The Hindu Business Line : ‘Indo-Thai FTA vital for speedy two-way investments’

Even as hectic efforts are on through a mega road show in Bangkok — by the Ministry of Department of North Eastern Region (DONER) in close collaboration with Indian Chamber of Commerce, Kolkata — to attract large scale investments from Thailand into the north eastern region, a lot may now depend on how soon the Free Trade Agreement talks between India and Thailand conclude successfully.

Talking to Business Line at the sidelines of the first day session of the North East India Trade and Investment Opportunities Week programme here recently, Mr Krirk-Krai Jirapaet, Minister of Commerce, Thailand, said an Indo-Thai FTA would be the deciding factor for speedy two-way investments, including Thai investments into the North East. “It’s a question of shared prosperity and shared benefits. No country can afford to trade in a lopsided manner.”

‘Natural allies’

While clarifying that investments, as such, do not figure in the ongoing FTA talks, the Thai Commerce Minister said even under the Early Harvest, now almost three years old, two-way trade has nearly doubled to $3.4 billion (62.5 per cent growth in last eight months). Describing the two countries as natural allies, he put exports by Thailand into India at $1.8 billion and imports from India at $1.6 billion.

Incidentally, Thailand’s total trade with China is seven times that of India at $25 billion.

Describing the N-E Investment Week in the Thai capital as a landmark event, the Minister said, “We need something more concrete, meaningful, even though we are not short of any mechanism.”

According to him, “We (private investors of both countries) need to understand each other, create confidence and share knowledge in order to march forward.”

Hinting discreetly that the ball was now squarely in India’s court, after the last round of talks in June, he said, “I have clearly indicated during my last discussions with your Commerce Minister, Mr Kamal Nath, that India too needs to practice flexibility in seeking exclusions from the agreed tariff lines.”

Two-way street

As known, the Early Harvest scheme of the framework agreement incorporates only some 82 items, which can be imported into India duty-free, and talks now centre over a long list of nearly 500 items.

Mr Jirapaet said, “We have even agreed to keep rubber out, even though Thailand is the world’s number one exporter of rubber and rubber products.”

Suggesting trade was a two-way street, which needs to be fair and just, he said, the Investment Week programme, bringing in such a large Indian trade delegation (numbering 160) has indeed sown the seeds of shared prosperity, “no matter what comes tomorrow”.

Security concerns

Asked on security concerns with regard to investments in the North East, Mr Jirapaet said this risk factor has to be understood clearly by the respective investors.

“The businessmen will have to decide on that.” On the power front, he said the Electricity Authority of Thailand was keen on joint ventures in hydel power generation in the North East.

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