VZCZCXRO6625
PP RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHBK #3774 3650809
ZNR UUUUU ZZH
P 300809Z DEC 08
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC PRIORITY 5530
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
INFO RUEHCHI/AMCONSUL CHIANG MAI 6020
RUCNASE/ASEAN MEMBER COLLECTIVE

UNCLAS BANGKOK 003774 
 
SENSITIVE 
SIPDIS 
 
EAP FOR EAP/MLS AND EB 
DEPT PASS TO USTR 
COMMERCE FOR EAP/MAC/OKSA 
 
E.O. 12958: N/A 
TAGS: EINV ETRD EFIN PGOV TH
SUBJECT: AMBASSADOR PUSHES KEY TRADE ISSUES WITH NEW COMMERCE 
MINISTER AND DEPUTY MINISTER 
 
REF: BANGKOK 3757 
 
¶1. (SBU) Ambassador John paid a courtesy call December 26 on newly 
appointed Commerce Minister Pornthiva Nakasai (SecGen of Bhum Jai 
Thai Party) and Deputy Minister Alongkorn Ponlaboot (Democrat).  The 
meeting began with a photo-op after which the Minister invited the 
Ambassador into her office for an hour-long discussion about the 
Ministry's plans to address the economic crisis and to regain the 
trust of foreign investors. 
 
The Minister took advantage of the opportunity to roll out a laundry 
list of Thai trade concerns, including the shrimp continuous bond 
issue, GSP, the JADE Act, restrictions on the trade in crocodile 
skins, mutual recognition agreements relating to the SPS 
requirements for the importation of tropical fruit from Thailand, 
and possible GSP preferences for Thai tropical fruit.  The Minister 
also requested the Ambassador's assistance in regaining the trust of 
the American business community. 
 
¶2. (SBU) The Ambassador informed the Minister that we would 
follow-up with her concerns.  He noted our concern regarding the 
Ministry's price control regime and also indicated he hoped U.S. 
beef would be allowed back into Thailand as soon as possible. The 
Ambassador added that a few recent events outside of the political 
protest realm also have damaged Thailand's reputation with foreign 
investors, including the labor unrest at the Auto Alliance plant 
(Ford/ Mazada JV) in Rayong Province.  He stressed that labor was 
within their rights to disagree with management during contract 
negotiations; however, there is no excuse for the illegal union 
actions in Rayong during the past few weeks which have included 
unilaterally walking out of the mandated contract negotiations, 
damaging machinery, cars and engines, and blocking access to the 
plant.  The Ambassador also noted the behavior of the police was 
disappointing as they did not act to stop the illegal acts carried 
out by the protestors. 
 
¶3. (SBU)  Both the Minister and Deputy Minister committed to work to 
regain investor confidence, enforce the law and respect intellectual 
property rights.  The Deputy Minster made a point of stressing the 
formation of a new working group with the Ministry of Foreign 
Affairs that would focus on improving the enforcement of 
intellectual property rights protection in the Kingdom. (New Foreign 
Minister Kasit also stressed this during the Ambassador's courtesy 
call earlier the same day.)(reftel) 
 
¶4. (SBU) Comment:  The Thai business community has expressed concern 
about the appointment of both the Minister and Deputy Minister of 
Commerce.  It was clear during the meeting that the new Ministry of 
Commerce leadership has a long way to go to earn the trust of both 
the Thai and foreign business communities.  While both the Minister 
(who had to read all of her points from a text) and Deputy Minister 
said the right things regarding improving foreign investor 
confidence, it is yet to be seen whether they will have the 
political weight needed to follow-up with their statements regarding 
IPR protection and enforcement of commercial law.  Embassy 
representatives from FCS, FAS and Econ will follow-up at the 
Director General level in the coming weeks to discuss issues of 
common concern and take advantage of the good will generated from 
this courtesy call.