Import curbs in Thai FTA

 "If any product, covered under the Early Harvest Scheme, is imported into the territory in such a manner or in such quantities as to cause, or threaten to cause, serious injury to a domestic party may, after prior consultations, be concluded within 90 days or on any mutually agreed timeframe, from the date of notifying the other party, suspend provisionally without discrimination the preferential treatment so accorded," the framework agreement signed last week said.

 Such measures are part of most FTAs to protect the interests of domestic industry. Under the Early Harvest Scheme, 84 tariff lines between India and Thailand would be required to halve duties from the applied rate on January 1, 2004.

 The reduction would have to take place over a one-year period, beginning March 1, 2004.

 Commerce ministry officials pointed out that the framework agreement had inserted provisions for interim rules of origin for all products covered under the Early Harvest Scheme to protect third party exports to be routed through India or Thailand for re-export to the two markets. A sub-group of experts will be constituted to finalise the rules of origin.

 The agreement will not prevent both countries from taking action and adopting measures for the protection of its national security or the protection of articles of artistic, historic and archaeological value, or any other measures it deems necessary for the protection of public morals, or for the protection of human, animal or plant life, health and conservation of exhaustible natural resources.

 Meanwhile, the country