Local trade associations have called on the military-appointed government to sign the Thailand-Japan free trade pact to increase the country's competitive edge in Japan, a major export market, or it will lose out to rivals.

Sixteen associations, representing traders in various products from commodities to light industrial goods such as footwear and garments, expressed their concern through the Thailand Board of Trade yesterday. Their comments came one day ahead of the discussion on the Japan-Thailand Economic Partnership Agreement (JTEPA) to be held by the National Legislative Assembly today.

Pornsilp Patchrintanakul, the deputy secretary-general of the Board of Trade, said some rivals in Southeast Asia producing similar export goods as Thailand, such as Malaysia and the Philippines, had already signed similar deals with Tokyo. As a result, they have enjoyed low import tariffs under the trade agreements.

By contrast, Thai exporters are facing a double blow of high tariffs and the strong baht. The local currency, which has appreciated to 35 baht against a dollar, has eroded the country's competitiveness in this market.

To provide the government with a well-rounded tool to decide, he said the private sector had to explain how the free trade deal would benefit the country's overall economy after environmentalists and non-government organisations had provided information on its negative impact.

They urged that the Thai and Japanese governments remove tariff reductions on hazardous waste from the pact. The tariff cuts would facilitate trade in hazardous waste, which should be strictly controlled under international agreements.

"The private sector has studied the possibility of more hazardous waste being imported from Japan as a result of the FTA deal, as claimed by the NGOs, and found out that the FTA is unlikely to increase imports of such dangerous goods. The waste in this case would largely involve scrap, used vehicle spare parts and second-hand tractors, which are reusable," said Mr Pornsilp.

In any case, the private sector was willing to support the government's measures to control waste, through for example, safeguards and excise taxes, he said.

Vilai Kiatsrichart, president of the Thai Food Processors' Association, said that without the free trade pact, Thai food exports to Japan worth 90 billion baht would be unable to compete.

Mrs Vilai said the farm sector should benefit from the deal because the pact covered co-operation, and advanced food technology could be transferred to Thailand.

Dej Patchanasethpong, president of the Thai Garment Manufacturers Association, said the deal would enhance the country's potential as the textile and design hub of Asia since the country could work more closely with Japan on marketing in Asean.

Thailand's export value to Japan was US$16.4 billion last year, up 8.8 percent year-on-year.

Bangkok and Tokyo wrapped up the talks, and the signing of the pact was scheduled for April 13 last year, but it was postponed due to the April 2 election.