Long-lasting Thai-Japanese FTA negotiation concludes
MCOT News, 2 August 2005
Long-lasting Thai-Japanese FTA negotiation concludes
BANGKOK, Aug 1 (TNA) - The long-lasting negotiation for the Thai-Japanese free trade area (FTA) covering more than 7,000 product items has finally been wrapped up with an agreement to be signed in next April and effective in September 2006.
Pisal Manavapat, Deputy Permanent Secretary for Foreign Affairs, said in his capacity as the head of the Committee on Negotiation for the Thai-Japanese Economic Partnership under FTA Framework that the FTA talks had already concluded at a policy level.
Thai Prime Minister Thaksin Shinawatra will make a visit to Japan to jointly declare a political intention with his Japanese counterpart Junichiro Koizumi this month.
The Thai-Japanese FTA agreement would be signed in April 2006 and put into effect in September the same year, he said.
It will cover more than 7,000 product items, or 97% of the total trade value of the two countries.
Thailand is expected to enjoy gains of around 42 billion baht.
Upon the conclusion of the FTA negotiation, he said, officials of the two sides would map up a memorandum of understanding (MOU).
The Japanese side would bring a result of the negotiation for discussion at a meeting of the House of Representatives members to seek their approval, he noted.
Earlier, a source at the Government Houses said, Japanese Trade and Industry Minister Choishi Nagagawa met and discussed with Thai Deputy Prime Minister and Finance Minister Somkid Jatusripitak on progress in solving obstacles to the establishment of the Thai-Japanese FTA.
After the talk for a half and hour, Dr. Somkid took the Japanese minister to meet and discuss with the Thai premier.
Speaking after the meeting, Mr. Thaksin said Japan had tried to understand certain concerns expressed by the Thai government.
At the same time, it needs to have a clear political answer as well.
He believed a minor difference in some wordings on import tariffs for automobiles with more than 3,000-cc engine would be soon settled.
The difference in the matter on small automobiles has already been settled.
In principle, the Thai premier said, both sides would hold a discussion in details on the automobile again in the future because Thailand has a policy to promote itself as the "Detroit of Asia".
The agreement will not make the Thai automobile industry become in trouble.
Instead, it will boost bilateral trade between the two countries and the liberalization of farm product trade, according to Mr. Thaksin.
