03/11/2008 (Bangkok Post) - Biotec, the national biotechnology agency, aims to unlock palm oil's genetic code within five years after making progress with blue-green algae, says researcher Somvong Tragoonrung.

Biotec has became a world leader in cracking genetic codes and recently announced its first genetic decoding of a structure - spirulina platensis (blue-green algae) - is 90% complete.

Dr Somvong said that if Biotec could crack palm oil's genetics, palm productivity could be almost doubled while palm plantations could be reduced and more land made available for other crops.

Without its success in decoding blue-green algae, Dr Somvong said Biotec would have been unable to move forward onto its palm oil project.

"If we can apply the genetic decoding techniques learned from spirulina research to palm oil, the country could maximise benefits from plantations to meet demand for food and from the energy sector," said Dr Somvong.

Dr Kanyawim Kirtikara, the Biotec director, said she hoped the spirulina platensis research would be completed and its results released by early next year.

"Biotec took three years with 18 researchers and six scientists involved in the spirulina project to come this far," she said.

"The US, France, Japan, China and Thailand are joining the race for spirulina platensis genetic decoding, but we are confident we have accomplished the most advanced discovery, which should surprise the world."

The single-celled algae spirulina platensis is an organism commonly used in industrial manufacturing of dietary supplements because of its high protein content and its antibiotic qualities.

Decoding a genetic structure allows researchers to better understand an organism's characteristics, nature and favoured environment. Dr Kanyawim said scientists worldwide were currently figuring out genetic codes of simple single-celled organisms, in the hope that in future they will be able to crack codes of more complex cells such as human cells.

"Once scientists are able to decode human cells, they will be able to identify better if a person is risk of cancer or other illnesses," she said.

"So we started off with studying spirulina platensis as it was thought to be a simple single cell and because it is an economic organism of which Thailand is the world's third highest exporter."

Once decoding enables better understanding of its features, farmers will be able to provide a suitable environment and improve spirulina productivity, reducing costs and promoting Thailand's competitiveness in the industry.

"With a plan to improve its qualities, we will be able to develop a premium spirulina platensis product and sell at a better price," said Dr Supap Cheevadhanarak, a researcher of King Mongkut's University of Technology Thonburi and a contributor to the project.

The research team also found high antibiotic and anti-virus features and high protein elements in spirulina's genetics, which could be applied in various types of farming to improve productivity and reduce chemical contamination.

This delay may not matter much as the trade talks that started in 2002 and had got stalled over tariff cuts on sensitive farm products such as palm oil, tea, coffee and rubber envisage tariff reductions over a period of 10 years. Under the pact, India and Asean will eliminate import duties on 71 per cent of products by the end of 2012 and another 9 per cent by 2015. Within 10 years, India will open its market to about 96 per cent of its products that are traded with Asean. By then, tariffs may come down sufficiently to erode the preferences.

Whether this FTA will result in more trade is far from clear as even among Asean members, less than 5 per cent trade takes place at zero duty. The complex rules of origin, certification requirements and paper work are such that importers prefer to pay the duty and expedite clearances rather than opt for duty concessions. India’s trade with Asean is 9.6 per cent of its global trade, while Asean’s trade with India makes up only 2 per cent of its global trade. The ten Asean countries have a combined gross domestic product (GDP) of almost $ 1.1 trillion.

Economists are divided over the benefits of FTAs. One view is that FTAs encourage high-cost producers in the contracting countries whose goods do not suffer duty. Goods of low-cost producers in other countries/regions might suffer higher duty before they enter the contracting countries. In the process, the consumers may not benefit but the governments lose out on revenue. Jagdish Bhagwati, the noted expert on globalisation calls them ‘termites in the trading system’. Yet, there are over 350 trade agreements in the world. Advocates of FTAs say that in the context of failed multilateral trade talks at the World Trade Organisation, FTAs offer best options to increase trade.