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. WT/TPR/M/400 • Thailand - 2 - 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. WT/TPR/M/400 • Thailand - 3 - 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. WT/TPR/M/400 • Thailand - 4 - 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