U.S. says FTA with Thailand must cover services

Asian Economic News, June 9, 2003

KHON KAEN, Thailand, June 3 Kyodo

The United States said Tuesday that a free trade agreement (FTA) with Thailand would have to be comprehensive, with liberalization of trade in not only goods but also services and intellectual property.

U.S. Trade Representative (USTR) Robert Zoellick told reporters he made the remarks to Thai Commerce Minister Adisai Bodharamik in talks on the sidelines of an Asia-Pacific Economic Cooperation (APEC) trade ministers' meeting in the Thai northeastern province of Khon Kaen.

Adisai, meanwhile, told the joint news conference with Zoellick that Thailand was ready to accept a comprehensive trade liberalization pact with the U.S.

He suggested the two countries begin discussions on an FTA next year.

A study on a possible Thailand-U.S. FTA currently being conducted by the U.S.-ASEAN Business Council and expected to be completed in the next two months could be a base for the negotiation, he added.

Zoellick noted that FTAs that the U.S. has concluded with other countries ''are very comprehensive. They cover all of agriculture, all of goods, all of services, intellectual property and series of other topics.''

''When we say free trade, we mean free trade. At the end of the period -- it may be 10 years it may be 12 years -- all the barriers are gone. So it's a very serious undertaking,'' Zoellick said.

The U.S. will engage in FTA talks only with ''partners that are willing to undertake such challenging requirements,'' he said, adding that it considers Thailand one of the strongest such potential partners in the region.

Zoellick stressed that publics of both countries must be informed about the depth of the relationship between the two countries ahead of discussions on the free trade plan.

''We also have to bring along our business sectors because some will benefit and for some it will mean competition. We have to explain this to our public,'' he said.

''When the U.S. does a free trade agreement, it perhaps take a little more work and it is a little higher in terms of demands for both countries, but the result is a very premium quality product and so it is like a very fine silk work done in Thailand,'' he said.

Thai Prime Minister Thaksin Shinawatra is scheduled to visit Washington next week. During the visit, Thaksin plans to discuss with President George W. Bush the bilateral FTA.