Thailand – India FTA Chairit Kunthamas Thanagorn Somsuk.

Thailand – India FTA

Chairit Kunthamas

Thanagorn Somsuk

Taksin Shinawatra

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 2002 2003 2004 2005 2006

Export 633.13 711.2 831.6 901.39 1,075.3

Import 423.09 379.00 609.06 865.8 1,211.5

Total trade 1,056 1,090.20 1,440.7 1,767.27 2,286.8

Trade balance 210.05 332.20 222.63 35.51 -136.27

Trade Statistic 2002-2006

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

Standard Product

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 am ounted to 6 billion dollars in 2 0 0 8 , with

- - Thailand enjoying a 1 billion dollar surplus. Thaitradewi t h I ndi a i s expect ed t o i ncr ease t o 10b

illion dollars after the agreement goes into eff ect next year 2009.

Reference

http://wwwreinvoicing.bangkokpost.com/business/economics/20196/the-value-of--with-free-trade-agreements-ii

http://images.google.co.th/imgres?imgurl=http://assets.csmauto.com/images/newsletter/1stQtr2009/article3-b.jpg&imgrefurl=http://www.csmauto.com/news/csminsights/2009/01/Assessing%2BFuture%2BImpact%2Bof%2BASEAN-%2BIndia%2BFTA%2Bon%2Bthe%2BAutomotive%2BIndustry&usg=__rq8XBcLJGZo9aEWmq9IPbEDw6gM=&h=212&w=275&sz=13&hl=th&start=16&um=1&tbnid=ruDWUshKjv8_BM:&tbnh=88&tbnw=114&prev=/images%3Fq%3Dfta%2Bthai%2Bexport%2Bproduct%2Bto%2Bindia%2Bgraph%26hl%3Dth%26um%3D1

http://www.itd.or.th/th/node/526 http://www.thaifta.com/english/index_eng.html http://www.ftamonitoring.org/data/Nov02/ROO.pdf http://www.indianchamber.net/new/northeast/

IndiaThailandTradeReport.pdf

Thank You