The Hindu Business Line : Indo-Thai pact a `win-win' situation

THE Consul-General of Thailand in Kolkata, Mr Wanna Perngmark, has urged Indian manufacturers to shake off their fears over the Indo-Thai Free Trade Agreement (FTA).

Addressing the members of the Bharat Chamber of Commerce here on Wednesday, he said a section of manufacturers in India was apprehensive that Thai products might flood Indian markets, affecting the domestic industry. But Mr Perngmark said the FTA was a " win-win" situation for both the countries to enhance and strengthen their respective economies through mutual trust and co-dependence.

He said trade and investment between India and Thailand would witness a steady increase in the near future, taking advantage of the Indo-Thai FTA, effective from September 2004 on 82 items included in `The Early Harvest Scheme.' Both the countries are allowed to trade in these specified items at a uniform duty rate of 50 per cent.

Import duties will be further reduced by 25 per cent from September 2005 to August 2006. And all the items will be totally free of duty from 2006.

The Indo-Thai FTA seeks to liberalise the maximum rate for tariff reduction in trade and services, which was now under negotiation.

The ultimate goal is to cover all products and services under the FTAQ fold.

He said the Early Harvest Scheme held high significance, as both sides will have greater access to each other's markets.

Under the listed items in EHS, mangoes, apples, durians, rambutan, seafood products, gems & jewellery, automotive assembly and parts and electronic components are said to have high potential.

The Consul-General felt that Kolkata may gain the most considering its geographical proximity to South and South-East Asian countries.

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