Thursday, April 5, 2007

Turning a blind eye?

Mae Sot, a province in Thailand that borders Burma, is know by most as a factory district. It is home to some 200 clothing factories, and populated by refugees from Burma's instable government (since a harsh military coup in the 1960's). These migrant workers are fleeing from instability and enormous poverty...and are arriving in a place of exploitation.

Children labor laws have been repeatedly violated in the Mae Sot province of Thailand. Factories are hiring children of all ages, and imposing cruel work standards. Some of these include 12 hour work shifts, low pay, or that the workers must live in the factory in order to work there. This is the kind of stuff that should have stopped the day before yesterday, correct? So why hasn't the Thai government stepped in and cleaned up its Mae Sot district?

Denial is a large part of the problem. After a radification to the Child Protection Act in 2003, Thailand is insisting that there is little violation still occuring. Most recently, to combat what claims have been made, Thailand has developed a "social awareness" program. The program should educate the populace about Child Labor laws through family, academic, religious, or community institutions. Difficult to do when the childrens families are illegal refugee's, and the children themselves work 12 hour shifts and live in the factories where they're working, wouldn't you say?

"The labor inspection services in Thailand are under-staffed and under-resourced." Tim De Meyer, a specialist on international labor standards asserts. "Regular labour inspection is exactly the sort of thing you need here for things to work. Having a political commitment is not enough."

This author wonders if Thailand might be considering its opportunity costs; how expensive would it be to provide higher funding for the LIS (Labor Inspection Service) and actively combat child labor, imprisoning some people, and assuming care over those children liberated, not to mention the production loss generated through disruption of the factories low wage and awesome production rates? And how expensive would it be to increase domestic awareness of child labor laws through family, religious, academic and community institutions? I'm thinking much less costly...

http://web.lexis-nexis.com/universe/document?_m=7228496703141b30c5a499201da8d3e8&_docnum=13&wchp=dGLbVtb-zSkVb&_md5=7d63b17ed1eadb6488700505c101caab

http://web.lexis-nexis.com/universe/document?_m=7228496703141b30c5a499201da8d3e8&_docnum=2&wchp=dGLbVtb-zSkVb&_md5=efafa554271d4287777935cda71d2617

Tuesday, March 13, 2007

Politics v. Trade

Confusing the line between political messages and trade is something that Thailand seems to be struggling over regarding a bilateral free trade agreement with Japan. The agreements (Japan-Thailand Economic Partnership Agreement) provisions are mostly being kept in the dark, but what has been revealed is recieving mixed reviews. Waste from Japan would be exchanged into Thailand if the agreement is passed, while Thailand hopes to greatly benefit in their agriculture department from such an agreement.

The problem is that no clear defentions of the Japanese waste have been determined, and many officials are concerned that hazardous, perhaps toxic waste could be included. Officials taking this stance argue that more clear defentions of the waste, and better explanations to the Thai people who might be affected (specifically farmers in the Klong Toey district) should occur.

Arguing against this view are officials who believe that establishing an agreement is a great step in a direction encouraging other world powers to trade with Thailand. Most argue that the agreement itself should be permitted, and more intense sanctions later discussed.

One must therefore wonder if the health and security of the Thai people are more important than attracting foreign trade. True that, as a political message, establishing new trade agreements is efficient and successful. However, it is also important to pay detail to what, exactly, is going to be traded...

(Lexis-Nexis article referenced; no HTML.
Global News Wire
Thai Press Reports
February 20th, 2007).

Tuesday, February 6, 2007

Overprotective Mommy?

Has Thailand's government been babying its industries with high tariff rates on foreign goods? Or is Thailand just tariff crazy, and looking to earn a few extra million bucks for the government? Let's take a look at Thailand's food and agriculture industry and find out.

Frozen french fries, a product not produced in Thailand, has a 39% tariff. Thailand's average tariff rate is the highest in the ASEAN region. Is this babying the Thai people and industry and discouraging international trade? US fruit growers estimate some $25 million in lost sales due to Thailand's tariff rates; again, a region of the Thai industry that can hardly be considered crucial.

In summary, Thailand's overzealous tariff policies are scaring away foreign trade and failing to promote competition within the Thai industry. Thailand barely qualifies for the limitations set forth by the WTO!
http://www.ustr.gov/assets/Document_Library/Reports_Publications/2002/2002_NTE_Report/asset_upload_file876_6438.pdf