Turbocharging Thailand’s Post-COVID Economic Recovery – Improving the Ease of Doing Business
By
British Ambassador to Thailand Brian Davidson
U.S. Ambassador to Thailand Michael George DeSombre
Australian Ambassador to Thailand Allan McKinnon PSM
German Ambassador to Thailand Georg Schmidt

The COVID-19 pandemic has exacted a devastating health and economic toll worldwide.

In Thailand, the public health threat has been well contained, with impressively low rates of infection and community transmission.

We congratulate the Royal Thai Government on its outstanding success in mitigating the public health effects of COVID-19.

But the economic impact has been severe, with Thailand expecting GDP to contract by 8 per cent in 2020. Thailand is far from alone in seeing economic contractions. Almost all countries now face harsh economic headwinds, as governments balance the complex health versus economy equation.

The pandemic has forced us all to find new, more efficient ways of operating.

As the saying goes, “from crisis comes opportunity.” Those countries which seize this opportunity will emerge from the crisis stronger and more resilient. Those which don’t will fall behind.

As an advanced middle-income country with sound policies, a diverse industrial landscape and a strategic location close to high growth markets, Thailand is well-placed to bounce back strongly from the economic downturn.

But there are steps Thailand could take to lock in a quicker, more sustainable growth path.

As Ambassadors, we cooperate closely with the Chambers of Commerce of our four countries (Australia, Germany, United Kingdom and United States), collectively known as the Foreign Chambers Alliance (FCA).

In total, FCA members represent more than 2,000 companies in Thailand – from SMEs to multinationals – and employ around one million Thai workers.

When we asked the FCA members what Thailand could do to develop a more attractive business environment, one common theme emerged: make doing business easier.

Based on direct feedback from our business communities, we respectfully propose 10 measures Thailand could implement now to improve the business environment and lay the foundation for a turbocharged post-COVID recovery.

For example, as a special measure during the pandemic, the Thai Customs Department has permitted the use of electronic documents when importing goods under the ASEAN-Australia-New Zealand Free Trade Agreement. This interim measure helps importers, exporters and most importantly, Thai consumers, allowing goods to reach the Thai market quicker and more cheaply.

Having shown that this new system works, it now needs to be standardised as normal practice.

This is just one small, simple measure. And it requires no more than Thailand formalising a measure that it has already introduced on a temporary basis.

According to our business communities, there are a number of further steps Thailand could take to streamline business practices and make Thailand an even more attractive destination for trade and investment.

Examples of such measures are moving government processes online, eliminating redundant regulations, simplifying access to visas, and improving the investment application process. The attached infographic represents in pictures each of the 10 measures in more detail.

Thailand has made very impressive gains in recent years in the World Bank’s Ease of Doing Business index, moving from 46th to 26th to 21st position in recent years.

By implementing the 10 measures the FCA proposes, we predict Thailand could quickly move into the top 10 of the World Bank index.

While this would be an impressive achievement, more importantly it would set the Thai economy on a long-term and sustainable growth trajectory.

COVID-19 has shown the importance of flexibility and adaptability in how governments and businesses operate.

To build a ‘new economy’ – and break free from the middle-income trap – Thailand’s business environment should incentivise innovation, competition and transparency.

The 10 measures we suggest would provide the basis for such an environment. They would not only make Thailand a more attractive place to do business, they would position Thailand for a post-COVID economic recovery that matches its successful health response.

(This Op-Ed was originally published in Bangkok Post newspaper on October 9, 2020. The Thai version of this Op-Ed was originally published in Krungthep Turakit newspaper on October 8, 2020.)

Celebrating a Shared History of Religious Freedom
By U.S. Ambassador to Thailand Michael George DeSombre

As an American who has lived overseas and raised my family abroad, I have been able to see my country more clearly and appreciate the freedoms enshrined in our Constitution. One of the most important of these freedoms is freedom of religion. Like the United States, Thailand has a long-standing tradition of respecting religious freedom. This year, Thailand celebrates the 142nd anniversary of the Edict of Religious Tolerance. First announced by King Chulalongkorn in 1878, the Edict says that whoever wishes to embrace any religion, after seeing that it is true and proper, can do so without any restriction, and that the responsibility rests on the individual. This powerful idea has been included in every subsequent constitution of Thailand.

In recognition of this important historical event, I will be hosting a roundtable today to provide a forum in which approximately 15 leaders from religious institutions, government ministries, civil society organizations and universities will reflect on Thailand’s long-standing respect for the right to freedom of religion and belief, and explore opportunities for and challenges to expanding inter-religious harmony in the present day.

The Edict came not long after the arrival of the first American missionaries to Thailand in the mid-1800s. These men and women of strong religious faith worked with their Thai brethren to establish medical institutions throughout the country such as McCormick Hospital – where the father of King Rama IX Prince Mahidol treated patients after returning from Harvard Medical School. They also built schools like Dara Academy – one of the first to educate girls in northern Thailand – as well as Payap University, which have trained a generation of Thai healthcare workers, lawyers, and clergy. These were men and women of different faiths, drawn together by a respect for religious freedom and the common call to improve people’s lives.

The forebearers of these men and women helped to shape the United States’ commitment to freedom of religion. In the seventeenth century, those who came to the shores of what is now the United States sought a new home where they could be free to worship as their consciences dictated. The early faith of these first immigrants – whom today we call Pilgrims – was the genesis for our belief in the freedom of religion, a belief that quickly grew to cover not only the many forms of Christianity but also Islam and Judaism as early as the mid-1600s. At the very foundation of our Republic, freedom of religion was established as a first principal, in the same breath as freedom of speech, the freedom to peacefully assemble, and the freedom to petition our government for a redress of grievances.

Waves of subsequent immigrants from around the world saw the United States welcoming many other religions, including Buddhists, who began arriving in the 1820s, with the first Buddhist temple built in San Francisco in 1853.

Americans continue to welcome people of all faith traditions, and we work to protect all faiths. As Americans, not only do we accept the faith of others, but we also oppose those who target others for their faith or who oppress religion for ideological reasons.

Today religion is under attack across the globe. Churches and mosques are torn down and people of faith are detained and forced to renounce their ethnic identities, cultural practices and religious faiths. More than eight out of ten people in the world today live in countries where not all are free to follow the faith of their own choosing. We must not yield to those who would control how we practice our religion.

Today the United States is taking the lead to protect religious freedom throughout the world. We believe that by embracing freedom of religion as a fundamental right, a country will grow stronger and flourish. By empowering people to pursue their own faith, countries like the United States and Thailand build foundations of tolerance and trust that benefit their societies. In such societies, interfaith cooperation flourishes and religious communities contribute significantly to social welfare and serve as a moral compass for their nations. Together, the United States and Thailand must continue to defend the right of people everywhere to freely practice their religion.

I am proud to champion a value held not only by Americans, but by people of faith across the globe, including here in Thailand, where you have opened your doors and hearts to those of diverse faiths.

(This Op-Ed was originally published in The Nation Thailand and ThaiPublica website. The Thai version of this Op-Ed was originally published in Isaranews Agency and ThaiPublica website on September 30, 2020.)

Building the Mekong-U.S. Partnership
By U.S. Ambassador to Thailand Michael George DeSombre

Having worked in the business world for over 20 years, I understand well the paramount importance of trusted partners in coming together to achieve a common goal. Whether you are negotiating a high-stakes business deal or building a regional power grid, success hinges on the integrity of those with whom you choose to work. Building on a relationship spanning two centuries, this week Thailand and the United States took an important step forward to work even closer together, elevating our already strong and dynamic relationship.

On Friday, along with Deputy Prime Minister Don Pramudwinai and officials from the four other countries in the lower Mekong basin, the United States launched the new Mekong-U.S. Partnership, which will build on decades of collaboration and $3.5 billion in U.S. assistance provided under the Lower Mekong Initiative over the past 11 years. In upgrading our efforts with the Mekong-U.S. Partnership, the United States will support even greater connectivity and development in the region for years to come. With more than $150 million in regional initiatives already in the pipeline, our cooperation through this partnership will expand to include the full range of economic, security, governance, health, and environmental efforts – a fitting approach to collectively address shared challenges in the region, from devastating drought to drug trafficking.

No other country is better positioned to reap the rewards of this enhanced partnership than Thailand, where our two countries came together over 200 years ago to foster a friendship based on trust, transparency, and mutual benefit. Thailand, already a regional center for trade and investment, has much to gain from a more resilient Mekong region with improved infrastructure and enhanced capacity to mitigate security, health, and environmental challenges. Working side by side last week, high level officials from our two countries signaled our mutual commitment to making that a reality through this new partnership.

Mekong nations, including Thailand, deserve reliable partners like the United States to support their development aspirations. Foreign investment should facilitate high-standard infrastructure projects that bring economic prosperity and create new jobs, utilize local—not imported—talent, and have zero-tolerance for predatory contract arrangements. Such support shouldn’t come with corruption, burdensome debt, or exploitative concessions. For example, the U.S. International Development Finance Corporation has already invested $1 billion in Southeast Asia and aims to invest and catalyze billions more in Mekong infrastructure in the coming years. In addition, the U.S. Infrastructure Transaction and Assistance Network will bolster the ability of countries in the region to implement sustainable, transparent, and high-quality infrastructure projects that bring the most value to the populations of the Mekong region.

Thai leaders understand these tradeoffs. I recently spoke with Thailand’s newly appointed Energy Minister, Mr. Supattanapong Punmeechaow, who outlined Thailand’s vision to become a regional energy hub. The U.S. will support this vision through the Asia Enhancing Development and Growth through Energy (EDGE) initiative to increase regional energy trade, access to capital, and private sector engagement. These initiatives help Thailand pursue development that will benefit Thai people—not foreign profiteers or coercive interests.

It is not just the United States that offers a principled partnership. Friends and partners like Australia, Japan, the Republic of Korea, and India have come together to bolster the Mekong region’s security, economic growth, environmental protection, good governance, and cooperative values through dynamic new relationships. For example, the Japan-U.S.-Mekong Power Partnership provides Mekong countries with resources to increase regional electricity trade, with an initial U.S. commitment of $29.5 million. Through this initiative, Thailand, Japan, and the United States are working with our Mekong partners to build an interconnected energy network and competitive power markets that will unlock the economic potential of the region.

Our new partnership recognizes that overcoming the complex challenges facing the Mekong region will require strong cooperation. The Mekong-U.S. Partnership will continue to safeguard the health of the Mekong River, which supports the livelihoods of 60 million people. Accordingly, the United States will maintain support for the Mekong River Commission (MRC) and the sustainable development of this important river. We strongly support sharing of year-round water data using the MRC’s existing platforms, including flow release data from upstream infrastructure projects. When managing a river that transcends national boundaries, transparency is key. While the Mekong River brings life, it can also be a conduit for smuggling by transnational criminal organizations. To help our Mekong friends counter these cross-border crimes, the United States is providing $55 million, complementing ongoing and planned assistance from Australia, to fight the trafficking of people, drugs, natural resources, and wildlife, including crimes linked to the surge in the production of methamphetamines.

This past year our nations have been reminded that we must work together to successfully overcome the challenges of our time. Some countries have exploited this period of uncertainty for their own advantage. The United States recognized the opportunity to work together to build a stronger, more prosperous Mekong region. As with any ground-breaking venture, if we endeavor to achieve success during these unprecedented times, then our two nations, along with partners in the region, must forge new agreements that affirm our enduring friendship and demonstrate our commitment to a united future.

(This Op-Ed was originally published in Bangkok Post newspaper. The Thai version of this Op-Ed was originally published in Thai Rath website on September 15, 2020.)

Na-ma-sa-gan.

Thank you to the Venerable Professor Dr. Phra Rajapariyatkavi for your warm welcome, for sharing your beautiful campus with me, and for inviting me to speak to you all today.

Thank you also to Vice Rector Phra Ajaan Sawai Chotiko and his team for arranging my visit.

I am deeply honored to be President Trump’s personal representative to the Kingdom of Thailand, and to address you in that role on a subject that is dear to the President, as it is to many Americans: religious freedom.  As an American who has lived overseas and raised my family abroad, I have been able to see my country more clearly and appreciate the freedoms enshrined in our Constitution. One of the most important of these freedoms is the freedom of religion. “Congress shall make no law respecting an establishment of religion or prohibiting the free exercise thereof.” Those are not my words, but the words of our founding fathers – written in 1789 as the First Amendment of the U.S. Constitution. At the very foundation of our Republic, the founding fathers enshrined in our Constitution freedom of religion as a first principal, in the same breath as freedom of speech, the freedom to peacefully assemble, and the freedom to petition our government for a redress of grievances. The United States has stood for religious liberty from its founding, and even before.

The first Americans came to the new world in the seventeenth century to be free to worship as their consciences dictated, escaping a European continent that at that point in its history was still dominated by establishment churches and prescribed religion. The early faith of these first Americans – whom today we call Pilgrims – was the genesis for our belief in the freedom of religion, a belief that quickly grew to cover not only the many forms of Christianity but also Islam and Judaism as early as the mid-1600s.

With further waves of immigrants from around the world, the United States welcomed adherents of many other religions, including, of course, Buddhists, who began arriving in the 1820s, with the first Buddhist temple built in San Francisco in 1853. My own ancestors were Huguenots, minority Protestants in Catholic France. My ancestors were persecuted for their faith and fled to Germany rather than convert to Catholicism at about the same time as the first Pilgrims came to the American colonies. In the early 1900s, my ancestors immigrated to the United States, weaving their own immigrant story into the canvas of American history. Many of the new immigrants coming to the colonies were moving to the new world to establish communities of faith that were oppressed in their home countries.

Four of our first states, Rhode Island, Connecticut, New Jersey, and Pennsylvania, were specifically founded to protect religious freedom – some were Catholics escaping imposed Protestantism, some Protestants escaping imposed Catholicism, but all confident in their belief that they would be able to freely practice their religion in the land that would become the United States of America. It was this experience of religious liberty that encouraged our founding fathers to ensure that no religion would be given preference over any other, and that all people would be free to practice the religion of their choice, or none at all.

Thomas Jefferson – the author of the American Declaration of Independence and our third President – perhaps captured this sentiment best when he said, “the subject of religion . . . is a matter between every man and his maker, in which no other, and far less the public, has a right to inter-meddle,” adding that, “It does me no injury for my neighbor to say there are twenty gods, or no God.” Thomas Paine, one of Jefferson’s colleagues, explained why this was so necessary, writing, “Spiritual freedom is the root of political liberty. . . . As the union between spiritual freedom and political liberty seems nearly inseparable, it is our duty to defend both.” Since that time, Americans have continued to welcome people of all faiths to the United States to live and work side by side and to practice, or not practice, their faith. Throughout our country’s history, we have always strived to live up to this ideal.  We have worked to protect all faiths, and today the United States is taking the lead to protect religious freedom throughout the world.

We will continue to push for this freedom.  We believe it is a fundamental right.  We believe that by embracing freedom of religion, a country will grow stronger and flourish. By empowering people to pursue their own faith, countries like the United States and Thailand build foundations of tolerance and trust that benefit their societies.  In such societies, interfaith cooperation flourishes and religious communities contribute significantly to social welfare and serve as a moral compass to their nations.

Thailand first welcomed Americans in the mid 1800s.  These men and women of strong religious faith worked with their Thai brethren to establish medical institutions throughout the country such as McCormick Hospital – where the father of King Rama 9 Prince Mahidol treated patients after returning from Harvard Medical School. They also build schools like Dara Academy – one of the first to educate girls in northern Thailand – as well as Payap University which have trained a generation of Thai healthcare workers, lawyers and – yes – clergy. These were men and women of different faiths, drawn together by a respect for religious freedom and the common call to improve people’s lives in God’s name. And as Americans, not only do we accept the faith of others and our call to serve others, but we also oppose those who target others for their faith, whether that be terrorists or governments that oppress religion for ideological reasons. More than eight in ten people in the world today live where they cannot practice their faith freely. Together, we must continue to defend the right of people everywhere to freely practice their religion.

This is a top priority for the United States. As Secretary Pompeo said at the July 2019 Ministerial to Advance Religious Freedom, “The protection of religious freedom is central to the Trump administration’s foreign policy, and protecting this human right is an essential part of who we are as Americans.”  The Ministerial was the largest religious freedom event of its kind in the world, with more than 1,000 civil society and religious leaders, and more than 100 foreign delegations invited.

President Trump built on this landmark gathering by creating the International Religious Freedom (IRF) Alliance on February 5, 2020, to coordinate the efforts of governments and civil society to: advance the right of freedom of religion for all, including the right to not believe; and to protect religious minorities from persecution. Another group that addresses religious freedom in a way that I think is particularly relevant to Thailand is the International Contact Group on Freedom of Religion or Belief, which brings together a diverse group of nearly 30 countries and international organizations committed to protecting and promoting freedom of religion or belief in a more informal setting. The International Contact Group on Freedom of Religion and Belief is co-hosted by Canada and the United States and meets regularly to discuss strategies to protect and promote Freedom of Religion or Belief internationally. We look forward to welcoming likeminded countries that care about religious freedom to join the International Contract Group to advance its vital mission. I am proud to champion a value held not only by Americans, but by people of faith across the globe, including here in Thailand, where you have opened your doors and hearts to those of diverse faiths.

This year, Thailand celebrates the 142^nd anniversary of the Edict of Religious Tolerance, announced by King Chulalongkorn in 1878.   The Edict was in response to the work of Christian missionaries in Thailand at the time, and was a major turning point in the definition of religion in Thailand.  Because of it, Thais and foreigners of faith could continue their work for the benefit of the Thai people. A part of the Edict of Religious Tolerance says that whoever wishes to embrace any religion, after seeing that it is true and proper, is allowed to do so without any restriction, and that the responsibility rests on the individual.  This is a powerful ideal and was quite forward looking at the time.  Since then, every constitution of Thailand has recognized religious freedom. This respect for religious freedom and individual responsibility is a value Thais and Americans share and cherish and it has made our two countries stronger and better.

Turning to you assembled here today, I commend you as you prepare to travel oversees to serve in the numerous Thai Buddhist temples around the world, including over 100 Thai temples in the United States.  This is not an easy calling.  You have had to learn a new language and you will have to adapt to living in a new culture. Some of you may even experience snow for the first time! You should be proud of your dedication and hard work. Our diplomats at the Embassy are familiar with the process of learning and adapting to new cultures. We know the joys of meeting new people and being accepting of new beliefs. I hope you will see the best of America.  That you will experience the kindness and compassion that Americans are known for. I hope you will have the opportunity to experience interfaith community with other faith leaders. That you can share your faith and work side by side with others to achieve positive results. I hope you will get the opportunity not only to work together but also to share a meal and socialize with Americans. And I hope you come to love America as much as I have come to love Thailand.

Thank you.

On behalf of the United States Mission to the Kingdom of Thailand, I extend our warmest wishes to Her Majesty Queen Sirikit The Queen Mother for health, happiness, and prosperity on the auspicious occasion of Her Majesty’s 88th birthday.

Her Majesty has been an unwavering friend of the United States and instrumental in strengthening the enduring partnership between our two great nations.

From the air, I could see the mighty Mekong snaking through the jungle, its light-brown waters contrasting with the green canopy of the mountains that come almost to the river’s edge.  Even from a helicopter hundreds of feet above the ground, it was impossible not to be awed by the river, and I feel lucky to have seen it during the height of the rainy season.  While the river’s flow is still below average for this time of year, it has recovered from previous months when it was a shadow of its former self, drought thrust upon it by the control of up-river dams.    This week, I was privileged to travel to the Golden Triangle with Royal Thai Police Narcotics Suppression Bureau (NSB) Commissioner Lieutenant General Chinnapat Sarasin and our close partners from the Royal Thai Government, visiting the Doi Chang Moob army outpost and other viewing areas, where I was able to look across the river into Myanmar and Laos.

Unfortunately, the beauty of this region is often overshadowed by news and reports of the trafficking of humans, wildlife, and especially drugs.  What is less well-known is the tremendous cooperation between U.S. and Thai law enforcement, and the progress we are making to protect the citizens of our two countries.  Despite the challenges, together we have countered criminal organizations through joint investigations and enforcement operations.  In recent years, Thailand has seized more methamphetamine than any other country in East and Southeast Asia, confiscating 116 tons in 2018 and 2019.  Seizures of methamphetamine tablets (yaba) tripled over a five-year period from 113 million in 2014 to 381 million in 2019, according to the UN Office on Drugs and Crime (UNODC).  During that same time-period, seizures of crystal meth increased dramatically from 1,017 kg in 2014 to 17,077 in 2019.  I am proud of the assistance the United States has provided our Thai allies to help them achieve these milestones.  Yet the job is far from done.

In its May 2020 Synthetic Drugs in East and Southeast Asia report, UNODC noted that methamphetamine remains the primary drug of concern in Thailand.  Law enforcement made record tablet and crystal meth seizures across the Mekong in recent years and estimates value the regional market at $61 billion per year, which is nearly as much as the entire GDP of Myanmar.  However, increased seizures are a sign not only of more effective policing but also of rising production.  We see evidence of this in the value of drugs.  The street price of methamphetamine in Thailand actually decreased by two-thirds from 2010 to 2020, despite the dramatic increase in seizures, while the purity of the pills remains as high as ever and, in some cases, has even increased.  Synthetic (man-made) drugs such as methamphetamine are cheaper and less labor-intensive than tending and harvesting fields for plant-based drugs, thus increasing the production capacity, profitability, and appeal for drug trafficking organizations.

And it is not only the drugs themselves that present a problem but also the precursor chemicals that make the drugs possible.  To put it simply, there would be no methamphetamine tablets without the precursor chemicals used to make them.  Thai authorities seized 5,550 kg of sodium cyanide in 2014, a vital precursor for the production of methamphetamine; by 2019, that volume had increased to 99,750 kg.  This is only the tip of the iceberg.  We know many other precursor chemicals are slipping through, coming from beyond Southeast Asia.  Transnational criminals are exploiting the border areas that Myanmar and Laos share with the People’s Republic of China (PRC) to traffic chemicals for drug production – chemicals primarily originating in the PRC.

Looking across the Mekong River toward the Kings Romans Casino in Laos’ Golden Triangle Special Economic Zone, the influence of the PRC’s One Belt One Road Initiative was evident as I witnessed new construction occurring despite the impact of COVID-19.  The U.S. Treasury Department sanctioned Kings Romans Casino because the casino laundered money and trafficked drugs, among other serious crimes.  Casinos are often linked to national banking institutions, which can then be used by nefarious actors to infiltrate regional banking systems in Hong Kong and elsewhere.  Illegal enterprises, such as money laundering and drug trafficking, destabilize border security, strain public health services, undermine legitimate business, and increase the opportunities for corruption as the rule of law breaks down.  And there is, of course, a very human side to this tragedy.  In 2019 alone, more than 210,000 Thais were admitted to hospitals for drug treatment.

Close international law enforcement partnerships are the proven method to successfully combat transnational crime, and the U.S. government is in it for the long-haul.  There is a phrase in the United States – you must put your money where your mouth is – which means you can’t just talk about a problem, you also have to act.  And the United States has been acting!  The United States has had a federal drug law enforcement presence in Bangkok since 1963 and in Chiang Mai since 1971.  Since 1998, the DEA has been supporting and working alongside our Thai law enforcement counterparts through the Sensitive Investigative Unit (SIU) – the DEA’s flagship overseas program that demonstrates the level of commitment the U.S. government maintains for Thailand.  Thailand is one of just 15 countries worldwide and the only country in Asia with an established SIU.  DEA agents and intelligence analysts are embedded in the unit and act as agent advisors to provide investigative support, operational funding, intelligence sharing, and technical assistance to our Thai partners.  The SIUs are successful because U.S. and Thai law enforcement officers work side-by-side to develop and share intelligence in order to make arrests and disrupt and dismantle major international drug-trafficking organizations.

A recent example of our commitment to this effort was February’s opening ceremony for a multi-million dollar all-weather training facility at the Royal Thai Police Central Police Tactical Training Center in Nong Sarai.  The project was jointly funded by the U.S. Department of State and the U.S. Department of Defense and serves as a police training center for law enforcement agencies throughout ASEAN.  The U.S. government will help Thailand open a second training facility in Mae Taeng, Chiang Mai, on a Royal Thai Border Patrol Police base this autumn, in addition to providing a counter-narcotics training and equipment program.  Concurrently, the U.S. Government has donated more than $600,000 worth of equipment to Thai law enforcement agencies, including motorcycles, trucks, cameras, and investigative tools through the U.S. Mekong Fund.  In the coming weeks and months, we will be donating additional surveillance equipment, tactical clothing, trucks, and boats and trailers, for a combined total donation of $1.1 million, to help the Royal Thai Police fight transnational crime and drug trafficking.  These numbers are impressive, but not nearly as important as the impact they have on people’s lives.  Every dollar spent, every yaba pill seized, helps keep communities safe.

The United States and Thailand are bound not only as Treaty Allies but also as friends.  As I visited the Golden Triangle, I was struck by the vast terrain of the Mekong border area and the challenges our Thai law enforcement partners face in combatting the regional drug trade.  As your ally, I say to my Thai friends that the commitment of the U.S. Government to support you in this fight is steadfast and enduring.

(This Op-Ed was originally published in ThaiPublica and Chiang Rai Report websites. The Thai version of this Op-Ed was originally published in ThaiPublica, Chiang Mai News and Chiang Rai Report websites on August 3, 2020.)

Message from U.S. Ambassador Michael George DeSombre
on The Occasion of the 68th Birthday of
His Majesty King Maha Vajiralongkorn Phra Vajiraklaochaoyuhua
July 28, 2020

On the occasion of the 68th birthday of His Majesty King Maha Vajiralongkorn Phra Vajiraklaochaoyuhua, the United States Mission to the Kingdom of Thailand offers our most sincere congratulations. The United States remains deeply committed to advancing the long-standing U.S.-Thai partnership in security, trade and investment, and health. Together, our nations will emerge stronger from the global pandemic, ready to further deepen our partnership for the mutual benefit of our two peoples. We wish His Majesty and the Royal Family good health and happiness.

Upholding the Sovereign Rights of All

By U.S. Ambassador to Thailand Michael George DeSombre

As the world focuses on the fight against COVID-19, the People’s Republic of China (PRC) is exploiting others’ distraction to extend its bullying campaign in the South China Sea. The tactics of coercion, subversion and disinformation used in the South China Sea raise questions on how the PRC may use these tools elsewhere in the Indo-Pacific region.

On April 1, Beijing declared a new maritime law enforcement campaign called “Blue Sea 2020.” Its announced purpose was to “enhance marine environmental protection,” but its real purpose was suggested a day later, when a PRC ship sank a Vietnamese fishing vessel. Beijing has bolstered its military bases in the contested Spratly Islands with new aircraft deployments and “research stations,” dispatched an energy survey vessel and armed flotilla to intimidate Malaysian offshore oil and gas work, and provoked Indonesia by sending hundreds of fishing boats and escorts into waters off Indonesia’s Natuna Island. Beijing warned that anyone bucking its ridiculous claims to sovereignty over the South China Sea is “doomed to fail.”

These actions fit a pattern. Where the PRC goes, it can increasingly be expected to flout the rules, make up its own facts, and break its promises. Thais are now seeing this clearly along the Mekong River, where a historic drought belies earlier PRC promises that they will share the river’s bountiful water resources with countries downstream. Instead, we see evidence that the PRC’s spree of upstream dam building has enabled its hydropower companies to control downstream flows for greater profits. The Mekong River’s water levels, currently the lowest in a decade, are linked to the PRC’s decision to shut off water upstream. The PRC’s plans to blast and dredge riverbeds have correctly been opposed by the Thai government. Yet, PRC authorities still operate extra-territorial river patrols along the Thai border, and we see a push to craft new Beijing-directed rules to govern the river, thereby weakening the Mekong River Commission – the only treaty-agreed multilateral forum covering the Mekong River. We support the Thai people and the Thai government’s call for transparency and accountability from the PRC to prevent a repeat of last year’s devastating drought and protect the well-being and livelihoods of Thai communities.

Similarly, the PRC’s actions in the South China Sea also have a direct impact on Thailand. Thailand is not a South China Sea claimant, yet Thailand’s interests in free navigation within the SCS are among the most pronounced in the region. Consider this: the value of Thailand’s trade in goods regularly exceeds 80 percent of GDP. That’s nearly a half trillion U.S. dollars’ worth of goods. And much of that trade passes through these very waters. Thailand’s farmers, its manufacturers, and its consumers rely on free navigation of these waters, which facilitates the trade that keeps the Thai economy humming. The reckless actions to assert control over the South China Sea threaten to undermine regional stability and limit the freedom of navigation that has been a key driver of growth for Thailand and the region.

The PRC’s maritime claims in the South China Sea have no basis in international law. Some even lack any basis in reality, such as its absurd insistence that James Shoal is the southernmost tip of China. James Shoal, which is more than 1,000 miles from China, is fewer than 50 miles from Malaysia—and 70 feet underwater, so it isn’t territory at all. Beijing’s sovereignty claim appears to derive from an old British atlas and a translation error suggesting the underwater shoal was actually a sandbank above the waves. It isn’t – yet Beijing continues pushing maritime misinformation.

Southeast Asian Leaders issued a strong statement at the June 26 ASEAN Summit that South China Sea disputes must be resolved in line with international law, including the United Nations Convention on the Law of the Sea (UNCLOS). The message was timely, given the July 12 anniversary of the powerful 2016 ruling by the South China Sea Arbitral Tribunal which rejected Beijing’s maritime claim as a violation of international law. The PRC, as party to UNCLOS, was obligated to comply, but instead dismissed the ruling as a “scrap of paper.” Beijing meanwhile put advanced missiles and aircraft on contested outposts in the Spratlys, in clear violation of Xi Jinping’s 2015 pledge to a White House press conference not to militarize these features.

Beijing’s conduct in the South China Sea reflects its complete disregard for the sovereign rights of other nations. Its arbitrary fishing bans and harassment of ships at sea block Southeast Asian nations from accessing the resources off their coasts, including some $2.5 trillion in oil and gas and some of the world’s richest fisheries. This is the patrimony of Southeast Asian nations, the lifeblood of their coastal communities, and the livelihood of millions of their citizens.

At the root of all these actions is a belief within the PRC that “might makes right,” and that rules don’t apply to them. Beijing’s repeated use of economic coercion against smaller countries – whether letting Philippine agricultural imports rot on Chinese docks to protest Manila’s pursuit of arbitration over the South China Sea, implementing sanctions against Norway for the Nobel Committee’s awarding of its Peace Prize to Liu Xiaobo, or cutting trade with South Korea for deploying the THAAD missile defense system to strengthen its deterrence vis a vis North Korea – reveals their world view clearly. So did the words of Beijing’s top diplomat, Yang Jiechi, in 2010 when he told his Southeast Asian counterparts: “China is a big country and other countries are small countries, and that’s just a fact.”

All this shows what they think of multilateralism. Yang Jiechi made his comment at an ASEAN Regional Forum meeting, after all, which is meant to foster cooperation among countries irrespective of military or economic power. This sort of subversion of multilateral forums and the principles they are meant to uphold – free and fair trade, transparency, openness, respect for rule of law – are also seen in Beijing’s actions toward the World Trade Organization, International Civil Aviation Organization, Interpol, and the UN.

International laws and norms have brought tremendous prosperity to East Asia – and in fact much of the world — over the past half century. Supporting a free and open rules-based order and upholding the sovereign rights of all states regardless of size, power, and military capabilities, will ensure that prosperity continues for the next half century.

(This Op-Ed was originally published in Khaosod English website and The Thai version was originally published in Khaosod newspaper on July 14, 2020.)

Safe, Reliable, Secure and Cost-Effective Supply Chains Belong in Thailand

By U.S. Ambassador to Thailand Michael George DeSombre

“You only find out who is swimming naked when the tide goes out,” the famous investor Warren Buffett once said.  Unfortunately, the tide went out for global companies in early 2020 as they were slammed by the coronavirus-induced lockdowns that spread from China to shut down or limit operations in most countries around the world.   This crisis revealed vulnerabilities in the supply chains of many global companies.

Crisis, however, can spur positive change in the corporate world.  Many businesses in the United States, Thailand and around the world are looking to a brighter future, and planning to emerge from this crisis stronger and more resilient than they were before.  As a key part of that process, companies are reexamining their global business operations, investments and supply chains to ensure they are safe, reliable and secure while also being cost-effective.

Safe supply chains run through countries that are friends and allies who share a commitment to transparency, individual opportunity, and markets free from domination by the state.  Reliable supply chains run through countries with a free and robust media and an independent judiciary who share a commitment to the rule of law and the sanctity of contracts.  And secure supply chains exist in countries where companies are secure from cyber theft or the theft of intellectual property.

The commitment to freedom, the rule of law, and the independent legal system in the United States make for a strong, attractive investment climate, attracting companies from around the world. However, for companies seeking closer access to overseas markets, there are also clear choices when deciding where else to invest in the region.  In the Indo-Pacific region, American companies are looking much more at the countries of ASEAN as cost-effective locations for supply chains.  Future prospects look even brighter, as ASEAN will become one of the world’s fastest growing regional markets with over 50 percent of its population under age 30.  Right in the middle of ASEAN is mainland Southeast Asia’s largest transportation and logistics hub:  Thailand, the oldest treaty ally of the United States in Asia and the only Major Non-NATO Ally of the United States in mainland Southeast Asia.

This year marks the 187^th anniversary of the signing of the United States Treaty of Amity and Commerce with the Kingdom of Thailand, which marks the beginning of the U.S.-Thai commercial relationship.  That relationship has flourished. Hundreds of U.S. companies, employing tens of thousands of Thai nationals, have invested in Thailand to the mutual economic benefit of both our nations.  Many of our companies are recognizable names like Citibank, Chevron and Ford that have been here for decades and continue to believe Thailand is the right place to be.

But many others have come here recently or have recently expanded their operations in Thailand.  A US-based advanced materials company recently chose Thailand as the location to establish a new manufacturing complex, after analyzing 24 different options in the region. Guardian Glass, a global leader in energy-efficient glass for buildings, automotive and other sectors, has produced glass in Thailand since 1991; Guardian, which chose to establish its regional Asia-Pacific Headquarters in Bangkok last year, was attracted to Thailand because of its strong reputation for welcoming foreign investors, growing domestic economy, and location as a platform for global exports.  Alliance Laundry also opened its latest international factory in Thailand last year, basing its decision on the advanced transportation infrastructure available in the Eastern Economic Corridor (EEC), attractive investment incentives, and competitive edge that Thailand’s record of protecting intellectual property gave it over other countries in the region.  Another company, Seagate, with a presence in Thailand for more than 30 years, today works with Thai universities to develop local engineering and technical skills that help the company maintain its position as a global leader in the manufacture of high-tech hard drives and other cutting-edge data storage products.

When I speak to these companies about why they chose Thailand they tell me it is because of the Safe, Reliable and Secure nature of manufacturing in Thailand while also being competitive with other locations in Asia in the cost of land, labor and living.  As an example, average monthly manufacturing wages in Thailand are more than 50% lower than in China according to the most recent available data.  Also, establishing operations in Thailand is simple.  In February, Thailand was ranked Number 1 by U.S. News and World Report’s 2020 survey of the best countries in which to start a business.  It based this ranking on five attributes:  affordability, bureaucracy, low manufacturing costs, connectivity, and access to capital.  Thailand is also renowned for the quality of its health care system, which has performed admirably during the COVID-19 pandemic, as well as its range of world-class international schools.  It has some of the most diverse and beautiful cultural and tourist sites in the world.  And the food speaks for itself.  It is simply a wonderful place to live, both for individuals and for families.

Thailand has demonstrated its business-friendly regulation through its handling of the COVID-19 pandemic.  U.S. businesses in Thailand have been uniform in their praise of the Royal Thai Government’s flexibility in allowing manufacturing facilities to continue uninterrupted while Thailand implemented otherwise stringent public health limitations to flatten the curve of infections.  U.S. businesses have similarly appreciated the efforts of the Royal Thai Government to provide advance notice of restrictions which permitted appropriate contingency planning.  In these areas, the Kingdom of Thailand has been a stand-out among countries in Asia.

I also want to commend the Royal Thai Government for assistance and support of Thailand’s Board of Investment and the incentives available in the Eastern Economic Corridor (EEC) which have been critical in attracting companies to locate their manufacturing activities in Thailand.  Companies in the EEC have taken advantage of its proximity to Laem Chabang, the fourth largest port on the Asian continent, to export goods to the ASEAN regional market and beyond.

Since I was chosen as the first United States Ambassador to the Kingdom of Thailand to come from the private sector, I have engaged extensively with American and Thai businesses on how we can strengthen the U.S.-Thai economic partnership.  At this pivotal moment in history, as the world grapples with the outcomes of the COVID-19 pandemic, the United States wants to ensure that Thailand seizes the share of global supply chains that it deserves.

Thailand can help achieve this by broadcasting to the international business community its continued commitment to free enterprise, fair trade, open markets, transparency, and honest business practices.  It can also bolster the attractiveness of its labor force by doing many of the things we are trying to do in the United States:  Strengthen vocational schools programs; reform curricula to focus on science, technology, engineering and math (STEM) skills; offer job retraining and “lifelong learning” to improve the skills of those already in the workforce.

For those jobs that require special expertise that might not be in adequate supply locally, Thailand should allow companies to hire foreign nationals with special expertise.  Doing so will facilitate transfers of advanced knowledge to Thai citizens and broaden the pool of Thais with skills in high demand, enabling Thais, rather than foreigners, to fill such jobs in the future.

Thailand can take advantage of the necessary pivot to telework and digital business that occurred during the coronavirus response.  Thailand should support and enable greater digital business across all sectors of the economy, from finance to agriculture, and secure that business with strong cyber security protocols.  Protecting companies from cyber theft will also highlight Thailand’s advantages over countries that are the source of such attacks.  Thailand can also demonstrate its commitment to facilitating digital business by joining the APEC Cross Border Privacy Rules System to enable the free flow of data and ensure protection of personal information.

Finally, Thailand can maintain and further develop diversified sources of energy and ensure cost-effective and full utilization of transmission capacity to supply reliable, affordable energy domestically.  Thailand has a great opportunity with one of the largest undeveloped natural gas fields in the Gulf of Thailand to provide very inexpensive natural gas for many generations to come.  Also, in the short term, efforts to develop Thailand into a hub for the trading and transport of energy in the region would contribute substantially to the long term stability and affordability of energy supply to Thailand’s economy.

“The business of America is business” said President Calvin Coolidge.  In this day when free enterprise is once again pitted against state-dominated economies, it is important to remember the power of American free enterprise.  I would close by quoting the first U.S. President to visit Thailand.  President Ulysses S. Grant commented on his visit to Thailand in 1879; “I have never seen anything that interested me more than [Thailand].”  I echo the words of President Grant and emphasize that the Kingdom of Thailand remains open for business during these challenging times and Thailand is a safe, reliable and secure place to locate a company’s supply chain.  I look forward to collaborating with the Royal Thai Government and Thai companies to further strengthen the U.S.-Thai economic and commercial relationship that has flourished so well since its beginnings in the 1800s.

(The Thai version of this Op-Ed was originally published in Prachachart Turakij newspaper on May 23, 2020.)

Saving the Mekong, the Economic Lifeblood of an Entire Region

By U.S. Ambassador to Thailand Michael George DeSombre

I first heard about the beauty of the Mekong River (or Mae Nam Khong) long before I moved to Asia.  American and Thai people share a common respect for our rivers.  I grew up near the Mississippi River, which plays a huge role in the folklore of America and has been an economic lifeline throughout our history.  In the language of the Native Americans who named it, Mississippi means “Father of Waters.”  It’s a reflection of our affinity that Mae Nam in Thai means “Mother of Waters.”

The Mekong is not the property of any one country.  It runs through China, Myanmar, Laos, Thailand, Cambodia, and Vietnam, bringing with it nutrients and life itself.  Its sediment sustains fish that swim in it and fertilizes the soil along its floodplains.  Those fish and soil nourish the seventy million people who call the lower Mekong region home.

This past year, lower Mekong countries experienced the worst drought in a decade.  Though there might be many contributing factors for the drought, a recent study shows that the Mekong is choked by a spree of dam building upstream that disrupts downstream flows.  The river has been at its lowest levels in many decades – a gauge in Chiang Saen, Chiang Rai province, recorded its lowest level ever last year, despite satellite data indicating plentiful water available in upstream China.  This raises important questions, including why more water did not flow from China when the Mekong countries were in great need.

Thai civil society organizations have raised concerns about the PRC’s efforts to dam the river and blast the stretch of it between Thailand and Laos, but are lectured with promises of “win-win solutions” that never materialize.  The Royal Thai Government noted these concerns, halting plans to blast and dredge parts of the river on the Thai border, raising water concerns directly with the PRC, and calling for greater scrutiny of dam operations along the Mekong.  We support the Thai people and the Royal Thai Government’s efforts.

More Than Just Water

However, scarce water resources are only part of the problem afflicting Thailand’s Mekong border region.  Criminal groups, including some based in neighboring special economic zones and casinos, use the Mekong as their major artery to traffic drugs, wildlife, and even people.  The United Nations Office on Drugs and Crime (UNODC) confirms that transnational organized crime syndicates have moved into the Golden Triangle, increasing the production and transport of illegal drugs from sites across the Mekong in Shan State, Myanmar and laundering their profits through the  regional casino industry.  The UNODC estimates the value of transnational organized crime in the Mekong region to be over $100 billion annually, with human trafficking believed to account for over $9 billion.  The PRC  has cited combatting organized crime as a reason for its extraterritorial river patrols in Laos and Myanmar, although it has not been able to stem the flow of precursor chemicals from the PRC to Myanmar which fuel the methamphetamine epidemic in Asia and much of the violence and crime in the Golden Triangle. The region’s surge in transnational crime has caused local communities to fear the loss of security in addition to their culture and way of life.

Friends, Partners, and Allies

The United States is helping Thailand protect its borders and pursue a safer and more prosperous future for the Thai people.  Since 1963, the U.S. Drug Enforcement Administration (DEA) has supported the Royal Thai Government’s efforts to stop the smuggling of controlled substances into Thailand, the United States, and the international market.  Earlier this month, the DEA assisted an operation against five drug trafficking networks with money laundering operations worth over 3 billion Baht.  In 2019, the U.S. government supported Thai law enforcement in seizing over nine tons of methamphetamine and 43 million yaba pills.  The Federal Bureau of Investigation, the Department of Homeland Security, United States Agency for International Development (USAID), and the State Department are doing their part to combat human and wildlife trafficking and secure Thailand’s borders.  Last year, Secretary of State Pompeo announced a further 420 million Baht to counter transnational crime and trafficking in the Mekong region.

Secretary Pompeo also announced approximately 60 million Baht for the Mekong Water Data Initiative to empower Mekong researchers to share data on water flows.  Through the SERVIR-Mekong program, an initiative between USAID and the U.S. National Aeronautics and Space Administration (NASA), publicly available satellite data will help the lower Mekong governments reduce vulnerability to drought, flooding, and transboundary water competition exacerbated by upstream dams.  Last month, the Mekong River Commission launched the Drought Early Warning portal, an online platform co-developed with SERVIR-Mekong, that lower Mekong countries can use as an early warning system to forecast and monitor drought in the region.

These are just a few of the many initiatives we are implementing jointly with the Royal Thai Government and lower Mekong countries to uphold the rule of law, combat transnational crime, and protect  water resources through scientific data that promotes honest discussions and resolutions on how to equitably distribute water resources.

To the Next 200 Years of Friendship

The United States has been Thailand’s stalwart friend for the past 200 years, and we will remain friends for the next 200 years.  In 1863, when the Mississippi was finally free from the burdens of war, President Lincoln said: “The Father of Waters again goes unvexed to the sea.”  It is our wish that Thailand’s Mother of Waters again goes unvexed to the sea, unencumbered by upstream troubles.

(The Thai version of this Op-Ed was originally published in Krungthep Turakij newspaper on April 25, 2020.)