The American Chamber of Commerce in Thailand (AMCHAM) welcomed the new U.S. Ambassador to the Kingdom of Thailand
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Speech for Ambassador John
Amcham Monthly Luncheon
Siam City Hotel
January 30, 2008 12:30pm
Thank you Tom and congratulations on your recent election as Amcham President and to the newly elected Board of Governors as well. I am pleased to be making my first public remarks to the American Chamber, a great partner of the U.S. Embassy.
Today marks the end of my first month in Thailand. Before arriving in Bangkok at the end of last year, I spent several months speaking to congressmen and business groups about the situation in Thailand, the problems that exist, our national interests here, and how we might be able to work together to make strides in further strengthening an already strong relationship.
The elections at the end of December have given us all a new opportunity. A much-welcomed return to democracy has brought forth the promise that a new government with the mandate of the people of Thailand will be able to set this country on a course towards progress and a return to Thailand’s traditional role as an inviting place to do business.
As I arrived in Thailand I decided my top strategic priorities would be democracy and good governance, economic growth and the welfare of refugees. While all three of these are priorities, today I’d like to focus on the importance of economic growth.
When I say economic growth, I don’t just mean the growth of Thailand’s economy, though that is certainly a goal for both Thais and Americans. Economic growth is a two way street and a strong Thai economy not only means a better livelihood for Thai citizens, but also more trade and investment opportunities for Americans. It is in our national interest to see Thailand’s economy thrive. Our bilateral trade with Thailand is already over $30 billion annually, U.S. investment in Thailand has surpassed $23 billion, and U.S. companies employ over a quarter million Thais. However, there is still room for more growth, and I look forward to working with you to grow commercial opportunities and to level the playing field for American firms doing business in Thailand.
But economic growth isn’t just about business opportunities. I believe trade binds people in a way that other ties do not. When Thais buy American goods, they are not just buying a product or service, they are connecting with our country and our way of life. When a Thai student studies at an American university they are not only receiving a world class education but they are also interacting with everyday Americans and building a bond with our country that will last the rest of their lives. Likewise, when Thai tourists visit Hawaii or the Grand Canyon they are seeing our country for themselves and they cherish those experiences for a lifetime. Americans, too, make the same connections with Thailand when we sample Thai food products or visit any of one of Thailand’s fantastic tourism destinations. These connections are part of what links our two countries together and are a part of the rich mosaic of U.S.-Thailand relations. That is why economic growth is one of my three key objectives during my tenure here. Increased trade, educational exchange and tourism will help to ensure that our strong bilateral relationship continues for generations.
The presence of so many U.S. companies, as represented by most of you here today, is another fundamental element of our links to Thailand. This is the part of the speech where normally I used to write that you all are ambassadors for the United States. For some reason, over the past month, I have a different take on that now. But U.S. investment is creating jobs for Thais and improving lives. It’s well known that employment in foreign-owned enterprises is generally higher paying than for domestic firms, and your companies are contributing to higher standards of living. When it comes to labor rights, you lead by example in showing respect for your employees at all levels. But this investment doesn’t just create jobs; it passes along modern management methods and ways of doing business. The latest iteration of this is what we now call CSR, Corporate Social Responsibility. These days business management isn’t just about getting a quality product out to customers at a good price; it’s also about working with and balancing the interests of communities, employees and shareholders, being aware of the impact of business on the environment and society at large. In this regard I would like to applaud Amcham Thailand for leading the way in CSR activities and I look forward to working with the Amcham foundation on your adopt-a-school program, scholarship program and new CSR awards. These practices are being handed down around the world and making international business that much more sustainable and beneficial for everyone. This may be one of our more important contributions to the world of business and I hope to hear from many of you how you implement CSR policies in your own business.
Thailand is coming out of a rough patch from the last two years, but through it all the U.S. and Thailand have remained solid treaty allies. We are looking forward to lifting the measures put in place after the coup, including the so-called 508 sanctions, which restricted military cooperation with the Thai armed forces. We stand ready to work with the new democratically elected government.
Fundamental in our alliance has been the Treaty of Amity and Commerce, signed first in 1833 and now celebrating its 175th year. We have a full schedule of activities to celebrate the Treaty’s anniversary, and we already are working closely with Amcham to highlight U.S. commercial interests throughout the year including at the USA Fair this October.
It’s no secret that this economy has not lived up to its potential for the last couple years. At least, I hope it wasn’t a secret. Investment has slowed and domestic consumption is off. Thailand used to be one of the shining stars of the ASEAN region, but last year had one of the lowest rates of GDP growth in Southeast Asia. Political instability, the coup and the interim government’s economic policies contributed to the situation. Capital controls, compulsory licenses on pharmaceutical products and proposed amendments to the Foreign Business Act all created an atmosphere of uncertainty and a concern that Thailand’s traditional openness to foreign investment was coming to an end.
Last December’s elections have given us a clean slate and new partners with whom to promote a common agenda for progress. I plan to be aggressive in promoting trade U.S. trade and investment, and the interests of the U.S. in the economic realm. When I spoke to members of Congress before I departed for Thailand I found great interest in “leveling the playing field”, giving U.S. businesses every opportunity that the U.S. grants to our trading partners within our own borders. With a new government in place, we have a multitude of opportunities to meet the new leaders of economic policy and advocate for our interests. I am working hard to attract high-level government visitors from the United States, to help put attention on Thailand and on the issues of greatest importance to us.
Key among these is intellectual property rights. IPR has been a perennial problem. Brief moments of optimism have inevitably fallen on hard realities, as the enforcement of IP rights has not met our high expectations for Thailand. We do have allies within Thailand, including Thailand’s own music, movie and software industries and the holders of Thai trademarks and patents who understand the value of intellectual property in the 21st century economy. Many in the Royal Thai Police and the government’s IP arm have pushed forward on improving enforcement, but there is still a long road left to travel. There has been insufficient attention at the top levels of Thailand’s government; complacency really and I plan to impress upon the new leadership the importance we place upon IP and our willingness to work with Thais to not only protect our IP but pave the way for Thailand’s next generation of artists, designers and inventors to take advantage of the opportunities presented by the new global economy. I look at this as a simple common sense issue. If you look around the region and around the world, the first-class economies are the ones with first-class IPR protection regimes. And this is not a chicken and egg issue; if you want a first world economy, you develop a fundamentally strong IPR protection system.
The U.S. Embassy and the American Chamber have a long history of cooperation and I plan to continue this tradition. Our Commercial Service has organized a number of very successful “Meet the Minister” events where U.S. businesses have the chance to explain to top ministers their business activities in Thailand and present any challenges they face. With a new lineup of Ministers we’re in a great position to raise the profile of our commercial interests at the outset of the new government.
I’d also like to include the U.S. business community in outreach events around the country. You are a key part of our successful relationship with this country and I would like to highlight the good work that is being done, including job creation and CSR activities. I have asked our Commercial Service to coordinate visits to U.S. businesses wherever I travel in Thailand so please work with Ann Bacher and Jim Golsen if you are interested in highlighting some of your activities.
I mentioned the work of the Foreign Commercial Service, but the entire U.S. Embassy here will continue to work with U.S. business. I know many of you already work closely with our Foreign Agricultural Service, Regional Security Office, the Economic, Consular, and Public Affairs Sections, AID, Dept. of Homeland Security to name a few. I’m committed to continuing this cooperation and I am open to suggestions on how we can enhance our interaction.
I look forward to working with you to promote your products and services in Thailand and hope that you will work with our FCS office to take advantage of U.S. Embassy promotional activities whenever possible.
In closing I want to stress that celebrating 175 years of continual relations between Thailand and the United States is really a remarkable achievement. This relationship has been in place longer than our relationship with Japan, Korea, China or any other country in Asia. As we celebrate the 175th anniversary throughout the year, I hope you will work with me to ensure that this relationship continues to be as strong as ever. There is a wonderful line in our Treaty of Amity and Commerce at the end of the first paragraph which states: The Siamese and the citizens of the United States shall, with sincerity, hold commercial intercourse in the ports of their respective nations as long as heaven and earth shall endure. With that, I think we have the mandate we need to build a sustained friendship between our two peoples for years to come.
Thank you.
