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    India-Thailand Comprehensive Economic Cooperation Agreement (CECA) negotiations.




    India-Thailand Comprehensive Economic Cooperation

    Agreement (CECA) negotiations

    1. In November 2001, the Prime Minister of Thailand, Dr. Thaksin Shinawatra and the Prime Minister of India agreed to set up a Joint Working Group (JWG) to undertake feasibility study on a Free Trade Agreement between India and Thailand. The Joint Working Group observed that the present policy regimes in both the countries were conducive to more intensive bilateral economic integration and a Free Trade Agreement could prove to be a building block for other sub-regional, regional and global economic integration processes of which both countries are a part. Having observed rich potential of trade expansion, the study concluded that the proposed Free Trade Agreement between India and Thailand is feasible, desirable and mutually beneficial. Accordingly, a Joint Negotiating Group was set up to draft the Framework Agreement on India – Thailand FTA.

    2. During the visit of Indian Prime Minister to Thailand, a Framework Agreement for establishing Free Trade between India and Thailand was signed by the Commerce Ministers of the two sides on 9th October, 2003 in Bangkok, Thailand. The Framework Agreement cover FTA in Goods, Services and Investment and Areas of Economic Cooperation. The Framework Agreement also provided for an Early Harvest Scheme (EHS) under which 82 common items of export interest to the sides have been agreed for elimination of tariff on a fast track basis.

    Current Status

    1. The tariff concessions on 82 items of EHS list began from 1.9.2004. The tariffs on these items have become zero for both sides from 1.9.2006.

    2. India-Thailand Trade Negotiating Committee (TNC) has been constituted and discussions are being held on a comprehensive FTA including Trade in Goods, Trade in Services, Investment, Rules of Origin, Dispute Settlement Mechanism etc. 17 Rounds of negotiations have so far been held.






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