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WTO to Be Better Off with China's Entry: Thai FM
Having China in the World Trade Organization (WTO) will leave the organization better off and make it more attentive to the needs and concerns of developing members, Thai Foreign Minister Surin Pitsuwan told Xinhua in a written interview recently.
"China is the world's fastest growing economy, with an average annual growth rate of about 10 percent over the last 17 years or so. It is widely reported that China is on its way to becoming the world's largest economy in the 21st century," Surin said.
"In this regard, it would be indeed unthinkable for China to remain outside the world trading system."
China's entry into the WTO would consolidate the country's economic reform towards a market economy while all other countries will benefit from increased transparency and improved consistency with regard to Chinese market access conditions, he said.
"The sheer size of the Chinese market alone, totaling some 1.2 billion consumers, boasts of endless potentials and opportunities for all trading partners."
Talking about how China's entry into the WTO will change the world trade development, Surin said it will reshape the landscape of the current multilateral trading system.
While it is impossible to gauge the direction and impacts of China's membership of the WTO on the world trade development at this early stage, the Thai minister expressed optimism about the role that China could play, as a developing nation, in making the WTO more "attentive" to the needs and concerns of developing members that account for the bulk of the present WTO membership.
Surin also warned of the challenge lying ahead, saying that besides all the rights and benefits China can enjoy, the country will have to undertake a number of obligations as a WTO member.
"Finding a balance between the rights and obligations can be difficult for China, especially in the face of the dual pressure from dramatic liberalization and internal structural adjustment," Surin predicted.
Thailand and China concluded a bilateral agreement in March this year, ensuring that after China's entry into the WTO, Thailand will enjoy a 25 percent simple average tariff reduction on 39 agricultural export items, 12 percent reduction on 12 fishery products and 14 percent on 85 industrial products.
In addition to exporting rice, sugar and rubber to China under the tariff rated quota, Thai enterprises also aim at China's service industry, Surin said.
After the WTO accession China will allow foreign service providers to operate hotel and restaurant establishments as well as engage in tourism and travel related services in the form of joint ventures with foreign majority ownership or even wholly-foreign-owned subsidiaries will be permitted, he elaborated.
"While there is much to be gained from trade liberalization in China, we must realize that the doors will be open to all. For our part, Thailand must make sure that we are not resting on the benefits apportioned to us based on the Sino-Thai bilateral agreement," Surin said.
He pointed out that China will become Thailand's competitor in international textile and agricultural product markets.
"While trade is merely one aspect of the Sino-Thai bilateral relations, we would be missing the point if we fail to grasp the significance and ramification of the trade dimension," Surin said.
The future cooperation between the two countries will not be hurdle-free, he warned, saying that disputes are likely and competition is simply inevitable.
"As a result, we need to be pragmatic and flexible in our future dealing with China while, at the same time, keeping our good faith in the promises of the multilateral trading system," he said.
When answering questions whether China's WTO entry will affect Thai-Chinese political relations, Surin said China's accession of the WTO membership represents an opportunity to deepen and broaden cooperation with China.
Since the two countries established diplomatic relations 25 years ago, Thailand and China have "long cherished close ties on all levels," the minister said.
The Thai government has actively engaged in bilateral negotiations with China and unfailingly supported China's early accession to the WTO, he said.
"The universality of WTO membership is critical to the efficacy of the organization as a whole," he noted.
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