Thailand, Germany agree to speed up EU-Thai free trade agreement

The leaders of Thailand and Germany have agreed to accelerate negotiations to conclude a free trade agreement between Thailand and the European Union (EU) as a key mechanism to boost mutual trade and investment.

The decision was made as visiting Thai Prime Minister Yingluck Shinawatra met German Chancellor Angela Merkel at the Chancellery on Wednesday, July 18, the first day of her official visit marking the 150th Anniversary of the establishment of diplomatic relations between Thailand and Germany.

“ASEAN has a free trade agreement with China. This makes it even more important that the European Union reaches a free trade agreement with Thailand, and potentially with the whole of ASEAN too,” the DPA news agency quoted the German chancellor as saying.

Yingluck emphasized that the Thai-German partnership would contribute to sustainable growth and employment.

Bilateral trade and investment would be a mechanism to strengthen the partnership.

European Union products and technology are necessary for the development of Thailand and other Association of Southeast Asian Nations (ASEAN) countries, the Thai premier said.

Thailand is investing in post-flood infrastructure development, Yingluck said. German investors are welcome to invest in Thailand’s infrastructure development and other industries such as autos, autoparts and machinery manufacturing.

The two countries planned to increase trade and investment value through bilateral cooperative mechanisms such as the Joint Thai-German Economic Committee (JEC).

German Economic Minister Philipp Roesler will visit Thailand in September for negotiations to boost trade and investment.

The Thai premier also is seeking German cooperation in product quality certification and standardization by setting up a joint quality control centre to screen Thai exports to Europe. That will help cut losses on transportation incurred from returning Thai goods failing to meet EU standards.

In addition, Thailand plans to develop its Green Economy in cooperation with Germany. The first talks on shared environmental strategies between the two countries are expected to be held this year, Yingluck said.

The Thai government supports renewable energy and plans to boost its use to 25 percent of all energy use within ten years. Thailand also promotes environmentally-friendly industries such as bioplastics in close cooperation with Germany in terms of technology transfer. (MCOT)
 

Special Report: PM urged to exclude alcohol deal from FTA with EU

The National Economic and Social Advisory Council (NESAC) has urged Prime Minister Yingluck Shinawatra to be cautious about the free trade area on alcoholic beverages with the European Union (EU), saying the deal could encourage new Thai drinkers.

During a seminar on alcohol policies for the future of Thai youths, Jiraporn Limpananont of the National Economic and Social Advisory Council (NESAC) said the government’s move to seal the FTA deal with the EU must be considered carefully. The NESAC pointed out particularly a free trade agreement on alcohol, saying if the deal was signed, it would encourage young drinkers.

The NESAC suggested the premier abide by the Cabinet resolution earlier to exclude alcoholic beverages from future FTA discussions. At the same time, it also advised the government to push for restrictions for liquor shops to be located outside a 500-meter radius of an educational institution, impose more excise tax on liquor, and strictly prosecute shops that sell alcohol to children under 20.

According to Dr. Thaksaphon Thammarangsi, Center for Alcohol Studies Director, alcohol is one of the major causes of the death of people aged 15-29. He said each year, around 250,000 become new drinkers. Besides, alcohol also leads to other problems such as brawls, drug abuse, and unsafe sex.

Dr. Thaksaphon explained that many young adults fall victim to advertisements and unethical marketing strategies, which include cheaper sale of alcoholic beverages and easy purchase.

He added that the World Health Organization cited an academic report, saying many international free trade agreements have some influence over national public health policies. He suggested the government exclude the agreement on alcoholic beverages and tobacco from the FTA deal for a healthier society.

The opinions gathered from the seminar will be presented to the NESAC and later forwarded to the Cabinet for consideration before the government opens the FTA talks with the European Union. (NNT)
 

Thai auto exports hit 25-year record high in June

Thailand’s automobile exports in June soared to over 94,000 units, marking its highest record in 25 years, according to the Federation of Thai Industries (FTI).

FTI Automotive Industry Club spokesman Surapong Paisitpattanapong announced last week that automobile exports in June significantly increased by 25.22 percent year-on-year to 94,727 units.

Automobile exports in the first half of 2012 totaled 456,869 units, valued at approximately Bt323 billion.

Meanwhile, output in June climbed to 205,600 units up 33.8 percent from the same period last year, hitting a 50-year record high. Auto production for this year’s first six months was reported at more than 1,057,000 units.

Domestic car sales in June marked a new record at 123,472 units, up 75.7 percent.

The substantial growth in the sales was because automakers resumed their output after flood-related suspensions and sped up manufacturing and delivering the products to the buyers making advanced reservations, Surapong explained.

He added that vehicle sales in the country from January-June rose to 606,523 units.

The Automotive Industry Club was confident that Thailand’s total car production this year is likely to rise to 2.2 million units. It also projected that the 2012 overall automobile exports, excluding automobile parts, would be valued at Bt700 billion. (MCOT)