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China's WTO Updates
Thailand Official: WTO Investment Ruling Not Threat to Thailand

Deputy Prime Minister Prommin Lertsuridej has said the World Trade Organization (WTO)'s recent ruling requiring Thailand to end some foreign-investment incentives around the end of 2004 will pose no problem.

"No planned investments and no projects started within the past two years will be affected," he was quoted by Monday's the Business day newspaper as saying.

The WTO ruled last week to eliminate exports subsidies among its 165 members by this year, but Thailand and several other developing countries were granted extensions of two to three years to phase out investment incentives ruled to be subsidies.

Analysts and some exporters had previously said the cancellation of generous tax holidays and waivers of customs duties on imported capital equipment could cause foreign investment to flow out of Thailand.

However, Prommin, who oversees the kingdom's economic affairs, said Thailand has not been granting those types of incentives since August 2000, and a decision will be made by the cabinet in April 2003 on whether to request the WTO for a two-year phase-out period for existing incentives or the full three years.

The Asian Wall Street Journal recently reported that over 1,400 foreign investment projects in Thailand could potentially be affected by the WTO regulations, but Prommin said the time granted would be sufficient.

"The extension period will give us the time to adapt and ensure that we remain competitive," he said.

"With or without WTO rulings, we need to improve Thailand's competitiveness for the good of the country's economy," said the official.

(eastday.com December 23, 2002)

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