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K.R. Srivats

New Delhi , Feb. 22

THE Government has initiated an "impact assessment" study of the early harvest scheme (EHS) under the Indo-Thai Free Trade Agreement (FTA) on the back of domestic industry apprehensions of a possible surge in exports from Thailand in the initial months of the scheme.

Under the EHS, which came into effect from September 1, 2004, entrepreneurs from India and Thailand can freely export and import as many as 82 items so long as they pay the duties, which would get eliminated by 2006.

A top Commerce Ministry official confirmed that an impact assessment study had been initiated on the EHS of the Indo-Thai FTA. The official, however, declined to get into specifics.

Indications are that the FTA cell in the Ministry would be analysing the trade flows and drawing inferences for future course of action.

The rules of origin for the Indo-Thai FTA have been finalised. Both sides are yet to firm up their negative lists and even possibly look at a zero tariff list.

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