1. Elements of Investment Liberalization: Thailand’s Perspectives Dr. Vilawan Mangklatanakul 2 October 2007

2. Thailand’s FTA experiences ASEAN as the first FTA –separate investment agreements for liberalization and protection. Bilateral agreements containing investment chapters: –TAFTA, Thai-New Zealand, JTEPA Ongoing negotiations: –Thai-India, Thai-EFTA, ASEAN-China, ASEAN-Korea, ASEAN-Australia-New Zealand, BIMSTEC

3. Current Positions of Thailand Covers 5 non-service sectors: manufacturing, fishery, agriculture, forestry, and mining and quarrying –Other mode 3 services to be covered in services chapter/agreement. Positive list approach to liberalization

4. Current Positions of Thailand (2) The scope of ‘investment’ covers only FDI Prohibit only TRIMS-based performance requirements

5. Current Positions of Thailand (3) Provide MFN for post-establishment stage only Scope of dispute settlement mechanisms: –No prior consent –Excludes performance requirements, pre- establishment breaches

6. Concluding Remarks Dilemma: the need to attract FDI vs the need to protect domestic businesses –To strike the right balance is difficult. No perfect model that is appropriate for all negotiating partners. Should aim for a cautious and flexible approach which takes into account different levels of development