Keynote Address at APEC Ministers of Trade Meeting

Excellencies,
Trade Ministers and APEC Representatives,
Distinguished Guests,
Ladies and Gentlemen,

I am very pleased to have the privilege of giving the opening remarks at this Ministers Responsible for Trade (MRT) Meeting and to welcome all of you to Thailand. Khon Kaen is a center of trade and education for Northeastern Thailand and it is also a gateway to Indo-China.

Apart from attending this APEC meeting, I hope you will take this opportunity to witness and experience our traditional Thai cultures by going to the events that the people of Khon Kaen have planned for you such as the Silk Festival and the One Tambon One Product (OTOP) Fair.

The APEC MRT is the first of the Ministerial series of meetings to be held in Thailand and it is regarded as great pride and joy for Khon Kaen and Thailand. APEC is one of the regional fora with great trade and investment potential in the world. It comprises 21 economies from developed and developing countries in the Asia-Pacific region with total trade, investment, and population greater than half of the world. At present, the intra-APEC trade is as high as 70% of total trade while inter-APEC trade accounts for only 30%.

Today's APEC MRT meeting and other meetings under the APEC co-operative framework for 2003 are processes that seek to pave way toward the main goal of the APEC Leaders' Meeting, which will be hosted by Thailand in October; that goal being:

Although our member economies differ in culture and development, both economic and social, every economy holds the potential and earnestness in supporting APEC co-operations. All this is done to bring liberalized trade and investment to the Asia-Pacific region and thus achieve the APEC goal. In our attempts to achieve this goal, we must endeavor to narrow the gaps of income, knowledge and standard of living, both domestically and among member economies. APEC shall be a tool that brings to the people of member economies the benefits of free trade and investment in the new world era.

It is fair to say that Thailand is an example of a nation with great social diversity. Since my administration took office more than two years ago, we have pursued a dual track approach to promote prosperity on both fronts, domestic and international. In the past, we focused on export promotion and foreign investment as engines of growth. Our approach, also known as the "East Asia Economic Model," did not give priority to stimulating domestic economy. However, Thailand comprises two different social spheres - the privileged social group who are self-reliant and ever prepared for the changing world environment, and the less privileged social group who are still dependent on state support. Our original top-down approach was not sustainable but instead widened the social gaps. The current government, therefore, has shifted the focus to a dual-track approach in order to promote a balanced and sustainable growth. That is to strengthen domestic economy from the grassroots level to the middle class as well as to enable them to follow the scientific progress and achieve a better quality of life.

Today, our economic story is a success. Our growth is now on both tracks and many have called it "a miracle." The reality is the Thai economy grew at 5.2% last year - the highest growth rate since the 1997 Financial Crisis. Incomes of peoples in the grassroots level and in the farming sector increased by 19% and private consumption index expanded by 6.6% whereas our exports increased by 21% in March 2003.

At the same time, our fiscal position also improves. Our public debt reduced from 57% of GDP to 55% because Thailand now depends on our own savings more than on overseas borrowing. Trade and current account balance is at a surplus and our international reserve now stands at 38 billion U.S. dollars. Moreover, the government is effectively managing our fiscal and budget spending, and this leads to a reduction of our budget deficit and an increase in tax collection. I am confident that the Government will be able to achieve a balanced budget next year.

Similarly, for APEC to have stable growth and sustainable development, we must support and strengthen developing APEC economies. APEC Member Economies must become partners and exchange experiences, knowledge and expertise, and be truly sincere in solving the problems and limitations of developing countries in respect to financial constraints, technology and human resources as well as knowledge in order to push forward the APEC Cooperative Plan in trade and investment. At the heart of APEC is the successful implementation of the APEC goals in reducing obstacles and promoting trade facilitation. APEC goals are to reduce transaction cost by 5% by 2006, implement security measures on the STAR initiative (Secure Trade in the APEC Region), promote a knowledge-based society, implement pathfinder projects including the promotion of e-commerce, strengthening of SMEs, and create a better understanding of the benefits from trade and investment liberalization.

In addition, APEC must play an active role in strengthening the multilateral trading system and the WTO. The fact that diverse APEC economies are able to reach an agreement on important economic and trade issues at the Ministerial and Leader Meeting will send forward a positive signal and steer the direction of global trade policy. However, APEC should promote not only free trade but also fair trade, especially in agricultural trade, attempts should be made to reduce the prices to consumers, and eliminate farmers' poverty.

In our current economic situation, taking into account the Iraq War and the SARS epidemic, the IMF has reduced the forecast global growth from 3.7% to 3.2%. APEC economies will have to endure different degrees of impact. On a positive note, I received report that there was a Senior Official Meeting (SOM) to exchange information, study the impact and devise the APEC Action Plan on SARS. Although world economy is at a slowdown, I truly believe in the potential and spirits of APEC Cooperation in solving these current problems in the regional as well as global fora.

In conclusion, I hope this APEC MRT will provide a good opportunity for all of you to exchange ideas and become partners in finding a way to materialize the expansion of trade and investment. As such, we can create immunity and trust from properties and potentials for our own stability. This will reduce the differences and enhance the similarities amongst us. It also will push the APEC economic wheel to go even faster toward sustainable development.

Finally, I declare this APEC MRT open and I wish you every success in achieving the meeting's goals. I hope that all of you will have a pleasant stay and take back good memories of Khon Kaen and the Kingdom of Thailand.

Thank you very much for your attention.