Demands made for EU to impose Russian-style sanctions on Thailand

The EU is facing pressure to consider Russian-style economic sanctions against the ruling military junta in Thailand amid continuing concerns about a range of issues ranging from human-rights violations to non-compliance with international fishing rules.

Rights groups say there is a "good case to be made" for targeted measures against junta individuals and the businesses who support them.

They are arguing for possible sanctions as they believe "not enough" is being done by the junta to tackle rights violations in Thailand, including poor conditions for those working in the fishing sector.

Businesses in Thailand will hope there will be no sanctions, as south-east Asia's most export-dependent economy after Singapore struggles to revive its economy.

While the EU has repeatedly called for the democratic process in Thailand to be restored along with a return to democratic elections and good governance many argue that EU trade policy could be "better used" in the fight against human rights’ breaches around the world.

Russia-style sanctions, it is argued, would ‘encourage’ the military to accelerate this timetable and produce a credible road map towards the democratization processes, which they say is presently subject to "lengthy procrastination and delays".

A source at Human Rights Watch, the US-based international NGO, said: "Given the continued rights violations, including lack of respect for the rule of law and democracy, there is certainly an argument to be made for more extreme measures being taken against Thailand."

Thailand remains in the lowest Tier 3 category of countries with the worst human trafficking records. Tier 3 countries are those that Washington believes do not fully comply and are not making significant efforts to do so.

A recent Reuters investigation also raised questions about the long-term effectiveness of Thailand's supposed crackdown on the lucrative trafficking syndicates.

Earlier this month, a resolution adopted by the European Parliament expressed concerns at "deteriorating" human rights in Thailand following the coup of May 2014 and urged the European External Action Service (EEAS) and EU delegation to Thailand to "use all available instruments" to ensure respect for human rights and the rule of law in Thailand.

The resolution advocates "maintaining economic and political pressure in order to ensure Thailand’s return to democratic governance" and reminds the Thai Government that "no progress should be expected" on the Free Trade Agreement (FTA) and Partnership and Cooperation Agreement (PCA) between the EU and Thailand "as long as the military junta remains in power”.

The EU is Thailand’s third largest trading partner and the resolution overwhelmingly approved by MEPs on 8 October says that EU trade agreements, such as an FTA on which negotiations with Thailand have been suspended since the coup, "must be based on values including fair and ethical trade and human rights".

The motion backed by all political parties goes on to assert that EU trading partners "must respect and support" international labour rights and calls on the Commission to "make it a priority" to see that trading partners implement provisions on core labour standards like abolition of child labour, and do not use trafficked or forced labour.

Such demands are reinforced by the EU's new 'Trade for All' strategy which says EU consumers need to have confidence in environmental and social protection so they have confidence in the (fish) products they buy, where they are sourced, and that their production respect human rights, social and environmental protection.

“Many people," according to the strategy, "are concerned about the potential impact of trade policy on their daily lives. They also want to be reassured that the products they buy from abroad are made under fair working conditions and without harming the environment."

Momentum for sanctions is gathering just as the 31 October deadline for an EU decision on illegal and unreported fishing (IUU) in Thailand approaches.

A European Commission source said the EU is likely to maintain the 'yellow card', or warning, against Thailand before reaching a final decision in December on whether or not to issue a 'red card' and a ban on imports to the EU of Thai fishing products.

Thousands of illegal vessels have been uncovered as a result of new Thai government regulations imposed under EU pressure for compliance with fishing regulations.

More than 8,000 trawlers in 22 provinces could now lose their commercial fishing licences after checks revealed the registration numbers did not match the vessels while many had failed to renew their permits for years.

If all the boats are banned, it would represent a crippling blow to the Thai fishing industry, which employs around 300,000 people.

The EU is Thailand's fourth-largest market for fishery products after ASEAN, the United States and Japan. In 2014, exports to the EU accounted by 10.29% of Thailand's total shipment value and, last year, exports of fishery products to the EU rose 4.36% to $23.66 billion.

With the deadline looming, Fraser Cameron, of the Brussels-based EU-Asia Centre, told this website: "The Thai government will be waiting anxiously for the EU decision this week on whether Thailand has done enough to tackle the problem of illegal fishing. If the EU were to impose sanctions on Thai seafood exports it would have a major impact as Europe is a top destination for Thai fishery products."

A spokesman for the Commission's environment, maritime and fisheries directorate, said, "The IUU [illegal fishing] process has been ongoing since April between Thailand and the Commission but we will not necessarily decide on 31 October. The ongoing dialogue ends then, and then we will have to assess the information and decide in the coming months of what the next steps are."

Meanwhile, Thailand's Prime Minister General Prayut Chan-o-cha, who led the 2014 coup, has launched a  so-called "charm offensive" designed to restore confidence among foreign investors in the country's ailing economy.

He started his 'Prime Minister Meets CEOs' series on Monday (26 October) in an effort to beef up investment in Thailand.

Trevor Negus, CEO of AAT, a joint venture between Ford and Mazda, urged the Thai government to speed up investment in infrastructure, particular for land transport "as roads are in a state of decay."

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