The Trump administration has suspended $1.3 billion worth of duty-free trade for certain Thai products.

In a letter to Vice President Mike Pence and Speaker of the House Nancy Pelosi announcing the decision, Trump said Thailand had not been doing enough to protect worker rights, specifically those laid out in international trade agreements.

The suspension of duty-free status will affect nearly one-third of all Thai exports to the US.

The decision by Trump is yet another hit to Thailand’s export industry, which is already stagnating due to factors such as the strong Thai baht as well as the ongoing US-China trade war.

Thailand currently sits as the second biggest beneficiary of duty-free trades to the US behind India.

The total trade between the two countries totaled $44.5 billion in 2018.

Thailand business lawyers note that the country’s fishing industry could bear the biggest brunt of the suspension as it has already seen its seafood trade to Europe fall drastically in recent years due to multiple unethical practices in the industry that perturbed the EU.

A further hit to seafood exports going to the US could signal alarm bells in the industry.

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A new Thai law set to take effect in October creates a legal loophole for companies to import more plastic waste and further pollute the environment, according to activists.

The amendments to the 1992 Factory Act states that any factories with under 50 employees and machinery exceeding 50 horsepower will be subject to waste and pollution monitoring by government agencies.

Previously, all companies with more than seven employees and machinery with more than five horsepower were also monitored.

Environmental activist state that the change in Thailand’s business laws will let industrial manufacturers import more plastic waste and dump their current waste with impunity.

In just the last year, Thailand’s worsening pollution levels has drawn international headlines.

The business-friendly amendment to the Factory Act was rushed into law by the ruling military junta in the months prior to Thailand’s first election since 2014.

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Thailand’s new competition law has had little effect on the country’s dominance by monopolies and oligopolies, indicated by the huge disparity among the rich and poor in the nation.

In fact, Thailand’s wealth inequality ranks among the worst in the world with the top 1% controlling 67% of the entire country’s wealth.

But the market dominance by big businesses at the expense of small and medium-sized businesses is surprising when you consider the fact that Thailand was the first Southeast Asian nation to pass competition laws in 1999, which set up a Competition Commission to enforce a fair market in the country.

Despite that 1999 law though, laws against unfair trade practices in the marketplace have seen lax enforcement due to the Competition Commission’s coziness with big business.

In fact, until the new competition amendment passed, nearly the entire commission was made up of politicians, industry representatives, and bureaucrats, which is one reason why Thailand recently ranked as 96th in a study of market dominance.

Similar Southeast Asian nations such as Malaysia and Indonesia rank much higher, coming in at 24th and 51st respectively.

After the 2014 military coup, the current amendments were passed to make the Competition Commission as an independent body, filled with economists, reputable Thai business lawyers, and other individuals with no current ties to big businesses.

Even though it is a right step, experts have little hope for the new amendments to competition laws in Thailand.

Why? Because, in most cases, government policies rather than business trade practices and regulations stifle market competition and provide unfair protections for monopolies and oligopolies.

For example, many large government contracts are given to certain business without competitive bidding.

Another illustrative example is Thailand’s beer regulations, which protect the giant beer manufacturers in the country.

In Thailand, in order to obtain a license to produce beer, applicants must prove investments up to $3.3 million and have the capacity to produce over 100,000 liters of beer per year, effectively barring small craft breweries and beer brands from entering the marketplace.

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Thailand recently announced new labor protections aimed at boosting protections for workers as well as levying increased penalties for employers who fail to protect workers.

The amendments to the Labour Protection Act (LPA), passed on December 13, 2018, are expected to come into effect in the very near future.

The most important changes relate to better compensation for workers and increased leave allowances.

Thailand business lawyers handle trade disputes and other business disagreements between companies.

After the changes come into effect, a maternity leave period will increase from 90 days to 98 days, with at least 45 of those days paid leave.

On top of that, employers will now have to pay 75% of wages during a suspension of business operations.

Another important amendment states that if no advance notice of termination is given, an employer must pay one month of salary in advance instead of the notice.

Lastly, employers must now provide the same pay, holidays, and protections to both genders if the work position is of a similar nature.

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Thailand’s King Maha Vajiralongkorn is now the largest shareholder of Siam Cement Group Pcl, the country’s fourth most valuable company, according to the Stock Exchange of Thailand.

The King’s holds a 33.3% share of the giant industrial supplies and construction company, which amounts to over $5 billion.

In June, the Crown Property Bureau (CPB), which manages the monarch’s vast wealth and land holdings, issued a statement giving the King personal ownership over all of its assets.

According to Forbes, the change made King Vajiralongkorn the richest monarch in the world, with a wealth of over $30 billion.

The King is also listed as the seventh largest stockholder of Siam Commercial Bank, the third most valuable company in Thailand. The CPB is still listed as the number one shareholder.

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For an expert Thailand business lawyer, contact the seasoned attorneys at Chaninat & Leeds.

Myanmar recently passed a new companies law in the hopes that it will attract increased investment from Thai businesses in the coming years.

The legislation comes after massive drops in investments from Thailand into the Burmese economy in recent years.

Burmese officials point out that the revamped companies law will replace the century-old replaced legislation that stifled foreign investment in the Southeast Asian country.

Now, foreign companies will be encouraged to invest in Myanmar’s economic future and will face significantly less hurdles to do so.

Myanmar hopes to attract Thai investors in a wide variety of industries, including solar, natural gas, and manufacturing.

Thailand makes up for 14.5% of foreign investments in Myanmar, trailing only China and Singapore.

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For an expert Thailand business lawyer, contact the professionals at Chaninat & Leeds.

A Japanese firm agreed to a plea deal after allegedly bribing public officials in Thailand, in what is the country’s first ever plea bargain since introducing the new system last month.

Japanese government investigators alleged that Mitsubishi Hitachi Power Systems Ltd. (MHPS) violated the Unfair Competition Prevention Law by bribing foreign officials.

Although MHPS struck a plea deal with the government, they did not admit any wrongdoing and got assurances that for their cooperation in the case, will not face any prosecution for any crimes.

According to the special investigation squad, members of MHPS bribed Thai government officials into choosing their company for a contract to construct a power plant in the Southeast Asian country.

MHPS also conducted an in-house investigation and found that several employees engaged in misconduct and, subsequently, turned that information over to investigators.

The violators, if found guilty, face up to $2.67 million in fines.

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For foreign business licenses in Thailand, contact the expert Thai and US business lawyers at Chaninat & Leeds.

The ruling Thai military government is courting Chinese investors to help fund a $51 billion infrastructure and economic development plan for the country’s eastern seaboard.

The so-called Eastern Economic Corridor project would use Chinese funds to introduce technologically advanced industries to the region, from biotech and robotics to aircraft maintenance, in hopes to revamp what was a traditional manufacturing hub of the country.

According to the Thai officials, the project would go a long way in establishing Thailand’s foot into China’s incredibly ambitious Belt and Road Initiative, which literally aims to be the 21st century’s version of the Silk Road.

Since the 2014 coup that saw the military junta take power, Thailand has seen a significant dip in foreign investment.

The five-year project, running from 2017 to 2021, is an attempt to boost foreign investment and utilize the regions of Rayong, Chachoengsao, and Chonburi–which have direct access by sea to the rest of Asia.

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For a qualified and professional Thailand business attorney, contact the Thai and US law firm Chaninat & Leeds.

Ecuador’s top court stood by a ruling on Tuesday that levied $9.5 billion in damages against the massive multinational oil company Chevron, for its decades of pollution that harmed both the environment and indigenous Ecuadorians.

It was a token ruling, though, as Chevron no longer has pulled all of its assets and business out of the South American company years ago. To acquire the damages, the plaintiffs, which include indigenous people, will have to continue to pursue its case in international courts.

The court case was originally launched against Texaco for their oil operations in Ecuador from 1964 to 1990 that led to environmental damage to the country’s protected rainforests. Chevron acquired Texaco in 2001 and became liable for the damages.

Chevron denies any wrongdoing and refused to settle the case out of court, stating that the damage was perpetrated by the government-run oil company Petroecuador, which had a consortium with Texaco at the time.

The plaintiffs who sued Chevron, say that during Texaco’s drilling, toxic chemicals contaminated the water and soil that 30,000 indigenous people relied on to survive.

The attempts made by the indigenous plaintiffs to sue Chevron in a wide variety of other countries where the oil company still does business has been unsuccessful. The only other country where the case is still in progress is in Canada.

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Chaninat & Leeds is a Thailand-based law firm assisting companies with Thai business laws and registration. For legal counsel, contact their experienced Thai and US attorneys.

Thailand’s government will examine a new law that would require all foreign businesses with no physical presence in the country to report all their transactions to their government to determine if they should pay value-added tax (VAT), which currently stands at 7%.

As of now, foreign companies can skirt Thailand’s VAT as long as they maintain a purely digital presence in the country.

The Thai Department of Revenue’s new tax bill is the response to booming online trade in the country as well as another means to increase revenues.

The legislation comes in the wake of another law, regarded as the e-business tax, that would tax online purchases and sells originating from outside the country.

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Opening a new business in Thailand can be an intricate experience with a lot of hoops and ladders. To consult a professional Thailand business attorney, contact the experts at Chaninat & Leeds.