PREPARING FOR SECRETARY LOCKE'S MEETING WITH THAILAND'S

UNCLAS SECTION 01 OF 02 BANGKOK 002848 COMMERCE FOR EAP/MAC/OKSA FOR JKELLY STATE FOR EAP/MLS, EAP/RSP EEB STATE PASS TO USTR FOR BWEISEL, BKLEIN TREASURY FOR OASIA SINGAPORE FOR FINATT BLEIWEIS SENSITIVE SIPDIS E.O. 12958:N/A TAGS: ECON EINV ELAB ETRD SENV PREL TH SUBJECT: PREPARING FOR SECRETARY LOCKE'S MEETING WITH THAILAND'S DEPUTY MINISTER OF COMMERCE ON THE MARGINS OF APEC REF: A: BANGKOK 2678 (PRIME MINISTER MEETS WITH ASIA-PACIFIC AMERICAN CHAMBERS OF COMMERCE) ¶B. BANGKOK 2597 (ENVIRONMENTALISTS VERSUS INDUSTRIALISTS) BANGKOK 00002848 001.2 OF 002 FROM AMBASSADOR JOHN TO SECRETARY LOCKE ¶1. (SBU) I encourage you to make time to meet with Thailand's Deputy Minister of Commerce, Alongkorn Ponlaboot, on the margins of APEC. Since Prime Minister Abhisit Vejjajiva took office in December 2008, I have regularly engaged the Prime Minister and his administration, including Deputy Minister Alongkorn, on issues of concern to the U.S. business community. Alongkorn is the face of Thailand's campaign to improve the protection of intellectual property rights. He is also an advocate for business-friendly policies, and someone who I believe will help move our trade dialogue with Thailand forward. The Deputy Minister hopes you will be able to meet with him on the afternoon of November 12, if your schedule permits. The following are key issues with the Thai government that I hope you may reinforce with Alongkorn during your meeting. ¶2. (U) Bio note: Alongkorn ("along gone") is an energetic, rising star in the Democrat Party, which leads the current coalition government, and an elected member of Parliament. He is close to, and influential with, the Prime Minister and in the Thai context is very supportive of sound business practices and policy. His influence in the government is greater than his title would indicate-as the top Democrat at the Ministry of Commerce he controls many departments of particular concern to us, including IPR enforcement. He has taken considerable heat for his outspoken support for IPR enforcement, yet is savvy enough to realize that the key to IPR in Thailand in the long run is public realization that IP is important to Thailand's own economic growth. He promotes his "Creative Economy" campaign with that end in mind. Importantly, Alongkorn has the reputation within the government as a true believer in the rule of law and as being personally incorruptible. He is just the kind of leader we would like to support. Intellectual Property Rights -------------- - We are very pleased with the increased level of commitment to IPR enforcement since the arrival into office of the Abhisit Administration. We especially appreciate the leadership of the Prime Minister himself in the national IPR Committee. We believe sustained and effective enforcement needs to be carried out at all levels from retail, distribution, manufacturing and import. - I know we share common goals in this regard. Respect for IPR is important for economic growth, protects public safety, and demonstrates respect for the rule of law. I understand that you have promoted the "Creative Thailand" program. I have no doubt that Thailand's entertainment and creative industries would prosper greatly once the public understands the importance of IPR. - High-level attention in improving Thailand's intellectual property regime is important and we fully understand that enforcement actions often run into opposition. We appreciate your courage and determination in this regard. We have heard from our business community that they are encouraged by your actions. We stand ready to assist in any way we can, and hope that you can continue to work with U.S. rights holders. - The United States would like to work more closely with Thailand in the coming months to address the full range of IPR issues and we support the government's "Creative Economy" initiative to support Thailand's own IP-based industries. Customs Reforms -------------- -Allow me to highlight a couple other issues that are of particular interest to U.S. companies doing business, and thinking of doing business, in Thailand. - The first is customs reform. Broadly speaking, our companies continue to rate customs issues as the main hurdle to doing business in Thailand. BANGKOK 00002848 002.2 OF 002 - We are concerned that Thailand has some practices, such as the penalty sharing regime, which is unique to Thailand and appears to be in contradiction to the World Customs Organization Kyoto Protocol. -We hope that in your government's consideration of Customs Law reforms, you can take a careful look at your customs practices and work to bring Thailand's regulations in line with international best practices. Transparency, predictability, and certainty of customs treatment of imports, particularly customs valuation, are key in this regard. - You are probably familiar with the Amway case. Amway is the largest importer of American goods in Thailand and has been an excellent corporate citizen in Thailand for over 28 years and supports more than 100,000 individual business owners. We appreciate the indications of help we have received thus far from officials in your government, and I would like to underscore the importance of resolving this case in a way that treats Amway fairly and commands the respect of the international business community Uncertainties at Map Ta Phut -------------- - A second issue is the controversy at Map Ta Phut. As a country that highly values environmental protection and the safety of workers, we fully understand the concerns that have led the Courts to suspend new construction. - Moreover, U.S. companies in that area are proud of their record in environmental protection and uphold standards that exceed current requirements. -If the expansion plans of these companies, Dow Chemical and Star Petroleum do not get back on track fully, some 10,000 local jobs will be lost and the companies could incur losses in the tens of millions of dollars monthly. Moreover, the reputation of Thailand as a good place to invest could be harmed. - We hope that your government will work in an expeditious manner to resolve the uncertainties surrounding investments in Map Ta Phut and in the neighboring industrial estates. JOHN