Draft Retail Act unlikely to be passed in Thailand

Planet Retail 25 September 2007

According to reports in the Thai press, citing a National Legislative Assembly member, Lt Jit Siratranont, the draft Retail and Wholesale Business Act is unlikely to be passed by this government, considering the short time left in its mandate. The Commerce Ministry draft received approval from the cabinet in May and it is now being deliberated by the Council of State. In parallel, the National Legislative Assembly introduced its own version, intending to speed up the passage of the bill. However, Lt Jit admitted that neither would become law within this administration as the government is expected to have only four months to work. Thanapon Tangkananan, president of the Thai Retailers Association, said that with or without the retail law, operators of modern retail trade stores would continue to expand their businesses.

See also: Thailand: Power struggle seems likely to sideline business laws. The Nation August 10, 2007

The Retail Business Act, which the Commerce Ministry is also keen to pass within the term of this administration, looks unlikely to progress any further. The draft law is now being scrutinised by the Council of State, the country's supreme legal body. The Council reportedly disagrees with the draft on the grounds that it is not legally solid.

For instance, the draft law would loosely authorise local communities to regulate retail businesses. But what would become of Thailand's rule of law if a particular kind of retail company was allowed, for example, to open in Prachuab Khiri Khan, but was not allowed to do business in Nong Khai?

There are four major groups flexing their muscles over the Retail Business Act - retailers, the Commerce Ministry, consumers, and the employees of Tesco-Lotus, the UK-based superstore.

Small retailers are up in arms about the expansion of the giant retailers. The Commerce Ministry is trying to bring about order by introducing the country's first retail law. Consumers are in favour of the big stores because they feel they benefit from their presence. The employees of Tesco-Lotus have been lobbying fiercely against any attempt to curb the expansion of the superstore outlets, claiming that their jobs and those in related businesses are at stake.

The Council of State does not seem to support the Retail Business Act, hence the Commerce Ministry, the sponsor of the bill, will find it difficult to it push through.

To push the bills through Parliament, the government needs to introduce them through the Council of State or through at least 50 supporting members of the NLA. At present, the prospect of the government succeeding in mustering 50 NLA members to introduce the Retail Business Act looks very remote.

Full story available here

See also Council 'wants retail bill revised'. The Nation July 25, 2007: Full story available here