"TRADE PRIVILEGES - US set to strike back over rights - The Nation

Tariff downgrade over violations will hit Thai exporters

Many Thai exports to the United States are expected to lose tariff privileges today, when Washington places the Kingdom on its intellectual-property Priority Watch List.

An announcement of the downgrade was expected early this morning Thailand time and comes in the wake of inadequate protection of intellectual-property rights.

The downgrade comes with stiff trade retaliations.

The US Embassy in Bangkok is scheduled to hold a news conference later today.

However, local officials expect Thailand to be downgraded to priority-watch status, because of conflicts between the Public Health Ministry and US drug companies following the Kingdom's decision to invoke World Trade Organisation rules allowing it override patent protection on selected drugs.

In addition, worsening copyright violation of audio-visual products further hamper Thailand's chance of being spared retaliatory action, says international-trade experts.

Commerce Minister Krirk-krai Jirapaet believes Thailand will be downgraded, because influential companies are pressuring the US government. These companies accuse Thailand of being slow in stamping out intellectual-property violations.

Many US companies and trade groups - including Levi Strauss, Philip Morris, the Cable Broad-

casting Satellite Association of Asia and the American Apparel and Footwear Association - are urging Washington to punish Thailand for growing product counterfeiting. Of most concern are brand-name apparel and accessories and audiovisual products.

The Washington-based US-Asean Business Council yesterday expressed concern that the downgrade would hit US investors and their trading partners.

Krirk-krai said council president Matthew Daley was afraid Thailand would be downgraded as a result of the compulsory licensing of drugs.

Daley and other US businessmen in Thailand - particularly new entrants - are anxiously awaiting final wording of amendments to the Foreign Business Act....."

Full article: http://www.nationmultimedia.com/2007/05 ... 033108.php

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