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Thai-Peruvian FTA takes effect

The Nation, Bangkok

Thai-Peruvian FTA takes effect

8 January 2012

The Early Harvest programme under the free trade agreement between Thailand and Peru took effect on Dec 31, 2011, covering 70 per cent of goods traded between the two countries.

According to the Trade Negotiations Department, under the scheme, tariffs on 50 per cent of all goods are zero per cent. Tariffs on 20 per cent of the goods would be zero within Jan 1, 2016.

Thailand will enjoy zero tariffs for a number of 3,985 items, against 3,844 items for Peru. Among Thai goods enjoying the zero tariffs include automobile, components and parts of which US$163 million value accounts for over 70 per cent of exports to Peru. Others are washing machine and rubber products.

Zero tariffs are also applied to the imports of ores, fish oil and frozen seafood.

The department expects bilateral trade to expand from US$589 million, registered in the first 11 months of 2011, due to the FTA implementation. It also hopes that this would raise awareness among Thai companies to use Peru as gateway to the South America. Peru has so far struck FTAs with a number of countries like the US, Mexico, Canada, European Union, Singapore, China, South Korea, Japan and Australia.