Thailand's Performance in APEC Peer Review 'Impressive'

An independent APEC assessment has concluded that despite the recent economic crisis, Thailand is half way towards achieving its free trade goals in only 7 years of the set 24 year reform and liberalization schedule.

The findings were presented in the 'Individual Action Plan (IAP) Study Report' on Thailand's progress towards APEC's 'Bogor Goals' of free and open trade and investment by the year 2020.

Presented to a 'peer review session' of representatives of APEC member economies in Chiang Rai, Thailand, the report is an assessment of how well individual APEC member economies have progressed towards the Bogor Goals.

Agreed by APEC Leaders in Bogor, Indonesia, in 1994, the Bogor Goals set the target of free and open trade and investment in the APEC region to be achieved by 2010 for industrialized economies and 2020 for developing economies.

The report prepared by independent expert, Mr Peter Clark, President of Grey, Clark, Shih and Associates from Ottawa, Canada, praised Thai officials for their "exemplary cooperation" with the Peer review team and said Thailand "had passed all tests with by a healthy margin."

"Thailand is the first APEC developing economy to volunteer for the more rigorous Peer review process," Mr Clark said.

"Thailand was universally commended by representatives of all economies who spoke for the excellence of their presentation and the comprehensive study report.

"The well coordinated, comprehensive and high-tech presentation was greeted with applause. Such a warm response is most unusual for presentations on subjects involving tariff reform and product standards.

Mr Clark said that concerns about specific issues and a tariff reduction request made by APEC economies was positively responded to by Thai officials.

"Areas which require improvement were noted in the report. These include textiles, agriculture and steel and are seen to be politically sensitive and resistant to change.

"However market opening is anticipated as a result of the ASEAN China Free Trade Agreement that will create the competitive environment to promote reforms.

"This will enable Thailand to better address these pockets of protection to the benefit of both Thai industry and consumers.

"It is in Thailand's interest to liberalize its trade and investment rules. In the contemporary global economy, competition for investment funds means that economies with the least complicated and more transparent rules will be more attractive to international investment.

At the same time public service and regulatory reform and more open trade and investment systems will enhance Thailand's competitive standing.

Highlights of the Action Plan (IAP) Study Report' on Thailand included:

Mr Clark explained that the peer review process must be adapted to the needs and limited human and financial resources available to developing economies and offered a number of suggestions to the participants.

"Thailand's review was a mutual learning experience for both Thailand and the peer review team which should be shared with other developing economies in order to optimize the benefits of peer review for all APEC economies.

Every APEC member economy submits an annual Individual Action Plan (IAP) that provides details of how that economy expects to reach the Bogor Goals.

Other economies being reviewed in 2003 are Canada and Australia. These reports have also been presented to representatives of APEC member economies on the eve of the first 2003 APEC Senior Officials meeting in Chiang Rai, Thailand, this week.

The reviews are conducted by a team comprised of an independent expert, a moderator who is usually a senior official from an APEC economy, a discussant and a representative of the APEC Secretariat.

The full text of the 'Individual Action Plan (IAP) Study Report - Thailand 2002' is available on the APEC Secretariat's Website: www.apecsec.org.sg

Report of Thailand's Individual Action Plan (IAP) Peer Review
Annex 1 - Summary
Annex 2 - IAP Study Report - Thailand 2002 and it's corrigendium
Annex 3 - Discussant's Remarks
Annex 4 - Presentation by Thailand
Annex 5 - Written Questions Received During the Session
Report of Thailand's Individual Action Plan (IAP) Peer Review + All Annexes