Presentation on theme: "Thailand is scheduled to sign a long-awaited free trade area agreement with Peru by the middle of November during the Asia-Pacific Economic Co-operation."— Presentation transcript:
Thailand is scheduled to sign a long-awaited free trade area agreement with Peru by the middle of November during the Asia-Pacific Economic Co-operation (APEC) meeting in Singapore. The deal is expected to double the value of bilateral trade in one year from US$320 million in 2008. Prime Minister Abhisit Vejjajiva and Peru's President Alan Garcia will witness the signing ceremony on Nov 13 in Singapore, said Thailand Trade Representative Vachara Phanchet.
The Thai cabinet approved a draft on Sept 8 and the agreement will soon go for parliamentary debate, Mr. Vachara said. Thailand and Peru started FTA talks in 2003. The two countries have already agreed to reduce import duties for about 70% of products traded. Under the "early harvest" program of the free trade area (FTA) agreement with Peru, Thailand is committed to cutting import tariffs on 4,050 items, while Peru will reduce tariffs on 5,014 items, possibly from early next year.
On implementation, Thailand will lift tariffs on 2,754 products, while Peru will end tariffs on 3,817 items. Tariffs on other items will go within five years. Products from Thailand that may benefit include pickup trucks, electrical appliances, plastic and plastic products, washing machines, rubber, automotive parts and home appliances. Peru will focus on products such as fresh shrimp, fish oil and pesticides. The Thailand Trade Representative Office plans to organise a trade mission to Peru after the bilateral agreement is signed in November.
Carlos Velasco Mendiola, Peru's ambassador to Thailand, said the FTA would greatly benefit Thailand since Peru is a member of APEC and of the regional Mercosur trade group, which includes Argentina, Brazil, Paraguay, Uruguay, Bolivia, Chile, Colombia, Ecuador, Peru and Venezuela. Via Thailand, Peru could sell more to Asean's 550 million people, he said. Peru has already implemented a free trade agreement with the US and is in talks with the European Union. In 2008, two-way trade between Peru and Thailand totalled $320 million, with Thai exports worth about $70 million.
Protocol Between the Republic of Peru and the Kingdom of Thailand Annex 1: Trade in Goods Appendix 1 Peru's List Thailand's List Appendix 2 Tariff Schedule Appendix 3 Used Goods Annex 2: Rules of Origin Annex 3: Sanitary and Phytosanitary Measures Annex 4: Technical Barriers to Trade Annex 5: Customs Procedures Annex 6: Transparency and Administration of Laws and Regulations Annex 7: Consultations and Dispute Settlement
Conclusion – Peru FTA In 2oo4, the first negotiation between Thailand and Peru occur to sign the free trade agreement. On 19 November 2005, They sign the agreement in APEC 13rd in Pusan, Korea. Thailand exports expect to gain benefits from Perus tax reduction such as pick-up trucks, plastic products, air-conditioners, washing machine, television, fax, computer, polyester and etc.
Conclusion – Peru FTA There is also the additional agreement in APEC during November 2006 to decrease some tariff for early harvest. The finalized tax table and the origin of the product rules has adjusted to HS 2007 approved the draft additional protocol and exchange of letters on fishery products.
Perus next step Being prepared to propose to the cabinet and parliament to approve the signing of the additional protocol and exchange of letters on fishery products in August 2009. 2 issues will be signed and announced in effect of the agreement during the APEC meeting in November 2009. 1. Protocol 2. Exchange of letters