Local small and medium-sized enterprises need better access to information on changes in international trade regulations if they are to prosper, according to local experts.
Nitinant Wisaweisuan, an economist at Thammasat University, said small firms would face increased difficulties coping with changing trade-related standards such as health and environmental regulations in Europe.
Local companies already face many non-tariff trade barriers, such as hygiene requirements for poultry products or rules on chemicals and waste management in industrial products.
''Local electrical appliance producers are faced with tough requirements on chemical and electrical waste management. Furniture producers have been told to switch to 'E zero' glue that must be imported from Germany from the 'E20' currently used,'' Assoc Prof Nitinant said at an economics conference yesterday.
''Such measures will keep evolving as people become more conscious of health and environmental issues.''
Western importers were more likely to switch suppliers to, say, Thailand or the Philippines if shortcomings are found in products produced elsewhere, such as China, she said. ''In such an environment, large firms will be able to adjust, but smaller firms may not.''
She said such regulations would not pose a problem so long as producers had the information available to make adjustments.
Databases are also important for local companies looking to invest abroad, as they need to be prepared to comply with foreign tax, labour and other regulations.Sorachon Boonsong, a partner with the law firm Baker & McKenzie, agreed that local firms lacked access to information on the rules and laws of other countries.
Meanwhile, Thailand's relatively high corporate tax, complicated state licensing requirements and uncertainties regarding the Foreign Business Act were disadvantages for the country in the competition for foreign investment.
''For instance, if a foreign investor wants to open a new hotel, he will have to do a lot of paperwork to secure permission from the government, such as construction permits, liquor sales permits, as well as the need to comply with cultural issues,'' Mr Sorachon said.
He said that Thai antitrust law, enacted seven years ago to prevent small companies from being at a disadvantage to larger companies, was toothless because of the lack of supporting legislation.
''If local firms want to invest abroad, they need to comply with antitrust law in all those countries. Thai law is backward in this sense,'' Mr Sorachon said.
Even access to information for neighbouring countries such as Cambodia and Laos was difficult for many Thai small firms, he said, let alone information about the European market.
by PARISTA YUTHAMANOP
http://www.bangkokpost.com
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