US waives sanctions against Thailand over human trafficking report

WASHINGTON — President Barack Obama has decided not to impose sanctions against Thailand and Malaysia for failing to meet minimum standards in combating human trafficking.

Immigration officials in Chumphon province check work permits and visas of coastal fishermen Sept 15 as part of the National Council for Peace and Order’s clampdown on human trafficking. Thailand was downgraded to Tier 3 on the US’s annual Trafficking in Persons report in June, but the country has been spared sanctions. (Photo by Amnat Thongdee)

In June, the two Southeast Asian nations were downgraded in State Department's annual Trafficking in Persons Report from Tier 2 to Tier 3. The report assesses how governments around the world have performed in fighting the flesh trade and other forms of exploitative labour.

On paper, the downgrade could have triggered sanctions that include the withholding or withdrawal of US non-humanitarian and non-trade-related assistance. It could also have meant that Thailand would face US opposition to assistance from international financial institutions such as the International Monetary Fund and World Bank.

The president can block various types of US aid and withdraw US support for loans from the World Bank and International Monetary Fund for governments that are blacklisted. But the US often chooses not to, based on its national security interests.

It's waiving sanctions against several countries, including Saudi Arabia, Uzbekistan, and Yemen.

Thursday's announcement does not end restrictions on US assistance to Thailand imposed after a May military coup.

The decision to drop Thailand to Tier 3 in the annual Trafficking in Persons report came after four consecutive years of holding Thailand on the Tier 2 warning list, and recommending the government take action.

"Thailand is a source, destination, and transit country for men, women, and children subjected to forced labour and sex trafficking," the report on Thailand began.

But it said that in contrast to some countries on the watch list, "Anti-trafficking law enforcement efforts remained insufficient compared with the size of the problem in Thailand, and corruption at all levels hampered the success of these efforts."

The report covered only calendar year 2013, and is not a reaction to the military coup, also criticised by Washington.

Vijavat Isarabhakdi, Thai ambassador to Washington, expressed disappointment with the downgrade, saying the report did not recognise Thailand's "vigorous, government-wide efforts that yielded unprecedented progress and concrete results." But he said Thailand would continue to collaborate closely with the US on combatting human trafficking and in other areas.

The US report came on the heels of the largest exodus of foreigners in history. Officials in Bangkok and Phnom Penh estimated 200,000 Cambodian migrants left Thailand in fear of military action against foreign communities. Many were believed to be trafficking victims.