4BackgroundDr. 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.
5Trade Commodities Import Export Precious stones/diamonds and jewellery Copper & articles thereofIron & Steel and productsOil-meal/Oil-cake (Animal feed)Chemicals (mainly organic)Metal ores, waste and scrapParts & accessories of vehiclesIndustrial machineryElectrical machinery and partsCottonExportPolymers of Ethylene, propylene in primary formsMotor car parts and accessoriesIron & Steel productsAutomatic data processing machines & partsTelevision and radio broadcast equipmentSpark ignition internal combustion piston engine and partsRubberEssential oils and cosmeticsOrganic ChemicalsPrecious stones/diamonds and jewellery
6Trade Statistic 2002-2006 Year Export Import Total trade Trade balance 2003200420052006Export633.13711.2831.6901.391,075.3Import423.09379.00609.06865.81,211.5Total trade1,0561,090.201,440.71,767.272,286.8Trade balance210.05332.20222.6335.51
7Significant 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.
882 Products Included in FTA StandardProductWOFresh fruits, wheat, salt, and gemLC ≥ 30%Sardine, mackerel and crabCTH + LC ≥ 20%Jewelry, tube, pivotCTH + 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.
9Benefit 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.