MCOT | 4 June 2008

Thailand-Peru FTA likely to take effect late this year

BANGKOK, June 4 (TNA) — The free trade area agreement between Thailand and Peru is expected to become effective during the Asia-Pacific Economic Cooperation (APEC) Summit in November this year or early next year, according to an official of Thailand’s Trade Negotiations Department.

Director-General Chutima Boonyaprapasara said that Thailand and Peru had signed an FTA agreement in 2005, but the accord had not yet become effective because officials concerned are examining and adjusting the tax list of early-harvest products.

She projected the mutual trade of products between the two countries would increase by US$200 million or 35 per cent. Thailand began to enjoy a trade surplus with Peru in 2005 and 2007.

In the first three months of this year, Thailand’s exports to Peru totaled US$62 million, up 220 per cent from the same period last year.

Key products include vehicles and parts, plastic pellets, washing machines, refrigerators, rubber products, and rice.

Imports totaled $13 million in that period, down 40 per cent from the corresponding period the year before.

Key imports include zinc, copper, and fish meal.

"The Thailand-Peru FTA will help boost bilateral trade. Thailand hopes to count on Peru as a gateway for trade in South America where there is a combined population of more than 330 million and combined national gross incomes of $1.24 billion.

"At the same time, Peru hopes to rely on Thailand as a gateway for trade with the Association of Southeast Asian Nations(ASEAN). Although Singapore had already concluded an FTA accord with Peru, it will not obstruct trade between Thailand and Peru," she said. (TNA)