Thailand: Background and U.S. Relations

Thailand: Background and U.S. Relations

August 28, 2014
Thailand: Background and U.S. Relations
Overview

Thailand is a long-time military ally and significant trade
Thailand
and economic partner for the United States. In 2013,
Thailand was the United States’ 24th largest goods trading
Capital: Bangkok
partner, with $38 billion in total two-way goods trade. For
Size: Slightly more than twice the size of Wyoming
many years, Thailand also was seen as a model of stable
Population: 67.7 million (July 2014 est.)
democracy in Southeast Asia, although this image, along
Infant Mortality: 9.86 deaths/1,000 live births (U.S.=6.00)
with U.S. relations, has been complicated by deep political
and economic instability in the wake of two military coups
Fertility Rate: 1.5 children born/woman (U.S.=2.06)
in the past eight years. The first, in 2006, displaced Prime
GDP (Official Exchange Rate): $400.9 billion
Minister Thaksin Shinawatra, a popular but polarizing
GDP Per Capita (PPP): $9,900 (2013 est.) (U.S.=$49,800)
figure who remains a focus of many divisions within
Source: CIA World Factbook, 2014.
Thailand. The second, in 2014, deposed an acting prime
minister after Thaksin’s sister, Yingluck Shinawatra, was
Many observers took this as a sign that the military intends
ousted from the premiership by a Constitutional Court
to maintain stronger control over the political process than
decision that many saw as politically motivated. The 2014
it did following Thailand’s last two coups, in 1991 and
coup threatens the traditionally strong U.S.-Thai security
2006. The NCPO has indicated that it will undertake
relationship and could disrupt trade and investment links,
comprehensive reform of the constitution, a process that
two developments that some analysts believe could open
will require a longer time frame than reforms after previous
the door to greater Chinese influence in Thailand.
coups. Prayuth and his supporters see the interim as an
opportunity to undertake economic reforms, including large
The coup also exacerbates concerns of international groups,
scale infrastructure investment, free from the political
some Members of Congress, and U.S. officials regarding
obstacles that existed during the pre-coup unrest. The
Thailand’s human rights record. Thailand’s role as a source,
NCPO announced that national elections will not be held
destination, and transit country for human trafficking has
for at least a year.
received attention following the State Department’s
downgrade of Thailand to the bottom-most Tier 3 of its
While the past several years have seen many large-scale
Trafficking in Persons Report. Thailand has been criticized
demonstrations accompanied by intermittent violent
for alleged human rights violations as the country struggles
clashes, protests have ceased since the coup. Uncertainty
with a separatist insurgency in the majority-Muslim
about the health of Thailand’s widely revered King
southern provinces. While the ethnic Malay insurgents have
Bhumiphol Adulyadej contributes to anxiety about further
sought autonomy for decades, the violence in the region has
instability in the months ahead. At age 86, the king has
intensified since January 2004, and approximately 6,000
been hospitalized for much of the past four years. The King
people have died in the conflict since then.
provides symbolic support for the NPCO, demonstrated by
Political Crisis and 2014 Military Coup
his televised endorsement of the provisional constitution
installing Prayuth as head of government.
In crisis since fall 2013, Thai politics was thrown into
U.S. Response to Coup
further turmoil when the Thai military seized power in
Bangkok on May 22, 2014. Initially declaring martial law
The United States immediately suspended an estimated
on May 20, Army Commander Prayuth Chan-ocha
$10.5 million in foreign assistance to Thailand, cancelled a
formalized the military coup two days later. The military
series of military exercises and Thai military officers’
then dissolved the Parliament, detained political leaders and
visits, and urged a quick return to civilian rule and early
academics, imposed a curfew, and restricted media outlets.
elections. The Administration has some latitude in
Sporadic violence in the months leading up to the coup left
determining how much assistance to Thailand to suspend.
28 people dead, but there was no widespread bloodshed
Aid that could continue is generally humanitarian in nature:
associated with the coup itself. In the weeks following the
emergency food aid, international disaster assistance,
coup, Prayuth and a group of senior military leaders, known
migration and refugee aid, global health (HIV/AIDS,
as the National Council of Peace and Order (NCPO),
malaria, tuberculosis) programs, child survival programs,
selected members of a new National Legislative Assembly
the Peace Corps, demining, and non-proliferation programs.
(NLA), widely seen as a “rubber stamp” legislature. On
The State Department was specific about the suspension of
August 21, the NLA elected Prayuth as Prime Minister.
several military assistance programs: immediately
following the coup, $3.5 million in unspent and unobligated
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Thailand: Background and U.S. Relations
Foreign Military Financing (FMF) assistance, consisting of
Thailand’s economy has performed strongly through
training and education programs, as well as the remaining
political turmoil in the past decade, although growth slowed
$85,000 of unspent funds this fiscal year for the
in 2013. Since the coup and cessation in violence, economic
International Military Education and Training (IMET)
indicators have improved.
program, were suspended. Thailand receives approximately
$1.3 million in IMET annually.
Thailand’s Regional Relations
After the previous coup in 2006, many observers saw the
Thailand is important to the Southeast Asian region because
U.S. response as relatively mild. Although funding for
of its large economy, its good relationships with numerous
development assistance and military financing and training
neighbors, including Burma and China, and, until the coups,
programs was cut off while the military remained in power,
its relatively long-standing democratic rule. Years of
U.S. assistance for other programs remained in place. The
domestic political paralysis raise, however, concerns among
annual Cobra Gold exercises hosted by Thailand—the
its neighbors that Thailand appears increasingly unable to
largest multilateral military exercises in Asia—continued
take a leadership role in regional initiatives. This paralysis,
without interruption. U.S. officials are reportedly
many argue, has implications for issues such as ASEAN’s
considering relocating the 2015 exercises, a decision that
diplomacy with China over maritime disputes in the South
could have far-reaching consequences for the alliance.
China Sea, regional efforts to combat human trafficking,
and regional economic integration.
U.S.-Thailand Security Relations
Southeast Asia is considered by many experts to be a key
In many ways, the military-to-military connection is the
arena of competition for influence between the United
strongest pillar of the U.S.-Thai relationship. The recent
States and China. Sino-Thai ties, historically far closer than
coups therefore are particularly problematic for maintaining
Beijing’s relations with most other Southeast Asian states,
strong bilateral relations because U.S. aid suspension
have strengthened considerably over the past decade.
targets military assistance, cancels exercises, and chills
Thailand has no territorial disputes with China in the South
security ties. Before the most recent coup, U.S. military
China Sea and has served as a coordinator of discussions
leaders touted the alliance as apolitical and praised the Thai
over a potential Code of Conduct for parties in the disputed
armed forces for exhibiting restraint amidst the competing
region. Thailand’s trade with China has boomed under the
protests and political turmoil. The coup put Prayuth and the
China-ASEAN Free Trade Agreement, which entered into
Thai army at the center of politics, repudiated years of U.S.
force in 2010.
training about the importance of civilian control of military,
Human Rights and Democracy Concerns
and disrupted the momentum of the alliance. Prior to the
2014 coup, military funding had just recovered to pre-2006
International groups, some Members of Congress, and U.S.
coup levels.
officials have criticized Thailand’s record on human rights.
Alleged abuses include extra-judicial killings, curtailment
The alliance has considerable strategic value. The access
of the press and non-governmental groups, restriction of
that Thailand provides to military facilities, particularly the
freedom of expression under strict lèse-majesté laws, and
strategically located and well-equipped Utapao airbase, is
the bloody suppression of demonstrations in 2010. The
considered invaluable by U.S. strategic planners. Thailand
2014 coup was Thailand’s 12th since 1932, and it severely
hosts many multilateral military exercises that contribute to
damaged the country’s reputation as a democratic success,
the U.S. strategic rebalancing to Asia. Many analysts also
which had taken hold during the 1990s and early 2000s.
see the suspension of several U.S. military programs
following the coup as an opportunity for China to expand
Thailand also has been criticized for alleged human rights
its influence in the Thai defense establishment, which is a
violations in the southern provinces throughout various
potential strategic concern for the United States.
governments, and was recently downgraded to Tier 3 status
U.S.-Thailand Trade and Economic
on the State Department Trafficking in Persons (TIP)
Relations
report, indicating that the government was not considered
fully in compliance with the minimum standards for the
elimination of trafficking. Thailand is surrounded by
In 2013, Thailand was the United States’ 24th largest goods
considerably poorer countries that drive the inflow of
trading partner, with $38 billion in total two-way goods
refugees, and economic migrants at high risk of being
trade. With services included, two-way trade with Thailand
trafficked for commercial sexual exploitation and forced
totaled $41 billion in 2012, the latest year for which such
labor. Thai authorities have been criticized for overlooking
data are available. The overall U.S. trade deficit with
these groups most at risk by characterizing cases as
Thailand was $15 billion. According to the U.S. Trade
consensual human smuggling.
Representative, some of the largest barriers to trade in
Thailand are high tariff rates in selected industries,
For more information, see the CRS Report on Thailand-U.S. relations
particularly in agriculture; a lack of transparency in customs
(RL32593), and the CRS Insight on the 2014 military coup in Thailand.
policy, where Customs Department officials have
Emma Chanlett-Avery, echanlettavery@crs.loc.gov, 7-7748
“significant discretionary authority”; and the use of price
Ben Dolven, bdolven@crs.loc.gov, 7-7626
controls or import license requirements in some industries.
Christopher H. Scott, chscott@crs.loc.gov, 7-1883
Poor protection of intellectual property rights also placed
Thailand on the USTR’s Priority Watch List in 2013.
IF00049
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Document Outline

Overview

Political Crisis and 2014 Military Coup

U.S.-Thailand Trade and Economic Relations