SERVICES NEGOTIATION IN SERVICES NEGOTIATION IN

JTEPA AND RCEPJTEPA AND RCEP

Mr. Krisda Piampongsant

Advisor at The Board of Trade of Thailand

RankingExpectation for implementation of the items under consideration by

the RCEPManufacturing

Non-manufacturing

Total

1 Improvement of various systems (Transparency of customs clearance, relaxation of issue of work permits/visa, etc.) 142 (63) 72 (47) 214 (56)

2 High level of liberalization in terms of item numbers and trade volume 102 (45) 42 (27) 144 (38)

3 Relaxation or elimination of non-tariff barriers 73 (32) 48 (31) 121 (32)

4 Standardization of the certificate of origin in 16 countries 75 (33) 45 (29) 120 (31)

5 Introduction of user-friendly rules of origin 32 (14) 71 (46) 103 (27)

6 Relaxation or elimination of the barriers for foreign ownership 79 (35) 22 (14) 101 (27)

7 Participation by all the relevant countries, including ASEAN and Japan, China, South Korea, India, Australia and New Zealand 56 (25) 32 (21 88 (23)

8 Relaxation or elimination of investment restrictions 43 (19) 34 (22) 77 (20)

9 Relaxation or elimination of service trade barriers 27 (12) 42 (27) 69 (18)

10 Improvement of intellectual property rights 29 (13) 8 (5) 37 (10)

11 Accumulation of added value resulting from the rules of origin 27 (12) 10 (6) 37 (10)

12 Economic and technical cooperation for reducing any development gap among member countries 8 (4) 6 (4) 14 (4)

- Other 0 (0) 5 (3) 5 (1)

Total 693 437 1130

No. of firms 227 154 381 (100)

Unit: No. of firms and (%)

Ranking The expectation for implementation of the AEC ManufacturingNon-

manufacturingTotal

1Simplified customs clearance (United customs declaration and introduction of a single window system for import and export)

135 (59) 80 (50) 215 (56)

2 Elimination of import tariffs in CLMV 116 (51) 75 (47) 191 (49)

3Uniformity of interpretation and management concerning the rules of origin

88 (39) 32 (20) 120 (31)

4Avoidance of double taxation and correction of uneven withholding tax rates

58 (25) 39 (25) 97 (25)

5 Free movement of skilled labor 60 (26) 35 (22) 95 (25)

6 Infrastructure development in the CLMV 46 (20) 46 (29) 92 (24)

7Reduction of non-tariff barriers (license requirements and mandatory standards)

48 (21) 37 (23) 85 (22)

8Introduction of standardization, certification and labeling system standards for the ASEAN nations

49 (21) 35 (22) 84 (22)

9Relaxation of foreign ownership control in the service sector (ASEAN corporations at most 70%)

14 (6) 54 (34) 68 (18)

10 Establishment of an environment for fair competition in the region 38 (17) 29 (18) 67 (17)

11 Further deregulation of capital transfers 23 (10) 39 (25) 62 (16)

12Deregulation of investment by ASEAN corporations in manufacturing, mining, agriculture and foresty industries

37 (16) 18 (11) 55 (14)

13Improvement of intellectual property rights-related system’ik 

25 (11) 14 (9) 39 (10)

14Harmonization of policies within the region (e.g. fair competition, consumer protection)

13 (6) 13 (8) 26 (7)

- Others 2 (1) 4 (3) 6 (2)

Total 752   550   1,302  

No. of firms 228   159   387 (100)

Unit: No. of firms and (%)

JTEPA

• Japan–Thailand Economic Partnership Agreement

• It was signed on April 3, 2007 in Tokyo, Japan by the

Prime Minister of Japan Shinzō Abe and the visiting

Prime Minister of Thailand, Surayud Chulanont.

Review of JTEPA services

• Conform to Japan’s commitment in WTO more than 70 sectors

• Additional commitments in

HRConstructionReal Estates BusinessAdvertisementMauy Thai

Thai musicThai restaurantInterpretationRentals of Logistics EquipmentAccounting

• Conform to Thailand’s commitment in

WTO 14 sectors

• Additional commitments

Electronic and Electricity Equipment Repairs Retails and Wholesales Licensed Medical Doctors Consultation International Schools Restaurants, Hotels, Engineer, Computer

Review of JTEPA services

RCEP

• Regional Comprehensive Economic Partnership (ASEAN+6)

• More than 3 billion people ; 10.7 Trillion USD (29%)

• RCEP negotiations were formally launched in November 2012

at the ASEAN Summit in Cambodia.

• To be finalized by the end of 2015. (57% Thai Export)

• Trade in goods, Trade in services, investment, economic and

technical cooperation, intellectual property, competition, dispute

settlement and other issues.

Key Impending Issues

Services - Liberalization Modality [Early Harvest]

•Request – Offer Coverage

•Positive List [Developing Countries]

•Negative List [Developed Countries]

•Hybryd List [Transparency]

Key Impending Issues

Investment : Liberalization Modality [Early Harvest]

•Other issues : BOI, Promotion, Service, Liberalization,

Manufacturing-Related Services

•SMEs

•Business Facilitation

•Trade and Investment Facilitation

Cooperation

• CLMV trade facilitation training program at border

trade.

• Thai and CLMV SME’s capacity building program.

• Transfer of technology for Thai + CLMV SME’s

investment at special economic zones.

Thank Youfor Your Attention

ありがとう