BANGKOK, THAILAND — Burma’s opposition leader, Aung San Suu Kyi, is set to embark on a visit to the United States, highlighted by awards and meetings with senior U.S. government leaders and the Burmese community… In her first trip to the United States in two decades, Burma’s opposition leader, Aung San Suu Kyi, will be given awards for her long struggle for political reform in Burma and will meet with U.S. President Barack Obama…

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For those unfamiliar with the efforts of Aung San Suu Kyi it should be noted that notwithstanding overwhelming adversity she has remained a staunch supporter of democracy for citizens of Myanmar and was recently elected to that nation’s lower house of parliament. However, she is not the only official from Myanmar who appears set to make a notable trip to the United States. It would appear that the current President of Myanmar, Thein Sein, is also slated to make a US voyage. In order to provide further elucidation regarding these events it is necessary to quote directly from the official website of The Jakarta Globe, TheJakartaGlobe.com:

Naypyidaw, Myanmar. Myanmar leader Thein Sein is to visit the United States for the first time as president of the fast-reforming nation, officials said Wednesday, after Washington waived visa restrictions…“The president will visit the UN and US for three days,” a Myanmar official told AFP, adding that the Myanmar leader is set to leave for the US on September 24. US President Barack Obama last month ordered an exception to a visa ban on Myanmar’s leaders to let Thein Sein travel freely during the UN summit…

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Those unfamiliar with current US-Myanmar relations should note that there are a number of restrictions placed upon Burmese leaders when it comes to US travel. Some could speculate that the exception granted to the President of Myanmar in the form of a visa waiver could be a sign of an increased desire to normalize relations between the somewhat reclusive member of the Association of Southeast Asian Nations (ASEAN) and the USA. That said, the future status of relations between the US and Myanmar remains to be seen.

China alters foreign cargo law. China will ban foreign companies, organizations and individuals from irregular-scheduled cargo sea transportation from Jan 1 next year, the Ministry of Transport said in a statement on its Web site on Wednesday.

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This news could have implications not only for businesses headquartered in Taiwan, but also for businesses in the United States of America and the Association of Southeast Asian Nations (ASEAN) as well. When countries change rules regarding cargo shipments there could be dramatic ramifications economically, financially, and geopolitically. Hopefully the news above will not have an adverse impact upon actors conducting trade at this time or in the future.

In somewhat related news it was noted that a there may be a Chinese Deputy Managing Director at the International Monetary Fund (IMF). To further enlighten this audience it may be prudent to quote directly from the official website of the China Post, ChinaPost.com.tw:

WASHINGTON — China is close to clinching a top-level post at the International Monetary Fund, IMF sources said on Wednesday after the Fund’s new chief pledged to give more power to emerging economies. They said Min Zhu, a Chinese national who was a special adviser to former IMF Managing Director Dominique Strauss-Kahn, was expected to fill a new deputy managing director post to be created by the Fund’s new chief, Christine Lagarde. “Min Zhu is expected to be named to deputy managing director,” an IMF board member told Reuters. The appointment, which would give China one of the top five management jobs at the Fund, would first need the approval of the 24-member IMF board of member countries…

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Matters pertaining to the IMF are generally considered newsworthy for the business community around the globe as policymakers at that institution can have an impact upon the international economy. Although it remains to be seen whether Min Zhu will ultimately be named to the aforementioned position these developments are certainly noteworthy. Frequent readers of this blog may have taken notice of the fact that in a previous posting on this blog the possibility of a non-Western Deputy Director was discussed even though at that time it was less certain where the prospective Deputy Director would hail from. Since the United States and virtually all of the ASEAN nations currently maintain some sort of trade relationship with China these developments may prove important from multiple perspectives.

For information related to conducting business in the USA please see: US Company Registration.

For information pertaining to legal services in Southeast Asia please see: Legal.

In any event, the dollar can only go south. The greenback slid to its lowest level in almost five months versus the euro. Gold, which represents a hedge against inflationary expectation, has also climbed to a record high on market anticipation that the Fed will flood the financial system with further liquidity to prop up the US economy.

This monetary easing will result in further weakening of the dollar. And as the US government continues to run a massive deficit, the Fed will be obliged to come to the rescue by purchasing the Treasuries that finance the deficit, which is not likely to come down in the foreseeable future due to economic weakness, falling tax revenue and spending obligations that have dramatically increased.

With the US weakness, a sovereign debt crisis in Europe and deflation in Japan, how will Thailand cope with the policy challenge? The first thing that comes to mind is that the baht will continue its upward trend. This is inevitable. The baht could go back to the pre-1997 crisis level of Bt25 to the dollar…

For those unaware, the United States Federal Reserve Bank recently announced that $600 billion in liquidity would be injected into the United States economy over the course of the coming months. As can be gathered from the above quotation, this “quantitative easing” policy is resulting in a depreciation of the dollar compared to Asian currencies (and other global currencies, but the focus of this post will remain on Asia, specifically Thailand). In an article written in The Nation Newspaper and distributed by ThaiVisa.com this issue was discussed in further detail:

When massive capital outflows from the US head towards Asia, much of it is unable to enter China so it floods other emerging markets, especially Asean countries, Korn [Chatikavanij, Finance Minister of the Kingdom of Thailand] said.

“We would like the two economic giants to settle their differences on the exchange-rate issue. I think they understand our predicament,” said Korn…
On the one hand, the US dollar has continued to depreciate, while on the other, China has not allowed the yuan to appreciate. Given the latest US announcement of quantitative easing aimed at stimulating the domestic US economy, several Asian currencies have significantly appreciated against the US dollar, raising concerns about the region’s export competitiveness…

The twin economic giants of China and America have yet to fully reach equilibrium in matters related to currency and trade, but an immediate issue for many Thai Nationals is the relative appreciation of the Thai Baht. There are many who feel that a strong Baht is not in their interests and depending upon circumstances they may be correct.  However, the recent currency fluctuations could prove to be a benefit to those Thai nationals interested in seeking American Immigrant Investor visa benefits.

The United States EB-5 visa (Immigrant Investor category) was designed to provide a travel document and lawful permanent residence to otherwise qualified foreign nationals who wish to make a substantial investment in legally eligible investment programs the United States of America. As the Thai baht has appreciated against the United States dollar it has become relatively “cheaper’ (in Baht terms) to meet some of the investment criteria in the United States. Therefore, as the dollar becomes weaker versus the Thai Baht it becomes less expensive, from a Baht standpoint, to invest in the USA. For those wishing to immigrate to the USA, the current Baht/Dollar exchange rate is something of a windfall.

This could be a boon to the United States economy as well since investment in the United States leads to the creation of new jobs. Furthermore, lawful immigration is one of the central components that drives the American economy. As more Thai nationals invest in the United States economy, the stronger that economy becomes thereby naturally fueling a recover in the overall American economy. As the American economy continues to recover, there may be ancillary benefits that accrue to individuals and businesses in the USA and around the globe. Hopefully this scenario will play out over the coming months and help to spur a recovery in the United States economy.

For related information please see: EB-5 Visa Thailand or US Visa Thailand.

On March 20, 1833 the United States of America and the Kingdom of Thailand concluded the Treaty of Amity and Commerce. The Administration of President Andrew Jackson sent Edmund Roberts as plenipotentiary in order to refine and ultimately sign the Treaty. King Rama III, through his Ministers and Emissaries, entered into the Treaty that would be the touchstone for all future diplomatic relations between the two nations.

This Treaty placed the USA on the same level as many other “Great Power’ countries with diplomatic ties to Thailand (the Siam). This Treaty is also noteworthy because it marks the first Treaty between the USA and an Asian nation. Before the signing of the Treaty of Amity and Commerce, the United States had yet to conclude any diplomatic treaties with any other nation in Asia.

In 1856 King Rama IV and Townsend Harris, and emissary of the Franklin Pierce Administration, concluded the Treaty of Amity, Commerce, and Navigation. This document gave US Citizens extraterritorial rights in the Kingdom and established the first consulate in Bangkok, with one Stephen Matoon as the US’s first resident consul in the Kingdom.

Rama VI and representative of the Wilson administration signed a new Treaty in 1920. This Treaty (which could be viewed as something of a revision of the preceding treaty) was a significantly more equitable document than those before it.

In 1937, following political turbulence in Thailand directly resulting from the revolution and adoption of the first Thai constitution, the Treaty of Friendship, Commerce, and Navigation was legalized.  The following decade Thailand would be pressured by the Japanese to declare war upon the USA. In a somewhat interesting series of events, the Thai Ambassador either refused to deliver the declaration or the US Secretary of State refused to accept it (the details of this exchange are unclear, but it would seem neither wished to acknowledge the declaration).

After the second world war, relations between the two nations regularized and thrived. In May of 1966 the US-Thai Treaty of Amity was signed in as the law of the land in both nations. This Treaty acts as the basis for reciprocal agreements in which Thai National’s can receive a US visa and American Citizens can obtain a Thai visa. This Treaty is currently in force at the time of this writing and acts as the framework for all trade and business relations between the two nations. Thailand and the USA also have close military and political ties as evidenced by joint military operations in the Kingdom known as Cobra Gold.

Currently, both governments claim to be in continuing negotiation regarding trade going forward. Under former Prime Minister Thaksin Shinawatra, trade negotiations were held in order to update legal relations, but the talks fell apart over issues involving Intellectual Property concerns. There are some questions regarding rights conferred under the US-Thai Treaty of Amity going forward.

As of April 29th 2009 – Americans are currently accorded preferential treatment compared to other nationalities under the US-Thai Treaty of Amity

Thanks for reading!

(Note: Nothing contained in this post should be construed as legal advice nor as an agreement creating an attorney-client relationship. One should always obtain legal advice from a duly licensed Attorney)