Presentation on theme: "Thailand – India FTA Chairit Kunthamas Thanagorn Somsuk."— Presentation transcript:
Thailand – India FTA Chairit Kunthamas Thanagorn Somsuk
Background Dr. Taksin Shinawatra, visited India during November 2001, the leaders of both countries agreed to expend economic cooperation in trade and investment, and set up a joint working group to study the feasibility of establishing a Thailand - India free trade area. The Joint Working Group held four rounds of meetings between May and December of 2002, and concluded that a free trade agreement would create mutual benefits. On October 9, 2003, Ministers of Commerce of both countries signed the framework agreement.
Trade Commodities Import Precious stones/diamonds and jewellery Copper & articles thereof Iron & Steel and products Oil-meal/Oil-cake (Animal feed) Chemicals (mainly organic) Metal ores, waste and scrap Parts & accessories of vehicles Industrial machinery Electrical machinery and parts Cotton Export Polymers of Ethylene, propylene in primary forms Motor car parts and accessories Iron & Steel products Automatic data processing machines & parts Television and radio broadcast equipment Spark ignition internal combustion piston engine and parts Rubber Essential oils and cosmetics Organic Chemicals Precious stones/diamonds and jewellery
Year Export ,075.3 Import ,211.5 Total trade 1,0561, ,440.71, ,286.8 Trade balance Trade Statistic
Significant Framework Agreement Trade in goods : The tariff reduction or elimination of the remaining products other than those under the EHS will be categorized into two tracks, namely Normal Track and Sensitive Track. Trade in Services and Investment : Both countries concurred to instigate a progressive liberalization of Trade in Services and an establishment of open and competitive investment regimes that facilitate and promote investment within and between the two countries. Economics Cooperation : Thailand and India agreed to promote and enhance economic cooperation in the areas that would be beneficial to both countries, such as information and communication technology, tourism, banking and finance, healthcare, construction, etc.
82 Products Included in FTA StandardProduct WO Fresh fruits, wheat, salt, and gem LC 30% Sardine, mackerel and crab CTH + LC 20% Jewelry, tube, pivot CTH + LC 40% Chemical, metal product, steel, aluminum, automobile parts, computer tools and parts, machine, watch part, gearbox, etc. CTSH + LC 40% Fan, air-conditioner, refrigerator, ball bearing, tap, telephone, TV and etc.
Benefit from FTA The results of the study can be summarized small trading partner of Thailand (ranked 18th at $3.4 billion or 1.3% of Thailand's total trade in 2006) Bilateral trade between India and Thailand amounted to 6 billion dollars in 2008, with Thailand enjoying a 1-billion-dollar surplus. Thai trade with India is expected to increase to 10 billion dollars after the agreement goes into effect next year 2009.