FREE TRADE AGREEMENT WITH THAILAND DOMESTIC INDUSTRY TO BE PROTECTED
Date : 02 Aug 2005
Location : New Delhi
A Framework Agreement for establishing Free Trade between India and Thailand was signed by the Commerce Ministers of the two sides on 9th October, 2003 in Bangkok, Thailand. It provides for an Early Harvest Scheme (EHS) under which 82 common items of export interest to the sides have been agreed for elimination of tariff on a fast track basis w.e.f. 1.9.2004. The items in the EHS list were finalised in consultation with the apex Chambers and Ministries /Departments concerned and the domestic stakeholders. The EHS list has been finalised through negotiations based on full reciprocity in items of trade value between India and Thailand.
To protect the vulnerable sections of domestic industry, the Framework Agreement provides for each country to maintain a negative /sensitive list of items on which no tariff concessions shall be granted under the FTA. In addition, the Agreement provides for trade defence measures which an importing country can take recourse to. In case of a surge in imports and injury to the domestic industry, a country is allowed to take measures such as antidumping and safeguards, Minister of State for Commerce and Industry, Shri EVKS Elangovan informed the Lok Sabha here today.