U.S. and Thailand: A New Partnership for a Pacific Century

American Chamber of Commerce Annual Meeting – October 19, 2011

Ambassador Kenney’s Remarks as Written for Delivery

Thank you for the opportunity to speak today.  The American Chamber of Commerce is an invaluable partner to the U.S. Mission in Thailand and I am honored to address you today.

First I would like to take a brief moment to talk about the past few months of flooding we have faced together here in Thailand.  This past weekend was particularly trying.  Hopefully now, the parts of the country that have suffered so much from high water can start to dry off and begin the process of renewal.  Throughout the past months of flooding, we at the U.S. Embassy and all of you in this room have struggled side-by-side with our Thai communities as we faced this disaster together.  Today, the challenges continue.  As I speak, the U.S. has a military team on the ground assessing the flood areas to determine what assistance we can best provide.  We have already made some donations and many of our people in the U.S. Mission have provided their expertise to counterpart agencies in the Thai government.  Most impressive though, has been your response.  The American business community has banded together and provided amazing financial and in-kind support to affected communities.  I thank you for that.  And looking forward, let’s keep fighting together.

I have been the U.S. Ambassador to Thailand for 10 months now.  That may not compare to some of you who have been here for decades, but I have enjoyed getting to know this diverse, beautiful country from the moment I arrived.  I have met Ministers, military officers, musicians, civil society leaders, athletes, business people and students.  I have traveled extensively; from Phuket to Chiang Rai, from refugee camps to orchid farms, from the humblest local shop to the factory floors of the most powerful American multinationals.

One thing I’ve learned so far is something all of you know well.  The relationship between Thailand and America runs deep.  Our friendship spans 178 years of formal alliance. Our trade exceeds $30 billion USD per year.  Our students study side-by-side in American universities, and tens of thousands of Americans call Thailand home.  Nowhere is this partnership better demonstrated then right here, in this room.  The American Chamber of Commerce has created many of the ties that bind us.

The vision and energy of AmCham members and the continued efforts of the U.S. Mission together suggest that the Thai –U.S. relationship will only grow deeper.  And I predict that, as we move further into the Pacific century, this relationship will become even more important.

To reach for this future we must understand the present.  First, let me share some of the work we are doing with our Thai friends.  Second, let’s talk about  how the U.S.-Thailand alliance fits within the United States’ broader engagement in Asia.  And finally, I’ll provide some perspective on the economic and commercial aspects of the partnership.

The people of Thailand energetically participated in elections July 3rd, which lead to a peaceful and democratic transition of power.  The United States congratulated the Thai people and welcomed the new government, led by Prime Minister Yingluck Shinawatra (pronounced: Chinnawat).  I have met with her and many of the new members of her government, and we are already identifying new areas where our countries can work together.  At the same time, we continue to engage with the democratic opposition and the many voices of civil society, as we have always done. 

While reaching out to the new Thai government, our bilateral cooperation has continued across the spectrum of our relationship.  In security over the last year, the United States worked together with the Thai military as it deployed peacekeepers to Darfur and participated in multilateral anti-piracy operations off the Somali coast.  We are also working together to expand our capacity to respond to natural disasters and provide humanitarian assistance in a region prone to such natural calamities.  As partners in law enforcement, we work to stop the flow of illegal drugs and illicit arms.  These are but a few examples of this sort of cooperation.

We all know that the past few years have been a difficult time for Thailand but we have remained a close friend.  The elections in July were an important step forward and we continue to encourage Thai officials, the opposition, and civil society towards reconciliation.  We watch closely the situation in Thailand’s south, where an insurgency has claimed thousands of lives.  We are also concerned with curbs on freedom of expression in Thailand and have urged the Thai government – as we do with governments around the world – to respect and protect these rights.  Towards these ends, we have worked with the Thai government to help build up the capacity of civil society throughout the country and we will look for ways where we can partner further to strengthen Thailand’s human rights and important democratic traditions.

In many ways the strong U.S.-Thai partnership transcends bilateral issues.  The partnership also serves as a robust platform upon which regional issues can be addressed.  Issues that involve Thailand’s neighbors are important to all of us.

To the west is Burma, where the United States has long sought genuine reconciliation and democratic reform.  Thailand is a key partner on this effort and we make sure to consult and coordinate with Thai officials frequently on the issue.  We commend Thailand for remaining a safe harbor to thousands of refugees and displaced persons from Burma over the years, and we have worked with our Thai friends to provide humanitarian assistance to those fleeing oppression and to process the 10,000 refugees that resettle to the U.S. each year.  Our new Special Representative for Burma, Ambassador Derek Mitchell, demonstrated Thailand’s importance in this matter when he stopped by Bangkok to consult with Thai officials during his September trip to Burma.

And now we go from the west to the east where Thai-Cambodian border disputes occasionally erupt into violence.  We have publicly urged both sides to resolve their differences peacefully and welcomed efforts by the Thai and Cambodian governments to work within an ASEAN framework as well as bilaterally towards this end.  We understand both countries have committed to withdrawing military forces in accordance with a ruling by the World Court, and we welcome this progress.

One of Secretary of State Clinton’s first overseas trips was to Thailand, in July 2009, to restore senior level American presence at the ASEAN Regional Forum.  During that trip she famously declared that the United States was “back” in Southeast Asia.  Of course, some people would say that we never really left, but I don’t think anyone would argue against the fact that our  interests in the region are growing.  President Obama – often called our nation’s “first Pacific President”– has traveled to Asia several times and plans to return.  He participated in the first-ever U.S.-ASEAN leaders meetings and, this year, he will be the first U.S. President to attend ASEAN’s East Asia Summit in Indonesia.

As Asia progresses towards more integration and connectivity, ASEAN – which is home to nearly 600 million people – is absolutely critical to our engagement here.  The United States has worked to build stronger ties with ASEAN, including acceding to the Treaty of Amity and Cooperation, and just this year sending a Resident Ambassador to ASEAN in Jakarta.

Within ASEAN and the East Asia Summit, the United States seeks to engage the countries of Southeast Asia collectively to address critical issues important to all the world’s citizens such as the proliferation of weapons of mass destruction, human rights, health and the environment.

We’re working hard on the latter two at the moment. Under the Lower Mekong Initiative, the United States is helping Mekong River nations protect the environment and sustainably develop the Mekong watershed.  The Centers for Disease Control, Armed Forces Research Institute of Medical Sciences, and the U.S. Agency for International Development – all based out of the U.S. Embassy in Bangkok - are joining with Thai government and civil society counterparts to form premiere regional partnerships in the areas of communicable disease research, surveillance and prevention. This is just some evidence that Thailand is playing a key role as an emerging development partner, assisting those in the region and beyond.

Another important regional multilateral organization that the  the U.S. and Thailand participate in together is APEC or the Asia Pacific Economic Cooperation Forum.  Together the APEC economies are huge, making up half of global economic output, nearly half of global trade, and 40% of the world’s population.  As President Obama has said, if we can increase our exports to APEC economies by just 5%, we can increase the number of U.S. jobs supported by exports by hundreds of thousands.  So next month President Obama will host The Heads of State from the 21 APEC member economies in his home state of Hawaii for their annual conference.  As the host we hope to influence APEC leaders even further toward the group’s goals of promoting free trade and regional economic integration.  These are steps that could be a balm to the ailing world economy and an eventual boon to American Chambers of Commerce around the world.

There is no denying that the global economy has hit a rough patch.  Europe is defending its currency union.  Thailand and much of Asia is transitioning from a dependence on exports to a more balanced growth that includes domestic consumer demand.  In the U.S., unemployment and budget deficits dominate the headlines.  Some commentators preach doom, and predict the sunset of the American era.

As the U.S. Ambassador to Thailand I have a more optimistic take.  Let me give you three reasons why, before I leave you all with a collective challenge. 

First, in design studios, laboratories, and garages across America the future is now.  The Bill Gates, Steve Jobs and Mark Zuckerbergs of tomorrow are quietly toiling away.  These innovators will create the next commercial revolution and with it will come economic renewal.  This has happened again and again in American history but today, in a globalized world, the American creative spirit has no boundaries.  All of you here today embody this creative spirit in Thailand.

One way the US Mission in Thailand fosters the innovators among us is through the Thai-U.S. Creative Partnership.  The partnership combines the creative capacity of Thais and Americans with resources from American economic and cultural institutions to create economic value.  It builds knowledge highways so we can exchange information and establish networks to train the next generation of industry leaders.  Creative Partnership activities connect the best and brightest, giving companies like yours a chance to demonstrate to Thai colleagues your creative capabilities and their creative potential.

Of the more than two dozen current Creative Partnership programs, some examples include Western Digital’s patent mentoring and Microsoft’s infrastructure support of the ICT Ministry.  Programs like these create market opportunities for American business in Thailand and recognition of the value of innovation in the Thai economy, which in turn influences decision-makers.  If Thai consumers, investors, and policy makers value innovation, they will also value American goods and services.

As business people representing American companies in Thailand you represent more than just the promise of innovation.  That brings me to my second reason for optimism.  You are cutting-edge business people and you bring with you the Gold Standard that sets American companies apart.  You do things better than anyone else.  You set the standard in labor practices and caring for your local communities.  You bring innovative products and services to market in Thailand and across the globe.

I’ve seen this gold standard in action in my visits to AmCham member companies such as Western Digital, Dow, Jelly Belly, and Emerson.

I met with the CEO of Ford recently on his swing through Thailand.  The company that invented the automobile continues to make some of the safest, most energy efficient and most sought after vehicles in the world.   The CEO told me that Ford had not built a factory for 40 years, but today the company has plans to build seven to serve the Asian market, including one here in Thailand.  Last month I also went to the launch of the Chevy Colorado.  The event was exhilarating and I could sense the anticipation in the crowd.  Ford and GM both demonstrate clearly that the gold standard sells in Asia.

My third reason for optimism is based on some impressive facts and figures.  In 2009, the U.S. exported 414 Billion USD worth of goods and services to Asia, more than to the European Union.  In recent years, Asia-bound exports created 850,000 American jobs.  This is not to mention the fact that 200,000 Thais wok for American companies in Thailand.  Lastly, 350,000 students from Asian countries currently study in America.

It is clear that America increasingly benefits from its economic relationship with Asian countries like Thailand.  And, Thailand benefits just as much. As Asian nations become consumer nations, American companies stand to gain even more.

A few weeks ago I met with Commerce Minister Kittirat.  He acknowledged that the new government’s economic policies might be construed as populist by some.  However, he argued that these policies are in line with the government’s overall strategy to rebalance the Thai economy, away from exports, towards domestic consumption.  And what will Thai consumers buy in the future?  I suspect a lot of Ipads, Harley-Davidsons, and Krispy Kream donuts.

Clearly the U.S. and Thailand will both prosper as exchanges in education, immigration, investment, tourism and trade accelerate.  The Pacific Century is indeed upon us.

I promised to close with a challenge but first let me remind all of you how we can help you reach your goals.

We at the U.S. Mission to Thailand are committed to supporting your full participation in Pacific Century opportunities in Thailand.  The U.S. Commercial Service’s “commercial diplomacy” will continue to partner with you to promote exports under the President’s National Export Initiative and support the U.S business community already in Thailand.  Our economic section, the U.S. Foreign Agricultural Service, The U.S. Patent and Trade Office, and The U.S. Trade and Development Agency all strive to maintain and strengthen the bilateral relationship that encourages the expansion of business activities between our countries, while maintaining a level playing field for U.S. companies operating in Thailand.  And we all work toward a stronger APEC and a wider Trans Pacific Partnership, the ambitious 21st century regional trade agreement we hope will soon include Thailand.

Across our Embassy and at our Consulate in Chiang Mai we will continue to strengthen our bilateral ties in all sectors. We will continue to work with our Thai partners to maintain a strong base for commercial, diplomatic, and military engagement in the region, ultimately making it a more stable and prosperous community of nations.   And we will continue to serve as a strong partner to you as we drive toward our shared goals.

Now I challenge you to work with us to build this Pacific Century.  We at the U.S. Mission to Thailand will continue to create and maintain platforms upon which you can base your achievements.  All you need to do is survey the horizon, grab hold of that next great opportunity, and provide a little of that innovation and gold standard you do so well.  Anyone of you in this room has the potential to shape the future.  But working together I guarantee we will shape the future.  Together we will build the future of the U.S. – Thai partnership.