India, Thailand UmbrellaTrade Pact Likely by June

27 May 2007: Kolkata
Calling for stronger Indo-Thai trade relations in the wake of the `Look West' policy adopted by Thailand, Mr Manop Mekprayoonthong, Consul General of Thailand, Kolkata has said here that the Umbrella Agreement based on the Free Trade Area Framework (signed on October 9, 2003) was likely to be finalised by end June.

The Prime Minister, General Surayud Julananda, is expected to visit India on June 25, on a three-day tour, along with a large Thai trade delegation.

More items

Speaking at an interactive session on Indo-Thai Bilateral Relations, organised by the Calcutta Chamber of Commerce, he said talks were now on to include some 4,000 items on the tariff list for duty elimination by 2011. Under the Early Harvest Scheme (EHS) of the Framework Agreement of 2003, some 82 items were identified for tariff cuts. The umbrella agreement is expected to cover the services sector too.

Mr Mekprayoonthong said the areas of cooperation between the two countries revolved around sectors such as telecom, food-processing, electrical equipment, real estate development and infrastructure. Indian investments in Thailand are in areas such as hotels, chemicals, pulp and paper, electronics, and vehicle spare parts. Thai investments in India were said to be in areas such as food-processing, construction, fisheries and coal mining.

Trade offices

Pointing out that more Thai companies were keen on tie-ups in Bengal, he said there was a plan to open full-fledged trade offices in West Bengal and Assam.

Thailand's key exports to India include items such as plastic pellets, TVs and accessories, iron and steel products and automobile spare parts. Imports from India include items such as diamond and jewellery, silver ingots, gold, metal and chemical products.

Link: The Hindu Business Line