Thai Cabinet okays trade pact

In a major boost to trade ties with India, Thailand has endorsed 82 items in the free trade agreement selected for the early harvest.

"The Customs duty will be reduced by 50 per cent on these selected items with effect from September 1, 2004," Thai Minister of Science and Technology Korn Thapparansi said at a Confederation of Indian Industry and Federation of Thai Industries seminar, India-Thailand: The Road Ahead.

The next reduction of 25 per cent would be effective from September 1, 2005 and from September 1, 2006, there would be no duty, he said informing about the Cabinet decision. The move would increase the volume of trade between the two countries to the targeted $2.1 billion from the existing $1.2 billion, he said.

Complimenting India's strong economy, rich technology and human resource capability, he said, 100 young Thai scientists would participate in a science camp at Infosys in Bangalore later this year.

Thailand has a similar free trade agreement with China. However, there were some apprehensions on the Indian side that the Chinese goods may enter the Indian market through Thailand and hence India insisted on strict rules of origin.

Minister of State for Commerce and Industry E V K S Elangovan said the free trade agreement would further strengthen the economic ties with the southeast Asian nation.

The Road Ahead

• The Customs duty will be reduced by 50% on 82 items with effect from September 1, 2004
• The next reduction of 25% will be effective from September 1, 2005
• From September 1, 2006, there will be no duty
• The move will increase the volume of trade between the two countries to the targeted $2.1 billion from the existing $1.2 billion