reportbythesecretariat-worldtradeorganization.docVIP

trade policy regime: framework and objectives Overview Despite constitutional and legislative changes due to the 2006 political developments, the structure of trade policy formulation in Thailand has not changed substantially since 2003. The Sufficient Economy thinking is being used as a guiding philosophy for development strategies and policies. Regulatory reform has progressed but regional decentralization has not advanced as scheduled. Thailand has maintained its support for and commitment to multilateral trade liberalization. It also remains committed to open regionalism and believes regional FTAs can be an effective catalyst for free trade and complementary to multilateralism. The focus of foreign policy now appears to be the strengthening of regional links with immediate neighbours and deepening ties through FTAs in the wider Asian region. In addition to expanding ASEAN FTA undertakings, Thailand has concluded a network of bilateral preferential trading arrangements with several trading partners (e.g. Australia, Bahrain, India, Japan, Peru, New Zealand). Thailand continues to operate a generally liberal foreign investment regime. Negative lists restricting levels of foreign direct investment in some activities have remained unchanged. Amendment of certain legal provisions is under way to prevent foreign investors from using nominee shareholders or preferential voting rights to take control of Thai companies in restricted sectors. U.S. investors receive preferential treatment, being exempt from most FDI restrictions under a 1966 Treaty. General Constitutional and Institutional Framework Following political developments in September 2006, the 1997 Constituton was abrogated and replaced by an Interim Constitution on 1 October 2006. The Interim Constitution provided for the appointment of a Prime Minister, a legislature, and a 100-member Constitutional Drafting Assembly (CDA) for a Permanent Constitution. (A referendum approved the new Constitution in