Cablegate: Thai Market Access Positions in the Wto
VZCZCXYZ0004
RR RUEHWEB
DE RUEHBK #3792/01 1781117
ZNR UUUUU ZZH
R 271117Z JUN 06
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC 9737
RUEHGV/USMISSION GENEVA 1669
RUCPDOC/USDOC WASHDC
UNCLAS BANGKOK 003792
SIPDIS
SIPDIS
DEPT FOR EB CMOORE AND WCRAFT
DEPT PASS USTR FOR DWOSKIN AND ROHDE
GENEVA FOR ALLGEIER AND SHARK
USDOC FOR JKELLY
E.O. 12958:N/A
TAGS: WTRO ETRD ECON TH
SUBJECT: THAI MARKET ACCESS POSITIONS IN THE WTO
REF: A) STATE 103936; B) STATE 104561
1. Econoff met with Ms. Sirinart Chaiman, Director of Multilateral
Trade Negotiations, and delivered talking points on WTO market
access negotiations per reftels. Sirinart reiterated the Royal Thai
Government's (RTG) commitment to the WTO negotiations and a
successful conclusion of the Doha round by the end of 2006. She
related that WTO Director General Pascal Lamy had recently expressed
concern that Thailand had lost focus on the WTO in favor of pursuing
bilateral trade agreements, but that Minister of Commerce Somkid was
careful to allay these concerns.
Agricultural market access
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2. Sirinart said the RTG was particularly focused on reform in
agricultural market access and lamented that an agreement on
modalities on agriculture had missed several deadlines to date. As
a member of the G-20 group of developing nations, Thailand's
position on market access in this area tracks closely with overall
G-20 positions, though there were notable differences. Sirinart
said the RTG did not consider itself to be a leader in the G-20, but
preferred to play a role as facilitator within the group, guiding
varied positions closer to consensus.
3. Sirinart said the RTG position on minimizing "special products"
for exemption from tariff cuts was similar to that of the U.S. The
RTG considered the U.S. position on special products to be
ambitious, perhaps too ambitious to be a starting point for
negotiations, but Sirinart emphasized that RTG goals were similar to
those of the U.S., and that the RTG would be willing to work
together to advance these positions. Within the G-20, the RTG is
attempting to remove rice and sugar, two important Thai exports,
from inclusion on any list of special products.
4. Sirinart said the RTG was substantially less supportive of
domestic supports and hoped for greater cuts in U.S. farm support.
Although Thailand is not directly affected by the U.S.'s support
programs, the RTG sees them as production and market distorting, and
possibly taking third markets away from Thai exports. Ms. Sunanta
Kangvalkulkij, Director of Agriculture Negotiations, said that she
had sensed some flexibility in the U.S. position on domestic support
in recent weeks, and was surprised and somewhat disappointed that
the talking points in reftel B reflected past positions and showed
no flexibility.
5. Sirinart was not overly optimistic that the coming weeks would
see great progress, noting that over 500 brackets remained in
negotiating texts. She advised Minister Somkid to focus on making
progress on core modalities. Sirinart expressed her hope that the
U.S. and EU would move closer together toward what she saw as a more
realistic middle position set out by the G-20. She recognized that
more cuts were needed than what the G-20 was advocating, but urged
progress in order to move the round forward.
Services
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6. Mr. Ron Sirivanasandha, Trade Officer for services negotiations,
said the RTG considered the U.S. proposal to be ambitious, perhaps
too much so, and complained that the U.S. position did not take into
account situations in individual countries. Ron explained that for
Thailand, financial and telecommunication services were in a
transition period, presently developing regulations for management
of these two industries. The RTG would find it difficult to make a
commitment in WTO services negotiations in these two areas before
these regulations were finalized. Ron recommended instead that
negotiations proceed sector by sector and that the U.S. specify its
priorities and look for agreement in each sector, rather than
pushing for a "maximum position" of full liberalization in all
sectors. Ron noted that the RTG could improve their offer in
computer services.
NAMA
----
7. Mr. Nathasit Diskul, trade officer for non-agricultural market
access, said the RTG was in favor of moving toward zero end rates in
the market access negotiations, as was the U.S. However, he
expressed RTG dismay over U.S. support for a proposal introduced by
Turkey that would remove textile and clothing products from normal
tariff cutting rates. While recognizing the sensitivity of apparel
in the U.S., Nathasit said that U.S. support for this proposal was
undermining the U.S. position on NAMA and sending a mixed signal to
other developing countries. Other developing countries have
mentioned to the RTG that they have been less willing to show
flexibility on U.S. proposals on drugs and chemicals because of the
U.S. stance on apparel.
8. Comment: The RTG sees itself as a facilitator in the market
access negotiations, looking for a middle way through U.S., EU and
developing country positions. Sirinart made a point of emphasizing
RTG commitment to seeing positive results from this week's meetings
in Geneva and completing the Doha round by year end. Despite the
current unclear political situation in Thailand, the Department of
Trade Negotiations does not appear to have been affected and we see
no barriers to the RTG moving ahead with negotiating commitments in
this round and obtaining approval for a final agreement. End
Comment.
ARVIZU