Post on 03-Feb-2016
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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