India keen to resume suspended FTA with Thailand
The Thai government is planning to restore its free trade agreement (FTA) with India as well as jointly work towards solving trade obstacles between the two countries as soon as possible, Thai Trade Representative Nalinee Taveesin said on Thursday.
Nalinee, who also serves as an advisor to the prime minister, said that she recently discussed the possibility of resuming the suspended FTA with India with Nagesh Singh, India’s ambassador to Thailand.
In 2006, Thailand and India entered into an FTA under the Early Harvest Scheme, covering tariff exemption on 83 products including fresh fruits, cereals, processed meat, minerals, chemicals, automotive parts and electrical appliances, said Nalinee.
The FTA was suspended in 2016 after India shifted to negotiating an FTA with Asean nations to expand its export markets, she added.
Nalinee said India viewed Thailand as having high investment potential and as one of the economic hubs in the Indo-Pacific region, and the sub-continent was therefore interested in restoring the suspended FTA with Thailand.
Both sides hope the restored FTA will lead to expanded operations of the Thai-Indian joint trade committee and the Regional Comprehensive Economic Partnership (RCEP), of which Thailand is a member.
The two sides agreed that the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), of which both Thailand and India are members, could serve as a platform to address and solve trade obstacles and boost cooperation with other member countries.
The ambassador said Prime Minister Narendra Modi is looking forward to attending the BIMSTEC Summit to be hosted by Thailand in November.
He added that India is also looking for cooperation from Thai start-ups under the Startups India Initiative, which aims to boost the country’s economy to achieve a value of US$5 trillion by 2025.
According to Singh, there is a high demand in India for several products from Thailand, namely shrimps, meats, drugs and pharmaceutical products. The country is also looking to promote cooperation on national security through armaments for which India has high potential, such as helicopters and submarines.
Trade value between Thailand and India in 2022 was recorded at US$17.7 billion, expanding 18.06% year on year and making the country Thailand’s 7th largest trade partner.
Exports to India, valued at US$10.5 billion, include plastic pellets, vegetable and animal fat and oil, chemicals, jewellery, iron and steel.
Imports from India, valued at US$7.17 billion, include gems, gold and silver bars, machines and parts, minerals, chemicals, and plant products.
