India plans FTA framework with Thailand

India is likely to sign a framework agreement with Thailand in October 2003 during the Prime Minister Atal Behari Vajpayee’s visit to T...

India is likely to sign a framework agreement with Thailand in October 2003 during the Prime Minister Atal Behari Vajpayee’s visit to Thailand. The agreement will set up the roadmap to a free trade agreement (FTA) at a later date.

A joint negotiating group (JNG) has already been set up for drafting a framework agreement on India — Thailand FTA covering goods, services and investments.

An official in the commerce ministry said: ‘‘The framework agreement is expected to be signed during Vajpayee’s visit to Thailand scheduled to take place sometime in October.’’

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The dates are yet to be decided and the Ministry of External Affairs (MEA) is working on it, the official added. He said that the agreement will also set up the agenda to enhance trade and economic relations between the two countries. He also added that trade and investment between Thailand and India is likely to increase significantly after the signing of the agreement which will be the first between India and an Asean member.

Under the FTA in goods, both the countries target to reach tariff cuts by 2010 which mainly include agricultural and industrial products, the official said. Efforts will also be made for enhanced economic cooperation in areas of mutual interest, he noted.

The official informed that India is also expected to sign similar framework agreement with Asean during the PM’s visit to Asean summit in Bali (Indonesia) during October this year. This agreement will again plan the roadmap for free trade agreement between India and Asean. He said that Asean is a 10 member strong group comprising of large market and growing regional economies. Its important to have an agreement in place if India wants to increase bilateral trade with Asean members, he said.