Thai-Korean free trade pact almost completed
Source: 15-MAY-2008 Intellasia | BangkokPost
May 15, 2008 - 7:00:00 AM Thailand looks set to sign a free trade agreement with South Korea under the Asean-South Korea free trade framework over the next three months, according to the Trade Negotiations Department. Chutima Bunyapraphasara, the department's director-general, said the pact was expected to be officially signed in August after Thailand has finally cleared hurdles with South Korea.

Asean and Seoul started FTA talks in 1995 and the agreements were signed with Asean members except for Thailand, in May 2006 and took effect in July 2006.

Thailand had backed off from signing the Asean-South Korea FTA over differences in the treatment of certain agricultural products, particularly rice and livestock by Seoul.

After almost a year of negotiations, Thailand concluded talks with South Korea under the Asean-Korea free trade agreement (AKFTA) in December of last year after Seoul allowed an extension for import tariff reductions on Thai goods from 2010-12 to 2016-17.

Thai items that have been given extensions for tax cuts and/or waivers include steel and steel products, cosmetics, raw hides, tanned leather and leather goods.

Other products that would enjoy benefits from Seoul's pledged tariff cuts 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.

The pact was expected take effect early next year, said Ms Chutima.

She said Thailand was also expected to conclude talks with India in the next two months, as negotiators from the two countries have already agreed on tariff cuts on most of the 3,000 products under negotiation last July.