Kamal Nath discusses bilateral trade with Thai Commerce Minister

Shri Kamal Nath, Union Minister of Commerce & Industry, had a bilateral meeting with Mr. Krirk-krai Jirapaet, Minister of Commerce of Thailand here today. The discussions covered review of bilateral trade and bilateral investments, with both the Ministers underlining the scope for substantially stepping up the level of two-way trade, which stood at US $ 2.2 billion in 2005-06 (comprising US $ 1 billion worth of India’s exports to Thailand and India’s imports from Thailand valued at US $ 1.2 billion).

India’s exports to Thailand registered a growth of almost 20% over the previous year, while imports from Thailand increased by about 39%.

With regard to investments, while several major Indian companies have invested in Thailand, in the post-liberalisation era, Thailand too had emerged as an important investor in India with foreign direct investment (FDI) inflows of about US $ 77.6 million from August 1991 to December 2006. Thailand now ranks 27th largest investor in India and the 3rd largest from the ASEAN region, after Singapore and Malaysia.

There is a Framework Agreement for establishing a Free Trade Area (FTA) between India and Thailand which was signed by the two governments in October 2003 in Bangkok, covering goods, services and investment and areas of cooperation. The Framework Agreement also provides for a Early Harvest Scheme (EHS) under which common items of export interest to the sides have been agreed for elimination of tariffs on a fast track basis.

The tariff concessions on 82 items of EHS list have been implemented with effect from 1/9/2004 with the signing of the Protocol between India and Thailand in August 2004 in New Delhi.

India Thailand Trade Negotiating Committee (TNC) has been constituted to carry forward the programme of negotiations as per the Framework Agreement. Nine meetings of the TNC have been held so far. During these meetings, discussions are being held on the texts of the Agreement on Trade in Goods, Services and Investment and also on the Rules of Origin for the FTA.

Source : Press Information Bureau

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