Thai trade surplus with India declines

Bangkok, Jan 27: Due to the partial implementation of a bilateral free trade agreement with India since September 2004, a surge in imports last year has lowered Thailand's trade surplus with India.

Thailand's trade surplus dipped 21 per cent in 2006 to 200.3 million dollars also due to the slower growth in exports to India, according to Chana Kanaratanadilok, Deputy Director-General of the Trade Negotiations Department.

Imports from India to Thailand shot up by 25.7 per cent to 1.6 billion dollars, while Thai exports to India increased nearly 18 per cent to 1.6 billion dollars in 2006.

There was a 28.03 per cent decline in Thailand's main export to India -- plastic products.

However, the Thai trade surplus last year grew by 4.6 per cent over 2005 for the 82 items which have been allowed duty-free access since September last year under the Early Harvest Scheme of the bilateral Free Trade Agreement (FTA) being negotiated between New Delhi and Bangkok.

The official said the latest trade figures showed that both countries had gained from the preliminary FTA pact.

The early harvest scheme was finalised under the ''Framework Agreement for Establishing the Free Trade Area between the Kingdom of Thailand the Republic of India'' initialled during then prime minister Atal Bihari Vajpayee's visit to Thailand in 2004.

UNI