Trade grows under Thai-India FTA
Asia Times, Hong Kong
Trade grows under Thai-India FTA
20 June 2006
BANGKOK - Bilateral trade between Thailand and India has continued to grow after the two countries began implementing the Thai-Indian Free Trade Area (FTA) Agreement in September last year, according to a senior Commerce Ministry official.
Department of Trade Negotiations Director-General Apiradi Tantraporn told TNA on Friday that two-way trade between the two Asian markets in 82 items initially approved for tariff cuts reciprocally - under the Early Harvest Scheme (EHS) - rose to US$430 million in 2005, from US$216.7 million in 2004, with Thailand earning a trade surplus of US$252.7 million.
In the first four months of this year, she said, bilateral trade between the two countries reached over US$118.5 million, a 9.2% increase from the same period of last year, with Thailand still having a trade surplus of US$49.5 million.
"Thai exports to India under the EHS Scheme are likely to steadily grow although the country’s exports to New Delhi during the January-April period this year dropped by 1.2% to US$84 million when compared to those of the same period of last year, as New Delhi is obliged to continue to cut its import tariffs for Thai products," she projected.
An increase in Thailand’s imports from India in the first four months of this year to US$34.5 million, from US$23.5 million in the same period of last year - a surge by 47% - was due to shipments of capital goods from India for increased domestic production, she noted, saying that the imports are likely to drop later this year.
Major Thai exports to India include color television sets, air conditioners, refrigerators, steel, as well as gems and jewellery; while imports from India include automobile parts, metal products, as well as gems and jewellery.
"Expanding bilateral trade between Thailand and India is the result of the Thai-Indian FTA pact, which reduces two-way trade barriers and boost shipments of goods of both countries," said the official.
