India-Thailand FTA and Northeastern India

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In This News Bulletin ********************************* 1. INDIA-THAILAND FTA - Thai seeks more items for trade 2. North-eastern states ask Centre to expand border trade with neighbouring countries 3. Investors’ paradise - North-east India gears up for change as 128

industrial houses promise to invest in the region 4. ‘Northeast India can be major contributor to economy’ 5. Northeast India readies for business boost ------------------------------- INDIA-THAILAND FTA Thai seeks more items for trade http://www.financialexpress.com/fe_full_story.php?content_id=160847 ASHOK B SHARMA Posted online: Thursday, April 12, 2007 at 0004 hours

IST NEW DELHI, APR 11: Thailand has urged India to expand the basket of tradable commodities under the free trade agreement between the two countries. India-Thailand FTA came into operation from September 2004 and 82 items were subsequently selected for trade. ( India-Thailand FTA is slated to be reviewed in June this year before completion of its 3 yaers) “The FTA has increased the trade between the two countries by 150%. It has benefited both the countries. We should now mutually work to increase the number of commodities for the bilateral free trade,” Thai commerce minister, Krik-Krai Jirapaet told FE. Jirapaet said that there was no need for any new major agreement for cooperation between the two countries. “We have already 20 odd agreements in place. We can extend our cooperation on basis of the fundamentals of the existing agreements,” he said. The apex quality standards bodies of the two countries signed a mutual recognition agreement on Wednesday. Jirapaet pointed out Thailand's areas of export interest like agriculture and horticulture produces, processed and canned fruits and rubber. He said India has the lead in information technology, pharmaceuticals and automobiles and Thailand would seeks Indian exports in these sectors. Addressing the valedictory session of the third Northeastern India Business Summit on Wednesday, Jirapaet agreed to cooperate in the development of south and south-east Asia region. He also agreed that the north-eastern India should be integrated with the rest of the region. Union minister for the northeastern region, Mani Shankar Aiyar speaking earlier on the occasion had urged Thailand to be an active partner in the development of Northeastern India in matters of trade and investment. He suggested Thailand can help in road construction, inland water transportation, rubber production, silk processing, food processing and in exploiting the biodiversity of the region. Jirapaet, however had a word of caution regarding the development concept. He called for sustainable development of the region in the interest of maintaining its ecology and biodiversity. “We in Thailand faced lot of problems in

the initial stages of development,” he said. Myanmar’s ambassador to India U Kyi Thein said his country was interest in the development of trilateral highway connecting India with Myanmar and Thailand.-- North-eastern states ask Centre to expand border trade with neighbouring countries http://www.financialexpress.com/fe_full_story.php?content_id=161264 ASHOK B SHARMA Posted online: Monday, April 16, 2007 at 0001 hours IST NEW DELHI, APR

15: Northeastern states of the country are now urging the central government to facilitate greater border trade with India’s immediate neighbours –Bangladesh, Myanmar and Thailand. The northeastern states comprising of—Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura-feel that border trade can improve the livelihood of the people of this landlocked remote region abundant with natural resources. The Tripura minister for industries, commerce and information technology, Tapan Chakraborty said the official trade between his state and Bangladesh which began from 1995 has been constantly increasing. “The infrastructure at the land customs stations for trade with Bangladesh is being upgraded. The Agartala-Dhaka bus service has given impetus to cooperation with Bangladesh,” he said. Meghalaya is also a major trading partner of Bangladesh and has 10 trading outlets. The Meghalaya chief minister DD Lapang said goods worth Rs 1,840 million were exported to Bangladesh in the last financial year. The

bulk of the exported items were citrus fruits, flowers, spices, boulders, coal and limestone. The cement factory at Chattack in Bangladesh depends upon limestones dispatched from Meghalaya through an aerial ropeway. Lafarge Surma has requested for permission to transport limestone from Meghalaya for its 2 million tonne cement project proposed to be set up in Bangladesh. Mizoram, Manipur, Nagaland and Arunachal Pradesh, which share their borders

with Myanmar want to develop greater trade relations with not only Myanmar but also with Thailand, which has a free trade agreement with India. The issue of land route connectivity through Myanmar to Thailand has remained unresolved for many years. The Myanmar’s ambassador to India U Kyi Thein said his country was interest in the development of trilateral highway connecting India with Myanmar and Thailand. The proposed road connectivities are from Moreh in Manipur to Tammu in Myanmar, from Lokhavthar in Mizoram to Rih in Myanmar and from Nampong Prode in Arunachal to Pansaw pass in Myanmar. The trilateral road connectivity has great prospects not only for more border trade, but also

for easy movement of people. Mizoram governor, MM Lahera said that border trade can be promoted effectively through land customs stations at Zokhawthar and Tlabung. “The road connecting Champhai with Tiddim in Myanmar is being upgraded with assistance from the central government. The central government has agreed to take up Kaladan multi-modal transport project which envisages to link northeastern states with Sittwe port in Myanmar. Besides, Mizoram has the potential for developing waterways with Bangladesh along Khawthlangtuipui,” he said. Manipur chief minister, Okram Ibobi Singh said border trade with Myanmar through Moreh-Tamu sector was flourishing since 1995. Greater emphasis should be given to strengthen the route via national highway 39 up to Moreh in Manipur and beyond to Thailand via Myanmar. Railway line should be extended from Jiribam to Tupul so that it can be the basis of further connecting it with Myanmar and other ASEAN countries. Arunachal and Sikkim which share borders with China want better border trade with their immediate neighbour. The

strengthen of Bhramaputra and Barak waterways can boost trade. The northeastern states also want upgradation of airports and regular air flights. ------------------------ From The Fields Investors’ paradise North-east India gears up for change as 128 industrial houses promise to invest in the region http://www.indianexpress.com/story/28253.html ASHOK B SHARMAPosted online: Friday, April 13, 2007 at 0000 hrs New Delhi: For a region with a large agrarian economy, the Northeast has for long agonised at being overlooked by investors. Now, there’s good news, with as many as 128 industrial houses promising to invest in the region. Expressing confidence in the government’s North East Industrial and Investment Policy 2007, formulated early last month, they have suggested improvements in the region at the 3rd North-East Business Summit, which concluded on Wednesday. While appealing to the investors to exploit the natural resources of the region for boosting its economy, the Union Minister

for Development of the Northeastern region, Mani Shankar Aiyar, has also assured the corporate houses that he would take up the issue with the Commerce and Industry Ministry for effecting the necessary changes in the policy. According to a study conducted by YES Bank, the northeastern region, consisting of Sikkim, Assam, Nagaland, Manipur, Mizoram, Meghalaya, Arunachal Pradesh and Tripura, is an unexplored paradise for agribusiness. The study suggests some potential areas for agribusiness like agrofood processing, horticulture development and crop diversification, agro forestry, improved agriculture technologies, plantation crops, ornamental fisheries, jute and bamboo, agri infrastructure and organic

farming. A similar study jointly conducted by the Indian Chamber of Commerce, NEDFi and the Indian Institute of Entrepreneurship has worked out project reports for the possible industries in the region. Meanwhile, Aiyar also appealed to Thailand’s commerce minister, Krik-Krai Jirapaet, to be an active partner in the development of the northeastern India. He suggested investment in areas like road construction, inland water transportation, rubber industry, moga

silk processing, food processing and also exploiting the biodiversity of the region. Jirapaet responded positively, saying, “We already have 20-odd agreements in place. We can extend our cooperation on the basis of the fundamentals of the existing agreements,” he said. He also pointed out Thailand’s areas of export interest like agriculture and horticulture produces, processed and canned fruits. He said "India has the lead in information technology, pharmaceuticals and automobiles and can help us in these areas." Jirapaet has urged India to expand the basket of tradable commodities under the free trade agreement between the two countries. India-Thailand FTA came into operation from September 2004 and 82 items were subsequently selected for trade. India-Thailand FTA is slated to be reviewed in June this year before completion of its 3 yaers. "The FTA has increased the trade between the two countries by 150%. It has benefited both the countries. We should now mutually work to increase the number of commodities for the bilateral free trade," said Jirapaet . The apex quality standards bodies of the two countries signed a mutual recognition agreement on Wednesday which would go a long way to smoothen trade relations. Jirapaet agreed to cooperate in the development of south and south-east Asia region. He also agreed that the north-eastern India should be integrated with the rest of the region. However he had a word of caution regarding the concept of development. He called for sustainable development of the region in the interest of maintaining its ecology and biodiversity. "We in Thailand faced

lot of problems in the initial stages of development," he said. The issue of land route connectivity through Myanmar has remained unresolved for many years. The Myanmar’s ambassador to India U Kyi Thein who was also present on the occassion said his country was interest in the development of trilateral highway connecting India with Myanmar and Thailand. The proposed road connectivities are from Moreh in Manipur to Tammu in Myanmar, from Lokhavthar in Mizoram to Rih in Myanmar and from Nampong Prode in Arunachal to Pansaw pass in Myanmar. The trilateral road connectivity has great propospects not only for more border trade, but also for easy movement of people.-- ‘Northeast can be major contributor to economy’ http://www.financialexpress.com/fe_full_story.php?content_id=160742 ASHOK B SHARMA Posted online : Wednesday, April 11, 2007 at 0000 hours IST NEW DELHI, APR 10: Vice President Bhairon Singh Shekhawat called for holistic development of the north-eastern parts of the country. He said that the

country just couldn’t afford to neglect a region which has potential to contribute enormously to the economy. He pointed out multiple problems of poverty, unemployment and inadequacy of physical and economic infrastructure leading to a feeling of alienation of the region from the mainstream. Unfortunately, some parts have problems of militancy and violence, he said. Inaugurating the 3rd North-East Business Summit organized by the Union ministry for the development of the north-east region and the Indian Chamber of Commerce here today,

Shekhawat hoped that the new North East Industrial and Investment Promotional Policy, 2007 put in place from April 1 would help to address the issue of development. The Union minister for development of north-eastern region, Mani Shankar Aiyar emphasized on the region as a great investment destination. Talking on the issue of security in the region he said that it was a wrong perception to view the entire north-eastern region as insurgency infested. He said that barring a few pockets the security situation in the entire region was most conducive to business. Aiyar highlighted the new North-East Industrial and Investment Policy(NEIIP) which has some unique features. This policy was unveiled on March, 31, 2007 and it is a exclusive policy relating to all areas of the region. The policy is valid for the next 10 years. However, any body who wishes to take advantage of this policy will get the advantage for the next 10 years from the date of him/her adopting the policy. This policy has virtual tax exemption which means that there will be no income tax for 10 years and no Excise Duty except on some health harming substances like tobacco, gutka, he said. Aiyar also indicated the

government’s intention to have cold storages at 5 major air ports in the North-east region to promote business. The minister outlined an infrastructure building programme including the transport and air travel segment. He said that as against 226 air links in the north-eastern region at present the government plans to increase the air links to over 500 in the next 2 years. He said that as against the Central money flow of Rs.80,000 crores in the north-eastern region in the 10th Plan, the expected fund flow in the 11th Plan will be Rs.1,20,000 crores. The minister appealed to the private industry to generously invest in the business ventures in power, tourism, food processing, handicrafts and other industries in this

region to encourage employment generation, local area development and to economic power to the people. ---------------------------- Northeast readies for business boost http://www.financialexpress.com/fe_full_story.php?content_id=160624 ASHOK B SHARMA Posted online : Tuesday, April 10, 2007 at 0000 hours IST NEW DELHI, APR 9: The presence of Thailand commerce minister Krirk-Krai Jirapaet at the third Northeast Business Summit is expected to boost trade links between that country and north-eastern India. Briefing mediapersons on the eve of the summit, minister for development of northeastern region Mani Shankar Aiyer said the recent North-East Industrial and Investment Promotion Policy of the government this year would facilitate all round development of the region. The policy provides capital

subsidy and subsidies in interest, insurance and transport tied up with significant tax exemptions for any industry in the region for the first 10 years. Aiyer appealed to investors not to go by the usual mindset by questioning the security problems in the region. He said Sikkim, Mizoram, Arunachal Pradesh and Meghalaya had no security problem and so also in most parts of Assam. There has been a reduction in insurgency in Tripura, he said. Beginning in New

Delhi on Tuesday, the two-day meet will host delegations from Bhutan, Nepal, Bangladesh and Thailand, besides 1,000 Indian industrialists. The sessions will include an introductory speech by Vice-President Bhairon Singh Shekhawat on Tuesday and a special address by commerce minister Kamal Nath and Jirapaet's valedictory address on Wednesday. The summit is being organised by the Indian Chamber of Commerce (ICC) and the Union ministry for the development of the northeastern region. Apart from the chief ministers and officials from the eight northeastern states, officials and ministers from the Union government, including the civil aviation minister Praful Patel, tourism minister Ambika Soni and food processing industries minister Subodh Kant Sahai will participate in the deliberations. Aiyer appealed to the investors not to go by the usual mindset by questioning the security problems in the region. He said Sikkim, Mizoram, Arunachal Pradesh and Meghalaya has no security problem and so also in most parts of Assam. There has been a reduction in insurgency in Tripura, he said.----------------------

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