finance | banking | taxes
The latest round of bilateral free trade negotiations between Thailand and the United States in London hit a serious snag over how much to liberalise the sensitive finance sector, one of the negotiators said.
Dr. Narongchai Akraseranee, chairman of the Working Group on FTA Negotiations, reaffirms that Thailand will not speed up the opening of its financial sector because domestic players are not ready for such competition. The Working Group is also concerned about possible capital outflows once liberalisation frees up deposit transactions.
Thailand is unlikely to gain much benefit from service sector liberalisation in a free trade area (FTA) agreement with the United States, a Thai trade negotiator says as the talks reach their halfway point.
The nation’s top central banker Monday stressed the need for speeding up the formation of free trade agreements (FTAs) among Korea, China and Japan, to boost regional cooperation and mutual investment.
Thai Commerce Minister Somkid Jatusripitak said yesterday that proposed amendments to the Alien Business Act would not be presented to the Cabinet today, apparently because of growing public resentment about further opening up the country to foreign investors.
Thai negotiators could ultimately be forced to accept a "negative list" approach in negotiating the Thailand-US free trade area agreement, according to Pongpanu Svetarunvra, deputy director-general of the Fiscal Policy Office. Under a negative list approach, all sectors and services will be liberalised except for those explicitly stated in the agreement.
Local financial institutions need to adjust themselves to resist possible business seizure by foreign investors in a wake of the liberalization of trade with many countries in the world, according to a top banker.
Ambassador Nitya Pibulsonggram, the chief negotiator for the Thailand-US Free Trade Agreement, spoke to AMCHAM members on May 25, 2005 about the importance of the FTA to Thailand.
In a recent round table discussion sponsored by the Philippine Institute for Development Studies, the service industries - specifically the telecommunication and the finance sectors - were tackled as two of the crucial areas where the Philippines can have the best potential if the FTA agreement with the US pushes through.
Colombia’s government on Friday praised the latest round of talks on establishing a free trade area that would also include the US, Ecuador and Peru, saying a final deal could be reached by November.
Finance Minister Thanong Bidaya said yesterday that the Thai-US free-trade agreement (FTA) would be difficult to hurry as Thai bankers are concerned about competing with their sophisticated counterparts in the field of e-banking. “I can’t say when the deal could be concluded because both sides still use absolutely different approaches,” Thanong said.
Recently, Free Trade Agreements (FTAs) negotiations are being held between the GCC countries and the USA. Being crucial sectors in these countries’ economies, the banking and financial sectors are being considered for liberalisation in the context of these FTAs.