India-Thailand FTA

[Guest guest]

NEWS Bulletin from Indian Society For Sustainable Agriculture & Rural Development *********************************** 1. Thailand seeks to work with India in floriculture 2. India-Thai FTA on goods to be reality by

Sept 3. Sugar exporters to get non-cash sops ----------------------------- Thailand seeks to work with India in floriculture http://www.financialexpress.com/fe_full_story.php?content_id=168426 ASHOK B SHARMA Posted online: Thursday, June 28, 2007 at 0038 hours IST NEW DELHI, JUN 27: Thai corporates want India to grow a special variety of orchids called Dendrobium in large numbers for exports even as a 35-member business delegation which accompanied the Thai prime minister, Surayud Chulanot explored various opportunities with their Indian counterparts including floriculture. Some of them want permission for more Thai vessels to fish in India waters. The Thai sugar industry expressed close cooperation with Indian sugar industry in matters of technology transfer. Chulanot led the business delegation ahead of the renewal of India-Thai free trade agreement by September, this year after the expiry of the three-year Early Harvest Scheme (limited FTA) covering 82 products. The two-trade in 2006 rose to around $3.4 billion and in the first four months of the current calendar year it recorded $1.3 billion. As the trade balance is in favour of Thailand, it wants more items to be included under FTA. “In the last few months we explored the possibilities of growing Dendrobium in northeastern India. We are looking for right partners who can grow it and we are ready to supply planting materials. The Indian growers can sell the flowers in India or sell it us and we can export it in the global market,” Jade Meyanyieam, president of Thai Orchid Exporters’ Association (TOEA). India grows a different variety of orchid called Cymbidium and according to Thais, Dendrobium has a great demand in global market. “We export Dendrobium valued at around 2,500-3,000 million Baht to Europe and Japan,” said the

managing director of TOEA, Sritip Meyanyieam. But the Dendrobium planting materials to be supplied to India growers are not with cost. Most of these planting material are developed “in its unique way” and carry intellectual property rights, said the marketing manager of Chatchawal Orchid Co. The vice chairman of Board of Trade of Thailand, Somkiat Anuras said : “We want India to permit fishing of Thai vessels in the Bay of Bengal. We are ready for joint ventures also.” Isara Vongkusolkit of Mitr Phal Sugar Corporation expressed the need for transfer of technology between the two countries.--------------------- India-Thai FTA on goods to be reality by Sept http://www.financialexpress.com/fe_full_story.php?content_id=168333 ASHOK B SHARMA Posted online: Wednesday, June 27, 2007 at 0000 hours IST NEW DELHI, JUN 26 : India and Thailand on Tuesday decided to ink a full-fledged free trade agreement (FTA) on goods by September and start by next month negotiations on investments and services. “Talks on FTA in goods would start in July and finish by this September. Both the countries have also agreed to begin simultaneous discussions on services and investment parts of the FTA,” commerce and industry minister Kamal Nath told reporters here on Tuesday after talks with visiting Thai Prime Minister General Surayud Chulanont. Nath also underlined the need for diversifying the India-Thailand trade basket. On his part, Chulanont said his country’s deputy foreign minister would be in India with prominent Thai investors for road shows at major cities from June 28-July 4 to look into new business opportunities. “Our two countries are on track to conclude a full-fledged FTA in the near future to establish the FTA covering trade in goods by 2010. Upon the achievement of this goal, long-term mutual benefits in trade and investment could be realised and our partnership expanded further to cover the technology know-how and expertise,” Chulanont said at a meeting of apex business chambers here. Following the elimination of tariffs on 82 products under the Early Harvest Scheme for the FTA in 2004, bilateral trade had touched the $3.4-billion mark in 2006, with $1.3 billion already recorded during the first 4 months of this year, the premier pointed out. Trade Talks

• Our two countries are on track to conclude an FTA in the near future to establish the FTA covering trade in goods by 2010Surayud Chulanont • Talks on FTA in goods will start in July and finish by Sept. We have agreed for discussions on services and investment parts of the FTAKamal Nath “The agreed target of $4 billion by 2007 appears highly likely to be achieved,” he added. The talks on FTA had not progressed in step with the original timeline since there existed differences on many items, sources said. Foreign direct investment worth $830 million from Thailand had been approved by India, Chulanont said, adding that Indian FDI in Thailand also rose by 110% in the first quarter of 2007 over the same period last year. He invited Indian investments in Thailand in the IT and pharmaceuticals sectors. Allaying investors’ fears about the political uncertainty in his

country, Chulanont said, “Thailand’s return to full democracy is definitely on track. There is no backtracking….We are working hard to ensure that the general elections are held by this year-end, if not sooner. Everything will be in accordance with the rule of law.” The Thai Prime Minister said the new draft Constitution, under preparation, will be submitted to a national referendum by September.------- Sugar exporters to get non-cash sops http://www.financialexpress.com/fe_full_story.php?content_id=168311 ASHOK B SHARMA Posted online : Wednesday, June 27, 2007 at 0000 hours IST NEW DELHI, JUN 26: With a view to

bailing out the sugar industry from its present crisis, the government has announced some non-cash incentives to encourage exports. The industry is faced with problems arising out of bumper production estimated at 28.5 million tonne of sugar and falling prices in the domestic market. The industry is planning to dispose of a part of the surplus stock through exports. The government had earlier announced some fiscal incentives to encourage exports. But on Tuesday it came out with some non-fiscal policy initiatives to encourage exports. It said the mills exporting sugarwould be exempted from supplying the same amount to government at a highly subsidised rate for distribution to the poor under the public distribution system (PDS). The sugar released for export would be treated as that released for free sales in the domestic market and would be adjusted in the free sale stocks of the sugar factories after 12 months. These incentives were, however, not applicable to exports under preferential quota allotted by importing countries. These incentives were to be given only on export of sugar made during the period January 3, 2007 to July 2, 2007 under Advance Authorisation Scheme and for exports under the Open General Licence Scheme for the period January 23, 2007 to July 22, 2007. Now, the government has decided to extend the period of these incentives by six months or till further orders, whichever is earlier. Accordingly, the period of incentive stands extended from July 3, 2007 to January 2, 2008 for exports under Advance Authorisation Scheme and from July 23, 2007 to January 22, 2008 for exports under Open General License Scheme or till further orders whichever is earlier. Further, these incentives would not be available to preferential quota

exports.----- Send free SMS to your Friends on Mobile from your Messenger. Download Now! http://messenger./download.php