JOIN US “We are working on concluding a FTA with India in 2011,” Thailand Deputy Minister of Commerce of Alongkorn Ponlaboot told reporters on the sideline of an interactive meeting with Ficci.
This proposed bilateral FTA between Thailand and India will be in addition to the India-Asean FTA, which was operationalized in January, 2010. Thailand is also a member of ten-nation Asean block, which is being widely viewed as one of the fastest growing trading zones. Apart from the FTA with the Asean as a whole India has also signed FTA with individual Asean members like Singapore. India is also working on having such a bilateral FTA with Malaysia.
The Indo-Thailand bilateral trade is expected to cross US$6.5 billion in the current fiscal as against US$4.5 billion in 2009-10.
While under the India-Asean FTA both India and Thailand have in-built arrangement for reduction and elimination of duties on most goods traded between the two countries, the proposed bilateral FTA will seek to open up trade in services and investment. Thailand is keen to have a separate FTA with India as large number of Thai companies would like to participate in India’s fast expanding infrastructure sector.
“There will be several rounds of talks between the two sides before reaching the final stage for concluding the bilateral FTA,” Ponlaboot said.
In response to a query he said both sides should work together to conclude an India-BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) FTA as quickly as possible. Thailand is a member of BIMSTC along with India, Sri Lanka, Bangladesh, Bhutan, Myanmar and Nepal.
“We will also impress upon Bangladesh and Sri Lanka to move the BIMSTEC FTA to the final stage. This pact will enhance opportunity for trade, business and investment in this region,” Ponlaboot said.
Earlier addressing the FICCI meet he announced that Thai airways would start its first direct flight from Thailand to Guwahati by next year to provide accessibility to people, businessman in a bid to promote tourism and joint ventures in the North Eastern region.