Trade Agreement Between India And Thailand

Bilateral negotiations were then halted, with India having to prioritize its free trade with the Association of Southeast Asian Nations (ASEAN). Background Like the former Prime Minister of Thailand, Pol. Lt. Dr. Thaksin Shinawatra, who visited India from 26 to 29 November 2001, the heads of state and government of both countries agreed to use economic cooperation in trade and investment and established a joint working group to study the feasibility of creating a free trade area between Thailand and India. The joint working group held four meetings between May and December 2002 and concluded that a free trade agreement would create reciprocal benefits for the development of trade, investment and economic cooperation in areas such as tourism, education, finance and banking, health, aviation and international transport. In addition, Thailand would benefit from increased trade and reduced tariffs on exports to India, including clothing, leather goods, chemicals, rubber, plastics, metals, automobiles and electrical parts and goods. Following the study, the two sides established a joint negotiating group to develop the framework agreement to create a free trade area between Thailand and India for trade in goods, services, investment and economic cooperation. The negotiating group convened six meetings between December 2002 and October 2003. On 9 October 2003, the trade ministers of both countries signed the framework agreement. Negotiation Mechanisms A trade negotiation committee between India and Thailand was established to discuss the details of the framework agreement and to formulate a free trade agreement and strengthen economic cooperation between the two countries. Expert groups have also been set up to negotiate certain areas of the agreement, such as.

B the rules of origin of goods, dispute resolution mechanisms and trade in services and investment. These expert panels report their findings to the trade negotiation committee. From 2004, the free trade agreement between Thailand and India included trade in goods until 2010. In order to accelerate tariff reductions, the two countries agreed to set up a money-buying information exchange programme (EHS) for 82 goods supplements, whose duties have been reduced to 0% since September 2006 – completely abolished. Bilateral trade between countries was valued at $4.1 billion in the first half of 2010, an increase of 29% over the previous year. Of the total, Thailand`s exports to India were worth $2.6 billion, while its imports from India were $1.5 billion. The framework agreement covers the liberalisation of trade in goods, trade in services and investment, and the extension of economic cooperation. Thai representatives, led by Director General Srirat Rastapana, recently travelled to India to meet with their Indian counterparts at the 21st Thailand-India Trade Committee in New Delhi, the capital, to negotiate free trade, services, investment and other economic cooperation between the two nations. The joint working group held four meetings between May and December 2002 and concluded that a free trade agreement would create reciprocal benefits for the development of trade, investment and economic cooperation in areas such as tourism, education, finance and banking, health, aviation and international transport.