Thailand is looking forward to strengthening FTAs under the next year's Asean arrangement

Thailand is looking forward to strengthening Free Trade Agreements (FTAs) under the next year's Asean arrangement, with the goal of expanding tariff cuts to cover more, particularly sensitive goods.

The Department of Trade Negotiations is also looking to update treaties so that they are in line with changing economic conditions.

Auramon Supthaweethum, department head, said the Asean FTAs with China, India, South Korea and a joint pact with Australia and New Zealand will be the focus of the negotiations.

"For instance, the review for the Asean-China FTA will concentrate on market access changes to allow more goods to receive reductions in tariffs," said Auramon.

"Items to be negotiated are primarily on sensitive and highly sensitive lists, with a total of 500 products," she said.

She said talks seek to slash tariffs from 0-5 per cent to zero for goods on sensitive lists now, while highly sensitive products are expected to be reduced from about 50 per cent now.

Rice, refined sugar, maize, oil plants, rubber and palm are the main commodities for negotiation.

Mrs Auramon said the talks will be aimed at reducing tariffs on more goods for the ASEAN-India FTA. The tariff cut actually includes 79% of the total goods.

Oil palm, rubber, milk, automotive components and petrochemicals are the main products.

India signed an FTA with the bloc in 2009, beginning in 2010.

Mrs Auramon said that, under the ASEAN arrangement, talks with South Korea would discuss more sensitive issues such as rice, refined sugar, tapioca and fruit.

Trade talks with Australia and New Zealand would concentrate on e-commerce, government procurement, customs processes, financial services, telecommunications, restaurants and hotels, as consumer tariffs have already been reduced to zero.

ASEAN has FTAs with Australia, New Zealand, China, India, South Korea, Japan, and Hong Kong. In the Regional Comprehensive Economic Partnership, many Asean members are expected to participate.

Thailand has 12 FTAs in operation on a bilateral basis, with 17 trading partners.

Source: Industry Global News 24