EU must show it means business about not trading with Thailand

Opinion by James Drew

Given the enthusiasm at present towards exploiting ASEAN trade opportunities, such as  the Free Trade Agreement (FTA) that was recently signed between between EU and Vietnam and the UK government’s active persual of an EU-ASEAN trade agreement, one might be forgiven for believing that all is positive in the arena of trade negotiations with ASEAN nations.

Not so – the EU now has a chance that it must seize now to show Thailand that its present record on human trafficking, anti-democratic crackdowns, human-rights abuses on fishing vessels and its re-drafting of its own Constitution is completely unacceptable – now is the time for EU to take a much tougher stance on trade imports from Thailand to show it means business.

In May 2014, the military take-over in Thailand meant that the Partnership and Cooperation Agreement (PCA) that had been initialled to provide a comprehensive and ambitious framework for EU-Thailand relations and open up wide opportunities to develop co-operation could no longer be signed by the EU until a democratically elected government was in place. The Council adopted conclusions on 23 June 2014 demanding that Thailand’s junta, led by General Prayuth Chan-ocha restore, as a matter of urgency, the legitimate democratic process and the Constitution, through credible and inclusive elections.

At least the European Union did act swiftly with some punitive measures, but the junta’s latest attempts at constitutional reform pose a long-term threat that must be addressed – the European Union and Thailand are bound together by strong and longstanding ties, ranging from trade, tourism, investments and culture, to people-to-people contacts.

But Chan-ocha, seizing power  and vowing to “restore order” following six months of political turmoil brought the relationship to crisis: “Official visits to and from Thailand have been suspended; the EU and its member states will not sign the Partnership and Cooperation Agreement with Thailand, until a democratically elected government is in place,” said the Council’s conclusions.

“Other agreements will, as appropriate, be affected. EU member states have already begun to review their military co-operation with Thailand.”

The Partnership and Cooperation Agreement was intended to boost co-operation in tourism, employment, education, migration, transport and environment as well as allow for a closer political dialogue. Goods traded between the EU and Thailand totaled around €32 billion in 2013, according to EU data.

The Council has further stated that it will keep its relations with the south-east Asian kingdom under review and would consider further possible measures, depending on circumstances.

“Only an early and credible road map for a return to constitutional rule and the holding of credible and inclusive elections will allow for the EU’s continued support,” it added.

Speaking on 30 May last year, Prayuth said a process of reconciliation between political factions and reforms would “take about a year and a general election would only be held after that” – at the time, the EU branded this as unacceptable and, here we are now more than a year on, with no sign of credible elections being held.

In ending the generalized scheme of preferences (GSP) on 1 January 2015, more than 6,200 Thai seafood products were withdrawn from trade, which was followed by the EU ‘yellow carding’ Thailand over its illegal fishing, with the threat of a ‘red card’, a complete ban on imports, now looking increasingly likely – a ‘red card’ would result in trade sanctions preventing Thailand from exporting fish caught by Thai vessels to the EU and EU vessels from fishing in Thai waters. A red card would have both significant economic and reputational impacts on Thailand and its seafood industry.

Thailand is the third largest seafood exporter in the world; the EU imported more than €835.5 million worth of seafood from Thailand in 2012. But the seafood sector stands accused of endemic human rights violations, from the shrimp ‘peeling sheds’ to the ocean-going fishing boats, crewed by Burmese and Cambodian victims of trafficking who are treated as modern-day slaves. ‘Trash fish’ caught by these vessels can make its way into fishmeal that is used in Thailand’s shrimp farms, with the resulting shrimp becoming part of a supply chain destined for lucrative export markets in Asia, the US and Europe.

59% of workers surveyed said that they had witnessed the murder of another crew member – the Thai fishing industry remains heavily reliant on trafficked and forced labour. As boat operators have looked to cut costs, working conditions and wages have suffered, forcing some employers to rely on criminal trafficking networks to meet the labour shortfall. Migrants from neighbouring countries eager to find employment in Thailand fall prey to criminal networks, are duped onto fishing vessels and forced to pay off the debt owed to the traffickers.

Speaking on 2 April 2015, High Representative Federica Mogherini said: “As a friend and partner of Thailand, the EU reiterates that the rule of law and the protection and promotion of human rights should underpin progress towards full restoration of democratic governance in Thailand.”

But exactly how much progress is being made towards ‘full restoration’? The regime has not only thumbed its nose at the EU’s demands thus far, but by implementing regulations disguised as reforms, the junta has sought to further deepen and strengthen its own tyrannical rule. Left to their own devices, Prayuth and his henchmen appear dedicated to shifting the country further and further from the democracy that Thai citizens deserve – Europe’s own history has been marked by the dangers of military tyrants who have swept aside democracy in the “national interest”. Europe must now be prepared to act boldly. A strong EU stance would help quell the ambitions of Thailand’s military rulers while simultaneously positioning Brussels as a guardian of global democracy.

The time is fast approaching when the EU, specifically High Representative Federica Mogherini and her team, will be truly tested in Thailand – one can but wait and wonder if the EU will care enough to notice.

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