Download Thailand – India FTA

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
Trade Statistic 2002-2006
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
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
amounted to 6 billion dollars in 2008, with Thailand
enjoying a 1-billion-dollar surplus.
 Thai trade with India is expected to increase to 10
billion dollars after the agreement goes into effect
next year 2009.
Reference






http://wwwreinvoicing.bangkokpost.com/business/economics/2
0196/the-value-of--with-free-trade-agreements-ii
http://images.google.co.th/imgres?imgurl=http://assets.csmauto.co
m/images/newsletter/1stQtr2009/article3b.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=1
3&hl=th&start=16&um=1&tbnid=ruDWUshKjv8_BM:&tbnh=88&tbn
w=114&prev=/images%3Fq%3Dfta%2Bthai%2Bexport%2Bproduc
t%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/IndiaThailandTradeR
eport.pdf
Thank You