WORLD TRADE  
ORGANIZATION  WT/TPR/M/191 
18 January 2008  
 (08-0263) 
Trade Policy Review Body 
26 and 28 November 2007   
 
 
 
TRADE POLICY REVIEW 
 
THAILAND 
 
Minutes of Meeting  
 
Chairperson:  H.E. Mr. Vesa Himanen (Finland) 
 
   Page 
 
I.
 INTRODUCTORY REMARKS BY THE CHAIRPERSON 3  
II. OPENING STATEMENT BY THE REPRESENTATIVE OF THAILAND 4  
III. STATEMENT BY THE DISCUSSANT 8  
IV. STATEMENTS BY MEMBERS 10  
V. REPLIES BY THE REPRESENTATIVE OF THAILAND AND ADDITIONAL 
COMMENTS 18  
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 21  
 
 
Note:   Advance written questions by WTO Me mbers and the replies provided by Thailand are 
reproduced in document WT/TPR/M/191/Ad d.1 and will be available online at 
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/191 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The fifth Trade Policy Review of Thailand was held on 26 and 28 November 2007.  The 
Chairperson (H.E. Mr. Vesa Himanen) welcomed the Thai delegation, led by H.E. Mr. Thawatchai 
Sophastienphong (Ambassador and Permanent Re presentative to the WTO), and the discussant 
H.E. Mr. Manzoor Ahmad (Pakistan).  As usual, the discussant would speak in his personal capacity 
and not as a representative of his country.  In  accordance with the est ablished procedures, the 
discussant had made available, in advance, outlines of  the main issues he intended to raise (document 
WT/TPR/D/166). 
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures of the meeting.  The report by  Thailand was contained in document WT/TPR/G/191 
and that of the WTO Secretariat in WT/TPR/S/191.   As indicated in WT/TPR/6/Rev.1, the Member 
under review should provide written answers, by the beginning of the review meeting, to questions 
submitted at least two weeks before the meeting.  Questions posed subsequently should be answered, 
to the extent possible, before the start of the second session of the meeting.  Questions left 
unanswered at the end of the second session should be  answered in writing no later than one month 
after the meeting.  Questions by the following de legations had been submitted in writing at least 
two weeks in advance of the meeting and had b een transmitted to the delegation of Thailand:  
Brunei Darussalam;  Switzerland;  Colombia;  the Unite d States;  Argentina;  the Republic of Korea;  
Japan;  Australia;  Canada;  the European Communiti es;  the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu;  Hong Kong, China;  Ch ina;  and Brazil.  Copies of these questions and 
of the answers provided by the delegation of Thaila nd were available in the meeting room.  India, 
Indonesia, and Norway had submitted written questions after the two-week deadline.  These had also 
been transmitted to the delegation of Thailand a nd copies, along with the answers provided by the 
delegation of Thailand, were available in the m eeting room.  All advance questions, as well as the 
responses received from the delegation of Tha iland, are reproduced in WT/TPR/M/191/Add.1. 
3. The Chairperson noted that, since its previous Trade Policy Review in 2003, Thailand had 
risen to several challenges presented by a series of negative shocks.  As a result, GDP growth had 
been robust, underpinned by strong growth in e xports and domestic consumption, facilitated by 
judicious macroeconomic policies.  The services se ctor had remained the mainstay of the economy 
and helped reduce unemployment.  Progress had b een especially noteworthy as regards regulatory 
reform, tariff reductions, removal of  certain non-tariff barriers, and liberalization of certain services.  
He considered that Members would welcome furthe r details on, among other things:  plans to cope 
with the slowdown in GDP growth and domestic private investment (by restoring investors' 
confidence);  structural reforms to improve the economy's competitiveness;  the guiding principle of 
"sufficiency" in trade policy;  the strengthening of  regional integration;  en ergy pricing;  and the 
further liberalization of services.  He hoped that th e discussion within the context of this Trade Policy 
Review would help the policymakers of Thailand to  prepare to meet some of the challenges ahead 
and, at the same time, allow WTO Members to ac quire a better understanding of the outlook for this 
largely open, and thus dynamic, economy. WT/TPR/M/191 
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  II. OPENING STATEMENT BY THE RE PRESENTATIVE OF THAILAND 
4. The representative of Thailand
 pointed out that his country's trade-related developments and 
policies for the coming years were largely govern ed by the Tenth National Economic and Social 
Development Plan 2007-2011, and the new Const itution enacted on 1 October 2007.  General 
elections were scheduled for 23 December 2007.  
5. Since the Trade Policy Review in 2003, the Thai economy had grown steadily.  Overall, 
Thailand's macroeconomic fundamentals had been  strong.  Despite some unexpected political 
developments and external uncertainties, the ec onomy had performed well as a result of significant 
growth in private consumption and investment, as well as exports.  Growth had moderated somewhat 
in 2004 and 2005 due primarily to the tsunami in D ecember 2004 and the significant increase in oil 
prices.  The resultant inflation caused a slowdown in  both the demand and supply sides. In the first 
half of 2007, the Thai economy expanded by 4.3% ;  the expansion on the expenditure side was 
supported by international trade, and public spendi ng.  Private consumption and investment had 
slowed down but had recently shown signs of improvement.   
6. From 2003 to 2007, Thailand's merchandise trade had increased significantly, despite the 
continued appreciation of the Thai baht.  The ma jor export markets remained the United States, the 
EC, Japan, and ASEAN, despite an attempt to diversif y by exporting to new markets.  Thailand's main 
suppliers remained Japan, ASEAN, the EC, and the Un ited States, but their shares had been declining.  
The balance of trade in services was in surplus every year during the period under review.  International trade in services had become more important.  The major imported services in 2006 
were transportation and travel services, which accounted for 47% of total imported services.  
7. The Thai economy was projected to grow by 3.8-4.8% in 2007 and pick up further in 2008 to 
around 4.3-5.8%.  Private consumption and investme nt should pick up in accordance with improved 
domestic demand, particularly after the general elec tion scheduled for the end of 2007.  Exports of 
goods and services were also expected to expand in line with trading partners' markets, particularly 
China, Japan, ASEAN, and India. 
8. The Bank of Thailand (BOT) targeted core in flation, which excluded volatile raw food and 
energy prices, within a range of zero to 3.5%.  The BOT would intervene only to contain excessive 
volatility and to limit exchange rate overshooting.  To counter the possible negative effects of the 
global economic slowdown in 2007, the Government was committed to an expansionary fiscal policy 
to promote domestic demand in fiscal years 2007 and 2008.   The ratio of public debt to GDP should 
be kept at less than 50% and the ratio of de bt service to the budget at less than 15%.   
9. The 2007 Constitution provided an extensive list of directive principles of basic economic 
policy, including the maintenance of Thailand's fre e, fair, and sustainable economy based on market 
mechanisms.  These principles were  coupled with the philosophy of sufficiency economy.  Public 
participation was encouraged in the treaty- making and law-making processes as well as local 
administration.  The new Constitution also promot ed checks and balances in the legislative and 
executive branches, and ensured the independence and impartiality of courts of law and independent 
public agencies.  
10. Under the Tenth National Economic and Social Development Plan for 2007-2011, Thailand 
aimed for balance and sustainability in all areas of national development.  The philosophy of 
"sufficiency economy" was a guiding principle for the Plan and had three key elements:  moderation, wisdom of insight, and the need for built-in resilienc e against risks arising from internal and external 
shocks.  This philosophy advocated stable and equ itable growth over rapid but unbridled growth, and 
emphasized sustainable development, sound macroec onomic policies, and the equitable sharing of the 
benefits of economic prosperity.  It called for prudent management of the economy, a step-by-step  WT/TPR/M/191 
 Page 5 
 
 
  approach to market liberalization, developing th e economy to keep up with the world in the era of 
globalization, and strengthening of society's immunity against the negative side-effects of 
globalization.  It shunned excessive risk-taking, unten able inequalities, and the wasteful use of natural 
resources/factors of production. 
11. Thailand recognized that the global trading system had become much more liberalized, and 
that individual economies were becoming increasingly integrated.  Thailand continued to support free 
and fair trade that introduced changes gradually, in  line with progressive liberalization.  There was a 
need to strengthen the competitiveness and efficiency of domestic industries to be able to compete and 
prosper in the face of rapid change and increased competition.  Thailand promoted transparency and 
good governance by closing legal loopholes and stre ngthening the enforcement of existing laws.  
12. Thailand's investment regime was among the most  liberal in the region.  The Government was 
committed to improving the overall investment environm ent.  Foreign direct investment was a means 
of generating employment, growth, skills, and tech nology transfer;  foreign investment from all 
countries was welcome as Thailand recognized its importance for economic development.  Foreign 
participation was allowed in a wide range of activ ities but foreign investors were required to obtain 
permissions from relevant ministries to be able  to operate.  Investors seeking protection under 
bilateral investment treaties were required to appl y for approval in accordance with the terms of the 
treaties.  The Board of Investment (BOI) imposed  no foreign equity restrictions.  Moreover, the 
Government had improved the internal pro cedures to facilitate businesses and services.  
13. A new legal framework had been proposed to replace the Corporatization Act of 1999 and 
would focus on three fundamental aspects:  the crite ria for the selection of state-owned enterprises 
(SOEs) to be corporatized;  an improved cor poratization process made more transparent and 
accountable with mandatory public hearings, pr e-corporatization establishment of independent 
regulators, share listing, and the elimination of SOE legal privileges and powers;  and the 
establishment of clear guidelines on the offering and allocation of shares.  
14. Since 1 January 2007, Thailand had app lied the AHTN (ASEAN Harmonized Tariff 
Nomenclature) 8-digit commodity classification c ode under the HS 2007 tariff nomenclature.  Tariff 
rates were divided into four categories:  statutory rate, general rate (i.e. th e applied rate), WTO bound 
rate, and preferential rate.  For WTO Members, if the WTO bound rate was higher than the general 
applied rate, the latter could be a pplied.  Thailand had continued it s autonomous tariff liberalization, 
which had reduced the average applied MFN rate. 
15. Most products could be freely imported into or  exported from Thailand.  On 1 January 2007, 
"e-Customs", comprising e-Import, e-Export, e- Manifest, e-Payment, and e-Warehouse had been 
implemented to further facilitate trade.  It provi ded for a paperless environment, a one-stop service 
and the automation of several steps, such as verifi cation of classification and valuation.  The Customs 
Department had introduced clearer customs appeal procedures in several areas, including valuation, 
tariff classification, amount of duty payable, or igin of goods, and quantity of imported goods.  All 
customs-related laws and regulations, as well as important customs information, were publicly 
available on Internet.  Thailand had never resorted to countervailing duties or safeguards, and was an 
infrequent user of anti-dumping measures, which we re imposed in accordance with the relevant WTO 
provisions. 
16. The agriculture sector remained relatively signi ficant.  During 2005-08, the objectives were to 
increase agricultural GDP and raise the averag e net income of farmers by implementing 
five strategies:  rural poverty eradication;  rest ructuring the agriculture sector;  natural resource 
management;  improving regula tion of domestic production to me et consumers' demands;  and 
enhancing the efficiency of government administrati on.  Industrial development was pursued through 
policies targeting the development of local products , promotion of small and medium-size industries, WT/TPR/M/191 
Page 6  
 
  improvement in efficiency and productivity, the cr eation of intellectual capabilities, the promotion of 
environmental recognition and environmental fri endly production methods, and enhancement of 
industrial standards. 
17. Banking, insurance, and securities were undergoing comprehensive regulatory and 
supervisory reforms, the implementation of which ha d further strengthened the stability and efficiency 
of the financial sector.  Thailand attached great im portance to deepening its capital markets to better 
serve as an alternative for capital mobilization a nd investment.  The liberalization plan of the 
securities business licensing had been announced.  Starting on 1 January 2012, the Securities and 
Exchange Commission would accept unlimited applic ations for new secur ities business licences from 
applicants meeting the "fit and proper" requirements, and securiti es brokerage fees would be fully 
negotiable.  Thailand was in the second stage of a three-stage liberalization plan of its insurance 
sector.  The market had been opened to internati onal competition and was supervised by the Office of 
Insurance Commission, an independent regulator y agency.  With the recent passage of the 
amendments to the Life and Non-Life Insurance Acts , which included the raising of the foreign equity 
cap from 25% to 49%, the insurance business w ould operate in a more sound and competitive 
environment. 
18. Thailand continued to implement a liberaliza tion policy on air transport by allowing Thai 
privately-owned airlines to provide air services on th e same routes operated by the national carrier.  
Limitations and restrictions on foreign airlines, involving the capacity and frequency as well as route 
schedule and traffic rights, were being removed gradually.  Moreover, foreign airlines were 
encouraged to operate extra flights to every custom  airport in Thailand.  International shipping was 
open to both Thai and foreign maritime transport operators, except those operating Thai flag vessels, 
which must conform to the Thai Vessels Act B.E. 2481 (1938) and the Navigation in Thai Waters Act B.E. 2456 (1913). 
19. Thailand had made considerable progress towa rds reforming the telecommunications sector 
during the period under review, to support econo mic growth, electronic commerce, knowledge 
transfer, and management of the country.  The National Telecommunications Commission (NTC) was 
appointed in 2004 as an independent state telecoms  regulator.  The Telecommunications Business Act 
B.E. 2544 (2001) had been amended recently to a llow a maximum of 49% to 100% foreign ownership 
depending on the type of business licence.  This re flected a more liberal stance to promote efficiency 
by embracing competition in prices and services.  In tourism, efforts had been undertaken for upgrading infrastructure to keep abreast with the industry's growth and to ensure its long-term 
stability.  Priorities included long-term protection of the environment, encouragement of 
"eco-tourism", training of personnel, and adoption of measures to prevent the exploitation of tourists.  
20. Thailand continued to integrate various strate gies and measures into its national policy to 
strengthen the entire intellectual property rights (IP Rs) system, i.e. developing comprehensive and 
efficient IPR protection systems, promoting th e creation and commercial utilization of IPRs, 
preventing and suppressing IPR infringement, and en suring equitable and fair use of IP.  The new 
Constitution embedded the enactment and enforcement of IPRs laws.  Since the last TPR, two major 
IPR laws have been enacted and implemented – th e Geographical Indications Act B.E. 2546 (2003) 
and the Optical Disc Production Law B.E. 2548 (2005).  The authorities were also in the process of amending and enacting five IPR laws relating,  inter alia,  to the registration process for patents and 
trade marks and customs enforcement.  Thailand was also one of the few WTO Members with a 
national IPR court, which conducte d over 5,534 criminal proceedings, in 2007 alone, resulting in both 
criminal sentences and fines.  Thailand was also  unique in its close coordination with the private 
sector in enforcement of IP laws, which in 2007 led to the destruction of over B 72 million (US$2 million) worth of goods violating IPRs.   WT/TPR/M/191 
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  21. The multilateral trading system remained a priori ty for Thailand.  At the same time regional 
cooperation was seen as an important instrument in  complementing strengths and cushioning regional 
economies from external shocks.  Thailand had taken a proactive approach in strengthening trade ties 
with its major trading partners.  On the bilatera l front, Thailand had concl uded preferential trading 
agreements with Australia, New Zealand, and Japan, and was in the process of negotiations with Peru 
and India.  Negotiations with the United States a nd the EFTA had been on hold but were expected to 
resume after a new government was elected.  Tha iland had taken part in the negotiation of FTAs 
between ASEAN and some dialogue partners i. e. ASEAN-Japan, ASEAN- China, ASEAN-Korea, 
ASEAN-Australia and New Zealand, as well as AS EAN-EC, on which negotiations commenced in 
May 2007.  
22. To further integrate Thailand into the global economy, Thailand would ma intain its steadfast 
principles of supporting free and fair trade at multilatera l, regional, and bilatera l levels together with 
the introduction of gradual changes through progressive  liberalization.  To build Thailand into a 
trading nation and promote modernized trade, Th ailand would continue its efforts to strengthen 
competitiveness, advance trading and logistics system s, and raise the quality of products to meet 
international standards and be tter serve global demands.  WT/TPR/M/191 
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  III. STATEMENT BY THE DISCUSSANT 
23. The discussant
 (H.E. Mr. Manzoor Ahmad) pointed out  that Thailand's real GDP and per 
capita growth had overtaken the pre-1997 crisis le vel, thus providing a solid backing for the Tenth 
National Economic and Social Development Plan, which was guided by the "sufficiency economy" 
principle.  So far, this Plan was achieving its  objectives.  Overall unemployment had declined.  
Thailand had been able to surpass its poverty reduction targets under the Millennium Development 
Goals;  it had set MDG-plus targets in 2004 to be achieved by 2009.  If successful, this would 
represent an extraordinary four-fifths reduction in poverty since 1990.  
24. Thailand had endured several economically and socially debilitating events – the tsunami, 
avian flu, political uncertainty, and the recent oil s hock.  Confluence of these factors had led to a 
slow-down in GDP growth during 2007.  Despite th ese difficulties, exports continued to grow, the 
economy was becoming more outward-oriented, and the export structure was also becoming more 
diversified. 
25. Thailand had mostly pursued an accommodative mo netary policy.  The continuing strength of 
capital inflows and the virtually continuous current  account surplus had exerted upward pressure on 
the national currency.  Foreign exchange reserv es now exceeded US$100 billion, while short-term 
debt was just US$20 billion.  
26. Thailand followed liberal trade and forei gn investment policies, where important 
liberalization reforms had been made during the period under review.  He wondered whether Thailand 
would consider reflecting some of these changes, fo r example those in the telecoms sector, in its 
GATS schedule.  He requested more  details about the changes being made in the telecoms, banking, 
and insurance sectors.  He expressed concern over the proposed amendments to the Foreign Business 
Act (1999) and the proposed Retail Act, as well as  their impact on existing and future foreign 
investment.  
27. Thailand was a strong supporter of an amb itious and early conclusion to the Doha 
Development Agenda.  For this purpose it had b een playing a constructive role and providing 
leadership in several key areas of negotiation such as agriculture, NAMA, and Rules.  As a member of 
the CAIRNS Group and G20, Thailand was keen to see substantial improvement in market access, 
reduction of domestic support, and the elimination of all kinds of export subsidies.  It was also 
seeking stricter disciplines on the future use of s ubsidies.  It was one of the Members proposing a 
possible middle ground solution in the NAMA negotiations. 
28. While remaining committed to liberalization unde r the multilateral trading system, Thailand 
also remained committed to "open regionalism".  The focus now appeared to be on strengthening 
regional links, not only with immediate neighbours, but in the wider Asian region.  The expansion and 
deepening of preferential treatment and regi onal integration was among the most notable 
developments during the period under review. 
29. The customs tariff, one of Thailand's main trad e policy instruments, was relatively complex, 
involving a multiplicity of rates.  Thailand had bound al most three-fourths of its tariff lines but the 
gap of 16.5 percentage points between the average bound and applied MFN tariff  rates still imparted a 
strong degree of unpredictability to the tariff regime .  Trade-related indirect  taxes (46.3% of tax 
revenue) constituted an implicit tax on exports as th ey raised the price of imported and domestic 
intermediate inputs used by exporters.  Bei ng an outward-oriented export dependent economy, 
Thailand might like to consider reducing taxes on in ternational trade and raising more revenues from 
personal income taxes.  He considered that Thaila nd needed to examine whether it should continue to 
use tax (e.g. duty exemptions or reductions, corporate tax holidays, accelerated depreciation) and  WT/TPR/M/191 
 Page 9 
 
 
  non-tax incentives (e.g. low interest loans), whose cost-effectiveness for promotion of exports was 
questionable. 
30. State involvement in the economy persisted in several sectors.  Despite many difficulties, he 
encouraged the authorities to proceed with the priv atization of the state electricity monopoly EGAT in 
order to ensure supply of electricity at competitiv e prices.  Government procurement remained an 
important policy instrument, with 3% price prefer ences accorded to domestic suppliers.  Countertrade 
requirements tied to public procurement c ontracts had been officially repealed.  
31. While there had been overall liberalization of the economy, tariff protection for agricultural 
products remained unchanged.  Since agriculture  was an important component of the economy, 
exposure to more competition would make agriculture more competitive. WT/TPR/M/191 
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  IV. STATEMENTS BY MEMBERS 
32. Members praised Thailand for its steady growth despite a series of negative shocks.  Members 
recognized Thailand's liberal investment regime.  They noted that although its macroeconomic 
fundamentals remained strong, revival of private inv estment was critical for sustained future growth.  
Concern was expressed over the planned amendmen ts to the Foreign Business Act.  Members 
commended Thailand for its constructive and active role in the ongoing DDA negotiations.  Several 
Members observed that Thailand's complex tariff sch edule and the widening gap between its average 
bound and applied MFN tariff rates caused uncertainty  and unpredictability for its trading partners.  
Members thanked Thailand for its advance repli es and looked forward to responses to remaining 
questions. 
33. The representative of Brunei Darussalam, speaking on behalf of ASEAN
 noted that despite 
the political developments of 2006, the constitutional and legislative structure, and the structure of 
trade policy formulation and impl ementation remained largely unch anged;  regulatory reform had 
progressed under the National Laws  Development Plan 2005-2008. 
34. Despite restrictions for certain industries and activities, Thaila nd still offered various 
investment incentives.  Various strategies and meas ures had been integrated into national policy to 
strengthen the whole IPR system, including the revisi on and enactment of several laws to comply with 
the Agreement of Trade-Related Aspects of Intellectual Property Rights (TRIPS). 
35. He highlighted the close economic ties betw een ASEAN Members and Thailand as well as 
the achievements of the ASEAN Free Trade Area in terms of liberalizing regional trade and investment.  In 2003, ASEAN had achieved its orig inal target of reducing tariffs on almost all 
products traded among ASEAN-6 to rates between  zero to 5%.  In 2007, ASEAN continued to 
eliminate tariffs under the CEPT scheme, and was exp ected to reduce tariffs to zero for at least 80% 
of products.  Under the CEPT, Tha iland had included 99.3% of all pr oducts, on which the tariff rates 
for 96.9% had fallen to zero to 5% (60.3% were at  zero).  Non-tariff barriers were also dealt with 
under ASEAN, through, amongst others, measures to harmonize customs nomenclature and 
developing common product certification standards.  In addition, the region was working towards a 
more liberal investment regime by 2020. 
36. In the area of services, ASEAN had concluded five packages of AFAS commitments through 
four rounds of negotiations since 1 January 1996, the fifth package was signed in December 2006.  As 
AFAS liberalization was GATS-Plus, ASEAN commitmen ts to liberalize trade had been in priority 
sectors, i.e. air transport, business services, constr uction, financial services, maritime transport, 
telecoms, and tourism.  Thailand's commitments in  AFAS had broadened its scope of activities in 
business services, telecommunications, construction, fi nancial services, tourism, recreational services, 
and air and maritime transport. 
37. In 2003, the ASEAN Leaders committed to establish an ASEAN Economic Community, 
which would allow for free movement of goods, ser vices, investment, and skilled labour by 2020.  
The ASEAN Framework Agreement on Services and the ASEAN Investment Area would be 
strengthened and new measures and mechanisms woul d be introduced.  ASEAN was making progress 
in building economic linkages with trading partne rs outside the region, including Australia/New 
Zealand, China, the EC, India, Japan, and Korea.   
38. The representative of Switzerland
 highlighted the bilateral trad e and investment ties between 
his country and Thailand.  He noted that Thailand' s growth rate in 2006, the lowest among those of 
emerging East Asian countries, was due to weak domestic demand and shrinking investor confidence, 
resulting from higher oil prices, the political situation,  and policy uncertainty.  Inflation had remained 
low in 2007 but could increase in 2008 due to the rise in food and fuel prices.  Public investment was,  WT/TPR/M/191 
 Page 11 
 
 
  inter alia,  a key factor in reviving investor confidence and improving the investment climate in 
Thailand.  The challenge ahead was to implement and build on reform measures leading to greater 
liberalization, competition, and improved govern ance.  Clear policy direction from the new 
government after the December 2007 elections should help improve investor sentiment and raise 
private investment; another priority would be to  reduce the regulatory burden and bureaucracy in 
several areas. 
39. The concept of "sufficiency economy" remain ed vague and could create misunderstandings.  
He invited the authorities to outline the main re gulatory changes based on this concept and their 
expected impact for business.  The amendments to the Foreign Business Act seemed to further 
constrain investment and reduce l ong-term predictability.  His delegation was looking forward to 
positive developments that would contribute to the im plementation of an open, stable, and transparent 
framework for doing business in Thailand.  The new draft Tobacco Act, which would amend the 
valuation basis for excise taxes, might discrimin ate against imported cigarettes.  His delegation 
encouraged efforts for strengthe ning domestic IPR enforcement. 
40. The representative of the United States  noted that the benefits of economic growth were 
evident in the rising income levels of Thai citizens, poverty reduction, and the decreased 
unemployment.  The United States had strong bilatera l trade and investment ties with Thailand, which 
had generated employment opportunitie s in both countries.  While noting  that private investment had 
shown signs of weakening, he was optimistic th at the upcoming elections would provide greater 
stability to the investment climate and improve i nvestor confidence.  He also hoped that Thailand 
would carefully consider the full range of investment  policy concerns raised at this Review with an 
eye toward strengthening and improving its overall investment policy framework. 
41. The United States welcomed Thailand's continue d support for and commitment to the WTO's 
work and to trade liberalization, commended its activ e role in promoting regional trade liberalization, 
and appreciated its Government's ambitious bilateral trade agreemen ts agenda.  He hoped that the 
suspended negotiations on a free-trade agreemen t between the United States and Thailand would 
resume in the not too distant future. 
42. Continued progress, by eliminating trade rest rictions and increasing transparency, would 
benefit Thailand's economy by increasing efficiency and raising productivity to support sustained 
economic growth.  He urged Thaila nd to redouble its efforts to open its market, which would greatly 
increase its competitiveness.  He en couraged Thailand to improve th e transparency of its tariff 
schedules and to take steps to bring its ta riff bindings closer to its applied rates. 
43. At the previous TPR of Thailand, in 2003, the United States had noted improvements in the 
customs regime.  Concerns in this area had re-eme rged, notably with respect to customs regulations, 
procedures, and valuation methods.  Similarly, his delegation was concerned with several aspects of 
Thailand's import licensing practices.  He therefor e urged Thailand to examine closely its measures 
and practices to ensure that they were in line with relevant WTO provisions.  The United States was 
ready to work with Thailand to address these concerns. 
44. Despite continued efforts, IPR protection in Thailand had lost some ground since the gains 
noted at the 2003 TPR.  There appeared to have been a significant overall decline in enforcement 
actions and an increase in piracy levels.  Further comprehensive, coordinated and sustained efforts 
were necessary to reverse this trend.  His de legation would be interested in an update on any 
legislative, judicial, or enforcement plans in this area. 
45. For the sake of Thailand's economic growth prospects, the United States urged the Thai 
Government to eliminate remaining services barriers including in the financial, telecommunications, 
energy, express delivery, distribution and environm ental sectors.  He also strongly encouraged WT/TPR/M/191 
Page 12  
 
  Thailand to take the necessary steps for becomi ng signatory to the Government Procurement 
Agreement.  
46. Thailand had a major stake in achieving an am bitious result in the Doha negotiations.  A 
result including new market access in services, indus trial goods and agriculture  could further enhance 
opportunities for Thailand to broaden its export mark ets.  He was pleased to note Thailand's active 
participation in all three Doha market access nego tiations, its support for increased ambition and real 
market opening results in agriculture and non-agricultur al market access, its lead ership in key areas of 
NAMA, and its constructive engagement in services.  
47. The representative of Argentina
 stated that although his country had modest trade links with 
Thailand, they were partners in the ongoing trade negotiations.  From the economic indicators he 
noted that greater trade openness and commitment to the liberalization of the multilateral trading 
system, coupled with very sensible macroeconomi c measures, had enabled Thailand to reach and 
maintain good economic growth leve ls;  this had helped in combating poverty and improving the 
quality of life of its inhabitants.  However, ins titutional quality and transparency could be improved, 
so as not to hinder the path of growth and the successful integration of Thailand into the world 
economy.  
48. The representative of the Republic of Korea  indicated that bilateral trade and investment 
relations with Thailand had expa nded.  Korea shared Thailand's support for the multilateral trading 
system and its bilateral and regional liberalizati on efforts as a complement to multilateralism.  To 
sustain its economic growth amid increasing intern al and external uncertainties, Thailand should 
proceed with pending structural reforms in a pr udent manner, while maintaining the openness of its 
foreign trade and investment regime, which was centr al to its economic development.  He urged the 
Thai Government to ensure that the amendment of the Foreign Business Act was in full compliance 
with WTO rules and principles as well as with its current GATS commitments. 
49. Even though Korea was one of Thailand's majo r trading partners, there were no branches of 
Korean banks in Thailand.  A Korean bank had app lied to establish a branch in 2003 but had yet to 
receive an answer.  To promote further Korean in vestment in Thailand, Korea hoped that the Thai 
Government would favourably cons ider this matter and approve its establishment as soon as possible. 
50. Although Korea was generally satisfied with Th ailand's overall trade openness, there was still 
room for further improvement.  Korea hoped that the Thai Government would address tariff barriers 
(peaks, binding gaps) and non-tariff barriers (import licensing, government procurement, and other 
technical requirements), to further facilitate trade a nd to enhance the predictability of its trade regime. 
51. The representative of Japan  stated that the success of Thailand's sufficiency economy was 
remarkable.  Despite political difficulties, Thailand had retained its growth in trade, thus showing that 
its economic strength was deeply rooted.  He observed that the unemployment figure of 1.5% was particularly low.  He appreciated, inter alia,  Thailand's outstanding performance in the WTO, the 
liberalization of its telecoms sector to FDI, the results from customs clearance automation, and 
improvements in the IPR legal framework, althou gh enforcement could be further strengthened. 
52. He asked the Thai delegation to assure Members that the revision of the Foreign Business Act 
would not introduce further restrictions in sectors,  including telecommunications, but rather lead 
towards further liberalization in line with the new Constitution.  He encouraged further transparency 
and efficiency in the implementation of tax policies,  including speeding up the refund of excise taxes.  
He endorsed the discussant's question regarding th e so-called "implicit taxes".  The DDA provided a 
good opportunity for increasing the scope of tariff bi ndings, and his delegation was pleased to note 
that this was the intention of the Thai aut horities.  The Thailand-Japan Economic Partnership  WT/TPR/M/191 
 Page 13 
 
 
  Agreement had entered into effect on 1 November 2007;  he hoped that this agreement  together with 
the ASEAN-Japan EPA signed the previous week, would enhance trade and economy in the region. 
53. The representative of Australia  highlighted several aspects of the bilateral relationship and 
cooperation between Thailand and his country in several fora.  These formal linkages were 
underpinned by strong social and cultural ties, whic h continued to grow.  He referred to the two-way 
trade benefits from the Thailand–Australia Free Tr ade Agreement (TAFTA), wh ich entered into force 
on 1 January 2005;  this was Thailand's first co mprehensive free-trade agreement and had been 
implemented with remarkable  smoothness and cooperation.  
54. Recently, however, Australia had been concerned about an apparent rise in protectionist 
sentiment in Thailand.  Australia took a strong in terest in Thailand's proposed amendments to the 
Foreign Business Act and changes to the employme nt of foreigners, and the way in which these 
impacted on investor sentiment.  Thailand's impos ition of capital controls in December 2006 was 
viewed as a disincentive for foreign companies wishing to invest in Thailand.  Also, recent 
developments in the telecoms industry appeared to have inhibited the progress in implementing 
measures consistent with the GATS Te lecommunications Reference Paper. 
55. Australia would welcome greater commitmen t by Thailand to services and investment 
liberalization.  It would encourage removal of th e foreign equity and par ticipation limitations in 
financial, telecoms and legal services.  His dele gation also encouraged Thailand to proceed with 
legislation enabling its 2006 planned reforms. 
56. As a fellow member of the Cairns Group, Aust ralia looked forward to continuing to work 
with Thailand towards an ambitious outcome on agri culture in the Doha Round negotiations.  He also 
encouraged Thailand to support strong outcomes in  the other key market access components of the 
Round, including by improving its own proposed levels of commitments in these areas. 
57. The representative of Canada  stated that his country valued its strong trade and investment 
relationship with Thailand.  He  congratulated Thailand for, inter alia,  reducing unemployment, 
surpassing its poverty reduction targets, and increasi ng its exports of goods and services, as well as 
inward foreign direct investment.   
58. Canada was particularly  concerned about the  proposed changes to Thailand's Foreign 
Business Act, which were likely to deteriorate i nvestor confidence in the Thai market.  Also 
worrisome for foreign investment were allegations of corruption in its customs procedures, customs 
valuation, tariff-rate-quota licensing, granting of  tax incentives, and most notably, government 
procurement.  Canada was especially concer ned with Thailand's procurement practices, and 
encouraged Thailand to continue its efforts to incr ease transparency.  Canada was pleased to note that 
Thailand had met WTO notification requirements in se veral areas and had submitted its first replies to 
the WTO Questionnaire on Import Licensing Procedures earlier in 2007. 
59. Thailand had remained steadfast in its suppor t for trade liberalization, and Canada was 
optimistic that this would continue not only throu gh Thailand's regional trade linkages, but also in its 
efforts to conclude the Doha Round negotiations.  His delegation hoped that investor confidence in 
the country would improve after the anticipated D ecember elections and th at Thailand could again 
demonstrate its commitment to economic growth  and stability in the face of rising regional 
competition. 
60. The representative of th e European Communities  highlighted several important aspects of the 
increasingly important bilateral trade and investment relationship, including trade-related assistance;  
Thailand was one of the top ten users of the EC G SP scheme.  The significant trade deficit in favour 
of Thailand was illustrative of the different appr oaches taken by the EC on the one hand – opening up WT/TPR/M/191 
Page 14  
 
  its markets – and Thailand on the other, which still maintained too many trade restrictions, 
particularly in the services sector.  In light of this, further liberalization of Thailand's trade and 
investment was needed. 
61. The EC strongly supported ASEAN's efforts to wards greater regional integration.  The 
decision to launch the EU-ASEAN FTA negotiations  in early May 2007 confirmed the shared 
ambition to realise the full potential of their econom ic relations through compre hensive bilateral trade 
and investment liberalization, complementary to  their strong support for the multilateral trading 
system.  He encouraged Thailand to pa rticipate actively in the negotiations. 
62. The EC encouraged Thailand to restructure a nd simplify its tariff scheme, and to revise its 
import restrictions and licensing requirements in or der to comply with the provisions of the WTO 
Licensing Agreement. 
63. The EC was deeply concerned about Thailand' s customs valuation practices on imports of 
alcoholic beverages.  The persiste nt rejection of the declared transaction price and use of a special 
deductive valuation method were creat ing confusion, uncertainty, and substantial financial costs for 
importers.  He sought further clar ification regarding the method for determining the customs value 
and clear justification for systematically cons idering the transaction value inapplicable. These 
customs valuation practices were, inter alia,  inconsistent with the relevant WTO provisions;  and this 
issue had been raised by his delegation on numerous  occasions to no avail.  He strongly urged the 
Thai Government to undertake all efforts to addr ess these concerns and ensure the WTO consistency 
of these practices.  
64. There were clear indications that the amendment of the Foreign Business Act would seriously 
restrict management control of foreign controlled co mpanies in Thailand.  The draft amendment of the 
Act changed the definition of foreign juridical persons, a provision that went beyond the market 
access and national treatment limitations under Thailand's GATS commitments.  The EC urged 
Thailand to shed some light on its current plan s for amending the Act, and on how Thailand would 
ensure transparent formulation and implementation,  with a view to maintaining a more investor 
friendly environment.  Other recent laws, such as the Telecommunications Act and the Retail Act 
could also further deteriorate the investment e nvironment for foreign business.  Political objectives 
should not tailor investment measures, which coul d clearly undermine the attractiveness of the 
country for foreign direct investment, at a time when the drive to attract FDI had become more 
competitive globally.  
65. Concerning compulsory licensing for certain drugs, recent developments had prompted 
concerns among European pharmaceutical patent holders and therefore, the EC was closely 
monitoring the use of compulsory licensing.  The EC encouraged Thailand to ensure full compliance 
with all established requirements for the issuan ce of these licences, and guarantee a transparent 
consultation process with all stakeholders.  
66. The representative of the Separate Customs Te rritory of Taiwan, Penghu, Kinmen and Matsu
 
(Chinese Taipei) highlighted aspects of the very clo se bilateral economic relationship with Thailand.  
Over the period under review, its per capita inco me had grown by 50%, exceeding its pre-Asian 
economic crisis level, and unemployment remained low. 
67. Regarding trade policies, her delegation congrat ulated Thailand on its continued efforts to 
reduce its applied tariffs, and on c oncluding the process of binding its  tariffs on specific information 
technology products.  To increase the predictability of the trade regime and attract investors, she 
encouraged Thailand to narrow the gap between a pplied and bound tariff rates, increase its bindings 
coverage, and expand the scope of its GATS commitments in the D oha Round.  In light of the recent 
expansion and deepening of bilateral preferential tr eatment and regional integration, Chinese Taipei  WT/TPR/M/191 
 Page 15 
 
 
  was very interested to hear how Thailand planne d to eliminate potential discriminatory treatment 
against non-parties to the FTAs. 
68. Given the comparative openness and attractiveness  of Thailand's trade and investment regime, 
she was concerned about the plans to amend the Fo reign Business Act, and sought clarification.  
Chinese Taipei requested the lists of amphibian di seases and amphibian species that were subject to 
animal quarantine, and the relevant quarantine requirements for the importation of amphibians and 
their products into Thailand.  She also asked Th ailand to share with Members the scientific evidence 
or the international guidelines justifying  the adoption of this import measure. 
69. The representative of Hong Kong, China  noted the bilateral trade ties with Thailand and 
praised its macroeconomic performance over the review period.  He commended tariff-related 
achievements and said that his delegation looke d forward to seeing further improvements in 
Thailand's tariff regime in the on- going market access negotiations. 
70. Hong Kong, China applauded Thailand's active participation in the rules negotiations and 
looked forward to continued cooperation with a view to bringing them to a fruitful conclusion.  He 
commended Thailand for applying the public-interest test and lesser-duty rule when deciding the 
imposition of anti-dumping measures, and encouraged  Thailand to share with Members, from the 
point of view of an anti-dumping user, the benefits of applying the test and rule when the appropriate 
opportunities arise. 
71. Given the importance of the services sector, a con tinued effort to liberalize trade in services 
would be beneficial for Thailand's further econom ic growth and sustainable development.  He 
commended Thailand's initiatives and determinat ion to undertake a series of economic and 
liberalization reforms in the infrastructural sectors of  financia1 and telecoms services in recent years.  
He encouraged Thailand to expand the level of its  GATS commitments, particularly in terms of the 
raised foreign equity limits, in the current round of services negotiations.  His delegation also hoped 
to see the removal of three remaining MFN exemptions. 
72. The representative of China  praised Thailand's systematic efforts to increase the pace of its 
economic development, guided by the "sufficien cy economy" principle.  The Thai economy had 
become more outward-oriented and more competitiv e in the world market.  China and Thailand 
maintained a very strong and close economic and tr ade relationship.  They had developed extensive 
cooperation in various fields including project pl anning, finance, and contracting services, which 
would provide a strong basis for more divers ified and sustainable bilateral cooperation. 
73. The representative of Brazil  highlighted bilateral trade deve lopments with Thailand;  trade 
flows had almost tripled in the last ten years, a nd were quite balanced.  He noted the resilience of 
Thailand's economy and commended its  macroeconomic performance.  The achievement of poverty 
reduction targets and the reduction of income  inequality and unemployment were notable 
developments.  These were largely due to economic and social development plans, which had set out 
priority areas, such as human and social capita l development, community  strengthening, economic 
restructuring, environmental diversity, and good governance. 
74. Brazil acknowledged Thailand's commitment to the multilateral trading system and notably to 
agricultural trade liberalization.  Thailand ha d co-sponsored a proposal for amending the TRIPS 
agreement in order to introduce a di sclosure requirement in patent a pplications for inventions based 
on genetic resources and associated traditional kno wledge.  Brazil and Thailand recognized that 
biopiracy was an international problem that require d an international response.  His delegation was 
eager to learn more about Thailand's experience in granting compulsory licences for HIV drugs and to 
know how the Thai Government made effective use of TRIPS flexibilities to foster access to health. WT/TPR/M/191 
Page 16  
 
  75. The representative of India
 stated that in recent years bilateral relations had deepened and 
diversified.  India and Thailand were cooperating in various multilateral fora like the ASEAN regional 
forum, the East Asia Summit, the sub-regional gr ouping BIMSTEC, and trilateral transport linkages.  
They also shared a number of goals in the ongoing Doha round.  He provided details on the work of 
the Thailand-India Joint Commission and the bilate ral trade liberalization process under which the 
Framework Agreement for establishing a Free Area (by 2010) was signed in 2003. 
76. The representative of Norway  noted that despite its impressive economic performance, 
Thailand had experienced a decline in its intern ational competitiveness that posed a challenge to 
growth prospects.  It seemed important to restor e both consumer and investor confidence and improve 
the underlying factors of competitiveness in general.  Efforts to improve the investment climate 
seemed to be a step in the right direction and s hould be commended and encouraged to be even more 
bold in order to improve the potential for future  growth.  Despite a generally liberal foreign 
investment regime, amendments of certain legal provisions would restrict the rights of foreign 
investors;  this was of particular concern.   The ongoing anti-corruption campaign was most 
commendable. 
77. The changes to the import system, in particular  the amendments to the customs procedures, 
were welcome.  He wondered whether there were  any suggestions for streamlining the customs 
procedures even further.  He was interested in  knowing whether Thailand was planning any changes 
to its import licensing and prohibitions regimes.  The domestic maritime services industry remained 
protected by cargo reservation requirements and cabot age restrictions;  furthermore, it had benefited 
from promotional measures to attract Thai operat ors flying the Thai flag.  He encouraged 
liberalization in this sector. 
78. As an EFTA member, Norway had engaged in talk s, currently at technical exchange stage, on 
furthering trade relations between the group and Thailand. 
79. The representative of Uruguay  commended Thailand's active participation in all areas of the 
WTO work, its firm commitment to the multilate ral trading system, its promotion of trade 
liberalization and its support for a rules-based, open,  and free economic environment.  She highlighted 
Thailand's role in defending the interests of countri es engaging in fair trade in agriculture in the 
context of the Cairns Group.  Thailand continue d to defend open regionali sm, considering that 
regional trade liberalization was complementary to  multilateralism.  Thaila nd continued to recognize 
the importance of trade policy for development.  
80. The representative of Honduras  expressed the hope that her country and Thailand would have 
closer trading relations in the future.  She noted certain aspects of Thailand's growth and challenges.  
She commended Thailand's efforts for and outcome from increasing transparency and the simplicity 
of customs procedures.  Trade facilitation was be neficial to both the private and public sector. 
81. The representative of New Zealand  highlighted several aspects of the New Zealand and 
Thailand Comprehensive Economic Partnership (CEP) Agreement of 2005;  negotiations on 
liberalizing trade in services would commence in 2008.  Both New Zealand and Thailand were 
significant exporters of agricultural products, and mo st of the agricultural production of both countries 
was exported rather than consumed domestically.  Accordingly, New Zealand was taking a close 
interest in Thailand's trade policy.  He praised Thailand's role in the WTO negotiations, where the 
two countries worked closely.  New Zealand comme nded Thailand for recognizing the importance of 
an open trade and investment policy for its developm ent, and its continuing efforts to support free and 
fair trade, together with gradual changes and progres sive liberalization as a key factor in its continued 
economic growth.  WT/TPR/M/191 
 Page 17 
 
 
  82. The representative of Pakistan  stated that his country and Thailand maintained close friendly 
relations, with bilateral trade making forward leap s.  Based on the pattern of trade growth, the 
two governments had engaged in a Joint Study Group on the feasibility of a bilateral FTA.  This had 
been concluded in January 2007, indicating substantial benefits to  both countries from liberalizing 
trade in goods and services and attracting investme nt, due to complementarities of the range of 
products on both sides.  
83. He praised the transparency  in the trading environment of Thailand as well as the 
improvements brought by the new tariff structure, which had put the most tariff lines under the 10% 
rate.  Nevertheless, some products of export interest  to Pakistan still attracted rates up to 70%.  He 
expressed special concern for those on textiles, clothi ng, carpets, fruits and ve getables, and urged the 
Thai delegation to look into some corrective measures. 
84. He referred to non-tariff measures such as impor t licensing requirements, SPS measures, and 
certification requirements, additional tariffs (e.g. "l uxury tax" chargeable at 30% on carpets produced 
by cottage industries and SMEs), and some customs -related barriers that put additional burden on 
cross-border businesses.  He expected the Thai authorities to take note of these matters while 
reformulating their future annual trade policy. 
85. Pakistan and Thailand had sim ilar negotiating positions in sever al areas of WTO negotiations.  
In NAMA, his delegation valued the middle ground a pproach of Thailand, which acted as a stimulus 
for other developing countries.   WT/TPR/M/191 
Page 18  
 
  V. REPLIES BY THE REPRESENTATIVE OF THAILAND AND ADDITIONAL 
COMMENTS 
86. The representative of Thailand
 covered three main topics:  (i) economic environment;  (ii) 
trade policies and measures;  and (iii) sectoral policies. 
(i) Economic environment  
87. On the issue of "sufficiency economy", he re iterated that "sufficiency" did not mean 
"self-sufficiency".  At the macroeconomic leve l, "sufficiency economy" advocated sustainable 
development, the optimal use of resources, and econom ic development, concepts that were affirmed 
in the Marrakesh Agreement Establishing the WTO. 
88. Concerning investor confidence, Thailand c ontinued to attract and welcome foreign 
investment from all countries.  According to th e World Bank/International Finance Corporation 
"Doing Business 2008" Report, Thailand moved up two rankings in 2007 to 15th out of 178 countries 
on ease of doing business.  The report also mentio ned that in East Asia, Thailand followed only 
Singapore and Hong Kong, China, in its business-friendly investment climate. 
89. He stated that the rationale for the proposed  amendment of the Foreign Business Act was not 
to restrict foreign investment.  Rather, it was to promote good governance by strengthening 
enforcement and oversight capacity, and to increase transparency by clarifying what constituted a 
foreign business.  The proposed amendment aimed to  close a legal loophole and forbid abuse of 
preferential voting rights for and by foreign share holders in restricted businesses related to national 
economic security.  It would also strengthen comp liance with the current Foreign Business Act by 
imposing heavier fines on nominee shareholding in r estricted businesses (Section 36).  In addition, if 
adopted it would provide flexibility by allowi ng grace periods and "grandfathering" clause for 
compliance to avoid business disruption.  
90. On the issue of international commitments, Th ailand was fully cognizant of its international 
obligations in various agreements including the WTO and FTAs and would continue to observe these 
obligations.   
91. Several Members had noted that business confid ence and foreign investments in Thailand had 
declined recently.  This was due to numerous f actors that had arisen during 2006, including political 
transition, strengthening of the Thai baht and the sh arp increase of oil prices.  The amendment of the 
Foreign Business Act, which was not yet finalized, might have caused concerns among investors, but 
it should not be seen as the only factor affecting investors' confidence.  Also, the provisions of the Foreign Business Act applied only to activities listed in  its annexes;  a large part of investment in 
Thailand, particularly in manufacturing, was not subj ect to this law and was not subject to any foreign 
ownership restrictions.   
(ii) Trade policies and measures  
92. He thanked Members for recognizing the increased  transparency, efficiency, and simplicity of 
Thailand's customs procedures, particularly the e-customs programme.  To further facilitate trade, 
Thailand would continue to develop its customs procedures according to the WCO instruments and 
guidelines.  Moreover, Thailand had expressed its strong intention to accede to the Revised Kyoto 
Convention.  Thailand had been ame nding relevant legislation to comp ly with it and the draft law was 
at the parliamentary stage for final consideration.    WT/TPR/M/191 
 Page 19 
 
 
  93. He also thanked Members for acknowledging efforts in providing to the Import Licensing 
Committee replies to the WTO Questionnaire on Import Licensing Procedures, and the licensing 
legislation. 
94. On customs valuation matters, Thailand gave high pr iority to the concerns raised by its major 
trading partners.  The authorities believed that Thailand was abiding by its WTO obligations;  
however, they hoped to continue intensive discussions  on the concerns mentioned with all interested 
parties, and to continue gather ing relevant information as quickly as possible in order to reach a 
positive and productive solution.  They understood that  additional information would be forthcoming 
from the concerned parties, and would welcom e further input on this matter at any time. 
95. Thailand had made great strides in reducing th e complexity of its tariff by eliminating a 
substantial number of specific duty rates.  Since 1 January 2007, specific duty rates had accounted for 
only 9.36% of Thailand's national tariff lines, dow n from 22.75%.  Thailand had already bound 100% 
of agricultural tariff lines and 70% of its non-ag ricultural products.  However, to enhance its 
commitments, Thailand intended to bind all tari ff lines and significantly reduce the existing bound 
tariff rates after the conclusion of the DDA. 
96. As for other indirect taxes such as excise tax, in terior tax, value-added tax, and other internal 
taxes, Thailand applied national treatment to both imports and domestic products.  
97. Regarding the compulsory licenses issued by the Thai Government for pharmaceutical 
products, Thailand fully recognized the importance of IPR protection to maintain incentives for the 
research and development of inno vative drugs.  At the same time, the announcement of compulsory 
licenses on three pharmaceutical products at the beginning of 2007 was transparent and fully 
consistent with the TRIPS Agreement.  Compulso ry licenses would be granted only when necessary, 
that is, in cases of emergency, extreme urgency, or  for the purpose of public non-commercial use.  
The Government continued to cooperate closely with  the pharmaceutical industry.  It had set up a 
joint committee of representatives from the Minist ry of Public Health and the Pharmaceutical 
Research and Manufacturing Association, with a vi ew to developing sustainable quality healthcare.  
There were no plans to issue compulsory licences. 
(iii) Sectoral policies 
 
98. Several Members had raised questions on financ ial and telecommunication services.  Since its 
last TPR, Thailand had undertaken initiatives to libera lize these sectors, though some draft legislation 
had not yet been passed into law.  For example, Th ailand was in the process of allowing a higher level 
of foreign equity participation in banking and insurance services.  The Government had also 
established a telecommunications regulatory body to ensure that regulations were transparent and 
compatible with international sta ndards.  In addition, his authorities were considering how to best 
integrate this liberalization with commitm ents under the Doha Round negotiations.  
99. Thailand believed that this TPR had been succe ssful;  Members had recognized its efforts to 
further liberalize and facilitate trad e since its previous Review.  It had also shed light on challenges 
and improvements that could be made.  Thailand rea ffirmed its strong support of international trade, 
particularly at the multilateral level, and was read y to work constructively with other Members to 
make the Doha Round successful.  
100. The discussant  congratulated Thailand for its quick  responses to hundreds of questions.  
While noting shortcuts in certain written replies, he  believed that Members requiring extensive replies 
(e.g. lists of sensitive items) could do so bilaterally.  He was satisfied that the replies clarified several 
issues.  According to the latest facts on invest or confidence, the Thai authorities had moved up WT/TPR/M/191 
Page 20  
 
  another two steps;  this meant that they were  doing things right by easing business for foreign 
investors and creating facilities ra ther than raising barriers.  
101. Many Members had recognized Thailand's progress in customs procedures but raised 
questions on valuation issues.  He encouraged the Th ai delegation to clarify the issue of concern with 
their experts.  He took note of Thailand's inten tion to bind all tariff lines at the conclusion of the 
ongoing round of negotiations. 
102. He believed the Thai delegation had clarified some misunderstandings and answered some of 
the questions posed by Members.  Overall, Thaila nd had an open and transparent system;  difficulties 
raised in this TPR should be tackled and adjustments made.  
103. The representative of Chinese Taipei
 praised Thailand's commitment to bind all its tariff lines 
in the Doha round and to further liberalize its services sector, including telecommunications.  Her 
delegation was looking forward to receive replies regarding the list of diseases of amphibians.  
104. The representative of Japan  indicated his delegation's interest on the issue of the refusal by 
Thai Customs to clear cigarettes from the Philippines at the transaction values, and to calculate import 
and excise duties on the guaranteed values imposed by  the authorities.  Japan hoped that the Thai 
authorities would take measures in line with the re levant WTO provisions and would welcome further 
information in a forthcoming meeting. 
105. In a written answer to Japan's question on mar itime transport, Thailand had indicated that 
goods imported directly or indirectly by the Government constituted go vernment procurement 
operations.  He sought clarification on whether the Thai delegation considered that the condition of 
government procurement stipulated in Article 13 of the GATS was applied to goods imported by the 
Thai Government.  If this was the case, he request ed the name of the regul ation and the requirement 
concerned.  Japan believed that the TPR mechanism played a significant role in promoting economic 
development through trade. 
106. The representative of the European Communities  was deeply concerned by the deterioration 
of the investment climate, and the gloomy pros pects the amendment to the Foreign Business Act 
would bring.  She hoped that Thailand would take good  note of the substantial concerns raised in this 
regard by several Members and urged Thailand to car efully reconsider the revisions of the Act and 
take action to increase transparency and certainty in its investment environment, in order to restore 
investor confidence.  She requested a more pr ecise reply to the EC's advance written question 
regarding the definition of management control crite ria, which were being considered by the National 
Legislative Assembly. 
107. The representative of Canada  had a number of follow-up questions to submit through the 
WTO Secretariat to Thailand for their reply in due co urse.  These questions covered a number of areas 
related to the amendment of the Foreign Business Act or other laws.  Other questions referred to 
banking (draft Financial institutions Act, licence gran ting authority of the Ministry of Finance) and 
the life and non-life insurance sector.   
108. The representative of the United States  stated that U.S. exporters had noticed some 
differences in port charges for importers and exporters,  and she urged Thailand to investigate this in 
light of GATT Article III provisions.  The Unite d States was still concerned about a lack of 
transparency in the process of reviewing price contro ls, and urged Thailand to re visit this issue.  The 
United States would submit detailed written follow- up questions through the WTO Secretariat. 
109. The representative of Thailand  assured Members that answers to their questions would be 
provided as soon as possible.  WT/TPR/M/191 
 Page 21 
 
 
  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
110. This fifth Trade Policy Review of Thailand h as considerably improved our understanding of 
trade and trade-related policy developments in Thailand since 2003 and the challenges it faces in 
sustaining, and indeed improving, its economic grow th.  I am grateful to Ambassador Thawatchai 
Sophastienphong and his delegation, the discussant, Ambassador Manzoor Ahmad of Pakistan, as 
well as Members of the TPRB for contributing to the me eting's useful exchange of views.  Thailand's 
response to the large number of questions is also much appreciated.   
111. Members commended Thailand on its steady and r obust economic performance, the decline in 
the unemployment rate, reduced poverty levels, a nd also for becoming a more outward-oriented 
economy.  They recognized that its macroeconomic fundamentals remain strong, but also pointed to 
the challenges posed by endogenous and exogenous factors, notwithstanding the economy's resilience 
so far.  Despite praise for Thailand's generally liberal investment regime, virtually all Members 
expressed concern over the impact of planned amendments to the Foreign Business Act and drew attention to the need to revive private investment , which has shown signs of weakening, in order to 
sustain future growth.  Concerns were also expr essed regarding the concept of "sufficiency economy" 
in policy making and the existing regulatory burden in certain areas. 
112. Thailand's active role in the multilateral tradi ng system and contribution to the Doha Round 
negotiations, notably to agricultural trade liber alization, were commended.  Several Members 
recognized Thailand's commitment to "open regiona lism" and its involvement  in promoting regional 
trade liberalization through APEC and ASEAN as well  as through bilateral free-trade agreements.   
113. Some Members observed that Thailand's comple x customs tariff schedule and the widening 
gap between its average bound and applied MFN tariff  rates cause uncertainty and unpredictability for 
its trading partners;  thus, they urged Thailand to simplify its tariff and improve its bindings, currently 
covering 73.7% of the tariff lines.  Certain Me mbers commended Thailand for measures taken to 
improve customs automation and streamline customs pr ocedures.  On the other hand, there were some 
areas of concern, including customs valuation pr actices and import restrictions involving licensing 
and prohibitions, where Thailand was en couraged to make improvements. 
114. Several Members commended Thailand's effort s to strengthen protection of intellectual 
property rights by improving its legal framework  and enforcement, although some concern was 
expressed over the issue of compulsory licences for certain pharmaceuticals.  Some Members noted 
that persistent state involvement in the econom y and government procurement constitutes important 
policy instruments.  Members applauded Thailand for its efforts to improve transparency.   
115. Several Members encouraged Thailand to furt her liberalize services, particularly as regards 
foreign equity participation, and wondered whet her liberalization and reforms in certain services 
activities (e.g. telecoms) would be reflected in Thailand's GATS schedule of commitments. 
116. This Review has been most informative and has afforded many useful insights into Thailand's 
trade policies as well as the challenges it faces.  I would once again like to thank the Thai delegation, 
the discussant, and Members for contributing to an enlightening two days of discussions.  We look 
forward to receiving Thailand's responses to out standing questions within the next month. 
__________