Posted on 04 Jan 2008
Agreement in trade talks with Korea
Negotiations end one year after Asean deal
Thailand
has concluded free trade talks with South Korea under the Asean-Korea
free trade agreement (AKFTA) after almost a year of negotiations.
Under the deal, Thailand will be given more
flexibility in cutting and/or waiving its tariffs compared to other Asean
nations, which wrapped up the AKFTA talks earlier, according to Noppadon
Sarawasi, deputy director-general of the Trade Negotiations Department.
At the latest meeting between representatives of the two
countries in Bangkok on Dec 17-18 last year, Thailand can extend the period for
tariff cuts and tariff waivers for certain sensitive products until 2016-17
from 2010-12 proposed earlier.
Thailand
was the only Asean member that did not sign the AKFTA in August 2006 since the
bloc's pact with South Korea
was considered of little benefit to the Thai side, particularly for rice and
other agricultural products. The AKFTA took effect in June last year.
Talks between the two countries resumed in January last year
at the 12th Asean summit in Cebu, Philippines, under which Thai Commerce
Minister Krirk-krai Jirapaet and South Korean trade minister Kim Hyun-Chong
agreed to move forward from the sticking point that had caused Thailand to hold
back from entering the region-wide economic agreement.Trade negotiators of the
two countries had kicked off the talks last April and held up to five meetings
before reaching common grounds.
Thailand's
product items which have been given an extension for tax cuts and/or tax
waivers include steel and steel products, cosmetics, raw hides, tanned leather
and leather goods.
Other products that would enjoy few benefits from Seoul's
pledged tariff cuts also include electrical appliances, particle board,
plywood, cane molasses, yarn, frozen shrimp, tapioca starch and squid.
South Korea
is Thailand's
eighth-largest trade partner, with bilateral trade value of nearly US$7
billion.
For the first 11 months of 2007, Thailand shipped about $2.71
billion, a rise of 11.4% over the same period last year.
