BANGKOK: US ambassador Robert F Godec and Gonzalo Suarez, the US Assistant Secretary of State for International Security and Nonproliferation, recently met with Phumtham Wechayachai, Deputy Prime Minister and Minister of Commerce to discuss strengthening trade and investment relations with a focus on licensing measures that consider international security.
Such measures control goods potentially related to the proliferation of Weapons of Mass Destruction (WMD) and Dual-Use Items (DUI).
DUI are items that can be used for both commercial and military purposes. Once sold, these items are for general use but also have potential applications in chemical, biological or nuclear weapons.
According to the SCB website, DUIs permeate various industries, including automotive, electronics, aviation, marine equipment, telecommunications, sensors, and lasers. Examples include ball bearings, typically part of machinery in heavy industries, which could be used in nuclear weapons if in the wrong hands.
Carbon fibre, usually used to make sports equipment like tennis rackets, can be part of gas centrifuges. Even coronavirus is a DUI, as it can be used for vaccines or biological weapons.
“I assured the US that the Ministry of Commerce prioritises controlling export activities to prevent WMD proliferation, in line with international resolutions, especially UN Security Council Resolution 1540.
"We will discuss measures with relevant agencies, such as the Customs Department and Ministry of Foreign Affairs, to prevent Thailand from being a transit country for such goods within the legal framework,” Phumtham said after the meeting
However, the impact on Thailand's industries must also be considered. The ministry is currently working on a licensing system and reviewing the DUI list to align with technological changes. The first phase will focus on nuclear-related items and is expected to be effective by mid-2025.
Thailand also emphasised its concern regarding the US investigation and trade remedies (Anti-dumping and Countervailing Duty) against various countries, including Thailand, on solar cell products. These measures impact the overall economy and foreign investment.
They also raised the issue of hazardous waste being mixed with other goods from the US to Thailand, hence the request for better control. The US ambassador agreed to coordinate this.
Existing trade and investment measures may be insufficient in today's global trade environment, especially concerning global security and peace. DUI control measures are new in Thailand and should be taken seriously by Thai private sectors, assuring investors that Thailand is a safe production base for high-tech products without ties to terrorism or WMD proliferation.
Reports from the Commerce Ministry indicate that President Biden’s policies to boost clean energy production under the Inflation Reduction Act (IRA) have led to significant investments in the solar industry.
Since Biden took office, over US$17 billion has been invested in solar cell industries, equivalent to over 335 gigawatts of energy, powering 18 million households.
“Americans have more than doubled their solar energy usage since President Biden took office, with the highest installation in 2023 at 32.4 gigawatts, up over 50% from 2022.”
However, most solar panels come from China, leading the US to use tariff measures under Section 301 of the Trade Act of 1974 to protect American workers and businesses, raising tariffs on Chinese solar panels from 25% to 50%.
To avoid shortages, President Biden exempted tariffs on solar panels from Cambodia, Malaysia, Thailand, and Vietnam in June 2022, as the US ramped up production.
However, this exemption expired on June 6, 2024, and the US found Chinese manufacturers circumventing trade remedies by assembling panels in these exempt Asean countries, potentially impacting Thailand and others with new trade measures.
If the US wants stricter DUI controls from Thailand, it must ensure fair trade measures on Thai solar panels.
“Global unrest and regional tensions have led to severe conflicts affecting economies and trade, including Thailand. It's time for Thailand to tighten controls on WMD-related and DUI goods to prevent commercial items from being repurposed for destructive use, particularly in conflicts or regional unrest.”
Thailand currently has the WMD-related Goods Control Act of 2019, specifically overseeing WMD and DUI items, empowering the Ministry of Commerce to set comprehensive control measures, including licensing, self-certification, and other necessary measures.
These include End-use End-User Control (EUEUC) in line with the 2021 Ministry of Commerce announcement and Internal Compliance Programme (ICP) certification guidelines.
However, Thailand has yet to enforce the licensing measure for DUIs, a crucial part of the Act.
Licensing is essential, as it is both highly effective and internationally recognised by key trading and investment partners, including the US, EU, Japan, Singapore, Taiwan, Hong Kong, and Australia.
Licensing will also boost foreign direct investment in Thailand, especially in high-tech sectors. - The Nation/ANN
