VZCZCXRO9450
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHBK #1873 0882330
ZNR UUUUU ZZH
R 292330Z MAR 07
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC 5944
RUCNASE/ASEAN MEMBER COLLECTIVE
RUCPDOC/USDOC WASHINGTON DC

UNCLAS BANGKOK 001873 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
STATE PASS USTR FOR B. WEISEL 
USDOC FOR JKELLY 
 
E.O. 12958:N/A 
TAGS: ECON ETRD TH
SUBJECT:  THAIS APPROVE JAPAN FTA, BUT NGO'S SHOW THEIR CLOUT 
 
 
¶1. Summary:  The RTG approved an FTA with Japan this week, but not 
before anti-trade NGOs demonstrated their clout with a public and 
media that is receptive to their anti-globalization positions. 
Although the NGOs greatly exaggerated the potential effects of a 
couple minor provisions in the agreement, the RTG felt obligated to 
mollify their concerns by (unsuccessfully) trying to reopen 
negotiations with the Japanese.  Although the RTG took perhaps too 
passive a stance with the NGOs, in the end national interest took 
precedence over populist posturing.  End Summary. 
 
¶2. On March 27, the Thai cabinet gave its approval for the 
long-awaited Free Trade Agreement (FTA) with Japan, known locally as 
the Japan-Thailand Economic Partnership Agreement (JTEPA).  PM 
Surayud plans to sign the agreement on April 3 during a private trip 
to Japan.  The JTEPA was originally scheduled to be approved and 
signed in April the previous year, but was delayed after former PM 
Thaksin dissolved his government and called for new elections early 
in 2006. 
 
NGOs show their strength 
------------------------ 
 
¶3. Contacts at the Ministry of Foreign Affairs, which led the Japan 
negotiations for the RTG, said the cabinet had agreed in early 
February in principle to sign the Agreement, but held off after 
protests.  NGOs led by anti-trade NGO FTA Watch and Greenpeace 
slammed the JTEPA, claiming provisions would allow Japan to export 
toxic waste to Thailand and enable Japanese to patent Thai 
microorganisms.  RTG observers agreed that the NGO case was weak: 
JTEPA provisions in dispute eliminate a one-percent tariff on one 
category of toxic waste that is already imported from Japan, and 
reduce another less-used category from five percent to zero over 
three years.  The IPR text stated only that patent applications 
could not be rejected solely because they incorporated 
microorganisms, but included no obligation to approve the 
applications. 
 
¶4. Despite the weakness of the NGO case, the RTG took the criticisms 
seriously and took steps to address the concerns.  MFA officials 
said the RTG had always planned to follow a transparent process for 
the approval, organizing public hearings and seeking approval from 
the National Legislative Assembly before making a final decision. 
However, the RTG was sufficiently concerned by the NGO criticism 
that negotiators flew to Tokyo in an attempt to renegotiate the 
controversial provisions, telling the Japanese that the agreement 
was in danger of rejection if they did not accept changes that would 
mollify their critics.  Perplexed, the Japanese declined to reopen 
negotiations, citing that their government had already completed its 
approval process and could not (or would not) restart the process. 
However, they did agree to an exchange of diplomatic notes that 
would clarify the benign intentions of both sides in reference to 
the provisions. 
 
¶5. NGOs had little trouble finding a receptive audience for their 
claims that the JTEPA would be an environmental disaster.  After 
years of a steady drumbeat of anti-FTA protests, the Thai public has 
swung toward anti-globalization sentiment and is deeply skeptical of 
trade agreements.  A sympathetic media reports NGO claims 
extensively and uncritically, and makes little effort to report 
opposing viewpoints.  Dr. Somkiat Tangkitvanich, research director 
at the well-respected Thailand Development Research Institute, led a 
three-month review of the JTEPA and found little of concern.  Yet 
despite submitting to a number of press interviews, said he found 
none willing to print his responses to the NGO claims. 
 
¶6. Comment:  As an un-elected government, the current administration 
recognizes it lacks a certain legitimacy, and took pains with the 
JTEPA to show its willingness to operate in a transparent fashion 
and consider civil society views.  They took perhaps too passive a 
role in the controversy, declining to challenge the NGO position 
directly and giving credence to their exaggerated claims.  To their 
credit (though they may receive none from civil society), in the end 
the government rejected a nationalist and populist approach and put 
the nation's economic interest squarely in front.  End Comment. 
ARVIZU