Thailand has called for speeding up free-trade talks with India, saying the key details of the long-awaited pact should be settled first, leaving minor contentious issues for later discussions.
Commerce minister Apiradi Tantraporn, who held talks with India's ambassador to Thailand Bhagwant Singh Bishnoi yesterday, said, "The Thai side first wants to settle key details of the long-awaited free-trade pact, leaving minor contentious issues for later discussion."
She said both the countries have agreed to accelerate the completion of the Thai-India FTAafter implementing the Early Harvest Programme back in 2004 covering 82 items.
"With disagreement on some topics, Thailand thinks both countries should finalise the agreement in some parts and continue negotiating on the remaining topics," she said.
The minister further said that Thai firms are keen to join India's Make in India, Smart Cities and Economic Corridor schemes as they see greater business opportunities amid the strong growth of Indian economy.
Thailand and India signed a framework agreement covering the liberalisation of trade in goods, services and investment on October 9, 2003.
It was agreed that Thailand and India would begin talks and establish a free trade agreement (FTA) by 2010.
Both the countries initially agreed to enact an early harvest scheme (EHS), meaning agreements on one or more topics must be concluded before the scheduled completion of a multi-issue round.
The agreement specified tariff reductions under the EHS for 82 items, including fruits, processed food products, gems and jewelery, iron and steel products, auto parts, electronic goods and electric appliances. Tariffs on these products were eliminated on Sept 1, 2006.
India and Thailand have also agreed to support the Asean-India FTAand the negotiation of the Regional Comprehensive Economic Partnership by this year.
Sources said Asean-India FTA in some ways had overtaken the India-Thailand FTA.
India feels Bangkok should be responsive to its demands in the FTA in services sector, the sources told PTI.
India is Thailand's 15th-biggest trading partner and largest in South Asia. Over the last five years, annual two-way trade averaged USD 8.47 billion.
In 2015, two-way trade reached USD 7.92 billion, making up 1.9 per cent of Thailand's exports. Thailand enjoyed a trade surplus with India of USD 2.67 billion last year.
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Key shipments from Thailand included plastic pellets, chemicals, cars and parts, engines, steel, machinery, air conditioners and parts, gems and jewellery, and computers and parts. Thailand imported chemicals, machinery, gold and precious stones, pharmaceutical products, ores and steel.
Thai-India FTA talks were revived in 2015 by the Gen Prayut Chan-o-cha government after being dormant for nearly 10 years.
Talks between high-ranking officials in June last year to update progress on comprehensive FTA negotiations provided another twist, as Thailand proposed to extend the talks to cover textiles and petrochemicals, while India requested to withdraw sugar and rubber gaskets from planned tariff cuts, local media said.
India also proposed a new schedule for talks with the investment sector, a revision of the criteria on sanitary and phytosanitary (pests and pathogens) measures, and an acceleration of liberalisation for occupations in which India is interested.
