January 28, 2009
by Bupha Ravirot

Association of Southeast Asian Nations (ASEAN) and India are expected to sign Free Trade Agreement (FTA) during the ASEAN summit which is planned to be held in the Thai resort of Hua Hin between February 27-March 1 2009.

This movement is expected to help in boosting investment in India and also trade among the Southeast Asian bloc member countries due to raw materials manufactured by ASEAN members on goods will be exported to India.

According to the Director-General of the Foreign Trade Department, Mrs. Apiradi Tantraporn, if India signs FTA with ASEAN, it will help open up its markets for goods produced by the 10 member countries of ASEAN while tariffs imposed by the New Delhi government will be reduced to zero for 3,666 items by the end of 2012.
 
Among the ASEAN-made goods which will gain from zero tariff are refrigerators, fans, airconditioner parts, jewelry and ornamental goods, rubber products and plastic resins, added Mrs. Apiradi.

Thai exporters wishing to receive tax privileges under the ASEAN-India FTA must ask for certificates of origin for goods from the Foreign Trade Department because items to be exported to India must contain at least 35 per cent raw materials manufactured from ASEAN and India, she said.
 
Currently, only 82 items fall under the Thai-Indian FTA.

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