US embassy cable - 05BANGKOK6154

UNCLAS BANGKOK 006154 
 
SIPDIS 
 
STATE FOR EB/TPP/MTA NISSEN 
USTR FOR AMANDA HORAN/CHRISTINE BLISS 
 
E.O. 12958: N/A 
TAGS: ECON, ETRD, WTRO 
SUBJECT: WTO SERVICES NEGOTIATIONS:  THAILAND RESPONSE 
 
REF: SECSTATE 176381 
 
1.  Econoff contacted Ministry of Commerce's Department of 
Trade Negotiation (DTN) officials per reftel regarding the 
Thai offer on trade in services.  Answers are keyed to 
questions in reftel. 
 
2.  Q:  Has the host government stated specifically that its 
offer is tied to further movement in agriculture 
negotiations, concessions on temporary entry, rules or other 
factors?  Would the host government likely be prepared to 
table an initial or revised services offer pending movement 
in these areas, in particular agriculture?  A:  DTN sent a 
revised services offer to their offices in Geneva in 
mid-September.  DTN's Geneva office is reviewing the offer 
for any necessary technical corrections and estimate they 
will submit the revised offer to the WTO by the end of 
September. 
 
3.  Q:  What ministries, government officials or other 
entities, including the legislature, play a role in decisions 
on services?  What players are likely to have the most 
influence in determining the extent of the host government's 
services offer?  A:  Individual line ministries have 
responsibility for services decisions, i.e. the Ministry of 
Education will have purview over issues involving education 
services.  The Ministry of Commerce plays a coordinating 
role.  Commerce's Department of Trade Negotiations has the 
responsibility for drafting the services offer. 
 
4.  Q:  Are there particular domestic constituencies that 
support or oppose services liberalization?  What are they? 
Are they significant?  What is the main reason for their 
support or opposition?  A:  The finance and transportation 
industries in particular are concerned about services 
liberalization, emphasizing the need for additional 
adjustment periods in order to better compete in a 
liberalized market.  Professional organizations, for example 
the institute of certified accountants, have expressed 
opposition to liberalizing their industries out of a fear of 
increased competition. 
 
5.  Q:  What are the host country's sensitivities with regard 
to services sector opening?  Do host government officials 
appreciate that, with the approach of the Hong Kong 
Ministerial and the negotiating deadline next year, it is 
critical that services offers be tabled immediately?  A: 
Financial services liberalization is the most sensitive issue 
as the effects of the 1997 Asian financial crisis are still 
fresh in the minds of Thais.  Insurance and securities 
sectors of financial services are less sensitive, but banking 
services are of particular concern.  Thailand insists on 
tight controls over capital flows, and regulatory flexibility 
for the Central Bank to manage the financial system.  Thai 
officials are aware of next year's deadline and will soon be 
submitting their revised offer in recognition of the time 
constraints. 
BOYCE