Free-trade pact with Peru to take effect soon, minister says

Prime Minister Yingluck Shinawatra met with Peruvian President Ollanta Humala on Saturday during the Asia-Pacific Economic Cooperation (Apec) summit in Bali. The two leaders announced the finalising of negotiations fir the bilateral pact covering trade in goods, services and investment.

Deputy Commerce Minister Yanyong Phuangrach said this comprehensive pact would be inked and put into force soon. 

Peru is the first Latin American country to sign a free-trade agreement with Thailand. The two countries launched an Early Harvest Programme covering 70 per cent of trade in goods in 2011. 

Peruvian traders and investors consider Thailand a centre of Asean, while Peru is a gateway to Latin America and a source for raw materials for many industries such as forestry, fisheries and mining, Yanyong said. Distance should no longer be an obstacle for trading and investment for the two countries, he said, adding that plenty of opportunities await Thai traders and investors to do business in Peru and other countries in the region.

Last year, after the early-harvest scheme came into force, bilateral trade was up 25 per cent from 2011 to US$762 million (Bt23.93 billion). Major export goods from Thailand are television sets, soccer balls, condoms and batteries. Imports from Peru include natural gas, ore, zinc and grapes.