India is likely to take a second look at some provisions in its FTA (Free Trade Agreement) with Thailand to allay fears of domestic electronic manufacturers, E.M.S. Natchiappan, Union Minister of State for Commerce and Industry, said here on Thursday.

An FTA between India and Thailand is in the discussion stages. In 2012-13, India exported $3.7 billion worth of goods to Thailand against imports worth of $5.1 billion.

According to the Minister, the Government will take all necessary steps to protect the interest of domestic manufacturers.

“We will re-address some provisions of the FTA with Thailand, as domestic electronic goods makers are being affected. All steps will be taken to ensure interest of domestic manufacturers is not impacted,” Natchiappan said during an interactive session at the MCC Chamber of Commerce and Industry.

Early talks, he said, have been initiated and detailed discussion on the matter would be taken up after the elections in Thailand.

India already has such trade pacts with several countries including Japan, Korea and Singapore. It is also negotiating over a dozen agreements with nations like Australia, and Canada as well as the European Union.

The Minister, however, clarified that the Centre would not “re-look” at the FTA but would address causes of concern raised by the domestic electronics industry here.

“FTAs should be looked as a protective mechanism and not to destroy the domestic industry,” he said.

Trade with China On trade with China, the Minister pointed out that there were complaints from Indian importers that goods ordered were not being delivered on time or were not of the good quality.

Accordingly, discussions have been initiated with the Chinese Government to put in place a dispute redressal mechanism.

“We have asked the Chinese government to set up a dispute redressal system to settle the matters,” he said.

>abhishek.l@thehindu.co.in

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