Thailand for Increased bilateral trade with India

The Government of Thailand would sort out critical trade issues like rules of origin and safeguard measures to give a fillip to Thailand-India bilateral trade and investments. Thailand foresees a greater flow of two-way investments following the conclusion of the ASEAN-India Free Trade Agreement (FTA) on August 14, 2009. India and Thailand are eager for a comprehensive agreement including more of services and investments. Thai companies are eager to invest in infrastructure projects in India.

Addressing Indian and Thai business leaders at the India-Thailand Business Forum, organised by FICCI, Royal Thai Embassy and the Board of Investment of Thailand in Delhi on 7 October, the visiting Thai Deputy Prime Minister, Mr. Korbsak Sabhavasu said: “The India-Thailand Free Trade Agreement Framework signed in October 2003 covers trade in goods, services, investment and cooperation between the two countries. The Early Harvest Programme started since 2006 has already reduced tariffs in 82 categories of goods such as plastic pellets, air conditioners, fans, refrigerators, radios, ball bearings and automotive components. At present both the countries are engaged in converting the FTA into a comprehensive agreement to include more services and investments. This will further boost the growth in trade and investment between India and Thailand in the future.”

Major items of Indian exports were gems and jewellery, non-ferrous metals, primary and semi-finished iron and steel and oil meals. Major items of Thai exports were electronic goods, non-electrical machinery, artificial resins and plastic materials, iron and steel.

The Thai Deputy Prime Minister said that with the strategic location of Thailand and its bilateral and regional FTAs, Indian enterprises could enjoy access to the Southeast Asian market, particularly the Mekong region. A growing number of Indian companies have opened branches in Thailand. The head of the India desk in the Board of Investment of Thailand, Songsak Limbanyen, pointed out that doing business with Thailand was an attractive proposition as there were no restrictions on foreign currency remittances, no export requirement, no foreign equity restrictions in the manufacturing sector and no local content requirement.

The chairman of the committee on India-Thailand/India-ASEAN FTA and BIMSTEC, Boonpong Santiwattanatam said that both countries can benefit through ASEAN-India FTA. The Thai side will benefit from colour television, aluminimum, plastic, gems and jewellery, iron and rubber while India will benefit from gems and jewellery, copper, plastic, rubber, marine products.

“It is necessary to push forward the negotiations in India-Thailand FTA and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), he said.

He said Thailand has invested in India in electricity and electronics, automotive and chemical products and partly in food sector. India is interested to invest in Thailand in agriculture machinery, tractor, auto parts, textiles, medicine, food and rubber.

The chairman of India-Thailand Joint Business Council (JBC) and Managing Director, Indo Rama Synthetics (I) Ltd, OP Lohia said that while India and Thailand were connected to each other by over 200 flights per week, this connectivity needed to be improved in terms of roads and railways.

He said that there were huge opportunities for both countries for two-way investments in the development of urban infrastructure, knowledge economy, chemicals and petrochemicals industry, food processing, tourism, health and wellness industry, and gems and jewellery.

The business forum was also addressed by the Ambassador of Thailand to India, Krit Kraichitti, Director, Tourism Authority of Thailand in India, Chattan Kunjara Na Ayudhya and Mr Rajan Kohli, Advisor, FICCI.





India Promotes Tourism Attractions in Russia

A performance by well-known dancer Tanushree Shankar and her troupe was the highlight of the Incredible India event held at the Ritz Carlton Hotel in Moscow on 23 September as part of the Year of India in Russia. The objective of the Incredible India events, held upto 27 September was to highlight the tourism potential of India and to place India as a favoured destination for Russians.

Four-day India Food Festivals in Moscow and St Petersburg was held, for which a team of 12 top chefs from India’s premier hotel chains were specially flown to Russia to popularise the best of Indian cuisine in Russia.

The Ministry of Tourism also participated in the Otdykh Leisure Show 2009 in Moscow by putting up an India Pavilion. The show opened in Moscow on 23 September and the Indian pavilion was inaugurated by Mr Sanjay Kothari, Additional Secretary, Tourism.

The India Tourism Office in Frankfurt simultaneously launched an integrated outdoor advertising and print media campaign in Moscow and St Petersburg.

Tourist arrivals from Russia to India are showing a steady growth. In 2008, India received 91,423 tourists from Russia as compared to 75,543 in 2007.

“The Incredible India events provide an effective platform for showcasing Indian culture, cuisine and myriad tourism products to a large gathering of elite audience in Russia. Russia is an important source market for Indian tourism, reflecting high growth rate over the last few years and it is expected that this growth will increase still further,” the release added.



EU-India civil society workshop in New Delhi

A trade and development workshop between the European Union (EU) and India aimed at informing the civil society on the ongoing EU-India trade negotiations was held in New Delhi on 24 September.

The workshop was organised by the European Economic and Social Committee (EESC) in cooperation with the Federation of Indian Chambers of Commerce and Industry (FICCI).

The workshop followed the framework of the EU-India Civil Society Round Table that was set up by the first EU-India summit in Lisbon in June 2000. This is the first such workshop outside the Round Table. The Round Table was not held this year due to elections in India and changes in the posts from the Indian side at the Round Table.

The Brussels-based EESC is a consultative body that gives representatives of Europe’s socio-occupational interest groups and others a formal platform to express their points of views on EU issues. Its opinions are forwarded to the larger EU institutions - the European Council, the European Commission and the European Parliament. It thus has a key role to play in the decision-making process of the regional bloc.

The meeting in its different sessions, sought to raise awareness on the potential impacts of trade liberalisation between India and the 27-member EU and debate the relations between trade and poverty alleviation.

An eight-member delegation from the EESC conducted the proceedings of the workshop.

Some chief negotiators on the trade talks from both sides were present at the meetings.

The sessions covered trade and poverty alleviation, trade and environment, trade and employment. The open forum provided new insights. Mrs. Annie Marie Sigmund, Member of the European Economic and Social Committee, Ms Daniele Smadja, Head of the Delegation of European Commission in India, Amit Mitra, chief mentor FICCI, Mr. Lutz Ribbe, member EESC, Mr. LV Sapthrashi, co chairman of the confederation of rural NGOs in India addressed the main sessions. EESC member Ms. Madi Sharma gave the key note address at the concluding session of the one-day workshop.





Trade Ministers Meet in New Delhi to Revive Doha Round

India hosted a mini-ministerial meeting of 36 trade ministers in New Delhi on 3-4 September on the initiative of India’s commerce minister Anand Sharma to resuscitate Doha Round.

The case to complete the Round makes sense as global trade is down by 9 or 10 percent, and its revival is central to restoring global economic growth. Major economies’ are hard-hit at exports front. The US exports are off by more than 20 percent, and there are worse results in Germany, Canada and Japan who are down by 40 percent from last May to this year.

To prepare for the meet, Sharma held talks with America’s new trade chief, Ambassador Ron Kirk, the EU Trade Commissioner and Secretary of State Hilary Clinton. Sharma “reaffirmed commitment to take the Doha Round to a successful conclusion,” adding that “India’s stand is for a rule-based trading regime.”

Now the world trade ball is squarely in America’s court. Ron Kirk says he will apply a “new paradigm” to trade, but Obama has so far said only that he will tighten up on “Free Trade Areas,” and his trade speech is still awaited.

Sharma has already announced that the Doha deadlock “had been broken,” and hinted that bilaterals would remain adjunct to the multilateral main game, and set 14 September for negotiators to “restart the Doha process.”

According to Anand Sharma, there was unanimous affirmation on the need to conclude the Doha round within 2010. There was a clear recognition that differences subsist on issues and intensifying negotiations was the first step towards bridging these gaps.

There was also a strong reaffirmation that development remains at the heart of the Doha round

The Ministers called on chief negotiators/senior officials to meet in Geneva from Sept. 14 to draw up a process of engagement for the next 2-3 months and to work with the chairs of the negotiating groups to prepare an overall agenda of action.

The Ministers agreed that chairs of the negotiating groups on agriculture and non-agricultural market access (NAMA) would be requested to draw up issue-based work plans in consultation with chief negotiators/senior officials for intensifying engagement to complete negotiation.

The Ministers agreed that negotiations should resume on the basis of progress achieved until December 2008.

The Ministers agreed that work agenda for Least Developed Countries (LDCs) covering all specific issues across the entire spectrum should be put on faster track for negotiating with WTO Director General Pascal Lamy and chairs of negotiating groups taking the lead in this process.