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