Commerce with India doing relatively well

Trade with India under the free-trade agreement (FTA) has shown significant progress, although the surplus dropped 21 per cent last year.

For the 82 products in the early-harvest programme, Thailand enjoyed a trade surplus of US$263 million (Bt9.1 billion) last year, up by 4.6 per cent from 2005. Exports to India rose 6.9 per cent to $364.3 million, while imports soared 13.5 per cent to $101.1 million.

The trade surplus for all

products fell by 21 per cent to $200.3 million, mainly because exports increased only slightly last year.

Chana Kanaratanadilok, deputy director-general of the Trade Negotiations Department, said yesterday that although the total trade surplus with India had decreased, it was not a negative signal since Thailand still enjoyed a trade surplus with India under the free-trade pact.

This shows that both countries have gained from the free-trade pact, he said.

Total exports to India increased 17.9 per cent to $1.8 billion, and imports from India jumped 25.7 per cent to $1.6 billion last year.

Thailand's main export to India, plastic products, dropped 28.03 per cent to $145 million last year.

Asean countries and India are scheduled to meet in Jakarta next month to push the India-Asean FTA talks ahead.

Asean will agree with India's request to keep 490 product items on its negative list, but the items combined must not exceed 5 per cent of the total trade value between the two sides.

Thailand and Pakistan are also considering whether to start free-trade negotiations.

Chana said a team from Chulalongkorn University would report the results of the joint feasibility study to both governments on Monday, which would then have to decide whether to open negotiations.

Pakistan has shown eagerness to enter into talks with Thailand as its gateway to Asean, he said.

The Commerce Ministry reported that exports to Pakistan had risen 13.7 per cent to $673.2 million last year while imports grew 17.34 per cent to $98 million.

Petchanet Pratruangkrai

The Nation Thailand
Sunday January 28, 2007