India, Thailand to conclude FTA by June-July

New Delhi: India and Thailand today agreed to expedite the negotiations for a comprehensive bilateral market opening pact and conclude it by June-July this year. “We have agreed to expedite the conclusion of negotiations on a bilateral Free Trade Agreement that would include goods, services and investment,” Prime Minister Manmohan Singh said after meeting his Thai counterpart Yingluck Shinawatra.[caption id=“attachment_194061” align=“alignleft” width=“380” caption=“Prime Minister Manmohan Singh and Thailand Prime Minister Yingluck Shinawatra interacting with the media, at the ceremonial reception, at Rashtrapati Bhavan, in New Delhi on 25 January 2012. Image courtesy PIB”]  [/caption] A joint statement by the two countries said, “To strengthen economic links between the two countries, both sides reaffirmed their resolve to conclude the bilateral Comprehensive Agreement on Trade in Goods, Services, and Investments by mid-2012, to further enhance economic links and between the two countries.” With an aim to further create a supportive atmosphere for the bilateral and regional comprehensive economic cooperation, the two leaders also agreed that ASEAN and India should conclude their regional Trade in Services and Investment Agreements by 2012. India and ASEAN have already implemented FTA in goods. During Shinawatra visit, the 2nd protocol to amend the Framework Agreement for Establishing Free Trade Area, which would provide further boost to bilateral trade in the immediate terms, was also signed. “We have also concluded a revised Double Taxation Avoidance Agreement. I conveyed to the prime minister that we welcome more Thai investment into India, especially in the manufacturing, infrastructure and services sectors,” Singh added. Singh said developing close relations with Thailand is an important component of India’s Look East Policy. India, he said, sees Thailand as playing a positive role in its efforts to develop the North-Eastern States and to improve connectivity with the Asean region. “We have agreed to intensify progress on connectivity projects such as the India-Myanmar-Thailand trilateral highway. We have specifically decided to set up a joint working group on infrastructure and connectivity,” he said, adding that the two countries would encourage their energy and infrastructure companies to work together including in third countries. The joint statement said, meanwhile, the Thai Prime Minister has invited Indian investments to her country in IT, manufacturing, electronics and automotive industry. “Both sides looked forward to the establishment of a forum comprising senior representatives of business enterprises of both countries to promote expansion of bilateral business ties,” it added. The two sides also agreed to explore possibilities of collaboration between their oil and gas companies in Exploration and Production (E&P) opportunities in Thailand and India, as well as in third countries. PTI