Sovereignty and environmental FTA provisions
By Jon Fernquest[Introduction|Vocabulary|Article]
[Reading Questions|Answers]
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One of the major complaints about the FTA negotiation process in Thailand is that it lacks transparency and public participation.
If the public is going to get more involved in the debates surrounding FTA negotiations, it has to become better informed about what the impact of FTA provisions on Thailand might be.
Today's article looks closely at certain provisions in the proposed Thai-US FTA, provisions on environmental law, and looks at how they might impose on Thai sovereignty, on aspects of public policy that many, probably most, regard as the exclusive domain of the Thai government in consultation with the Thai people to decide on.
Two noteworthy questions are raised here. First, why is the United States, not even a signatory to the Kyoto Protocol, making these environmental demands of foreign countries? What lobbying groups have forced the US Congress to add these provisions?
Second, where is the other side of the debate. Organisations like FTAWatch in Thailand provide an invaluable service, but a debate is not a debate unless there are two sides.
The Thai government is approaching the Singapore government which has successfully concluded an FTA to learn more about negotiating tactics and strategies for negotiating the Thai-US FTA. Perhaps this input will add another dimension to our understanding of the proposed Thai-US FTA.
The news that the US will soon be phasing out the long-standing generalized system of trade preferences that favors developing countries like Thailand, perhaps makes successful FTA negotiation that gains trade advantages as well as protects vulnerable parts of society such as small farmers, a very high priority.
Reading Questions
Here are some questions to guide your reading (See answers at end):1. How might the Thai-US free trade area agreement lead to the US interfereing in Thai domestic policy?
2. What is the Basel Convention? How did it originate?
[Note: Requires additional research in the library or internet]
3. How likely is the following scenario now in 2006? [Note: Topic for library or internet research]
4. Which country was the first in the Asia-Pacific region to sign an FTA with the United States?
5. Thirty percent of the environmental provisions in the US-Thai FTA that have yet to be completed [are unsettled]. What issues do these provision address?
6. what steps are being taken by the government to alleviate the negative impact of the China-Thai FTA on garlic farmers in Thailand?
7. Who has suffered from the recent China-Thai FTA?
Article
FREE TRADE / ENVIRONMENT CHAPTER
Draft provisions could allow US interference APINYA WIPATAYOTIN & PIYAPORN WONGRUANGThe Thai-US free trade area agreement could pave the way for Washington to interfere in domestic policy on environmental protection and natural resources management, an FTA monitoring group has warned. Although the environment chapter of the bilateral trade pact was ''less dangerous'' than other parts such as intellectual property rights and agriculture, it could still pose harm to the country, said Buntoon Srethasirote, an independent researcher from FTAWatch.
For example, the deal states Bangkok could be fined by the US government if it failed to tackle environment damage or enforce environmental laws, he said.
The US was also demanding that a joint committee on the environment be set up, with American representatives sitting on it, to monitor environmental management in Thailand.
Mr Buntoon said the FTA might prevent Thailand from implementing environment-related international agreements, for example the Basel Convention on the Control of Trans-boundary Movements of Hazardous Wastes, which Bangkok ratified in 1997.
''A US company which runs a chemical waste treatment plant here could sue the Thai government for banning the import of hazardous chemical waste listed in the Basel Convention, because the US has not ratified the pact,'' he said. ''They are not legally bound to comply with its requirements.''
Washington also tended to use environmental regulations as trade barriers, which could hurt Thai exports, he added.
The Ministry of Natural Resources and Environment yesterday sought recommendations on ''negotiating tactics'' from a Singaporean trade negotiator involved in the Singapore-US FTA talks.
Singapore was the first Asia-Pacific country to sign a free trade agreement with the US.
''We have to be prepared for the talks, even if the Thai-US FTA negotiations have been suspended,'' said Supat Wangwongwattana, deputy chief of the Pollution Control Department and in charge of the environment chapter negotiations.
The suspended negotiations are likely to be resumed after the new government is elected.
Suphavit Piamphongsant, an adviser to the Thai negotiation team and former chief negotiator on the environment chapter, said the environment provisions were about 70% complete.
''The unsettled part involves sensitive issues such as Washington's requirement for our strong commitment on environmental protection,'' he said. ''Bangkok has already committed to a number of international agreements on environment conservation, so there is no need for us to comply with the US proposal.''
The Agriculture and Cooperatives Ministry yesterday kicked off a farm restructuring plan to ease the impact of the Thai-China free trade deal on the farm sector.
Under the three-year project, more than 800 garlic farmers will grow crops under contract.
The farmers will also be encouraged to switch from garlic growing to potato and sweet chilli, said Agriculture and Cooperatives Minister Sudarat Keyuraphan.
Aat Pisanwanich, director of the Centre for International Trade Studies of the University of the Thai Chamber of Commerce, said that since Thailand had signed an free trade agreement with China, producers of at least 11 vegetables had been hard hit by an influx of cheap Chinese farm produce.
Vocabulary (in discussion above)
transparency - ability to see what is happening in a political or business process
in consultation with x - working with x and making x's opinion part of the decision-making process
noteworthy - worth knowing about
signatory - country that signs an agreement
lobbying groups - people hired to promote the interests of businesses and organisations in politics, here in the US Congress
US Congress - the lower and larger house of the US legislature, elected for shorter terms than the senate and by small localities of people (See Wikipedia)
pave the way for - help and make it easier to do
bilateral - between two countries
multilateral - between several countries
a pact - an agreement
FTAWatch - a Thai non-governmental organisation (NGO) that monitors Free Trade Agreements Thailand is negotiating with other countries and their potential impact on the Thai economy, especially small Thai farmers
tackle - solve a problem
Basel Convention - "an international treaty that was designed to reduce the movements of hazardous waste between nations, and specifically to prevent transfer of hazardous waste from developed to less developed countries (LDCs)." Full name: "Basel Convention on the Control of Trans-boundary Movements of Hazardous Wastes" (See Wikipedia).
comply with - follow the terms of an agreement
x is not legally bound to comply with an agreement - if x does not follow the agreement, x is not breaking the law
cooperatives, agricultural cooperatives - "a member-owned business with membership open to those who use its services. Democratically controlled and operated on a nonprofit basis, a cooperative returns any margins or profits to members on the basis of patronage." (Source) (See Wikipedia)
an influx - an inflow, goods coming into the country
Answer Key:
1. How might the Thai-US free trade area agreement lead to the US interfereing in Thai domestic policy?
The government of Thailand might be fined by the US if a committee decided that it failed to enforce certain environmental laws.
A joint committee would be set up with representatives from both Thailand and the US to monitor environmental management in Thailand.
2. What is the Basel Convention? How did it originate?
[Note: Requires additional research in the library or internet]
Put an end to the export of developed country waste to developing countries. In the 1970's some LDCs earned foreign exchange by receiving the waste of developed countries. The most famous case of this was the Khian Sea Waste Disposal Incident. (See Wikipedia).
3. How likely is the following scenario now in 2006? [Note: Topic for library or internet research]
"A US company which runs a chemical waste treatment plant here could sue the Thai government for banning the import of hazardous chemical waste listed in the Basel Convention, because the US has not ratified the pact. They are not legally bound to comply with its requirements."
4. Which country was the first in the Asia-Pacific region to sign an FTA with the United States?
Singapore.
5. Thirty percent of the environmental provisions in the US-Thai FTA that have yet to be completed [are unsettled]. What issues do these provision address?
Requirements for "strong commitment on environmental protection."
6. what steps are being taken by the government to alleviate the negative impact of the China-Thai FTA on garlic farmers in Thailand?
There is a three year project in which more than 800 garlic farmers will grow crops under contract. The farmers will "be encouraged" to grow potatoes and sweet chili instead of garlic.
How the contract will protect garlic farmers and what incentives will be given to "encourage" them move to different crops? [Note: This requires additional research. This questions is not answered in the article.]
7. Who has suffered from the recent China-Thai FTA?
Farmers that grow eleven different kinds of vegetables have been negatively affected by imports of inexpensive Chinese vegetables.








