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The USTR is also in the final stages of negotiating a free trade agreement with Thailand. While the proposed text is not yet available, the agreement will contain investor-to-state provisions just like NAFTA and CAFTA.
Despite Thailand’s recent announcement that it will open to some imports of U.S. beef, the Thailand FTA poses big problems for other agricultural sectors like sugar and rice. Thailand is the world’s third largest sugar exporting country overall. Thailand produces more than twice as much sugar as all the CAFTA countries combined and exports 2.5 times more.
The U.S. corporations comprise Thailand’s second largest foreign investment, with cumulative interests of over $16 billion, in manufacturing, petroleum and banking.
Furthermore, the U.S. already had a trade deficit with Thailand of approximately $11 billion in 2003.
The agreement may also meet with strong opposition in Thailand due to its potential impact on Thai sovereignty. The agreement may require restructuring of Thai laws that have traditionally restricted foreign ownership of property.
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