Deal boosts exports to 3rd states
Thailand and India can now export duty-free to third countries under an amendment to their free-trade agreement.
The Cabinet on Tuesday approved the revision of the Framework Agreement for Establishing Free Trade Area between Thailand and India allowing the tariff reduction under the Early Harvest Scheme when trading through brokers or third countries.
Deputy Prime Minister Kittiratt Na-Ranong said yesterday that the move would encourage Thailand to boost exports and imports of the 82 items covered by the Early Harvest Scheme.
Imports of raw materials for assembly into finished goods can also enjoy zero duties.
The amendment will also bring refrigerators with two or more doors under the scheme’s zero tariffs. The existing provision is only for one-door refrigerators. Last year, Thailand’s refrigerator exports to India surged 24.9 per cent, compared with 13.4 per cent in the previous year.
“Without import tariffs, exports of refrigerators from Thailand can increase their market share,” said Kittiratt, who is also commerce minister.
In the latest trade talks between the two countries, 5,000 more items were proposed for tariff reductions.
Thailand also asked India to include at least 900 items under product-specific rules, especially textiles, farm goods, electric appliances and electronic parts.
