Don't distort FTA debate

EDITORIAL

Published: 12 Dec 2012 at 00.00
Newspaper section: News

No one can doubt the sincerity of the young anti-alcohol activists who quietly gathered outside Government House last week to oppose cabinet approval of the free trade agreement between Thailand and the European Union. Happily, their protest lacked the unnecessary drama of the previous one held at the same venue two years ago during which sandalwood flowers, more commonly used in cremation ceremonies, were burned to put a curse on alcoholic drinks. Neither demonstration slowed the course of the trade pact and the draft framework has received the approval of the cabinet and the Council of State and is being tabled for parliamentary debate. The clock is ticking.

At issue is a provision that would abolish the high import tax on alcoholic beverages, a move that has received the enthusiastic backing of hotel, entertainment and restaurant businesses but which opponents fear could make alcohol products cheaper and more easily available. It is true that such imports from the EU are considerable and valued in excess of 5 billion baht a year but the proposed trade liberalisation pact goes far beyond this and covers other issues that will need careful debate. These include such items as drug patents, vehicles and auto parts, textiles, dairy products, jewellery, steel, plastics, electrical appliances and electronics.

The stakes are high with the value of Thai exports going to the EU more than double that of those coming the other way. It makes the EU one of the country's largest export markets after Asean, with trade worth 27 billion euros (1.15 trillion baht) in 2010. What sets the free trade agreement apart as an issue unworthy of legislative delay is the need to minimise the impact on Thai exports when the generalised system of preferences (GSP) expires in 2015. Last year these GSP privileges totalled 297 billion baht from automotive exports, electronics, including hard disk drives and seafood products. Only India received more GSP privileges.

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uberbraun
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Discussion 5 : 12 Dec 2012 at 19.455
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Agreed. Lao khao is the REAL problem in Thailand, NOT imported alcoholic drink. If these activists, or the government, really wanted to do something about the problems associated with Thais drinking too much, they would raise the taxes on lao khao, or better yet, ban it. But that will never happen, too many vested interests.
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lungstib
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Discussion 4 : 12 Dec 2012 at 13.174
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We had to wait until the last paragraph to find the most important detail. Lao Khao is the drink of choice for just about all the alcoholics I have encountered in Thailand. No import from Europe will ever be this cheap. All the other arguments are just hot air.
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tcr
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Discussion 3 : 12 Dec 2012 at 08.293
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The big reason for high import taxes are the rich and powerful who are currently involved in the alcohol industry here. They don't want the competition and have the power to prevent it. That, along with corrupt politicians who line their pockets with a percentage of these taxes.
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whatajoke
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Discussion 2 : 12 Dec 2012 at 07.402
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Author you could make a much simpler argument here, asking: are the alcoholics and a abusers now going switch from cheap rice whisky and beer to wine that is now cheaper but still not the cheapest means to get drunk. Presently imported liquor drinks in tourist hotels are more pensive than in a UK local pub, which is having an impact on the tourists perception that Thailand is a good value destination. High end imported alcohol features very little in the problem end of the alcohol industry.
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watchdog
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Discussion 1 : 12 Dec 2012 at 06.381
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"At issue is a provision that would abolish the high import tax on alcoholic beverages, a move that has received the enthusiastic backing of hotel, entertainment and restaurant businesses but which opponents fear could make alcohol products cheaper and more easily available." Are local products less dangerous? If anything, they are more toxic. The most rational way to tax alcohol is to base it on alcohol content alone (not origin), making wine and beer less expensive. Little debate about that this is the best policy anywhere. But in Thailand wine costs 3-4 times what it would elsewhere. Health has nothing to do with this.
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Don't distort FTA debate | Bangkok Post: opinion