(Adds detail, context, Thai PM comment)
By Kiyoshi Takenaka
TOKYO, Nov 27 (Reuters) - Thailand is "highly likely" to
seek membership of the Trans-Pacific Partnership (TPP) but would
first need to weigh up the impact of the free-trade accord on
its export-led economy, a deputy prime minister said on Friday.
The pact currently has 12 members and would slash tariffs in
a bloc comprising countries from Canada, Australia and Japan to
Mexico, Vietnam and Chile in a trade area of 800 million people
worth about 40 percent of the global economy.
"Thailand is highly interested in joining TPP ...," Somkid
Jatusripitak told a news conference in Tokyo. "Chances are high
that Thailand will seek to join TPP."
Somkid, the country's economic tsar, said the government was
analysing the impact of joining the trade deal, particularly on
sensitive issues like agriculture and pharmaceuticals.
"We need to convene specialists and gain the public's
understanding on these matters. We need a forum for discussion
and exchanging views," he said.
Membership could be a boon for Thailand as competition heats
up from rival exports and manufacturing economies like Malaysia
and Vietnam, particularly in electronics, seafood and
agriculture.
It could also benefit its autos industry, which accounts for
about 10 percent of gross domestic product, and support
large-scale investments in assembly plants in Thailand from
Japanese carmakers like Toyota 7203.T and Honda 7267.T .
Thailand is a regional production and export base for the
world's top carmakers.
Thai Prime Minister Prayuth Chan-ocha said a comprehensive
study of the pact was needed.
"We have to look at everything carefully before making a
decision," he told reporters in Bangkok.
Thailand's expression of interest follows a marathon final
round of talks in Atlanta that capped off six years of complex
negotiations towards the biggest trade pact in a generation.
The Philippines has also signalled it may apply and
Indonesia's trade minister on Tuesday said his country had "no
choice" but to sign up, or risk losing its competitive edge.
Failure to come on board could hurt foreign investment flows
into Thailand as TPP members would build up a supply chain
within the bloc, Kbank Capital Markets wrote in a report.
"Thailand will need to weigh the benefits of the TPP against
domestic institutional capabilities to prepare for changes in
the new era of global trade," it said.
Thailand also needs to resolve its human trafficking problem
as the United States refuses to negotiate with countries in its
lowest tier for its Trafficking in Persons ranking, it said.
Thailand has been under military rule since a coup last year
and its trade-dependent economy is still struggling as exports
and domestic demand remain weak.