. /.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q3/THA/12
21 May 2002
(02-2807)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement
on Subsidies and Countervailing Measures
Replies by THAILAND to Questions Posed by SWITZERLAND1
The following communication, dated 15 May 2002, has been received from the Permanent
Mission of Thailand.
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Pursuant to Article 27.4 of the SCM Agreement, Thailand has the honour of submitting its
written reply to the additional question posed by Switzerland.
Question 1. Switzerland thanks Thailand for its replies to the initial set of questions.
Regarding the IEAT Act Thailand responded “t he Industrial Estate Authority of Thailand
(IEAT) expects to finish the amendment of the IEAT Act within approximately 10 years ”.  As this
seems a very long period of time, Thailand is urged to provide further details on the necessary
procedures justifying this request.  What tr ansition period is Thailand actually seeking?
Reply
Thailand is seeking a transition period of 10 years to complete the amendment of the IEAT
Act of 1979.  We expected to finish the entire process by May 2012.  In addition to the lengthy andtime-consuming process of law amendments in Thailand, the request for extension is based on the fact
that the subsidy programme deals with a number of industrial operators, their employees and labour
unions.  Consequently, the amendment will be inevitably under close supervision by the affected
parties and could bring about unconstructive political implications that would lengthen the
amendment process.  Taking all the aforementioned factors into account, an extension period of10 years is deemed necessary.  Details on compulsory procedures are provided as follows:
Course of actions
Phase I Study a range of ways and means by which the law will be amended, and also study direct
and indirect effects of the law amendment to all related parties such as industrial operators,
employees, local and foreign investors, and effects to the Thai economy as a whole.  The
process in fact began right after the SCM Agreement came into effect in 1995, but has
been periodically interrupted and obstructed since 1997 as a result of the Asian financial
                                                     
1 G/SCM/Q3/THA/9.G/SCM/Q3/THA/12
Page 2
crisis.  Nevertheless, the IEAT had set its goal to conclude the first phase within an
estimated period of 2 years (May 2004).
Phase II The amendment of the IEAT Act in the second phase will be completed by executing
9 successive steps as follows:
1. The working group (WG) studies ways and means to amend the law.
2. The WG makes a conclusive guideline for the law amendment.
3. The WG proposes a draft of new IEAT Act to the Board of the IEAT.
4. The Board proposes the approved draft to the Ministry of Industry.
5. The Ministry proposes the draft IEAT Act to the Cabinet.
6. The Cabinet submits the draft to the Office of the Council of State to verify legal 
correctness of the draft.
7. The Office of the Council of State returns the verified draft to the Cabinet.
8. The Cabinet proposes the verified draft to the House of Representatives (HoR).
9. The HoR finally proposes the approved draft to the Senate.
The IEAT estimated that 4 years are required to complete the procedures in this phase.  It
also pointed out that political stability played a crucial role in this important part of the law
amendment.  A change in the ruling party in  the next election could hamper the effort to
amend the law.
Phase III Bring current government’s rules, regulations and procedures into conformity with the new
IEAT Act and, if necessary, issue new rules, regulations and procedures by the virtue of
the Act.  Phase III is expected to be completed within 2 years.
Phase IV Enforce the new IEAT Act and its related rules, regulations and procedures.  The IEAT
anticipated that 1-2 years are needed for this phase.
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