Thailand and India seek to push free trade agreement

India and Thailand sought to hasten negotiations on a free trade pact, with the Thai prime minister trying to allay concerns over political uncertainty in his country after last year's military coup.
Prime Minister Surayud Chulanont, appointed by the army, said there would be no backtracking on Thailand's return to full democracy and prospects for the economy were also bright with GDP growth for 2007 expected to be between 4.0 and 4.5 percent.
He told business leaders that India, as the world's "fastest growing free-market democracy", should therefore not hesitate to strengthen its growing economic relationship with Thailand and build on centuries-old cultural links between the two countries.
"Thailand and India already possess the necessary resources to make use of our untapped opportunities," said Chulanont, who began a three-day visit to India on Monday.
"For both governments, this means further strengthening our economic partnership, deepening our linkages, minimising barriers and maximising access for our products and capital."
"We in Thailand see in India a key engine of the rising Asian economy. We see in India a dynamic force for enhanced economic interaction with Asia and, indeed, globally," he said.
India and Thailand have a limited free trade pact agreed in 2003 and are negotiating a full treaty. Last year, trade touched $3.4 billion, more than double the levels in 2001, and Indian industry groups expect it to reach $7 billion by 2010.
Although some businessmen had expected the free trade agreement to be finalised during Chulanont's visit, Indian officials said differences had caused a delay.
While Bangkok wants to liberalise trade in goods first, New Delhi wants to pursue free trade in goods, services and investments simultaneously, they said.
Nevertheless, Chulanont and Indian Trade Minister Kamal Nath both said officials were making good progress over concluding a pact soon. The Thai premier said a treaty allowing free trade in goods by 2010 was expected to be in place soon.
"Thailand regards India as one of our most important strategic partners," Chulanont said. "India has every opportunity to become Thailand's major market for trade and investment."
For India, trade with Thailand was less than 1 percent of its total trade while China-Thailand trade was about eight times higher than India-Thailand trade, businessmen said. Delhi should not only push for free trade with Bangkok but also use it as a "stepping stone" in free trade talks with ASEAN, said Arun Bharat Ram of the Confederation of Indian Industry.