New Public-Private Joint Venture Law
05 September 2007

A new law regulating joint business ventures and business contracts between the state and private companies was approved by the Senate yesterday. The new bill is allegedly designed to strike a balance between flexibility and safeguards against corruption. The new law will replace 1992 legislation with a provision which requires projects of over 3 billion baht, instead of the 1 billion baht required under the 1992 law, to be reviewed by a special scrutiny and monitoring committee. Although the threshold over which projects of a particular value must be subject to special scrutiny has been increased, projects under the three billion baht threshold must still comply with a standard Finance Ministry review.

Time Running Out for Draft Retail Law and Foreign Business Act
01 September 2007

A member of the National Legislative Assembly has announced that unless the Draft Retail Law is submitted to the NLA for approval by the end of the month, the bill will have to be abandoned for the term of the interim government. Proponents of the Draft Retail Law bill have urged the current government to act urgently in considering and passing the act because the vacuum period is giving large retailers time to expand. Drafters have reportedly still not determined the definition of a “retail business” and are still considering whether to include franchises, such as most outlets of 7-Eleven, in the definition.

According to the same NLA member, the amendments to the Foreign Business Act are likely to fail in this session because the drafters are having difficulty defining what “management control” means.

Government Prepares for EU- ASEAN FTA Talks
01 September 2007

Thai private enterprises and legal experts have called for the government to prepare for negotiations for the EU-ASEAN free trade agreement. According to media sources the National Economic and Social Advisory Council hosted a seminar where issues posed by the trade agreement were discussed. The trade agreement may pave the way for more Southeast Asian agricultural products to be sold in EU markets. However there is concern that the trade agreement may require Southeast Asian nations to establish nuclear power plants or enforce intellectual property rights more strictly. Unofficial talks on the trade agreement are expected to begin toward the end of this year with official negotiations beginning early next year.

Ban on Alcohol Advertising Falls Short of Being Complete
01 September 2007

The National Legislative Assembly’s special alcohol control bill drafting committee decided at yesterday’s meeting to allow alcohol advertising to be broadcast on TV from midnight to 5 am. An image of the bottle in which the alcohol is sold may appear for up to three seconds before the commercial ends. Alcohol ads (except those which include images of bottles) may be aired from 10pm to midnight as long as they are followed by a seven second warning message. Alcohol advertisements broadcast with international live programs will not be affected. More than 1000 members of advocacy groups reportedly gathered outside the NLA in support of the 24 hour advertising ban.