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Viewing cable 09BANGKOK370, THAI CONCERN ABOUT POSSIBLE U.S. TRADE

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Reference ID Created Released Classification Origin
09BANGKOK370 2009-02-13 06:09 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Bangkok
VZCZCXRO0988
PP RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHBK #0370 0440609
ZNR UUUUU ZZH
P 130609Z FEB 09
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC PRIORITY 6028
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS PRIORITY
RUEHBJ/AMEMBASSY BEIJING PRIORITY 6779
RUEHBY/AMEMBASSY CANBERRA PRIORITY 9444
RUEHLO/AMEMBASSY LONDON PRIORITY 1856
RUEHUL/AMEMBASSY SEOUL PRIORITY 5280
RUEHKO/AMEMBASSY TOKYO PRIORITY 1394
RUEHCHI/AMCONSUL CHIANG MAI PRIORITY 6172
RHHMUNA/CDR USPACOM HONOLULU HI PRIORITY
RUEAIIA/CIA WASHINGTON DC PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC PRIORITY
UNCLAS BANGKOK 000370 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS, EEB 
STATE PASS TO USTR FOR WEISEL AND BISBEE 
TREASURY FOR SCHUN AND MNUGENT 
COMMERCE FOR EAP/MAC/OKSA 
COMMERCE PASS TO USPTO 
SINGAPORE FOR FINATT BAKER 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KPAO TH
SUBJECT: THAI CONCERN ABOUT POSSIBLE U.S. TRADE 
PROTECTIONISM 
 
1. (SBU) Commerce Minister Porntiva Nakasai told the 
Ambassador on February 11 that Thailand is concerned about 
the potential for trade protectionism represented by "Buy 
American" provisions in the proposed stimulus bill.  In a 
"Meet the Minister" meeting organized by the Embassy to 
provide an opportunity for U.S. company reps to discuss doing 
business issues, ComMin Porntiva stressed that Thailand 
supports open markets, and questioned how a "Buy American" 
policy would be implemented and whether it would be 
consistent with WTO commitments.  The Ambassador responded 
that the stimulus bill is still a work in progress and that 
President Obama has said that he is aware of the dangers of 
protectionism and does not want the bill to be seen as 
protectionist.  The Amcham Executive Director added that the 
U.S. business community opposes "Buy America" provisions. 
 
2. (U) The Thai press in recent days has run several articles 
implying that the U.S. is embarking on protectionist policies 
under the Obama administration.  One article, discussing the 
implementation of Amendments to the Lacey Act that will curb 
U.S. imports of tropical hardwoods as an environmental 
measure, quoted a Thai commercial consul in the U.S. as 
saying that "the new legislation is intended to serve as a 
non-tariff barrier to imports to the U.S. during  tough 
times."  The amendment of the Lacey Act was of course passed 
last year before the financial crisis even began, but genuine 
concern, as well as misunderstanding, is starting to fuel the 
impression that U.S. trade policy is changing.  Several 
prominent Thai business people have also expressed concern to 
us that the U.S. is starting to close its doors to foreign 
products. 
 
3. (SBU) Comment and request: The Prime Minister and other 
top government and business leaders have reiterated their 
support for free trade and understand that Thailand,s 
export-oriented economy would likely be badly affected if 
global markets were to close doors to any extent. 
Nevertheless, protectionist tendencies among some influential 
Thai elites are just below the surface and there is a danger 
that widespread talk of U.S. protectionism could turn into a 
justification for Thai protectionism.  Clarity on the U.S. 
policy on trade under the new administration would be very 
welcome.  This Embassy could make good use of talking points 
on the subject as soon as Washington is able to provide them. 
JOHN