Thai-Korean FTA agreed

FTA

Thai-Korean FTA agreed

Thailand and South Korea have concluded an agreement on opening up their markets under the Asean-Korea free trade agreement.

Thai government has recently agreed to enter into the Asean Free Trade Agreement with South Korea in spite of the country's initial opt-out from the agreement.

Noppadon Sarawasi, deputy director general of Trade Negotiations Department, said that Bangkok recently agreed to conclude the agreement with Seoul under the Asean-South Korea FTA framework even though Bangkok initially opted out from the deal due to its objection to the exclusion of rice from the deal. Other Asean countries excluding Thailand signed the agreement with South Korea last year.

Thai products to benefit from the revocation and reduction of import tariffs are steel and steel products, cosmetics, tanned leather, leather products, frozen shrimp and tapioca flour. Nearly all of Thailand's exports to the country would be entitled to tariff cut or revocation.

"Asean and Korea started the FTA negotiation in 1995 and tariffs have been cut since the middle of 2007. They also reached an agreement to open up trade and service sectors last November. They are in the middle of negotiation on clinching an agreement on investment, which should be concluded within 2008," said an official at the Commerce Ministry's Trade Negotiations Department.

Asean and Korea trade balance is valued about US$62 billion per year.