Identifier
Created
Classification
Origin
09BANGKOK370
2009-02-13 06:09:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Bangkok
Cable title:
THAI CONCERN ABOUT POSSIBLE U.S. TRADE
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UNCLAS BANGKOK 000370
SENSITIVE
SIPDIS
STATE FOR EAP/MLS, EEB
STATE PASS TO USTR FOR WEISEL AND BISBEE
TREASURY FOR SCHUN AND MNUGENT
COMMERCE FOR EAP/MAC/OKSA
COMMERCE PASS TO USPTO
SINGAPORE FOR FINATT BAKER
E.O. 12958: N/A
TAGS: ECON ETRD KPAO TH
SUBJECT: THAI CONCERN ABOUT POSSIBLE U.S. TRADE
PROTECTIONISM
UNCLAS BANGKOK 000370
SENSITIVE
SIPDIS
STATE FOR EAP/MLS, EEB
STATE PASS TO USTR FOR WEISEL AND BISBEE
TREASURY FOR SCHUN AND MNUGENT
COMMERCE FOR EAP/MAC/OKSA
COMMERCE PASS TO USPTO
SINGAPORE FOR FINATT BAKER
E.O. 12958: N/A
TAGS: ECON ETRD KPAO TH
SUBJECT: THAI CONCERN ABOUT POSSIBLE U.S. TRADE
PROTECTIONISM
1. (SBU) Commerce Minister Porntiva Nakasai told the
Ambassador on February 11 that Thailand is concerned about
the potential for trade protectionism represented by "Buy
American" provisions in the proposed stimulus bill. In a
"Meet the Minister" meeting organized by the Embassy to
provide an opportunity for U.S. company reps to discuss doing
business issues, ComMin Porntiva stressed that Thailand
supports open markets, and questioned how a "Buy American"
policy would be implemented and whether it would be
consistent with WTO commitments. The Ambassador responded
that the stimulus bill is still a work in progress and that
President Obama has said that he is aware of the dangers of
protectionism and does not want the bill to be seen as
protectionist. The Amcham Executive Director added that the
U.S. business community opposes "Buy America" provisions.
2. (U) The Thai press in recent days has run several articles
implying that the U.S. is embarking on protectionist policies
under the Obama administration. One article, discussing the
implementation of Amendments to the Lacey Act that will curb
U.S. imports of tropical hardwoods as an environmental
measure, quoted a Thai commercial consul in the U.S. as
saying that "the new legislation is intended to serve as a
non-tariff barrier to imports to the U.S. during tough
times." The amendment of the Lacey Act was of course passed
last year before the financial crisis even began, but genuine
concern, as well as misunderstanding, is starting to fuel the
impression that U.S. trade policy is changing. Several
prominent Thai business people have also expressed concern to
us that the U.S. is starting to close its doors to foreign
products.
3. (SBU) Comment and request: The Prime Minister and other
top government and business leaders have reiterated their
support for free trade and understand that Thailand,s
export-oriented economy would likely be badly affected if
global markets were to close doors to any extent.
Nevertheless, protectionist tendencies among some influential
Thai elites are just below the surface and there is a danger
that widespread talk of U.S. protectionism could turn into a
justification for Thai protectionism. Clarity on the U.S.
policy on trade under the new administration would be very
welcome. This Embassy could make good use of talking points
on the subject as soon as Washington is able to provide them.
JOHN
SENSITIVE
SIPDIS
STATE FOR EAP/MLS, EEB
STATE PASS TO USTR FOR WEISEL AND BISBEE
TREASURY FOR SCHUN AND MNUGENT
COMMERCE FOR EAP/MAC/OKSA
COMMERCE PASS TO USPTO
SINGAPORE FOR FINATT BAKER
E.O. 12958: N/A
TAGS: ECON ETRD KPAO TH
SUBJECT: THAI CONCERN ABOUT POSSIBLE U.S. TRADE
PROTECTIONISM
1. (SBU) Commerce Minister Porntiva Nakasai told the
Ambassador on February 11 that Thailand is concerned about
the potential for trade protectionism represented by "Buy
American" provisions in the proposed stimulus bill. In a
"Meet the Minister" meeting organized by the Embassy to
provide an opportunity for U.S. company reps to discuss doing
business issues, ComMin Porntiva stressed that Thailand
supports open markets, and questioned how a "Buy American"
policy would be implemented and whether it would be
consistent with WTO commitments. The Ambassador responded
that the stimulus bill is still a work in progress and that
President Obama has said that he is aware of the dangers of
protectionism and does not want the bill to be seen as
protectionist. The Amcham Executive Director added that the
U.S. business community opposes "Buy America" provisions.
2. (U) The Thai press in recent days has run several articles
implying that the U.S. is embarking on protectionist policies
under the Obama administration. One article, discussing the
implementation of Amendments to the Lacey Act that will curb
U.S. imports of tropical hardwoods as an environmental
measure, quoted a Thai commercial consul in the U.S. as
saying that "the new legislation is intended to serve as a
non-tariff barrier to imports to the U.S. during tough
times." The amendment of the Lacey Act was of course passed
last year before the financial crisis even began, but genuine
concern, as well as misunderstanding, is starting to fuel the
impression that U.S. trade policy is changing. Several
prominent Thai business people have also expressed concern to
us that the U.S. is starting to close its doors to foreign
products.
3. (SBU) Comment and request: The Prime Minister and other
top government and business leaders have reiterated their
support for free trade and understand that Thailand,s
export-oriented economy would likely be badly affected if
global markets were to close doors to any extent.
Nevertheless, protectionist tendencies among some influential
Thai elites are just below the surface and there is a danger
that widespread talk of U.S. protectionism could turn into a
justification for Thai protectionism. Clarity on the U.S.
policy on trade under the new administration would be very
welcome. This Embassy could make good use of talking points
on the subject as soon as Washington is able to provide them.
JOHN