Thailand: Agreement in trade talks with Korea
Bangkok Post | 4 January 2008
Agreement in trade talks with Korea
Negotiations end one year after Asean deal
PHUSADEE ARUNMAS
Thailand has concluded free trade talks with South Korea under the Asean-Korea free trade agreement (AKFTA) after almost a year of negotiations.
Under the deal, Thailand will be given more flexibility in cutting and/or waiving its tariffs compared to other Asean nations, which wrapped up the AKFTA talks earlier, according to Noppadon Sarawasi, deputy director-general of the Trade Negotiations Department.
At the latest meeting between representatives of the two countries in Bangkok on Dec 17-18 last year, Thailand can extend the period for tariff cuts and tariff waivers for certain sensitive products until 2016-17 from 2010-12 proposed earlier.
Thailand was the only Asean member that did not sign the AKFTA in August 2006 since the bloc’s pact with South Korea was considered of little benefit to the Thai side, particularly for rice and other agricultural products. The AKFTA took effect in June last year.
Talks between the two countries resumed in January last year at the 12th Asean summit in Cebu, Philippines, under which Thai Commerce Minister Krirk-krai Jirapaet and South Korean trade minister Kim Hyun-Chong agreed to move forward from the sticking point that had caused Thailand to hold back from entering the region-wide economic agreement.Trade negotiators of the two countries had kicked off the talks last April and held up to five meetings before reaching common grounds.
Thailand’s product items which have been given an extension for tax cuts and/or tax waivers include steel and steel products, cosmetics, raw hides, tanned leather and leather goods.
Other products that would enjoy few benefits from Seoul’s pledged tariff cuts also include electrical appliances, particle board, plywood, cane molasses, yarn, frozen shrimp, tapioca starch and squid.
South Korea is Thailand’s eighth-largest trade partner, with bilateral trade value of nearly US$7 billion.
For the first 11 months of 2007, Thailand shipped about $2.71 billion, a rise of 11.4% over the same period last year
