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Deputy PM of Thailand Korbsak Sabhavafu says the free trade agreement (FTA) between India and Thailand may soon see an expansion to incorporate services and investments. Presently, the agreement comprises free trade on 82 products.
At a meeting hosted by FICCI, Mr Korbsak told, “At present, both the countries are engaged in lifting the free-trade agreement into a comprehensive pact to include services and investments".
According to him, the expansion of the commercial pact may boost the present bilateral trade from $ 6 billion to $10 billion in 2011.
India and Thailand inked an early harvest program (EHP), which was likely to be succeeded by a comprehensive FTA in 2004. Under the provision of EHP, the two nations removed duties on 82 articles in the industrial and agricultural categories. The products included apples, mangoes, grapes, refrigerators, television tubes and some metals.
However, the free trade agreement could not be sealed owing to political disorders in Thailand and certain discords pertaining to the rules of origin (the rules that decide which items are to be regarded as the original product of the partner nation and which are to be regarded as the original product of the third country).
Thailand appears to be quite confident about signing a full-fledged agreement soon with India, as Mr Korbsak told, "We can get it done very quickly".
Thailand also belongs to the 10 member ASEAN, which concluded a free trade agreement on products with India the present year. The FTA wants to remove duties on over 4000 articles in the span of next 8 years. The Economic Times
October 8, 2009
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