ukraine`s written submissions to this Review. The main themes addressed were customs procedures, simplification of tariff structure, price regulation and control, regulations on banking and other financial services, results of the investment promotion strategy, COVID-19 related policies and measures, electronic commerce etc.
4.171. While expressing gratitude for given responses, Ukraine is looking forward to developing further partnership and enhanced trade between both countries and wishes Thailand successful TPR.
THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU
4.172. On behalf of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, I would first like to extend our warm welcome to the Thai delegation led by His Excellency Minister Piyapramote. We expect to have a successful 8th TPR for Thailand.
4.173. As noted in both reports of Thai Government and the Secretariat, since its previous Review in 2016, Thailand has maintained macro-financial stability and remarkable economic growth, with minor inflation, a sizeable current account surplus, and a sound financial system, among other positive signals. We congratulate Thailand on these healthy and stable performances. Like other Members, Thailand is also affected by the COVID-19 pandemic, especially in its manufacturing and tourism sectors. However, we believe the Relief Package and various structural reform measures launched by the Thai Government will be effective in weathering the storm and building a more resilient economy.
4.174. Regarding our bilateral trade relations, despite the global economic downturn and trade tensions that have negatively impacted our bilateral trade, we still observe in general a healthy and growing trend in the trading relationship. For the year 2019, Thailand was our 13th largest trading partner, with total bilateral trade amounting to USD 9.8 billion. It was also the 12th largest destination for our exports and our 16th largest source of imports. Furthermore, Thailand is a major destination for our outbound investments in Southeast Asia, concentrated mainly on manufacturing sectors such as chemicals, electrical, electronics, textiles, food and others. We believe Thailand's open and transparent regime will lead to further growth in our bilateral trade and investment relations in the future. In particular, we commend the Thailand Government on its ambitions to improve the openness of its trade and investment regime since the previous Review, and the progress already made. We also believe that Thailand's policies on structural reform and its development plans for the digital economy - smart cities and the global supply chain, which include
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- 26 - the "Thailand 4.0" and the Eastern Economic Corridor (EEC) - will create more business opportunities for both of us.
4.175. Having said this, I would just like to make some requests or to highlight a few areas in which we would encourage the Thai Government to consider making more progress in its reform:
4.176. First, in 2016 the Thailand Government initiated the project called "Regulatory Guillotine" to review its existing laws, rules and regulations in order to ensure greater efficiency. The first stage focused on streamlining the complex processes of licensing and permit issuing, and regulatory procedures. It would be appreciated if the Thai Government could share with us the results of this project so far and the future steps planned for streamlining the requirements for licensing and permit process.
4.177. Second, Thai Government has set the "10 Targeted Industries" to be Thailand's new economic growth engines to help Thailand's achievement of its structural reform. We would appreciate if Thailand can explain whether and to what extent subsidies from the government have a role to play in supporting the "10 Targeted Industries".
4.178. Third, Thailand applies import licensing and other requirements on various products on the grounds of public-health, national economic security, and IP protection, among others. While we respect its authority to apply these requirements, we think there is still room for further relaxation. We therefore encourage the Thai Government to take a further look at the requirements currently applied on products such as building stones, used motor vehicles, re-treaded tyres, printing and colour copier machines, electrical appliances and others.
4.179. Forth, according to the Secretariat's report, "a foreign commercial bank may be established in Thailand either as a branch or as a subsidiary." The Report also indicates that foreign investors in commercial banking are still subject to the licensing requirements and foreign ownership limits as prescribed under the Financial Institutions Business Act (FIBA). However, according to Thailand's written responses, it will not be granting new licenses in the near future and further liberalization is being considered only through bilateral negotiations under the Qualified ASEAN Banks (QAB) framework. We would urge the Thai Government to consider further liberalizing its banking sector for other WTO Members which are not able to access to the QAB.
4.180. Fifth, we support and are very interested in Thailand's Eastern Economic Corridor (EEC) project for the development of a high value-added, high technology and innovative economy. We understand that various generous incentives are available to investors destined for the Corridor. However, we believe that transparent procedures, clear timelines and reasonable requirements in relation to investment approval and environmental impact assessment are indispensable to the ultimate success of this project.
4.181. We thank Thailand for its written responses to our questions. At the same time, we would greatly appreciate receiving more details of other opportunities accessible to potential investors.
4.182. Finally, I would like to express again our sincere wish for a constructive and successful TPR. We look forward to closer and more mutually beneficial economic ties with Thailand.
JAPAN
4.183. Let me first extend a warm welcome to this Eighth TPR meeting to the distinguished delegation of Thailand headed by Mr. Rachavitch Piyapramote, Minister, Permanent Mission of Thailand to the WTO and WIPO. We truly appreciate that the Thai delegation has shown great flexibility by agreeing to hold this TPR meeting via a virtual format under the current circumstances. We are thankful for the answers to our written questions and look forward to hearing reply from Thailand on one remaining question we just re-submitted. Also, we sincerely appreciate the dedicated efforts made by Thailand and the WTO Secretariat to prepare the insightful reports shared with the members in advance of today's review.
4.184. Thailand is a very important trading partner for Japan. In 2019, Thailand is Japan's sixth largest trading partner, and trade between our two countries reached a value of USD 57 billion in total. On investment, Japan continues to be one of the top foreign direct investors to Thailand, and
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FDI from Japan amounted to USD 5.1 billion in 2019. In addition, Thailand is the sixth largest investor to Japan.
4.185. We acknowledge that Thailand has achieved relatively stable economic conditions and positive growth over the period under review. During 2020, however, all of our economies have been facing difficulties due to the COVID-19 pandemic. Thailand's main industries, such as the automobile sector and the tourism sector, have been particularly hard hit. We look forward to seeing Thailand recovering quickly and "building back better" by advancing such measures as structural reforms and fiscal reform.
4.186. Turning to trade policy, Thailand has concluded 16 Regional Trade Agreements, including our Japan-Thailand Economic Partnership Agreement, while continuing to actively negotiate for new bilateral FTAs. Looking at recent advancements, we welcome the entry into force in August of the First Protocol to amend the ASEAN-JAPAN Comprehensive Economic Partnership. Also, we are pleased that the Regional Comprehensive Economic Partnership was signed on 15 November. We look forward to further increasing trade and investment between Thailand and Japan by practicing these agreements. We believe that Thailand's efforts and cooperation under RTAs will contribute to further strengthening the Multilateral Trading System.
4.187. The Secretariat report notes that Thailand ratified the Trade Facilitation Agreement in 2015 and has improved its customs regimes since the last review. In this context, we acknowledge the progress Thailand has made by managing to implement 97.1% of its TFA commitment, and we look forward to seeing Thailand continuing to work for the full implementation. We also welcome Thailand's participation in plurilateral frameworks under the WTO such as the expansion of the ITA. Overall, Japan highly appreciates Thailand's efforts for trade liberalization. We look forward to Thailand actively and continuously engaging in, and further participating in multilateral as well as plurilateral frameworks under the WTO, including discussions/negotiations within the Joint Statement Initiative for further pursuing trade liberalization and strengthening of the Multilateral Trading System.
4.188. With regard to trade related measures under the COVID-19 pandemic, we recognize that Thailand adopted measures such as export bans on surgical masks. We encourage Thailand to continue to align its measures with the principle agreed on at the ASEAN Plus Three Summit of "ensuring that measures deemed necessary for public health emergency response are targeted, proportionate, transparent and temporary and that they do not create unnecessary barriers to trade or disruption to regional supply chains, and are consistent with WTO rules."
4.189. In conclusion, we firmly believe that by observing its commitments to the WTO, Thailand will be well placed to pursue an open, transparent and non-discriminatory market for its development. And, again we appreciate Thailand's flexibility to agree to hold this TPR meeting today by virtual format. We wish Thailand a successful and productive TPR and look forward to hearing of further progress regarding its trade and investment policies at its next TPR.
INDIA
4.190. Thank you Chair, my delegation is pleased to participate in the 8th Trade Policy Review of Thailand. On behalf of India, I will like to welcome the delegation of Thailand led by Mr. Rachavitch Piyapramote, Minister, Permanent Mission of Thailand to the WTO and WIPO, Bangkok Office; H.E. Sunanta Kangvalkulkij, Ambassador and Permanent Representative of Thailand to the WTO and WIPO and her team in Geneva for the TPR. We thank Mr. Rachavitch Piyapramote for his comprehensive opening statement, Ambassador H.E. Ms Silvia Elena Alfaro Espinosa of Peru, for her insightful observations as a discussant, and the Secretariat and the Government of Thailand for the reports prepared for the Review.
4.191. We are pleased to note from the Secretariat's report that during the period under review, Thailand has maintained macro-financial stability, supported by prudent fiscal and monetary policies. The stable and continuous growth witnessed between 2015 and 2018 has enabled Thailand to join the upper-middle-income group of countries. We wish to complement the Thai Government and its people on their economic success and also for a successful management of the COVID-19 pandemic. We also acknowledge the recent slowdown in the economic growth witnessed from 2019 due to reasons beyond Thailand's control.
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4.192. India and Thailand share centuries old ties of friendship and cultural linkages. The relationship is rooted in history, civilization and extensive people to people linkages. Today, India's relations with Thailand are multi-dimensional. India's "Look East" policy and Thailand's "Look West" policy, which have now metamorphosed into India's "Act East" and Thailand's "Act West" policies are strongly contributing to consolidation of bilateral relations, including economic and commercial linkages. India's partnership with Thailand also has a strong regional dimension in the context of India's engagement with ASEAN and membership of groupings such as BIMSTEC, Mekong Ganga Cooperation (MGC) and Asia Cooperation Dialogue (ACD). There have been regular high-level exchanges between the two countries in the recent years. The closer relationship between the two countries was further demonstrated in participation of the Prime Minister of Thailand along with all ASEAN Heads of States as Chief Guests at the Republic Day celebration of India in January 2018. The closer political relationship has contributed to a new dynamism in economic and commercial ties.
4.193. Trade and investment constitute a key pillar of India's expanding relations with Thailand, including in the framework of India-ASEAN FTA in goods and services. In the ASEAN region, Thailand ranks as India's 5th largest trading partner. During the period under review, bilateral trade between two countries has increased by more than 60%. Bilateral trade between India and Thailand was USD 12.14 billion in 2019 with exports from India to Thailand at USD 4.80 billion and import from Thailand to India at USD 7.34 billion. Before the slowdown kicked in, bilateral trade increased by 20% in year 2018. Both the countries are working on ways to enhance connectivity including in the areas of physical and digital connectivity.
4.194. The fast-growing Indian market remains attractive for Thai investors and exporters. An Early Harvest Scheme (EHS), covering 83 products, under the India-Thailand Comprehensive Economic Cooperation Agreement (CECA), in place since September 2004, has significantly contributed to the growth in our bilateral trade. The ASEAN-India Trade in Goods Agreement (AITGA), which came into effect from 1 January 2010 has resulted in further expanding of our bilateral trade and its proposed review will make it even more user-friendly, simple and trade facilitative for businesses.
4.195. Beyond trade, our investment ties have grown rapidly with two-way investments in sector such as IT, pharmaceuticals, chemical, food processing, infrastructure, automotive, engineering goods, and hospitality. Quite a large number of our businesses are thriving in each other's market. The expanding connectivity between both the countries, through land, air and sea have helped both our commercial as well as the people-to-people linkages.
4.196. We are committed to strengthening trade and investment partnership with Thailand. Both countries have established institutional mechanisms and agreements for promoting trade and investment between them and we remain actively engaged to address the bilateral market access issues including the export of Indian bovine meat, marine products including shrimps, pharmaceuticals, poultry products, electrical equipment, agricultural products such as blueberry, strawberry, kiwi fruit, potato, lemon, okra, brown rice, black tea, etc. We are confident that through these engagements, both countries can resolve their respective trade concerns and achieve mutually beneficial trade exchanges in the future. I would like to thank the Thai delegation for providing answers to the questions raised by us for the TPR, which will be reviewed by our Capital.
4.197. Before I conclude, I wish to applaud the commitment of Thailand to the multilateral trading system and highlight the vast potential for further strengthening the trade and investment ties between our two countries, given the natural and historical affinities we share. We look forward to closely working with the Thai authorities and their delegation in Geneva to strengthen our bilateral economic cooperation, as well as to strengthen the multilateral trading system. I wish our Thai friends a productive and successful TPR.
COLOMBIA
4.198. On behalf of the Ambassador of Colombia, Mr. Santiago Wills, we wish to extend our greetings to the distinguished delegation of Thailand that is connected today, headed by the Minister of the Permanent Mission of Thailand to the WTO and WIPO, Mr. Rachavitch Piyapramote, and to your Ambassador, Ms. Sunanta Kangvalkulkij. We would also like to thank the Secretariat for the report and the Ambassador Silvia Elena Alfaro Espinosa (Peru) for her pertinent comments.
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4.199. Thailand is an interesting economy from which there is much to learn. During the period under review, it has undergone major structural changes, including the death of His Majesty King Bhumibol Adulyadej in 2016, the adoption of a new constitution in 2017 and a general election in 2019 after five years without going to the polls.
4.200. Nevertheless, the Thai economy remained stable and continued to thrive. During the period 2015-2019, it saw average growth of 3.4% in real terms, recorded a surplus on its current account that led to the accumulation of significant foreign exchange reserves, and kept headline and core inflation below the limits established by the central bank.
4.201. Thailand is also characterized by its focus on international trade in goods and services, as well as its successful integration into global value chains. This is evident from the fact that international trade was equivalent to 110% of national GDP in 2019. Manufacturing continued to dominate the Thai export structure, making up 73.3% of the total, while agricultural products accounted for 17.5%. However, the importance of the Thai agricultural sector should not be overlooked as it is a net exporter of these products and one of the world's leading producers of some crops.
4.202. Another aspect of the Thai economy that I would like to highlight is the performance of its service exports during the period under review. Between 2015 and 2019, it ran a steady surplus, thanks mainly to its successful tourism industry, which accounted for 79.4% of total exports. The Secretariat report also highlights the vitality of Thai financial services and the modernization of its telecommunications services and infrastructure, two sectors that, even though they accounted for a relatively small share of exports, strengthened Thailand's resilience to external shocks.
4.203. Unfortunately, the pandemic that broke out in 2020 seriously disrupted this path of growth, to the point that the central bank anticipated an economic contraction of 8.1% this year. In addition, as in all the countries around the world, the pandemic brought to the fore challenges that require the government's particular attention. I would like to highlight three of these challenges. First, the concentration of goods and services exports. The contraction in world trade affected automotive exports and global supply chains, while the restrictions on the movement of people were devastating for tourism, three areas that are crucial to Thailand's international trade.
4.204. Second, major challenges exist in terms of competitiveness and informal labour, which together with the ageing population mean a comprehensive fiscal reform is needed. And third, there are problems of income inequality and uneven regional development, problems that all developing countries face.
4.205. Of course, the Government and Central Bank of Thailand are aware of all these challenges, which is why they have implemented emergency monetary policy and domestic support measures that are valued at approximately 14% of GDP. This, together with the productive modernization policy, "Thailand 4.0" and the major reforms in areas such as intellectual property, competition and public procurement, is generating great optimism about the country's future.
4.206. Thailand has played quite a constructive role at the WTO. It was a founding member of the Organization, it accepted the Protocol Amending the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), submitted notifications of preferential treatment under the least developed country (LDC) services waiver, is party to the Information Technology Agreement (ITA) and the ITA expansion, and ratified the Trade Facilitation Agreement with 90% of its commitments under Category A. Moreover, it is part of the Joint Statement Initiative on Electronic Commerce and recently formalized its involvement in the Joint Initiative on Services Domestic Regulation. I also think it is important to recognize that the Government Report for this review includes a section on micro-, small and medium-sized enterprises (MSMEs), which contains detailed information on the role of these firms in the Thai economy and the policies adopted to promote their participation in international trade.
4.207. I cannot let this opportunity pass without highlighting the analysis provided in the Secretariat and Government Reports on the importance of the fishing sector for the Thai economy and its exports. The country has adopted substantial measures to combat illegal, unreported and unregulated fishing (IUU fishing) and we think it would be very useful to have detailed information on the subject. In 2017, Thailand amended its Fisheries Act, which now has tougher penalties in
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- 30 - order to prevent illegal fishing. Colombia submitted several questions on this matter, and we would welcome your replies.
4.208. The bilateral relationship between Thailand and Colombia has been limited. In 2019, aggregate trade between the two countries was in the order of USD 318 million, of which USD 283.8 million corresponded to imports that we received from Thailand and USD 34.4 million were Colombian exports to Thailand, although I note that non-mining/energy exports accounted for 49%. There is great interest in Colombia in strengthening trade links with Thailand, which is why we submitted a lot of questions in the framework of this trade review, particularly in areas such as technical barriers to trade (TBT), sanitary and phytosanitary measures (SPS), services and intellectual property. We thank you for the replies that we have already received to some of them.
4.209. I would like to conclude be wishing Thailand every success in its trade policy review and we encourage the Thai representatives to continue to engage constructively within the WTO to improve the functioning of the multilateral trading system and make it more inclusive.
BRAZIL
4.210. Let me start by welcoming the Thai delegation, headed by Minister Piyapramote, and by thanking the Thai Mission to the WTO, headed by Ambassador Sunanta Kangvalkulkij, for its efforts and contributions to this important exercise.
4.211. I would also like to express our sincere appreciation to the Thai government and the WTO Secretariat for their reports, as well as to the discussant, Ambassador Silvia Elena Alfaro Espinosa (Peru), for her insightful observations, and you, Chair, for your opening comments.
4.212. The opportunity to review the trade policies of Thailand is a demonstration of the relevance of WTO's monitoring pillar. Brazil, as always, attaches great importance to this exercise.
4.213. We start by praising Thailand for the positive economic performance in the period under review. Between 2015 and 2019, Thailand's GDP increased by an annual average rate of 3.4% in real terms. Per capita GDP reached almost USD 8,000 in 2019, placing Thailand in the upper middle-income group of countries. There remain important challenges in relation to the need to improve income and regional disparities as well as boost the low levels of public and private investment.
4.214. On WTO related issues, Brazil notes that, since its last trade policy review in 2015, Thailand has made progress in a number of areas, including foreign direct investment and trade facilitation. Brazil commends the efforts towards the implementation of the Trade Facilitation Agreement. As noted in the Secretariat report, however, work still remains to be done in this area. Brazil looks forward to constructive engagement by Thailand on trade facilitation issues with a view to further reduce customs barriers.
4.215. Brazil notes that agricultural products face considerably higher tariff rates than non-agricultural products: the average tariffs on agricultural products (32.7%) is much higher than on non-agricultural products (11.8%). This reality makes it more difficult for agricultural exports to get into Thailand. Additionally, we observe that tariff quotas are in place for 128 tariff lines (with very low fill rates among them). Brazil encourages Thailand to make use of ad-valorem rates in order to increase transparency.
4.216. Another worrisome aspect we wish to mention is that notifications on agricultural domestic support for the past few years remain outstanding. Thailand's latest notification to the WTO on domestic support covered the period until 2016. In light of our shared commitment to transparency, we encourage Thailand to promptly notify more recent measures.
4.217. Trade relations between Brazil and Thailand are strong. Thailand has consistently been in the top-20 export destinations of Brazil and also in the top-20 origins of Brazilian imports.
4.218. In 2019, Thailand was Brazil's 4th largest trading partner in the Association of Southeast Asian Nations (ASEAN) and 8th in Asia. Trade between our countries totalled USD 3.2 billion.
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However, the Brazilian export basket is concentrated in commodities, mainly soy and its by-products (74%). The list of imports from Thailand shows greater diversification and industrial content.
4.219. In recent years, the bilateral economic relationship has become richer, with the move from a strictly trade dynamic to one of reciprocal investments. The Secretariat report highlights the significant increase in investment outflows, indicating that Thailand has become a net capital exporter. Indeed, Thailand has expanded its investment network in Brazil in many important and diversified sectors, such as oil and gas, shrimp, electronics and luxury hotels.
4.220. Brazil thanks Thailand for the written replies to our questions. They were forwarded to our capital for examination and follow-up.
4.221. Brazil would like to call attention to the fact that 6 of our questions, even though they were submitted within the stipulated deadline, have not been answered yet. These are questions that address the Thai sugar and sugarcane support programmes and the Brazilian request to export pork meat to the Thai market. We look forward to receiving comments on these questions from the Thai authorities.
4.222. In reference to the sugar and sugarcane support programmes, Brazil expects that the reforms that are underway may be finalized soon, in a WTO-consistent manner, so that we can move towards a positive solution to our dispute.
4.223. With respect to the Brazilian request to export pork, Brazil raised a specific trade concern (STC) on the SPS Committee, because Brazil had not yet received from Thai authorities the questionnaire that it needs to answer in order to initiate the risk analysis procedures. There has not been any update on the process, which began in 2016.
4.224. In closing, we congratulate Thailand on its efforts to confront constraints and implement reforms compatible with the WTO rules. As Thailand role in the world economy evolves, Brazil is counting on Thailand to continue to be a force for strengthening the multilateral trading system.
4.225. We wish Thailand a successful Trade Policy Review.
TURKEY
4.226. We would like to welcome the Thai delegation to the eighth Trade Policy Review of Thailand.
4.227. We thank the WTO Secretariat and Thailand for their comprehensive reports, and our discussant, Ambassador Silvia Elena Alfaro Espinosa of Peru for her insightful comments.
4.228. Thailand is one of the most important countries in Southeast Asia.
4.229. As it is indicated in the reports, Thailand is an upper-middle-income country, with a diversified economy in which the services and industrial sectors are the main contributors to GDP and exports.
4.230. We welcome the growth of Thailand's economy at an average rate of 3.4% annually during the review period. Between 2015-2019, thanks to the Thai Government's adoption of accommodative fiscal and monetary policies, Thai economy showed a marked improvement.
4.231. We believe that the Thai economy will be even stronger and more competitive with the implementation of the Twelfth National Economic and Social Development Plan (NESDP) 2017-2021 and also with the 20-Year National Strategy (2018-2037).
4.232. Thailand is a very important partner for Turkey in Southeast Asia and we are in close collaboration in various platforms. Thailand, as an important economic power, greatly contributes to the prosperity of its region.
4.233. In our bilateral relations we are particularly interested in cooperating in the areas of trade, tourism and culture. Maintaining friendly relations, we have a trade volume of USD 1,4 billion as of 2019, which obviously does not reflect the real potential of our economies.
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4.234. Thailand is a rising production base in the ASEAN region. For that reason, to produce for East and South Asia, some of our leading companies are investing in Thailand. We also see Thailand, as one of the key drivers for our future enhanced cooperation in the region. In this regard, we are working together on the draft "Road Map on the Framework for Comprehensive Partnership between Turkey and Thailand" in order to further develop our bilateral relations.
4.235. As the report sets out, Thailand has 13 regional and bilateral free trade agreements (FTAs) and two of them have entered into force during the review period. Turkey started FTA negotiations with Thailand in 2017. We believe that finalization of Free Trade Agreement would boost our trade volume.
4.236. Before concluding, we would like to thank Ambassador Sunanta Kangvalkulkij, for her active contributions to our work and her constructive engagement in the negotiations under this roof. We also would like to commend her team in Geneva for the excellent cooperation between our delegations.
4.237. Turkey will continue its close and fruitful dialogue with Thailand in both bilateral and multilateral platforms.
4.238. We wish Thailand a successful completion of its eighth Trade Policy Review.
SWITZERLAND
4.239. I wish a warm welcome to Thailand's delegation led by Minister Piyapramote to this TPR. A warm welcome also to Ambassador Sunanta. I am furthermore grateful to the discussant and to the Secretariat for their substantive contributions. Thailand is, indeed, an important WTO Member with which Switzerland has steadily strengthened its trade relations.
4.240. This Review is special in many aspects. Let me first congratulate Thailand for the inclusion of a dedicated section on SMEs in its report. SMEs are the backbone of most economies in the WTO and Thailand seems to be taking important steps to foster their development and participation in international trade. This aligns very nicely with the recommendations of the Informal working group on MSMEs, which have been finalized at a technical level earlier this month. Thailand is establishing itself as a front-runner for this important debate.
4.241. Turning to the broader economic context, the challenges brought forward by the COVID-19 pandemic stand out. We note that the balanced fiscal situation has allowed Thailand to swiftly adopt measures to provide relief after the onset of the crisis. We also acknowledge the continued expansion of the Thai economy in the last five years. Thailand has maintained average growth rates above 3% in the period under review and the unemployment rate is largely under control.
4.242. However, it appears that the slowdown of the global economy may have an impact on the official poverty rate. As the tourism and hospitality sector will likely suffer from the pandemic, it may be important to monitor carefully this situation and adopt additional measures to ensure that the gains in the fight against poverty are not lost.
4.243. At the same time, long-term fiscal challenges stemming from an aging population would indicate the need to keep expenditures under control and engage in a fiscal reform process.
4.244. With regard to trade policy, let me first highlight the important contribution of Thailand to the WTO, as a Member that is always constructive and engaged in many initiatives. Let me commend Thailand on the swift ratification and implementation of the commitments under the TFA as well as the expanded ITA.
4.245. Furthermore, I would like to highlight the recent signature of the Regional Comprehensive Economic Partnership (RCEP), one of the biggest trade agreements the world has ever seen. We congratulate Thailand and the other Members for this success and look forward to delving into the specifics of the agreement. Let me add our hopes that negotiations between Thailand and the EFTA states towards a FTA can soon be resumed. Such an agreement would be an important pillar to further develop the excellent bilateral relationship.
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4.246. Switzerland had submitted a series of questions in writing and wishes to thank Thailand for the timely and extensive replies. In particular, we are thankful for the explanations with regard to the national strategy Thailand 4.0 and the planned Eastern Economic Corridor. We also appreciate the information provided on Thailand's priorities in ASEAN, as well as the update on recent FTAs. We note the important difference between bound and applied rates and would be interested in further explanations on this issue, especially where the applied rate may appear to be higher than the bound rate. We also note with concern the continued export restrictions on surgical masks, a good that is essential to fight the pandemic. Finally, we are thankful for the answers provided with regard to the regulations on the provision of financial services and look forward to studying them more closely.
4.247. To conclude, let me underscore once again the excellent cooperation Switzerland enjoys with the Thai authorities in many WTO work streams and our shared commitment to finding cooperative solutions to global problems. We hope that Thailand will be able to weather the crisis induced by the COVID-19 pandemic and take the necessary reform steps to emerge stronger from this crisis. We wish Thailand a successful continuation of the trade policy review.
RUSSIAN FEDERATION
4.248. I would like to extend a warm welcome to the delegation of Thailand. We appreciate the comprehensive reports by the Government of Thailand and the WTO Secretariat. Our thanks also go to the discussant, H.E. Silvia Elena Alfaro Espinosa, for her thoughtful remarks. We hope that this TPR would contribute significantly to the transparency of the trade regime of Thailand.
4.249. We would like to congratulate the Government of Thailand for carrying out effective trade and investment policies that contributed to solid economic growth during the review period and demonstrated the country's outward-orientation and integration into global value chains. At the same time, we understand that the economy of Thailand has been hit hard by the adverse impact of the COVID-19 pandemic and hope that the Government's relief measures will prove effective at steering the country towards sustainable recovery. Thailand's continued strong commitment to the multilateral trading system and active engagement in the WTO activities is especially important in this regard.
4.250. Over the years, the Russian Federation and Thailand have been developing bilateral economic cooperation in many areas. During the review period, our trade turnover showed an upward trend, amounting to USD 2,6 billion in 2018, rising by 17% compared to the previous year. Between 2017-2018 Russian exports rose by 47% to USD 753,5 million, imports – by 8% to USD 1,9 billion.
4.251. Russia has submitted a number of written questions related to issues of merchandise trade and tariffs, investment regime, intellectual property, regional trade cooperation as well as others. We thank the delegation of Thailand for the comprehensive replies to our questions and look forward to maintaining a constructive dialogue.
4.252. In conclusion, we would like to thank you, Mr. Chairman, the delegation of Thailand, the Secretariat and the Discussant, for the impressive work done so far and wish Thailand a successful Trade Policy Review.
MALAYSIA
4.253. We would like to extend a very warm welcome to Mr. Rachavitch Piyapramote, Her Excellency Sunanta Kangvalkulkijhis and the Thailand delegation. We also thank the Secretariat for their effort in preparing comprehensive review reports, and the discussant, Her Excellency Silvia Alfaro of Peru for her insightful comments.
4.254. Malaysia is pleased to take part in the eighth Trade Policy Review of Thailand. We believe that this Review is important to evaluate Thailand's efforts in achieving its economic and trade policy objectives.
4.255. Malaysia and Thailand over the years enjoy a strong and robust economic relationship. On bilateral trade, Thailand is Malaysia's 5th largest trading partner with the total trade stood at USD 11.79 billion for the period of January to August 2020.
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4.256. Malaysia's exports to Thailand amounted to USD 6.89 billion, mainly exports of electrical and electronic products (34.9%) followed by chemicals and chemical products (10.5%); crude petroleum (7.2%) and machinery; equipment and parts (4.5%); and other manufactures (7.7%).
4.257. Meanwhile, Malaysia's imports were recorded at USD 4.90 billion, in particular, electrical and electronic products (25.1%); followed by chemicals and chemical products (11.1%); transport equipment (10.3%); natural rubber (9.1%) and processed food (6.7%).
4.258. On the investment front, Thailand is one of Malaysia's main investment destinations. For the period of January to June 2020, Malaysia's investments in Thailand amounted to USD 5.16 million; while Thailand's investments in Malaysia stood at USD 660 thousand.
4.259. At the multilateral front, we also would like to congratulate Thailand for its continuous active participation in different economic and trade fora and her active participation in trade negotiations agenda at the bilateral and regional levels as well.
4.260. We acknowledge Thailand's contribution to the conclusion of the Regional Comprehensive Economic Partnership (RCEP), and ASEAN-Hong Kong, China. We also would like to thank Thailand for their constructive engagement during Malaysia's APEC 2020 hosting year.
4.261. Malaysia also acknowledges the strides Thailand has made in business reforms and transparency in its procurement program. Thailand moved up 6 places to 21st out of 190 countries in the World Bank's 2020 Ease of Doing Business rankings and that is commendable.
4.262. Malaysia and Thailand have always enjoyed good diplomatic relations and share strong bilateral ties. Towards this, Malaysia hopes to maintain mutual social and economic cooperation for the betterment of business communities of both countries.
4.263. To conclude, we thank Thailand's response to our questions, and we shall examine the responses with the highest of interest. We wish Thailand a productive Trade Policy Review.
NEW ZEALAND
4.264. New Zealand is fortunate to have a strong, long-standing, and broad-based trading relationship with the Kingdom of Thailand. In the year to December 2019, Thailand was New Zealand's eighth largest two-way trading partner and a key market for New Zealand food and beverage. New Zealand highly values our trade and economic relationship with the Kingdom of Thailand.
4.265. New Zealand and Thailand have strong common interests in the promotion and protection of an open, inclusive, rules-based global trading system.
4.266. Since 2005, New Zealand and Thailand have benefited from our bilateral free trade agreement – the Thailand-New Zealand Closer Economic Partnership. In addition, New Zealand and Thailand are both members of the ASEAN-Australia-New Zealand Free Trade Agreement. The implementation of these agreements has seen strong economic benefits for both countries – with two-way trade nearly doubling since 2005. We've also recently both signed the Regional Comprehensive Economic Partnership Agreement which will further deepen our trade relationship. New Zealand is committed to continue working with Thailand on the full implementation of our shared agreements and commitments.
4.267. New Zealand will host APEC in 2021, with Thailand hosting in 2022. As committed APEC members and fellow future hosts, New Zealand looks forward to continuing to work proactively with Thailand to advance common goals across the APEC agenda.
4.268. Subsequent to Thailand's previous Trade Policy Review, New Zealand notes that Thailand passed the Public Procurement and Supplies Administration Act in August 2017. In this review, New Zealand raises questions regarding the ability of foreign suppliers to participate in direct cross-border government procurement processes in Thailand. We welcome further information from Thailand on the steps that would need to be taken to enable this.
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4.269. New Zealand has raised questions during this review with regards to Thailand's agricultural policies. We note that aspects of Thailand's agricultural border measures remain unclear, creating undue uncertainty for trade. New Zealand encourages Thailand to ensure greater transparency and predictability within its trade policy in order to promote efficient and reliable trade. With respect to Thailand's continued focus on improving agricultural productivity, New Zealand has been pleased to assist through the New Zealand-Thai Dairy Development Co-operation Programme. We note that the elimination and reduction of tariffs for the agricultural sector will also contribute to improving efficiency and productivity of agriculture in Thailand.
4.270. New Zealand also encourages Thailand to proactively address any non-tariff barriers that may arise on agricultural goods. This includes ensuring that tariff quota administration is undertaken in a transparent and predictable manner. Through intensified reforms and proactive and well- communicated processes, Thailand can ensure commercially reliable import arrangements for agricultural trade.
4.271. New Zealand notes Thailand's progress, including through the 2018 Royal Ordinance on Fisheries, in countering Illegal, Unreported and Unregulated (IUU) fishing. In this review, we are interested to learn more from Thailand regarding how it ensures that those involved in IUU fishing do not benefit from domestic support to the fisheries sector.
4.272. In conclusion, New Zealand notes the commitment of Thailand to the multilateral trading system. We welcome the progress made by Thailand since the last Trade Policy Review and the opportunity to be involved in this process. New Zealand looks forward to continuing to work with Thailand to advance our many common interests across our trade and economic relationship.
PHILIPPINES
4.273. The Philippines associates itself with the ASEAN Statement delivered by Myanmar, highlighting the economic contribution of Thailand in the ASEAN and the WTO.
4.274. The Philippine delegation warmly welcomes and congratulates the delegation of Thailand led by Minister Rachavitch Piyapramote of the Permanent Mission of Thailand to the WTO and WIPO in Bangkok and Ambassador Sunanta Kangvalkulkij of the Permanent Mission of Thailand to the WTO and WIPO in Geneva on their 8th Trade Policy Review. We also thank Ambassador Silvia Elena Alfaro Espinosa of Peru for her insightful comments as discussant, and the WTO Secretariat for a comprehensive report.
4.275. The Philippines and Thailand have a longstanding bilateral relation. While historical ties point to early commercial and cultural contacts between the Philippines and Thailand, it was only in June 1949 when official diplomatic relations between our two countries were established. We have concluded 25 key bilateral agreements in a span of seven decades, which have contributed to the strengthening of the links between our two nations. These bilateral treaties have expanded our cooperation in the areas of trade, investment, culture, defence, tourism, and environment, among others.
4.276. Thailand is one of the major economic partners of the Philippines. It is the Philippines' 7th largest foreign investment partner and 7th major trading partner with total bilateral trade valued at USD 9.95 Billion in 2019. It is the Philippines' 7th top export market and 5th biggest import supplier.
4.277. Thailand is the seventh largest economy in Asia, and the second largest in ASEAN. As fellow founding Members of ASEAN in 1967, the Philippines values its strong partnership with Thailand to pursue economic integration within the region and expand trade and investment relations with other economic partners through regional trade agreements. Among these is the recently signed Regional Comprehensive Economic Partnership Agreement, which involves the ASEAN Members and 5 other trading partners in the Asia Pacific region.
4.278. Thailand's new development policy, Thailand 4.0, underpins the country's National Strategy to drive economic growth through innovation. We acknowledge its goal to make its economy more inclusive and sustainable, which includes priorities for MSME development, digital economy and bio-circular-green economy. In particular, we recognize the initiatives that were undertaken by the Thai government to promote MSME integration in the global value chains.
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4.279. Thailand has been actively engaged in various WTO work, including several initiatives such as the WTO reform, fisheries subsidies, electronic commerce, and services domestic regulation. We, thus, likewise encourage and welcome Thailand's participation in the Informal Working Group on MSMEs, particularly in support of the MSME package of recommendations and declarations to support MSMEs participation in international trade.
4.280. Further, we note the reported changes in Thailand's customs regime and its adoption of a new Customs Act to simplify customs procedures and improve transparency. We do, however, believe that Thailand should end without delay its reward system for whistle blowers, especially those who are organic in the bureaucracy because this will potentially raise credibility and integrity issues in the conduct of trade policy and governance. We encourage Thailand to hold steady with its commitment to WTO rules and principles and respect for an open, fair, transparent, non- discriminatory and rules-based multilateral trading system.
4.281. The Philippines has submitted some advance written questions on the TPR reports and we thank the delegation of the Thailand for their prompt replies. We have shared this with our colleagues in Capital for their consideration.
4.282. In closing, the Philippines looks forward to further enhancing the mutually beneficial economic relations with Thailand in the bilateral, regional, and multilateral fora.
ECUADOR
4.283. The Ecuadorian delegation welcomes the Thai delegation, headed by Mr. Rachavitch Piyaparamote, Minister of the Permanent Mission of Thailand to the WTO and WIPO, based in Bangkok. I would also like to join my voice to the thanks expressed by those who spoke before me regarding the quality of the reports prepared by both the Secretariat and the Government of Thailand.
4.284. I would also like to thank the discussant, Ambassador Silvia Alfaro, for her comments and observations.
4.285. Ecuador is looking forward to this eighth Trade Policy Review. We hope that Thailand will be able to return to the rate of growth it recorded up to 2019 and overcome the material and human consequences of the COVID-19 pandemic. In that regard, the implementation of the 20-year National Strategy and the Twelfth National Economic and Social Development Plan (NESDP) 2017-2021 is important, as are the effects it may have in terms of reducing inequalities.
4.286. The important role played by ASEAN member countries as destinations for Thai exports deserves particular attention, as it is a regional economic integration mechanism that helps Thailand to diversify further its destination markets.
4.287. The Thai government's digital strategy is a major and worthwhile undertaking. Thailand has made good progress in the structural transformation of its economy. In the same vein, Ecuador is looking with interest at the strategy for supporting MSMEs and strengthening the intellectual property system.
4.288. The information presented on the fisheries sector aroused a great deal of interest in Ecuador, which was the subject of many of the questions submitted as part of this Trade Policy Review. I thank Thailand for the answers to our questions.
4.289. We also take this opportunity to thank Thailand for its support in agreeing the technical criterion on the request to analyse the benefit of removing the infectious hypodermal and haematopoietic necrosis virus (IHHNV) from the list of crustacean diseases of the World Organisation for Animal Health (OIE). Thailand's support and cooperation contributes to efforts to strengthen the applicability of the SPS Agreement in this area.
4.290. Trade between Ecuador and Thailand is characterised by Ecuadorian exports of shrimp and imports from Thailand of industrialised goods, such as vehicles and machinery. Ecuador is keen to diversify its products and destination markets and sees Thailand as a potential partner with which it hopes to expand trade and cooperation links.
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4.291. Ecuador concurs with Thailand on the importance that should be accorded to the multilateral trading system; and wishes it success in concluding its eighth Trade Policy Review.
MEXICO
4.292. Mexico extends a warm welcome to the delegation of Thailand, headed by Minister Rachavitch Piyapramote. I would also like to thank Ambassador Silvia Elena Alfaro Espinosa for her timely analysis and the WTO Secretariat for the hard work that went into preparing its report.
4.293. During the period under review, Thailand's economy continued to perform well and grow, but as expected, it has not been immune to the impacts of the trade tensions that dominated the 2019 outlook and the COVID-19 shock we have all experienced in 2020. According to estimates, the Thai economy is set to shrink by 8.1% this year, mainly as a result of the decline in external and domestic demand, the disruption of supply chains and the restrictions imposed to mitigate the effects of the pandemic that have severely affected several sectors, including tourism, which is a major contributor to GDP. Despite the uncertainty, projections indicate a possible recovery in 2021.
4.294. We are pleased to note that the macroeconomic stability and prudent policies pursued by the Thai government have allowed it to be flexible when adopting fiscal and monetary policies to deal with the crisis caused by the pandemic. However, looking ahead, Thailand should foster reforms that will enable it to address its structural problems through greater public and private investment, and policies to increase innovation, productivity and competitiveness.
4.295. Thailand's outward-looking approach is evident, with trade in goods and services accounting for over 120% of GDP for much of the period under review. Its openness and integration into international trade has been and will continue to be a key component in its development and growth. However, concerns remain regarding its complicated tariff structure, the increase in average tariffs, the exclusion of 23.7% of tariff lines from binding commitments, the monitoring and control of prices of goods and services, and export restrictions on some products.
4.296. Although the contribution of the Thai agricultural sector to GDP has declined since the previous review, it still plays an important role in the economy and employment. Thailand is a net exporter of agricultural products and is the world's leading or second largest producer of several of these products, but its agricultural sector is highly protected with special agricultural safeguards, non-ad valorem tariffs, low tariff quota fill rates and unknown domestic support levels owing to the lack of notifications in the years covered by the review period. We urge Thailand to improve its openness in this sector and its compliance with its notification obligations.
4.297. On trade facilitation, we congratulate Thailand on the improvements made to its customs regime, which has helped to simplify its procedures and improve transparency. While recognizing the efforts to implement 97.1% of its commitments under the AFC, we urge them to continue their efforts to achieve full implementation of the AFC which they ratified in 2015. We are convinced that progress in their e-customs system will help to speed up and simplify procedures, which would enable them to respond to the challenges posed by the new "automated" reality that COVID-19 has made even more evident.
4.298. We note the importance of the tourism sector and the profound impact the pandemic has had on income derived from this activity. Given the uncertainty surrounding ongoing restrictive measures in the context of COVID-19, we note the OECD recommendation to promote the further development of information technology and other professional services in order to boost economic resilience.
4.299. While we are pleased to note that during the period under review Thailand has updated regulations in some sectors such as the financial sector, the telecommunications sector and the air transport sector, the expansion of the service sector in general has been hampered by strict regulations. Further liberalization would help Thailand to improve services' competitiveness and productivity, which would also have a positive impact on the manufacturing sector. Similarly, encouraging investment by removing remaining restrictions on foreign participation would significantly help the expansion of the services sector, which would stimulate the economy, help to create jobs and benefit Thai consumers.
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4.300. Lastly, while Thailand is facing considerable short-term challenges, we are confident that efforts to continue its integration into world trade and its focus on structural reforms will help it to pursue its path towards sustained growth.
4.301. It only remains for me to thank the Thai delegation for their commitment to the multilateral trading system and for the replies to the questions on competition that our delegation has submitted in writing, and to wish them a successful Trade Policy Review.
VIET NAM
4.302. On behalf of the Viet Nam's delegation, I wish to extend our warmest welcome to the distinguished delegation of Thailand led by Mr. Rachavitch Piyapramote, Minister, Permanent Mission of Thailand to the WTO and WIPO (Bangkok Office) to the Thailand's 8th Trade Policy Review.
4.303. I would like to thank the Government of Thailand and the WTO Secretariat for the preparation of comprehensive reports for this review, especially under the circumstances of the COVID-19 pandemic.
4.304. My thanks also go to the discussant H.E. Ms Silvia Elena Alfaro Espinosa, Ambassador, Permanent Representative of Peru, for her insightful observations and introduction.
4.305. Viet Nam associates itself with the ASEAN statement delivered by Myanmar and would like to share three points.
4.306. Viet Nam shares the same view with Thailand that further enhanced trade and investment liberalisation is among the best pathways to prosperity and welcome Thailand's strong commitment to the multilateral trading system in the time of uncertainties.
4.307. We are happy to note that Thailand's economy continued to grow averaging 3.4% annually during the review period despite increasing global uncertainties and trade tensions.
4.308. For our bilateral trade relations, Viet Nam is pleased to be having been Thailand's largest trading partner within the ASEAN bloc in recent years. In the period of 2015-2019, our bilateral trade turnover increased from USD 11.5 billion to USD 16.9 billion, with an average growth rate of 8.1% per year.
4.309. Viet Nam's major export items to Thailand are telephone all types and components, computers and electronic products and components, iron and steel, and transportation vehicles and parts.
4.310. The two-way trade is targeted to reach USD 25 billion in 2025. In terms of investment, Thailand's FDI to Viet Nam ranks 9th in Viet Nam and reached USD 12.4 billion as of September 2020.
4.311. With the implementation of our tariff commitments of under the WTO and a number of FTAs, non-tariff measures are important issues that we need to address properly in order to promote trade and strengthen global as well as regional supply chains.
4.312. In this regard, we would appreciate the transparency improvement by Thailand with respect to the regulations on the areas that affect cross border trade such as: import licensing procedures, quality control, TBT and SPS measures, domestic circulation of certain specific goods, etc.
4.313. From regional co-operation perspective, we would like to thank Thailand for a closed co- operation with Viet Nam and other ASEAN Member States as well as the 5 partner-countries in concluding the negotiations and signing of the RCEP Agreement on 15 November 2020, which is a strong message on our region's support to the rule-based multilateral trading system.
4.314. We hope that the implementation of this Agreement will facilitate the development of the regional supply chains as well as contribute to the economic recovery from the Covid-19 pandemic's impacts.
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4.315. On the multilateral front, we commend Thailand is as a strong supporter of the multilateral trading system and an active participant in the WTO negotiations, actively participating in the WTO negotiations and in various initiatives to strengthen the WTO.
4.316. In conclusion, I would like to take this opportunity to thank and commend Ambassador Sunanta Kangvalkulkij and her able team for the excellent preparation for this Review, as well as their constructive contribution and engagement in the WTO activities. We wish Thailand a successful Trade Policy Review.
COSTA RICA
4.317. Costa Rica would like to echo the words of welcome extended to the delegation of Thailand and thank them for the report presented this morning. We would also like to thank Ambassador Alfaro of Peru for her assessment as discussant of this review.
4.318. My delegation did not submit any questions related to this review. However, I would like to take this opportunity to highlight, very briefly, a few points.
4.319. First, Costa Rica sees Thailand as a Member committed to the rules-based multilateral trading system of the WTO. In particular, we welcome the leading role played by Thailand and by Ambassador Sunanta Kangvalkukij as Chair of the Dispute Settlement Body in 2018 and of the General Council in 2019, which demonstrates Thailand's commitment to this Organization and its willingness to contribute to its functioning. Furthermore, we acknowledge Thailand's efforts in seeking solutions to resolve the situation in the Appellate Body, as a way of preserving a two-tier dispute settlement system, as well as its active participation in the discussions on WTO reform in various fields.
4.320. Like Costa Rica, Thailand is part of the Friends of the System Group and the Cairns Group and participates in the joint initiative on e-commerce. We also welcome Thailand's recent involvement in the initiative on domestic regulation disciplines for services.
4.321. Thailand, like a majority of WTO Members, has been affected by the global crisis caused by the COVID-19 epidemic, particularly as a result of the supply chain disruptions that impacted the automotive sector and the serious consequences it has had on the tourism sector. Although the Thai economy entered into recession as early as 2019, Thailand is building on solid foundations for a successful recovery, characterized by macroeconomic stability resulting from prudent fiscal and monetary policies.
4.322. Owing to the greater weight of trade in goods and services in Thailand's GDP, international trade will remain a key instrument for recovery. In this regard, we welcome the recent signing of the RCEP Agreement, to which Thailand is a party, as a member of ASEAN, and we take this opportunity to congratulate all the participating countries on this historic achievement which we are sure will contribute to maintaining the region's momentum and will be a very important tool on the road to recovery and growth in a post-COVID scenario. It would be interesting to know what impact implementation of this agreement is expected to have on the Thai economy.
4.323. Lastly, with respect to its trade policies, we note that the Secretariat's report identifies specific delays in the submission of notifications on domestic agricultural support, and we urge Thailand to update this information. In addition, we invite Thailand to evaluate its current tariff structure, in particular the existence of non-ad valorem duties on about 8% of its tariff lines, which makes it more complex and less predictable.
4.324. Finally, I wish to thank the Secretariat for the preparations for this Review and reiterate my best wishes to the Thai delegation.
LAO PDR
4.325. At the outset, Lao PDR would like to associate itself with the statement made by Myanmar on behalf of ASEAN.
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4.326. On behalf of the Lao PDR delegation, I would like to sincere congratulate the eighth Trade Policy Review of the Kingdom of Thailand and warmly welcome the official delegation of Thailand. We believe that this would contribute significantly to the trade policy review of Thailand.
4.327. Thailand is one of the most important and closest economic partners of the Lao PDR. The bilateral trade volume between two countries last year amounted to USD 5.51 billion. Thailand is also the second largest foreign investor; there are many private-sector companies have been investing and operating in Lao PDR, especially in the energy, mining and industrial sectors. In 2019, total value of Thai's FDI into Lao PDR accounted of USD 2004 million. We are confident that both countries will continue to further enhance bilateral trade and increase the investment flows.
4.328. Lao PDR greatly appreciates the various efforts of Thailand has put into keeping its market open and competitive, including the improvement of its customs regime and the implementation of 97.1% of its commitments under the WTO Trade Facilitation Agreement which removed trade obstacles and a great improvement in the area of trade facilitation.
4.329. Thailand takes its WTO obligations exceptionally; we commend Thailand for being a constructive member in the WTO as well as the continuation to actively participate in regional economic forums as a mean to work with partners to advance multilateral trading system.
4.330. Finally, we would like to conclude by expressing our sincere congratulation to the Permanent Representative of Thailand, Ambassador Sunanta Kangvalkulkij and her team for the hard work and wish Thailand every success in its Trade Policy Review.
SRI LANKA
4.331. My delegation welcomes the delegation of Thailand joining this meeting remotely due to the prevailing global health situation. We thank Her Excellency the Ambassador of Peru, the discussant, for her statement and the WTO Secretariat and Government of Thailand for their comprehensive reports made available to the delegations in advance of this meeting.
4.332. My delegation notes with interest Thailand's continued economic advancements with an average GDP growth of 3.4% during the period under review. It is noteworthy the Government's economic stimulus measures that warrant a healthy inflation level, relatively low levels of public debt, a sizable current account surplus, substantial foreign exchange reserves, and most importantly upgrading the country as an upper-middle-income group of countries in 2019.
4.333. The ratio of Thailand's trade to GDP reflects its outward-orientation and integration into global value chains. However, in contrary there is a complex tariff structure in Thailand with a significant level of water between bound tariff and applied tariff. The simple average bound tariff is 27.9% while the average applied tariff stood at 10.2% in 2019. The gap is relatively low for agricultural products compared to non-agricultural products. It is due to high applied tariff on agricultural products with an average of 32.7%, which warrants more trade protection for agriculture than rest of the economic sectors.
4.334. The prevalence of tariff quotas for over 125 tariff lines, including Sri Lanka's export interest agricultural commodities, such as, tea, coffee and coconut, is a serious concern for Sri Lanka. As noticed by many, these quotas mostly under filled. We are encouraged by the responses provided by Thailand that in order to enhance the efficiency of quota allocation and consistence with current trade situation, its authorities (Department of Foreign Trade, Ministry of Commerce) has currently revised the regulations, procedures and conditions of quotas allocation for imported agricultural products and we evaluate the new situation carefully. In addition, some imports are subject to application of surcharges, licensing requirements as well as prohibitions.
4.335. On the bilateral front, Buddhism is prominent in both Thailand and Sri Lanka. Two friendly nations work closely to promote religious tourism as well as cultural cooperation. Further, various Thai international hotel brands have already invested and established themselves in Sri Lanka. Both Countries have also discussed possible maritime connectivity between Colombo and the Thai province of Rayong, connecting the Andaman Sea in the Indian Ocean under the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation transportation master plan.
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4.336. On trade, Thailand is the 25th export destination for Sri Lankan merchandises and the 8th largest source of supply of imports for Sri Lanka. Trade balance is continued to be in favour of Thailand, since Sri Lanka's exports are concentrated on handful of items which do not attract high values such as fish, apparel and textiles, miscellaneous edible preparations, and tea. An exceptional growth indicates in Sri Lanka's exports to Thailand in 2019, due to export of precious stones which individually account for 56% of Sri Lanka's exports to Thailand in 2019. Thailand's exports to Sri Lanka are nearly 10 times or higher than that of Sri Lanka in each year, a slight drop is noticed in 2019 though.
4.337. Thailand and Sri Lanka have cooperation on investment and taxation since 1988, when two countries signed double taxation avoidance agreement. In 1996, a bilateral investment treaty between the two countries came into effect. Thailand ranked at 20th in terms of FDI origins to Sri Lanka in 2019. The report also indicates that Thailand has become a net capital exporter during the past years, due to its significant increase in investment outflows.
4.338. A memorandum of understanding on Strategic Economic Partnership signed in 2018 between the two countries added a momentum to the efforts in negotiating a bilateral FTA between two countries. Accordingly, Thailand and Sri Lanka started negotiations for a bilateral Free Trade Agreement in 2018 for encompassing not only trade in goods, but investment and trade in services are also top priorities in FTA negotiations. Three friendly rounds of negotiations were held so far during 2018/2019 period and now it is in a temporary standstill waiting to commence the negotiations at any given time.
4.339. In conclusion, my delegation appreciates Thailand's highly valued contribution to the multilateral trading system and its active engagement in the negotiations. The dynamic role played by Ambassador Sunanta and her team in Geneva in proactively engaging in ongoing activities of WTO, is highly commendable. We sincerely wish the Thai delegation a successful deliberation on its 8th Trade Policy Review.
CAMBODIA
4.340. I join others in expressing our warmest welcome to the delegation of Thailand led by Mr. Rachavitch Piyapramote Minister of the Permanent Mission of Thailand to the WTO and WIPO. Our thanks also go to Ambassador Silvia Alfaro of Peru for her insightful assessment reflecting the current trade policies and economic performance of Thailand. We also thank the Trade Policy Review Division and Thailand for their reports available for this Review.
4.341. Cambodia associates itself with the statement made Myanmar on behalf of ASEAN.
4.342. We acknowledge all efforts and active role of Thailand in the ASEAN region especially during its ASEAN chairmanship last year.
4.343. We wish to congratulate Thailand for maintaining its remarkable economic performance since its last review and applaud Thailand for preserving its position as the seventh largest economy in Asia, and the second largest in ASEAN.
4.344. Cambodia and Thailand have long historical, cultural and social relations since the 13th century. The diplomatic relations between the modern states were established in 1950. Since then, both sides commit to build prominent progresses for peace and trade development as good neighbouring countries.
4.345. Currently, Thailand is a main trading partner for Cambodia. We have maintained excellent relations, as reflected by regular high-level visits and meetings. The relationship between the Governments of the two countries has strengthened especially for trade development. We agreed to promote the bilateral trade and other areas including the rail-line after they were disconnected in the 1960s.
4.346. In 2019, trade between the two countries was around USD 9.4 billion, increased by 12% compared to 2015 which was about USD 5 billion. Cambodia's exports to Thailand were valued around USD 2.3 billion and the imports were approximately USD 7.1 billion.
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4.347. According the Secretariat report, the inflow of FDI from Cambodia has increased from USD 4.3 million to USD 11.4 million while the outflow of FDI to Cambodia has increased from USD 32.1 million to around USD 81 million between 2015 and 2019. We note that the increases may partly contribute from the good implementation of the bilateral investment treaty and double taxation agreements of both countries that has interred into force since 1997.
4.348. I would like to take this opportunity to express our appreciation to Thailand for their good cooperation and facilitation our imports and exports through its policies including trade liberalization for a purpose of trade benefit and development for all. Both sides are friendly working on some measures and trade barriers to boost our imports and exports because most of our agricultural products are similar. The agricultural products that Cambodia exports to Thailand such as rice, corn, soybean, cassava, cashew nuts and mangoes. Cambodia mainly imports from Thailand such as machinery, electronic equipment, oil, construction materials, cosmetics and home equipment.
4.349. We thank and appreciate the delegation of Thailand in Geneva led by ambassador Sunanta, for the friendship and good cooperation. We commend Thailand for putting its efforts and active participation in building-up rule-based multilateral trading system. I particularly appreciate Thailand for the generous support to Cambodia in the negotiations under WTO framework.
4.350. Finally, we commit to working closely with Thailand to strengthen the cooperation in related fields including trade, investment, IP and works of the WTO.
4.351. I wish Thailand a successful 8th Trade Policy Review.
AFGHANISTAN
4.352. Afghanistan extends its gratitude to you and the Secretariat for convening this meeting and for preparing the comprehensive report. I would like to thank our discussant, Ambassador Silvia Alfaro Espinosa of Peru, for her insightful remarks and welcome Thailand's capital and Geneva-based delegates to the meeting, led by H.E. Mr. Rachavitch Piyapramote, Minister Permanent Representative of Thailand to the WTO and the World Intellectual in Bangkok.
4.353. In particular, we wish to extend our congratulations to Thailand for its 8th Trade Policy Review, especially, to Her Excellency Ambassador Sunanta Kangvalkulkij, Permanent Representative of Thailand to the WTO and WIPO, and her competent team for their contribution and constant good work here in Geneva.
4.354. My delegation commends Thailand for presenting its comprehensive trade policy report, and Thailand's National Policies including the 20-year National Strategy 2018-2037 and the Twelfth National Economic and Social Development Plan 2017-2021, and the initiation of the Eastern Economic Corridor and the Eastern Special Development Zone Act to enhance Thailand's competitiveness. The launch of Transport and Development Plan, Action Plan on Industrial Development, the efforts to ease the doing business, relaxation of foreign exchange regulations, and repatriation of export proceeds are all positive steps. We commend Thailand's commitment to trade liberalization under the multilateral trading system centered on WTO.
4.355. Meanwhile, I would also like to take this opportunity to thank Ambassador Sunanta, Permanent Representative of Thailand to the WTO and the WIPO for successfully chairing the Disputes Settlement Body (DSB) in 2018 and the General Council in 2019, and for her efforts that have resulted in the smooth functioning of the WTO during a challenging time.
4.356. Considering the recent challenges facing the multilateral trading system, Afghanistan counts on Thailand's role among others in preserving an open, rules-based multilateral trading system with the WTO at its core.
4.357. I conclude my statement by wishing Thailand's delegation a very successful and productive Trade Policy Review.
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JAMAICA
4.358. Jamaica warmly welcomes the Head of delegation, Mr. Rachavitch Piyapramote, along with the other members of the delegation to this eighth Trade Policy Review of Thailand. We congratulate Thailand for its hard work and the comprehensive report presented here today. Also, I wish to acknowledge Ambassador Sunanta and the staff of the Thai Mission to the WTO.
4.359. Thanks also to the Secretariat for their efforts, as well as to our discussant Ambassador Alfaro Espinosa of Peru for her very insightful contributions to this process. In addition, thank you Chair for your effective guidance of this meeting.
4.360. As an upper middle-income economy and one of the leading economies in Asia, Thailand is very integrated in global trade and value chains and is an important player. Thailand's active use of Regional Trade Agreements (RTAs) towards deepening ties with key partners within ASEAN and externally is positively noted. Jamaica further commends Thailand for its continued commitment to the multilateral trading system and its active engagement in work of WTO bodies. The strides made by Thailand in terms of improving its trade and business facilitation measures, including through the implementation of the Trade Facilitation Agreement; domestic customs procedures, intellectual property as well as notifications in relation to SPS and TBT measures are welcomed and should be further strengthened.
4.361. In terms of trade policies and practices, Thailand should also be commended for a range support policies and measures which are aligned with its trade and economic growth objectives. Two such are its 20-Year National Strategy (2018-2037) which is aimed at transforming the country into a digital economy, and the Twelfth National Economic and Social Development Plan (NESDP) 2017-2021 with priority focus on: advancing infrastructure and logistics; developing science, technology, research and innovation; developing regional, urban and economic zones; and strengthening international cooperation and development.
4.362. Since its last Trade Policy Review, Thailand has continued to pursue strong macro-economic fundamentals and an appropriate policy mix that has ensured financial growth and stability, as well as the resilience of its outward-looking economy. These policies resulted in subdued inflation, relatively low levels of public debt, a sizable current account surplus, substantial foreign exchange reserves, and an average annual growth rate of 3.4% between 2015 and 2019. The country's economy has however been adversely affected by the COVID-19 pandemic which has exacerbated the contraction of its merchandise exports, including in the automobile sector, which is one of Thailand's main industries. Moreover, there has been a significant fall out in the services sector, led by tourism, which has also suffered a deep contraction due to a mix of domestic and international travel restrictions. It is anticipated that these will eventually be overcome, and the economy will rebound. Nevertheless, Thailand is encouraged to increase public and private investment, enhance innovation and the liberalization of trade and investment, particularly in the services sector to further bolster economic growth and international competitiveness.
4.363. Jamaica and Thailand have shared a strong history of friendship and cooperation over the years at the bilateral and multilateral levels, including in the field of trade, where there is a substantial trade surplus in favour of Thailand. In 2019, for example, Jamaica's total imports from Thailand were valued at USD 81,329,792. Our main imports from Thailand include motor vehicles, fish products, coconut milk, juices and nuts. On the other hand, Jamaica's exports to Thailand comprise mainly of rum and to a lesser extent, coffee. Jamaica looks forward to increased opportunities for strengthening its bilateral trade and investment ties with Thailand in the following priority areas namely the Logistics Hub Initiative, Information and Communications Technology (ICT), Tourism and Agro-processing.
4.364. In closing, Jamaica congratulates the delegation of Thailand and we extend to them our best wishes for a successful Review.
KINGDOM OF SAUDI ARABIA
4.365. The Kingdom of Saudi Arabia is very pleased to take part in the eighth Trade Policy Review of Thailand and wishes to extend a very warm welcome to the delegation of Thailand headed by Mr. Rachavitch Piyapramote Minister, Permanent Mission of Thailand to the WTO and WIPO.
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4.366. I would like to take this opportunity to thank Thailand and the Secretariat of the WTO for their detailed and comprehensive Trade Policy Review Reports. I also thank the discussant H.E. Ambassador Silvia Elena Alfaro Espinosa from Peru for her insightful and perceptive comments.
4.367. The period of Thailand's trade policy review has been marked by significant adversities such as, global economic slowdown, which resulted in a contraction in the Thai exports, private investment and consumption. The Covid-19 crisis disrupted business activity, weighed on consumption and supply chain in different products, and reduced overseas demand for Thailand tourism sector and exports in general. Thailand is to be commended for its large-scale monetary stimulus to help protecting businesses and consumers facing the impact of COVID-19 and to support the economic activity.
4.368. Thailand has maintained macro-financial stability, supported by prudent fiscal and monetary policies. Between 2015 and 2019, the economy grew at an annual average rate of 3.4% in real terms,
4.369. We praise Thailand for its new National Strategy (2018-2037), underpinned by its development policy which aims at transforming the country into a value-added, innovative, and knowledge-based economy. We also welcome the reforms undertaken by the Thai Government, particularly in the areas of customs regime, competition policy, government procurement, IP, and transportation.
4.370. The Kingdom of Saudi Arabia and Thailand are prominent trading partners. Trade exchange between the two countries surpassed USD 7.4 billion in 2019. This encouraging trade volume between the two countries makes Thailand ranking 15th among the Kingdom's trading partners.
4.371. Over the period of review, Thailand has continued to play a central role in the reinforcement of the multilateral trading system and has been active in bilateral and plurilateral trade negotiations.
4.372. To conclude, I would like to wish the entire delegation of Thailand a very successful Trade Policy Review.
BANGLADESH
4.373. The delegation of Bangladesh congratulates the delegation of Thailand both in Geneva and Bangkok for its 8th Trade Policy Review. Bangladesh delegation also conveys its thanks to the Secretariat for the comprehensive report and to H.E Ambassador Mrs. Silvia Elena Alfaro Espinosa of Peru for her insightful discussion.
4.374. Bangladesh and Thailand are friendly countries and this friendship is trusted and tested. The two countries established diplomatic relationship on 5 October 1972. The two countries signed the Agreement on the Establishment of the Joint Commission on Cooperation on 29 January 1982 to further strengthen and promote the close cooperation. Bangladesh and Thailand also signed a trade agreement on 22 August 1997 and formed joint chambers of commerce to promote bilateral trade. According to the WTO Bali Ministerial declaration, Thailand has been providing duty free market access to 6998 products in favour of Bangladesh under the LDC preferential tariff treatment since April 2005. Still, some of our important exportable goods like jute, jute yarn, sacks and bags, t-shirts, sweaters, trousers, shorts, etc. are not included in the list.
4.375. The private sectors of the two countries are also working together to materialize complementarities between the two economies. These complementarities are likely to be symbiotic, combining Bangladesh's thirst for investment and Thailand's keenness to expand its market. Bangladesh and Thailand have been maintaining a good bilateral trade relation. Bangladesh exported goods worth USD 35.46 million in 2019-2020 and imported goods worth USD 801.28 million. Since Bangladeshi export to Thailand is significantly less than the import, Bangladesh lags behind in balance of trade, though trade volume has been increasing steadily.
4.376. Bangladesh and Thailand closely cooperate in different regional forums such as BISMTEC, ACD (Asia Cooperation Dialogue), ASEAN Regional Forum (ARF), Asia–Europe Meeting (ASEM) and multilateral forums including UN, WTO and ITU. Bangladesh will, therefore, continue to promote partnership with Thailand to further enhance opportunities, and to work together to address
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4.377. Bangladesh has the potential to become an important investment destination for Thai investors, especially in the textile, agro-processing, leather, energy and tourism sectors. Thai investors can reap benefits by utilizing the low infrastructure cost, competitive labor and natural gas of Bangladesh. Thailand is benefiting greatly as a large number of Bangladeshis travel to Thailand for various purposes, particularly trade, health, education and tourism.
4.378. Bangladesh wants to express its gratitude to its friendly partner Thailand. In 2019, total Thai FDI was USD 33.10 million and the total FDI stock till December 2019 from Thailand was USD 275.41 million. The Bangladesh delegation wishes a fruitful Trade Policy Review to its friendly country Thailand and requests to include jute, jute yarn, sacks and bags, t-shirts, sweaters, trousers, and shorts in preferential tariff scheme.
BRUNEI DARUSSALAM
4.379. Brunei Darussalam associates itself with the statement delivered by Myanmar on behalf of ASEAN and would like to add a few words in our national capacity.
4.380. First, let me give a warm welcome to the delegation from Thailand led by Mr. Rachavitch Piyapramote, who is appearing here virtually, for the introduction given.
4.381. Thank you also to Her Excellency Ambassador Silvia Elena Alfaro Espinosa of Peru for the extensive overview of the reports under consideration.
4.382. Since their last review in 2016 Thailand has undergone several changes, from the passing of a beloved monarch in 2016, to the enactment of a new Constitution in 2017, and the holding of a general election in 2019.
4.383. During this period, the Thai Government laid out a long-term vision to move from a middle income to a high-income country by 2036, called the 20-Year National Strategy (2018-2037). This is based on a transformation into a digital economy, and links closely to the economic policies it has implemented, namely "Thailand 4.0".
4.384. We commend this progressive and timely strategy which targets the utilization of digital technology to deal with emerging issues, such as, smart cities, and the digitalization of the public sector and transport and logistics system, and can already be seen in the implementation of policies in Intellectual Property and Small and Medium Enterprises among others.
4.385. Having a similar long-term vision ourselves, this is perhaps another area that Brunei Darussalam and Thailand can work closely together in, in areas of synergy.
4.386. Bilaterally, Brunei Darussalam and Thailand already have close ties from the highest level of our people-to-people linkages to cooperation in agriculture, energy, education, halal, labour, and taxation. Thailand is the main provider for Brunei's rice stock and also exports cement, ceramics, rubber products, paper and pulp to us; whilst they import iron and steel from Brunei.
4.387. Internationally, Thailand is well known for being an active player in the WTO. Ambassador Sunanta, the Permanent Representative of Thailand to the WTO, has been the Chair of the Dispute Settlement Body in 2018 and of the General Council in 2019. Her team is also active in various negotiations currently ongoing in these halls from Fisheries subsidies, E-Commerce, and Agriculture among other things.
4.388. Recently during ASEAN Chairmanship in 2019, Thailand saw the signing of various key regional agreements and the finalization of the text-based Regional Comprehensive Economic Partnership Agreement (RCEP) which was also just signed on 15 November. Also, notably, the ASEAN–Hong Kong, China Free Trade Agreement (AHKFTA) entered into force on 11 June 2019 for six parties, including Thailand.
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4.389. It is this commitment to trade liberalization that has seen Thailand's GDP rise and expand in the period under review, albeit at a slower rate in 2019. Its forecasted contraction for 2020 can be attributed mainly to the severe impact of the COVID-19 pandemic which has significantly affected all of our economies. As a result, the Thai Government introduced various policies and measures to mitigate the impacts, including an economic stimulus package, healthcare spending, and trade and investment related measures which it has assured are temporary.
4.390. Nonetheless, Thailand has stated that it continues to believe in a free, predictable, and transparent, rules-based multilateral trading system and remains committed to the WTO as a crucial mechanism to address economic challenges resulting from the pandemic and to prepare for post- pandemic recovery. Brunei Darussalam assures that we too will continue to work with you and other WTO Members in this regard.
4.391. Lastly, we would like to wish Thailand, and, in particular, Ambassador Sunanta, Mr. Rachavitch Piyapramote, and team, a successful 8th Trade Policy Review.
PAKISTAN
4.392. Pakistan warmly welcomes the Thai delegation led by His Excellency Rachavitch Piyapramote Minister, Permanent Mission of Thailand to the WTO and WIPO in Bangkok. We wish to thank the Secretariat for their work in preparing the report. We also wish to thank Ambassador Her Excellency Silvia Elena Alfaro Espinosa of Peru for her introduction and a well-articulated analysis of the Trade Policy of Thailand to start our discussion.
4.393. We would like to commend Thailand on its various policies and initiatives during the review period in the context of improving trade facilitation infrastructure and encouraging support for strengthening the multilateral trading system. In particular, we note that, Thailand has implemented more than 97% of its commitments under Trade Facilitation Agreement which is a significant achievement.
4.394. Chair, Pakistan and Thailand enjoy excellent trading relations. The bilateral trade between both countries was recorded at USD 1.54 billion in 2018-19 with exports of USD 223 million and imports of USD 1.32 billion. The trade balance remained in favour of Thailand. During the review period, Pakistan generally exported seafood including fish and crustaceans, cotton, optical apparatus, lead and its articles and other textile articles. Meanwhile, Pakistan imported automotive parts, machinery, boilers, plastics articles, rubber articles, organic chemicals and manmade staple fibers. Apart from trade in goods, Pakistan has also been a big consumer of Thai services, particularly Tourism. Thailand remains one of the most popular tourist destinations for Pakistani tourists and prospective businessmen. Keeping in view the strong trade ties between both countries, in 2015, both countries decided to commence negotiations for a bilateral Free Trade Agreement for further enhancing trade and economic cooperation.
4.395. Given the overall trade and economic cooperation, Pakistan continues to carefully watch the developments in Thailand's Trade Policy, in particular Agriculture policies, tariffs and TRQs,
4.396. technical standards, Sanitary and Phytosanitary measures and import licensing regime. We are hopeful that these policies will remain consistent with WTO commitments and obligations and will be non-trade restrictive. We also take note of the Thailand's continued commitment to structural reforms, targeted sectoral policies and Regional Trade Agreements and Economic Cooperation.
4.397. Pakistan and Thailand enjoy good cooperation in all WTO related matters and our Missions coordinate on various important matters such as Agriculture, dispute settlement and other systemic issues. We are confident that Thailand stands committed, along with the membership, to the cause of trade and sustainable development and upholding a bright future for the multilateral system.
4.398. We thank the delegation of Thailand and especially their WTO Mission under the stewardship of Ambassador Her Excellency Sunanta Kangvalkulkij for the continued support and cooperation. We wish Thailand a very successful and fruitful Trade Policy Review.
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ZIMBABWE
4.399. Allow me to warmly welcome the delegation of Thailand led by His Excellency, Mr. Rachavitch Piyapramote and his team here in Geneva, to this 8th Trade Policy Review. We are grateful to the efforts made by Thailand in preparation for this review. We would also like to express our appreciation to the Secretariat and the discussant, Her Excellency, Ambassador Alfaro Espinosa of Peru, for their contribution to this review process.
4.400. Zimbabwe commends Thailand for showing commitment to the rules-based multilateral trading system which provides for stability and sustainability of international economic growth. Thailand has maintained macro-financial stability, supported by prudent fiscal and monetary policies. These policies have resulted in subdued inflation, relatively low levels of public debt, a sizable current account surplus, substantial foreign exchange reserves, and a sound financial system.
4.401. Furthermore, we wish to commend Thailand, since its last Review, for improving its customs regime and adopting a new Customs Act in 2017, which helped simplify customs procedures and improved transparency. In 2015, Thailand ratified the WTO Trade Facilitation Agreement and has now implemented 97.1% of its commitments. Under the e-Customs system, customs registration, declaration and document submission are conducted electronically, and e-declarations now represent 100% of import declarations.
4.402. We are grateful to Thailand that, within the Framework of Thailand Aid Programme (TAP), the country has over the years offered Zimbabwean nationals scholarships on an annual basis in areas such as community health, nursing, water supply technology, soil management and information.
4.403. Although the bilateral trade is still relatively small, there is considerable potential in that area. Since 2009 to date, Zimbabwe has had negative trade balances with Thailand. Zimbabwe's major exports to Thailand include cotton, edible fruit and nuts; peel of citrus fruit or melons, raw hides and skins, iron and steel. Major imports from Thailand are rubber and articles, rice, vehicles, as well as vehicle parts and accessories.
4.404. The products with greatest export potential from Zimbabwe to Thailand are ferro-chromium, raw hides and skins of crocodiles, and cotton.
4.405. Zimbabwe and Thailand signed a Bilateral Investment Promotion and Protection Agreement (BIPPA) and an avoidance of Double Taxation Agreement in February and May 2000, respectively, with the objective of boosting investment. Zimbabwe is the process of ratifying the BIPPA.
4.406. In conclusion, we wish Thailand a successful Trade Policy Review.
NEPAL
4.407. First, my delegation would like to welcome the delegation of Thailand under the leadership of H.E. Minister Piyapramote and would like to appreciate to him for the comprehensive opening remarks delivered this morning.
4.408. I would also like to commend H.E. Sunanta, Ambassador of Thailand to the WTO and WIPO for her excellent work as the Chair of the Dispute Settlement Body in 2018 and the General Council for the year 2019, and Thailand's continuous commitment to rule based multilateral trading system and contribution towards it.
4.409. I wish to congratulate the Government of Thailand for its comprehensive report and also would like to commend the Secretariat for its detailed report of the trade policy review of Thailand.
4.410. While going through the reports, it is observed that Thailand has taken remarkable forward steps to improve its trade and economic policies over the past few years.
4.411. Nepal and Thailand have been enjoying cordial relationship in various dimensions of socio- economic and cultural development since long back. Our friendship has been further strengthened after establishing the diplomatic relation in 1959.
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4.412. Nepal and Thailand have been bound by commonality of culture and shared values. The bilateral relations are marked by strong friendship, goodwill and understanding between the two countries.
4.413. Such a relationship is not limited to government to government level but widely expanded to business to business as well as people to people level in all aspects of human life.
4.414. Buddhism has remained one of the strongest links between the peoples of Nepal and Thailand. Lumbini, the birthplace of Lord Buddha, is one of the most desired destinations in Nepal for Thai visitors.
4.415. The Thai people and Government have tremendous goodwill towards Lumbini, the birthplace of Lord Buddha where the Thai Government has built a Temple of Thai style.
4.416. A Joint Commission at the level of Foreign Secretaries has been established and is functional to promote relations and cooperation between the two countries.
4.417. Nepal and Thailand have been very cooperative and supportive to each other in regional and international forums.
4.418. There is warmth of feeling, and common desire, among the peoples of Nepal and Thailand to promote economic and commercial relations between the two countries.
4.419. Thailand is one of the major trade partners of Nepal particularly in importing goods from abroad. Based on the preliminary data available, Nepal imported various goods from Thailand worth of 12.5 billion Nepali rupees in the year 2019. However, Nepal exported to Thailand worth of only 59.8 million Nepali rupees in the same year.
4.420. This shows a huge trade gap between Nepal and Thailand. This also indicates an availability of further opportunity to collaborate and work together both in trade and investment areas for our mutual benefit.
4.421. Nepal wishes to constructively engage to continue our partnership focusing on reducing the existing trade gap between us and strengthening our relation further.
4.422. My delegation wishes for a successful Trade Policy Review of Thailand.
EL SALVADOR
4.423. El Salvador echoes the words of those Members who preceded us, welcoming the efforts of the Kingdom of Thailand and the delegation led by Minister Piyapramote and all the Thai officials who join us today.
4.424. We also wish to thank Ambassador Alfaro Espinoza of Peru, for her very pertinent insights, comments and analysis, and the Secretariat for the report presented.
4.425. As in other Member States, the COVID-19 pandemic has impacted the flow of Thai goods as external demand has contracted. Similarly, travel restrictions have brought the steady flow of tourists to Thailand to a virtual halt. On the back of the fiscal and non-fiscal measures implemented to cushion the economic effects of the crisis, the Thai economy is expected to grow by more than 5% in 2021, reflecting the good health of the Thai economy thanks to its years of macroeconomic stability.
4.426. Like El Salvador, Thailand is part of an economic integration bloc. In Thailand's case, its exports to ASEAN account for almost a quarter of its total exports. Within ASEAN, important steps have been taken in the area of trade facilitation, such as the launch of the ASEAN Single Window in 2018. Similarly, protocols have been adopted that will allow the creation of a self-certification regime and the ASEAN Customs Transit System pilot project. These efforts, together with the use of information technology to facilitate trade, will enable Thailand to continue to boost its economic growth.
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4.427. We congratulate Thailand on the recent signature of the RCEP, which will create one of the largest free trade areas in the world. The Partnership will further reduce non-tariff barriers among its members by adopting a common rule of origin scheme, including a common certificate of origin. This will facilitate supply chain management and reduce transaction costs for trade as the literature estimates the cost of rules of origin to be between 1.4% and 5.9%.
4.428. With regard to our bilateral relationship, in recent years, El Salvador has imported an average of just over USD 97 million from Thailand and has exported just over USD 603,000 annually. Among El Salvador's main imports from Thailand are vehicles, household washing machines and synthetic yarns. This trade depends entirely on the rules negotiated within this Organization.
4.429. We commend the flexibility shown by Thailand and the support it received from the Secretariat to be able to carry out this review and the regular work of the Organization.
4.430. At the multilateral level, as is reflected in the Secretariat's report, Thailand has been actively involved in the regular work of the WTO Committees, negotiations, dispute settlement system, the monitoring exercise and plurilateral initiatives.
4.431. Lastly, I would like to express El Salvador's gratitude to Ambassador Kangvalkulkij for her excellent work with the General Council last year and wish Thailand a successful review.
EGYPT
4.432. Egypt joins others in extending a very warm welcome to the esteemed delegation from Bangkok, headed by His Excellency Minister Piyapramote. We would also like to offer our sincere compliments to Her Excellency Ambassador Sunanta who has successfully chaired the General Council and Dispute Settlement Body within the last two years.
4.433. We thank the Government of Thailand and the WTO Secretariat for their comprehensive reports, as well as Her Excellency, Ambassador Silvia Elena Alfaro Espinosa (of Peru) for her insightful remarks as discussant.
4.434. Egypt wishes to highlight the commendable macroeconomic indicators in the WTO Secretariat report that show steady growth rates during the period under review, as well as the promising resilience efforts in face of the current socio-economic challenges due to the Covid-19 pandemic.
4.435. Thailand achieved strong annual GDP growth-rates that averaged at 3.4% since 2015, while running a considerable current account surplus, maintaining macro-financial stability, in addition to restricting inflation and public debt levels. Remarkably, Thailand became an upper-middle income country in 2019 after reaching a nominal GDP per capita of almost USD 8000.
4.436. Much of this success stems from the outward-oriented trade policies that Thailand implements, given the central role trade plays in the economy. We also note the recently implemented policies and actions, including the Covid-19 Relief Package, to help the most vulnerable groups in mitigating the adverse impacts of the pandemic.
4.437. Egypt agrees with the Secretariat's report with regards to Thailand's strong commitment and active engagement in the Multilateral Trading System. We applaud the improvements in Thailand's customs regime and the continued efforts towards the full implementation of the Trade Facilitation Agreement. We encourage Thailand to more achieve more progress in its economic reform endeavors.
4.438. Egypt and Thailand enjoy strong relations and friendly ties, particularly on economic and commercial fronts. In this regard, I wish to highlight that since 2015, overall bilateral trade volume generally witnessed steady figures. During that period, Egyptian exports to Thailand increased almost three-fold, and we believe that there is much untapped potential to further enhance our trade relations.
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4.439. Egypt looks forward to strengthening bilateral cooperation between both countries, particularly through advancing our commercial and investment relations, to mutually reinforce development priorities in both countries.
4.440. Finally, Egypt praises Thailand for its impressive overall economic performance in recent years and wishes its delegation a fruitful Trade Policy Review.
INDONESIA
4.441. Indonesia would like to welcome the delegation of Thailand, led by Minister, Permanent Mission of Thailand to the WTO and WIPO, Mr. Rachavitch Piyapramote. Indonesia would also like to thank the WTO Secretariat and the delegation of Thailand for their comprehensive report which provides a useful context for exploring Thailand's trade, trade-related, and its investment policies.
4.442. We also extend appreciation to the Discussant, Ambassador Ms. Silvia Elena Alfaro Espinosa of Peru, for her contribution to this trade policy review.
4.443. We are pleased to be here today for participating in the Trade Policy Review of Thailand. For many years, Indonesia and Thailand share a good relationship, especially within the framework of Association of Southeast Asian Nations (ASEAN).
4.444. We congratulate the Government of Thailand effort in significantly reducing the spread of pandemic within its territory. Nevertheless, we are also empathizing that many of the Thailand workers' in formal sector applied for unemployment benefits and the job losses are expected to increase in this quarter.
4.445. In addition, we appreciate Thailand's valuable contributions in multilateral trading system, in particular through the WTO. Thailand representation as the Chair of DSB and General Council, in 2018 and 2019 respectively, also shows ASEAN Members countries' commitment in enhancing stability, predictability, and transparency of the MTS.
4.446. In 2019, Thailand was the 19th largest exporter and 17th largest importer of goods in the world. Thailand is also a regular producer and important exporter of several agricultural products, such as natural rubber. Thailand's economy is also diversified with the services and industrial sectors being the main contributors to GDP and exports.
4.447. Based on the size and proximity of Indonesia and Thailand, there are still rooms for improvement in trade relations. Over the period 2015-2018, the total of bilateral trade continued to show an increase and reached USD 17.7 billion. However, in 2019, the total trade was recorded at USD 15.6 billion or an 11.8% decrease from the previous year. Indonesia's trade balance to Thailand is also quite fluctuated and showed a deficit, with the highest deficit in the past five years accounted to USD 4.13 billion in 2018.
4.448. Please allow us to underline some of our interest and concerns on trade and trade related policies and practices of Thailand, which are also reflected in our written questions.
4.449. First, regarding import measures. Indonesia is interested to know more about the changes of Industrial Products Standards Act in 2019, especially about the mandatory standards by ministerial regulation and its effects on the importation of goods. As a country whose economic growth is supported by the agricultural sector, we encourage Thailand to guarantee transparency including on the special safeguard provisions and ensure that there is no quantitative restriction.
4.450. The Secretariat notes that the low quota fill rates for certain products due to imported under FTAs and from ASEAN countries. This issue was also questioned by Indonesia in the WTO Committee on Agriculture. In 2018, instant coffee from Indonesia was subjected to tariff rate quota (TRQ) which should not be imposed based on the ATIGA scheme. To that extend, Indonesia asks Thailand to provide the implementation and utilization tariff- and quota-free access under the ATIGA and will review it regularly.
4.451. Second, regarding sectoral policy. As noted in the reports prepared for this Review, there are mandatory requirements for imported goods transported by Thai-flagged vessels. Within
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4.452. In addition, Indonesia also seeks a clarification and explanation regarding FinTech and its competition policy, non-preferential rules of origin, a mandatory of certification mark, and the opportunities on doing business construction in Thailand.
4.453. Indonesia believes that, through this Trade Policy Review, can be positively addressed by Thailand delegation. In this regard, we look forward to a follow-up communication with the delegation of Thailand for further written clarification on our interest and concerns.
4.454. Finally, we would like to conclude our remarks by expressing, once again, our profound appreciation to the delegation of Thailand for their hard work. Indonesia wishes Thailand every success in its eighth Trade Policy Review.
ARGENTINA
4.455. We would like to join our voice to those of the Members who welcomed the Thai delegation. We also welcome the reports prepared by Thailand and the Secretariat.
4.456. Argentina is pleased to note that since its last trade policy review in 2016, Thailand has managed to maintain a sound macroeconomy and grow at an average annual rate of 3.4% for the period 2015-2019.
4.457. Despite this good performance, Thailand and the other Members of this Organization have been clearly affected by the pandemic. The impact has been particularly heavy on Thailand's tourism sector, which plays a central role in its economy and is a major source of foreign exchange. Argentina supports the Thai Government's efforts to protect the hardest-hit households and businesses through cash transfers, soft loans and tax relief measures.
4.458. We would like to take this opportunity to congratulate Thailand on the changes made to its customs regime, and in particular the adoption of a new Customs Act in 2017. We welcome the fact that Thailand was one of the Members that ratified the WTO Trade Facilitation Agreement early in 2015, in addition to having implemented almost all its commitments.
4.459. Lastly, and specifically with regard to fisheries subsidies, we wish to highlight the adoption of measures to address IUU fishing. We are convinced that such efforts are a step in the right direction and bring us steadily but surely closer to a decision on fisheries subsidies at the next Ministerial Conference.
4.460. In conclusion, I would like to reiterate, once again, our thanks for this opportunity to examine Thailand's trade practices.
4.461. We wish your authorities a successful conclusion to this review.
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5 REPLIES BY THE REPRESENTATIVE OF THAILAND AND ADDITIONAL COMMENTS
5.1. Good morning excellencies and distinguished guests. In this second session of Thailand's 8th Trade Policy Review, I would like to express our sincere appreciation to our Chair, Discussant, and all Members for your insightful statements during the first session. We are sincerely thankful for all encouragements and commendations for Thailand's efforts in recovering and strengthening Thailand's economy after the COVID-19 pandemic. Member's suggestions and concerns are an invaluable input in our ongoing work to further improve our trade policy to tackle new challenges and aspirations, while preserving the principles of free trade which has always been at the heart of Thailand's trade regime.
5.2. So far, Thailand has received more than 600 questions, which we have already responded to 414 questions. With approximately 200 remaining questions, Thailand would like to reaffirm that we will answer all questions as soon as we can.
5.3. As a follow-up to the first session of Thailand's Trade Policy Review meeting on Tuesday this week, I would like to take this opportunity to provide brief but substantive answers to the suggestions and concerns raised by Members during Tuesday's meeting as follows.
Trade related measures during the COVID-19 pandemic
5.4. Thailand reaffirms its commitment to adopt trade related measures responding to the COVID-19 pandemic that are targeted, temporary, appropriate, transparent and consistent with WTO obligations. In February 2020, Thailand applied export restriction on bird eggs and surgical masks in response to the COVID-19 pandemic. The export restriction on bird eggs was terminated in April this year. The export restriction on surgical masks will be terminated on 3 February 2021 as stated in the current domestic Notification. Both measures are temporary measures and were introduced as a response to safeguard Thai people's lives and health from the pandemic. The measures were notified to the WTO on 2 April 2020 as appears in document (G/MA/QR/N/THA/2/Add.3)
5.5. Our notification also adheres to the APEC MRT Declaration on Facilitating the Movement of Essential Goods. This is a testimony of Thailand's commitment to the principles of the WTO and of the multilateral trading system, even in these unusual times.
5.6. Speaking of APEC, I would like to take this opportunity to inform the meeting that Thailand will be host economy of APEC in 2022. Thailand will work closely with New Zealand, the host of APEC 2021, and APEC economies to further strengthen regional cooperation, especially to support the MTS. We look forward to hosting the APEC Meetings in 2022.
Transparency and notification obligations
5.7. Thailand attaches great importance on promoting transparency in the WTO which is reflected by our records in notification obligations with around 90 percentages of compliance rate in merchandise trade. We also notified trade related measures related to the COVID-19 pandemic. Furthermore, as mentioned by some Members on Domestic Support notification, we are in the process of collecting information and we will notify the WTO once we receive all the information.
Improvement of Thailand GATS schedules
5.8. Thailand is fully aware of our obligation to take necessary actions to update our Schedule of Specific Commitment for telecommunication services under the General Agreement on Trade in Services (GATS) since we have issued the Telecommunication Business Act which has introduced the increasing of foreign equity participation, and other new laws and regulations related to the Reference Paper.
5.9. We are currently in a public hearing stage, and the results of public hearings will be presented to the cabinet and parliament for their approval. After that, we will proceed with WTO procedures for the certification of improvements to schedules of specific commitments.
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TFA implementation
5.10. For TFA implementation, Thailand appreciates all Members for their commendations on our high implementation rate at 97.1%. We will certainly put great efforts to further implement our remaining commitments under the TFA in order to better facilitate importers and exporters and ease trade processes.
Complex Tariff structure
5.11. Regarding tariff structure, Thailand revises its tariff structure on a regular basis. If there are any circumstances such as changes in economics, trade or investment which make tariff reductions deem appropriate or necessary, the tariff structure may be revised accordingly.
Foreign business liberalization
5.12. Thailand understands that foreign investors are concerned with the policy on the amendment of List Three annexed to the Foreign Business Act B.E. 2542. We would like to assure that Thailand has a coherent policy to promote foreign investment and we will keep working to facilitate foreign investors in doing business and remove any obstacles in investing in Thailand.
5.13. The Foreign Business Commission reviews categories of businesses in the lists annexed to the Act annually. Since 2013, the Ministry of Commerce has issued 4 Ministerial Regulations Prescribing Service Business Not Subject to Application for Foreign Business Permission covering 40 business categories such as securities business under the law on securities and securities exchange, insurance business under the law on insurance, financial institution business, and representative office/regional office.
5.14. To review the regulated businesses under the Foreign Business Act, the regulation promulgation process requires that public hearings with stakeholders and sector regulators are held. The result based on pros and cons usually requires sufficient information for the Commission to remove the regulated businesses from the list.
Securities company inspection
5.15. The inspections' scope for both Thai and Foreign securities companies are in accordance with the Notification of the Capital Market Supervisory Board No. 35 in 2003 on Standard Conduct of Business, Management Arrangement, Operating Systems, and Providing Services to Clients of Securities Companies and Derivatives Intermediaries. The notification is available on the SEC's website. In summary, it requires public consultations and mechanisms ensuring that the rules are fair, consistently applied, comprehensible, and transparent to the public. Furthermore, Thailand has recently participated in the Financial Sector Assessment Programs (FSAP) conducted by the International Monetary Fund (IMF) and the World Bank and received an assessment grade of "Fully Implemented" for IOSCO Principle 4 "Clear and consistent regulatory process".
WTO/Multilateral Trading System
5.16. Thailand reaffirms its commitment to the rules-based multilateral trading system. Our trade regime, laws and regulations adhere to the WTO principles and are implemented in a transparent and non-discriminatory manner.
5.17. In addition, Thailand will work closely with WTO Members and actively participate in on-going discussions including fisheries subsidies, agriculture and e-commerce to achieve a substantial outcome for MC12. We also view that there is an urgent need to advance WTO reform and resolve the Appellate Body impasse.
5.18. I would like to thank the Chair, the Discussant and all Members again for your interest in Thailand's trade policy, and constructive engagement and valuable contribution during this two-day meeting. I would also like to thank the WTO Secretariat for the excellent Secretariat Report and their support throughout Thailand's TPR process.
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5.19. In closing, I wish everyone stay safe and healthy through these unusual times. Thank you for the floor.
DISCUSSANT
5.20. Thank you, Mr Chair. Good morning or good afternoon, everyone.
5.21. I would like to start my second presentation in my capacity as discussant, by expressing my satisfaction with the exchanges held to date, including Thailand's second intervention, which was aimed at responding to the various questions raised by the participating delegations. I was able to confirm my impression that the present exercise is indeed turning out to be a very useful and successful Trade Policy Review.
5.22. It is a relatively well-known fact that some South-East Asian economies, including Thailand, have been dubbed as "tiger cub economies" due to their similarities with the economic development of the original four Asian tigers. This Review has enabled me to understand this concept a little better, and to wonder if Thailand is not perhaps at an important crossroads, on the cusp of soon making the leap to eventually become yet another fully developed Asian tiger. I am observing some conditions that are conducive to that happening, together with some challenges that I will outline briefly.
5.23. First, one word kept cropping up over and over last Tuesday: investment. This somewhat odd as we are dealing with a Review that deals mainly with trade issues. However, requests to reduce red tape surrounding foreign property in some sectors, as well as interest in finding out about the conditions for setting up a new business in the Economic Corridor of the East and requests for Thai investment in other countries clearly demonstrate that WTO Members believe in Thailand's growth, and in the possibility of doing business with, in and from Thailand. It is normal that this interest in investment to and from Thailand should reveal a yet undivulged margin of potential economic growth that could come to fruition if certain barriers are overcome and certain key elements are maintained, such as political and macroeconomic stability, the rule of law and a strong financial sector.
5.24. Second, the policy of regional trade agreements and preferential integration seems to have had a favourable impact on Thailand's image as a partner with whom business and investment can be done. In other words, a partner with whom rules-based mutual economic growth can be achieved. On the first day of this Review, several references were made to the Regional Comprehensive Economic Partnership (RCEP), agreements between the Association of South-East Asian Nations (ASEAN) and various Members of this Organization, and to the negotiation of bilateral trade agreements either underway or already concluded. One can infer from these references an acknowledgement that these agreements are valuable instruments underpinned by an aspiration to be more closely associated with and develop special cooperation with the Thai Government with a view to achieving mutually beneficial trade and investment. The challenge for Thailand, on the one hand, is to seize the opportunities that are being opened up thanks to those agreements and, to complement that, allow the other parties to benefit from them in concrete terms, striking the right balance that would allow partners to maintain their perception of Thailand as a fair and open partner. On the other hand, it is important to note that the interest in developing trade with Thailand is not limited only to those trading partners with whom it has concluded or is negotiating preferential trade agreements, but that it is also being expressed by various governments whose trade relations with Thailand are covered by WTO legal instruments. That is why it is crucial for Thailand's important participation in this Organization to be maintained, as has been recognized by the 40 or so delegations that took the floor last Tuesday, representing countries from all regions.
5.25. Third, Thailand's strategic economic plan has elicited several positive comments from the Members and no substantial criticism to speak of. That is why this plan and attendant objectives have received, in my view, the preliminary green light. The real challenge will be to ensure effective implementation of the plan, both in terms of honouring Thailand's different international commitments, and in terms of paying due attention to all aspects of sustainable development while implementing the plan. These include the social aspect: fostering social equality, which could be linked to micro, small and medium-sized enterprises and women's economic empowerment; and the environmental aspect: respect for ecosystems and biodiversity and combating climate change.
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5.26. Fourth, the Members of this Organization have proposed to scale up certain developments in Thailand's economic and trade policy. Trade facilitation, making it easier to do business, continued customs reforms, simplification and liberalization of the tariff structure, opening up of the government procurement system, and protection of intellectual property rights, inter alia, are areas of Thailand's economic policy on which participating delegations have noted positive developments during the present Review while also noting that there is some room for improvement.
5.27. Thailand has informed us that it has taken significant measures to tackle the economic slowdown caused by the COVID-19 pandemic, but perhaps it can do even more during this peculiar period. As a famous politician once said, "Never let a good crisis go to waste". Therefore, the current context could be an opportunity to do an in-depth analysis of the comments that have emerged during the present Review with a view to pursuing positive developments and channeling efforts to build back better.
5.28. These are the four salient points which have emerged from this Review, in my view, and which present both opportunities and challenges on Thailand's road to becoming an Asian tiger on its own merit. The only thing I have to add, to paraphrase a delegation which took the floor last Tuesday, is that, as Thailand works towards achieving its objective of becoming a developed economy, it will also have to assume greater responsibility on the international scene by seeking the stability and prosperity of the region and promoting a fair and sustainable international system for all. Thank you.
EUROPEAN UNION
5.29. On behalf of the EU, let me first thank Thailand for the comprehensive overview presented last Tuesday of the main trade and economic developments that occurred during the review period.
5.30. The EU welcomes the useful insights that this review has provided into Thailand's ongoing and planned policies and initiatives to foster economic growth, enhance its integration in global supply chains, and strengthen its regulatory environment.
5.31. The EU hopes that its comments, and those by other Members, will support Thailand in further reviewing and reforming its trade and economic policies, addressing the challenges highlighted in the interventions delivered on Tuesday.
5.32. In this respect, the EU would underline in particular the importance of lifting restrictions to foreign participation in the Thai services, investment and public procurement markets; as well as the key contribution that enhanced transparency and stakeholders' involvement in the design, implementation and enforcement of trade measures would play for the establishment of a more attractive business environment in Thailand.
5.33. The EU would like to thank the delegation of Thailand for undergoing this important transparency exercise in a virtual format and despite of challenging circumstances, thus demonstrating Thailand's commitment to the WTO, as was noted by several Members during this review. EU is confident that our good cooperation will continue and will contribute to a sustainable socio-economic recovery from the pandemic and to economic growth.
UNITED STATES
5.34. The United States thanks Thailand and the Secretariat for their efforts in conducting this Trade Policy Review, particularly under the difficult circumstances related to the pandemic.
5.35. We have benefited from the exchange of views provided by the Review, which have highlighted the accomplishments and progress made by Thailand since its last Review, and also provided an opportunity for Members to raise ongoing concerns with current Thai trade practices.
5.36. The United States mentioned, in our remarks on Day 1, the longstanding and deep relationship between the United States and Thailand, one that extends well beyond trade relations. We look forward to continuing to strengthen our important relationship through our bilateral and regional dialogue mechanisms and cooperation here at the WTO.
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5.37. We would like to reiterate our desire to see deeper reforms put in place in Thailand's customs practices, particularly with respect to operation of Thai customs penalty regimes.
5.38. We look forward to close cooperation with Thailand in the Trade Facilitation Committee in this regard.
5.39. Once again, we request Thailand to update its GATS schedule to reflect the current level of market access provided in the telecommunications sector, consistent with the commitment Thailand made in 1997. We appreciate the update we received this morning on domestic steps being taken in this regard.
5.40. We would like to request that Thailand provide an update at the upcoming Council on Trade and Services meeting, if there are any updates.
5.41. We will continue to engage Thailand's representatives here in Geneva and in Bangkok to further our efforts to resolve our concerns regarding Thailand's regime for agricultural products and SPS measures.
5.42. We highlighted import fees and approval processes in Day 1, and reiterate our interest in receiving more information from Thai officials regarding our questions.
5.43. Unfortunately, we must also take the opportunity of our Day 2 statement to, once again, express our strong disappointment that over half the questions posed to Thailand by the United States, as an integral part of this Review, have gone unanswered. Our participation in this Review with one of our most important trading partners has been severely limited by this fact.
5.44. The United States observed the alternative timeline schedule requested by Thailand, a timeline that provided additional time for Thailand to respond to Members' advance written questions. We did so on the understanding that we would receive responses in accordance with that timeline and would have been able to utilize those responses to enhance our engagement in the review process. Without those responses, not only have we been unable to engage in the review process to the fullest extent, we have also been denied an opportunity to pose important follow-up questions. We reiterate our expectation that all of our written questions will receive responses.
5.45. Once again, we thank the delegation of Thailand for their participation in this Review, and we thank the Secretariat and the discussant for their valuable support and insights.
UNITED KINGDOM
5.46. The United Kingdom would like to reiterate its appreciation for Thailand's constructive engagement with this Trade Policy Review. We would also like to join other delegations in welcoming Thailand's active participation in the Joint Initiatives on E-commerce and Services Domestic Regulation.
5.47. We thank Thailand for providing timely answers to the questions raised by the United Kingdom in advance of this meeting.
5.48. We have now submitted some follow-up questions for Thailand relating to labelling and advertising of alcoholic beverages and have requested some further information in relation to Thailand's mandatory registration system for government procurement.
5.49. We look forward to receiving answers to these follow-up questions in due course and the United Kingdom sends its best wishes to Thailand for a successful trade policy review.
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6 CONCLUDING REMARKS BY THE CHAIRPERSON
6.1. The eighth Trade Policy Review of Thailand has offered us a good opportunity to deepen our understanding of recent developments in, and challenges to, its trade, economic, and investment policies; this has been achieved despite the constraints posed by the COVID-19 pandemic on the preparation of the reports and on our deliberations. Our discussion has clearly benefited from the active participation of the Thai delegation, led by Mr. Rachavitch Piyapramote, Minister, Permanent Mission of Thailand to the WTO and WIPO, Bangkok Office, who participated from Bangkok. I would like to thank H.E. Ambassador Sunanta Kangvalkulkij, Permanent Representative of Thailand to the WTO, and her team for their work and cooperation in the preparation of this Review. I would also like to express my appreciation to our discussant H.E. Ambassador Silvia Elena Alfaro Espinosa of Peru for her insightful remarks, and to the 44 delegations that took the floor for their valuable contributions. Thailand responded to two-thirds of around 600 written questions posed by Members; some Members noted that even though their questions were submitted within the stipulated deadline, some have not been answered. They look forward to receiving replies to outstanding questions as soon as possible.
6.2. Members commended Thailand's economic performance during the review period, with an average annual GDP growth rate of 3.4% between 2015 and 2019. However, they also expressed concern about the slowdown of the economy from 2019, and the extraordinary difficulties caused by the COVID-19 pandemic in 2020. Some Members acknowledged that Thailand's balanced fiscal situation allowed it to swiftly adopt measures to provide relief after the onset of the crisis.
6.3. Members noted the challenges facing the economy, such as the need to improve income and regional disparities and to boost the low levels of public and private investment. They welcomed Thailand's reform initiatives, in particular the "Thailand 4.0" and the Eastern Economic Corridor (EEC) projects. Members appreciated Thailand's efforts to enact new, and amend existing trade-related legislation, including the Anti-Dumping and Countervailing Act, the Industrial Products Standards Act, the Public Procurement and Supplies Administration Act, and the Trade Competition Act, among others. On the other hand, some Members pointed out that Thailand's Foreign Business Act is still restrictive, and that applying for a foreign business license can be a bureaucratic and lengthy process.
6.4. Members commended Thailand's strong commitment to the multilateral trading system, and welcomed its contribution to advance WTO reform. The delegation of Thailand recalled that it had tabled a proposal on the dispute settlement system to facilitate discussions and resolve the Appellate Body impasse. Many Members appreciated the leadership role played by Thailand's Ambassador and Permanent Representative to the WTO and WIPO, who served as Chair of the Dispute Settlement Body and the General Council in 2018 and 2019, respectively. Members congratulated Thailand for the ratification of the WTO Trade Facilitation Agreement in 2015, the acceptance of the Protocol Amending the TRIPS Agreement in 2016, and for its participation in the expansion of the Information Technology Agreement and the Joint Statement Initiative on e-Commerce. They also welcomed Thailand's recent announcement that it will join the Services Domestic Regulation Joint Statement Initiative, and encouraged Thailand to participate in the Joint Statement Initiative on investment facilitation. Members acknowledged Thailand's support for the WTO Working Group on Micro, Small and Medium Enterprises (MSMEs), highlighting the importance of MSMEs in COVID-19 recovery. Some Members also welcomed Thailand's support in developing a Framework for Negotiations in Domestic Support in agriculture.
6.5. Members referred to Thailand's economic integration agenda within the ASEAN, and with other economic partners through the conclusion of RTAs. Many welcomed the Regional Comprehensive Economic Partnership (RCEP), signed on 15 November 2020, and were interested in learning more about the agreement's scope.
6.6. Referring to specific trade policies, many Members appreciated the adoption of the new Customs Act, which helped simplify customs procedures and improve transparency. Some Members remain concerned about the penalty regime and the commission payments under this Act, and enquired about plans to enact further customs reforms. Members urged Thailand to simplify its tariff structure, which was seen as relatively complex. Some Members noted the significant gap between bound and applied rates, the extensive use of non-ad valorem rates, and the few cases where applied rates exceed bound rates. Some Members appreciated that Thailand is revising its tariff quota allocation system; they noted that currently the tariff quota fill rates are very low for some
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- 58 - agricultural products, and looked forward to seeing the implementation of the revised system. Some Members pointed out that Thailand applies import licensing and other requirements on various products, and encouraged further relaxation of these measures.
6.7. Some Members were interested to know more about mandatory standards and their effects on the importation of goods. Some have raised specific trade concerns on SPS measures maintained by Thailand at the WTO SPS Committee. Members noted with concern Thailand's export ban on surgical masks, which are essential to fight the pandemic. Some Members noted Thailand's targeted initiatives in specific economic sectors or geographical zones, through the use of investment incentives, and called on Thailand to simplify and broaden them to all sectors.
6.8. Some Members recognized that Thailand is an observer to the WTO Government Procurement Agreement, and has included provisions on cooperation and information sharing in some of its FTAs. They encouraged Thailand to consider expanding these obligations to cover market access commitments. Thailand was invited to open its procurement market to foreign suppliers, and to ensure transparency, non-discrimination, competition and fairness in government procurement processes. Many Members applauded efforts by Thailand to strengthen IPR protection, including through the amendment to its Trademark and Copyright Acts. Members congratulated Thailand's recent accession to the WIPO's Madrid Protocol and the Marrakesh Treaty, and supported Thailand's continuing efforts to accede to other WIPO instruments.
6.9. A number of delegations pointed out that agriculture receives more trade protection than the rest of the economy, with the average tariff on agricultural products being much higher than on non-agricultural products. It was also noted that import and export restrictions, as well as import surcharges, apply to agricultural products. Members encouraged Thailand to further liberalize its agriculture sector by reviewing its existing market access measures, and to use ad-valorem tariffs to increase transparency. Members noted that Thailand's latest notification on domestic support to agriculture covers only up to 2016, and urged Thailand to submit more up-to-date notifications. Many appreciated Thailand's efforts to combat illegal, unreported and unregulated (IUU) fishing, and welcomed Thailand's active participation in the WTO fisheries subsidies negotiations, particularly as a significant producer through marine capture fishing.
6.10. It was acknowledged that services remain the main contributor to Thailand's economy and account for a significant share of GDP and employment. Members appreciated Thailand's steps in relaxing foreign equity restrictions for some services sectors, and encouraged Thailand to revise its GATS schedule to reflect them. Members also encouraged Thailand to consider further liberalizing its investment regime in the services sector to attract foreign investment. On financial services, Members acknowledged Thailand's effort to remove banking and insurance businesses from the list of activities where foreign investment is restricted, and encouraged it to pursue the liberalization of these services. Some noted that Thailand has undertaken commitments for international maritime transport services under the GATS, and questioned whether Thailand's practice to reserve the transportation of government cargos to Thai-flagged vessels is in conformity with such commitments.
6.11. The above are some of the key issues that emerged from our discussion. I hope that the Thai delegation will take into account and further reflect on these issues and on the many constructive comments, both broad and detailed, that it has received during this Review. Members look forward to receiving written answers from Thailand to any outstanding questions or follow-up questions within one month, at which point the Review will be successfully concluded.
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7 ADOPTION OF TPRB'S ANNUAL REPORT FOR 2020
CHAIRPERSON
7.1. I would now like to ask delegations to consider the TPRB's Annual Report for 2020, which was initially distributed on 9 October 2020 in document WT/TPR/W/179, and its revised version, in which the Secretariat has incorporated comments from one delegation, was distributed on 23 October 2020 in document WT/TPR/W/179/Rev.1. I trust that this revised version could be considered the final one.
7.2. The floor is now open if any delegation would like to speak. Otherwise, I propose the adoption of the Annual Report as contained in document WT/TPR/W/179/Rev.1.
7.3. With this, I declare the meeting closed. I thank you all for your participation and please note that the next meeting of the Trade Policy Review Body will be held on 9 and 11 December, when the TPRB will discuss the TPR of Indonesia.
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