- May 4, 2021
- 2,761
| To: <Ministry of Foreign Affairs and Trade of the Commonwealth of New Zealand> Basedcnt From: <Sarabun@mfa.mail.go.th> Subject: Proposal for the Treaty of Comprehensive and Equitable Raw Material Access (TCERMA) between Thailand and New Zealand Security Type: NSST 1.0 Architecture |
To the Ministry of Foreign Affairs and Trade of New Zealand,
The Ministry of Foreign Affairs of the Republic of Thailand extends its warm regard to the Ministry of Foreign Affairs and Trade of the Commonwealth of New Zealand. It is with great encouragement that we reflect upon the enduring and fruitful partnership between our two nations, particularly as we advance discussions regarding the proposed Treaty of Comprehensive and Equitable Raw Material Access (TCERMA).
As Thailand’s economy continues its transformative ascent, becoming one of the world’s most advanced and dynamic, the need for reliable access to essential raw materials, not readily available within our own ecological sphere, has become more pressing. In this context, New Zealand, as a trusted and strategic partner, holds a pivotal role in ensuring that Thailand’s economic growth remains intrinsically linked to the mutual benefits of infrastructural development in New Zealand. Our objective is to foster a trade agreement that is equitable and transparent, one that ensures Thailand’s prioritized access to New Zealand’s raw materials while fully respecting New Zealand’s legitimate need to safeguard its domestic industries and sustainably manage its natural resources.
Thailand views New Zealand as an indispensable partner in the shared pursuit of a more just and egalitarian global order, where all nations, irrespective of size, have the courage and capacity to assert their sovereign rights in the face of external pressures. In alignment with our broader commitment to protect vulnerable populations and smaller nations from economic or political exploitation, particularly in Asia, Thailand seeks New Zealand’s continued collaboration to promote a shared vision of common prosperity and mutual respect.
The Government of the Republic of Thailand remains open to addressing any concerns the Government of New Zealand may wish to raise regarding the proposed treaty. We look forward to your esteemed government's careful consideration of the attached document and to the continued strengthening of our bilateral relations.
As Thailand’s economy continues its transformative ascent, becoming one of the world’s most advanced and dynamic, the need for reliable access to essential raw materials, not readily available within our own ecological sphere, has become more pressing. In this context, New Zealand, as a trusted and strategic partner, holds a pivotal role in ensuring that Thailand’s economic growth remains intrinsically linked to the mutual benefits of infrastructural development in New Zealand. Our objective is to foster a trade agreement that is equitable and transparent, one that ensures Thailand’s prioritized access to New Zealand’s raw materials while fully respecting New Zealand’s legitimate need to safeguard its domestic industries and sustainably manage its natural resources.
Thailand views New Zealand as an indispensable partner in the shared pursuit of a more just and egalitarian global order, where all nations, irrespective of size, have the courage and capacity to assert their sovereign rights in the face of external pressures. In alignment with our broader commitment to protect vulnerable populations and smaller nations from economic or political exploitation, particularly in Asia, Thailand seeks New Zealand’s continued collaboration to promote a shared vision of common prosperity and mutual respect.
The Government of the Republic of Thailand remains open to addressing any concerns the Government of New Zealand may wish to raise regarding the proposed treaty. We look forward to your esteemed government's careful consideration of the attached document and to the continued strengthening of our bilateral relations.
Sincerely,
Surin Pitsuwan
Director-General
Department of ASEAN, Oceania, and Pacific Affairs
Republic of Thailand
Digital Diplomatic Communication
Treaty of Comprehensive and Equitable Raw Material Access (TCERMA) between the Republic of Thailand and the Commonwealth of New Zealand
Proposed by the Ministry of Foreign Affairs of Thailand
Secure
Secure
MONTH DATE YEAR
Recognizing the mutual interest in fostering a robust economic partnership grounded in the principles of mutual benefit, equality, and shared prosperity, and acknowledging Thailand’s decentralized socialist economic system and New Zealand’s commitment to equitable trade,
The Republic of Thailand (hereinafter referred to as "Thailand") and New Zealand (hereinafter referred to as "New Zealand"), collectively referred to as "the Parties," agree to the following agreements for the Treaty of Comprehensive and Equitable Raw Material Access (hereinafter referred to as "the Treaty") to facilitate prioritized access by Thailand to New Zealand’s raw material markets, while ensuring balanced and sustainable trade relations between the two nations.
Section 1: Objectives of the Treaty
This Treaty shall enter into force upon ratification by both Parties' respective legislative bodies and shall remain in effect indefinitely, subject to the termination and review provisions outlined in Section 10.
Section 12: Amendments
Amendments to this Treaty may be proposed by either Party and shall require mutual agreement to be ratified by both Parties' legislative bodies.
In solemn witness whereof, I, the undersigned, hereby enforce and endorse this Bilateral Agreement between the Republic of Thailand and the Commonwealth of New Zealand on the Treaty of Comprehensive and Equitable Raw Material Access (TCERMA), affirming our unwavering commitment to addressing common challenges and advancing shared goals through mutual consent and cooperation.
The Republic of Thailand (hereinafter referred to as "Thailand") and New Zealand (hereinafter referred to as "New Zealand"), collectively referred to as "the Parties," agree to the following agreements for the Treaty of Comprehensive and Equitable Raw Material Access (hereinafter referred to as "the Treaty") to facilitate prioritized access by Thailand to New Zealand’s raw material markets, while ensuring balanced and sustainable trade relations between the two nations.
Section 1: Objectives of the Treaty
- The primary objective of this Treaty is to grant Thailand prioritized access to raw materials from New Zealand under mutually beneficial terms, ensuring sustainable economic development for both Parties.
- This Treaty shall promote fair and equitable trade, ensuring that the exchange of raw materials aligns with the principles of environmental sustainability, labor rights, and social equity.
- The Treaty seeks to promote long-term stability in the provision of critical raw materials essential to the continued advancement of Thailand’s decentralized, worker cooperative-based economy, and to facilitate the growth of New Zealand’s export sector while safeguarding its domestic production needs.
- Thailand commits to treating New Zealand as a key trading partner for raw materials, ensuring that any raw materials imported from New Zealand are integrated into Thailand's democratically planned economy in a way that maximizes social benefit and economic equity.
- New Zealand shall grant Thailand prioritized access to its raw material markets, ensuring timely and reliable supply to meet Thailand’s industrial and cooperative sector needs, while maintaining New Zealand’s environmental and labor standards.
- For the purposes of this Treaty, "raw materials" shall include but not be limited to:
- Agricultural products, including but not limited to wool, timber, dairy ingredients (excluding finished dairy products), grains, and horticultural outputs.
- Mineral resources, including iron ore, coal, gold, silver, and critical minerals such as lithium, cobalt, and rare earth elements.
- Marine resources, specifically fish, aquaculture products, and seafood-derived raw materials.
- Renewable energy resources, including geothermal and wind energy technologies, provided they are in raw material form for industrial or cooperative use.
- New Zealand shall grant Thailand prioritized access to its raw materials markets, ensuring that all necessary measures are taken to meet Thailand’s supply demands within the capacity limits of New Zealand’s resource sustainability.
- Thai cooperatives, state-owned enterprises, and other public entities shall be accorded priority in securing contracts for the importation of the above-mentioned raw materials.
- New Zealand shall not impose quotas or significant barriers on the export of raw materials to Thailand unless required to meet domestic needs or prevent environmental degradation. Any limitations shall be mutually agreed upon and based on demonstrable necessity.
- In the event of global supply shortages, New Zealand commits to maintaining Thailand’s prioritization, allocating no less than 25% of its exportable raw materials within the framework of this Treaty, subject to adjustments based on sustainable extraction or production limits.
- The Parties shall establish a bilateral pricing mechanism to ensure that the prices of raw materials exported from New Zealand to Thailand are fair and reflective of production costs, environmental impact, and social benefit.
- The pricing mechanism shall take into account the following:
- The actual cost of extraction or production, including labor costs in accordance with international labor standards.
- Environmental externalities, with an agreed-upon surcharge for raw materials whose production impacts New Zealand’s natural resources.
- Economic conditions in both Thailand and New Zealand, with adjustments made to stabilize markets and ensure equitable trade.
- The parties may utilize AI-assisted dynamic pricing models to ensure that raw material prices reflect real-time economic and environmental conditions, subject to review and oversight by a joint Thai-New Zealand trade commission.
- Trade terms will include a provision that at least 30% of the profits from raw material exports be reinvested in sustainable production and local communities in New Zealand, enhancing the social impact of trade.
- The Parties recognize the importance of sustainability and environmental protection in the extraction, cultivation, and harvesting of raw materials.
- New Zealand shall ensure that all raw materials exported to Thailand are produced in compliance with international environmental standards, particularly those related to biodiversity, forest preservation, and the sustainable use of marine resources.
- Thailand shall commit to utilizing imported raw materials in environmentally conscious industries, integrating them into production processes that are compliant with Thai socialist ecological standards.
- The Parties shall convene annually to assess the environmental impact of the trade flows and propose necessary adjustments to ensure long-term sustainability, including potential reductions in resource extraction if ecological degradation is detected.
- Both Parties commit to upholding and promoting high labor standards in the production and extraction of raw materials.
- New Zealand shall ensure that all workers involved in the raw materials sector are provided with fair wages, safe working conditions, and the right to form and join unions.
- Thailand shall ensure that workers in cooperatives and public enterprises using imported raw materials are employed under conditions of dignity and fairness, in accordance with Thai labor laws and the principle of collective ownership.
- A joint Thai-New Zealand Raw Material Certification Board shall be established to monitor and verify the sustainability and ethical standards of all raw materials traded under this Treaty.
- Raw materials that do not meet the sustainability, labor, or pricing standards outlined in this Treaty shall be subject to trade penalties, including the suspension of priority status or the imposition of fines.
- The Certification Board shall have the authority to inspect production facilities and conduct audits to ensure compliance with the provisions of this Treaty.
- Any disputes arising under this Treaty shall be resolved through dialogue and negotiation between the Parties. If a resolution cannot be reached within 60 days, the Parties shall refer the matter to an international arbitration panel agreed upon by both Thailand and New Zealand.
- The arbitration panel shall have the authority to issue binding decisions, and both Parties agree to abide by the panel’s rulings.
- Either Party may terminate this Treaty by providing written notice one year in advance, during which time both Parties will negotiate transitional measures to minimize economic disruptions.
- The Treaty shall be subject to a comprehensive review every five years to ensure its terms remain aligned with both nations’ economic and environmental objectives, as well as global market conditions.
This Treaty shall enter into force upon ratification by both Parties' respective legislative bodies and shall remain in effect indefinitely, subject to the termination and review provisions outlined in Section 10.
Section 12: Amendments
Amendments to this Treaty may be proposed by either Party and shall require mutual agreement to be ratified by both Parties' legislative bodies.
In solemn witness whereof, I, the undersigned, hereby enforce and endorse this Bilateral Agreement between the Republic of Thailand and the Commonwealth of New Zealand on the Treaty of Comprehensive and Equitable Raw Material Access (TCERMA), affirming our unwavering commitment to addressing common challenges and advancing shared goals through mutual consent and cooperation.
Digital Diplomatic Communication
