CNBC | Jan 04, 2013
India-Thailand FTA deal may be delayed
Last month Thai officials informed CNBC-TV18 that the India-Thailand FTA talks will conclude by January end. Sources indicate that proposed FTA and the deal is likely to take more time, report Rituparna Bhuyan of CNBC-TV18.
The Thai negotiators were keen on signing the free- trade agreement (FTA) first and then discussing many sticky and contentious issues later after the signing. In addition to that they also wanted additional access in Indian auto sector.
According to the sources, on both these issues Indian negotiators have put their foot down. India is not keen on giving more duty free access to the Thai into auto sector in India. In addition to that the Indian negotiators have made it clear to the Thai counterparts that any sticky issue, has to be cleared before the signing of the FTA.
Sources also say that Thailand has received many benefits from the existing limited duty free trade deal and now its Thailand’s turn to show some reciprocity.
So, there will be no signing or conclusion of the FTA by January end and if it happens it could only happen by mid or late 2013.