TransPacificPartnerships-pros and cons

Discussion of the planned Trans-Pacific Partnership (TPP) will be a highlight of US President Barack Obama's visit to Thailand next week. But the government will have to seriously consider the pros and cons of the TPP, to ensure the regional trade agreement will improve Thailand's competitiveness and boost our capacity to enter the regional market.

The TPP is a proposed regional free-trade agreement being negotiated by the US and Asia-Pacific nations Australia, Canada, Vietnam, Mexico and six other countries.

The TPP is at the centre of the American trade-negotiating agenda as President Obama enters his second term. US businesses are looking for more opportunities to drive growth through external trade and other activities.

Washington has been preoccupied with financial problems as a consequence of the subprime crisis, but re-energised the TPP talks in 2010, with an increasing number of countries expressing interest in joining the talks. Washington says the TPP will further liberalise trade while the Doha Round of trade negotiations under the auspices of the World trade Organisation is delayed.

Asia has an increasingly affluent demographic. The US thus wants to level the field for American businesses in the region. However, there are cautionary words from some quarters in Thailand regarding downside effects of the agreement. The government therefore must communicate with all stakeholders to ensure public understanding of the issue. Otherwise the TPP talks could lead to political manipulation, with the content of the TPP being politicised. It would be unfortunate if the real essence of the talks is left out of the public debate.

In the mid-2000s Thailand engaged in disastrous bilateral trade talks with the US, which ultimately collapsed. Local non-governmental groups voiced concerns, over possible damage to pharmaceutical production, among other issues.