THAILAND ASSURES INDIA OF ASEAN-INDIA FTA SIGNING IN AUGUST

NEW DELHI, June 5 (Bernama) -- After several setbacks, Thailand has given India an assurance that the much-delayed Asean-India Free Trade Agreement (FTA), will be signed this August.

Industry Minister Chanchai Chairunguruang, who is leading a trade
delegation to India, said the FTA would be inked in August during the Asean
Economic Ministers Conference to be held in Thailand.

"The Thai government will ensure effective implementation of the existing
agreements and policies while seeking new measures to facilitate more
investments from India," he told reporters.

He highlighted the urgency for the trade pact between Asean and India as it
would benefit nearly 1.7 billion people in the region, which in total
generates a gross domestic product (GDP) worth about US$6 trillion currently.

If the FTA is put in place, it would enable member countries to reduce
tariffs for nearly 4,700 products from Jan 1, 2010 onwards.

India, one of Asean's dialogue partners, has been negotiating the trade pact
from 2003.But both parties failed to reach an amicable understanding on the
terms of the agreement.

However, last August, the 10-member Southeast Asian bloc and India -- the
third largest economy in Asia -- concluded the deal but again failed to sign the
FTA at the 14th Asean Summit in Thailand this April, as political chaos in the
country forced the meeting to be postponed.

At present, India and Thailand's two-way trade is close to U$6 billion (RM20
billion) but both sides are optimistic that volume would improve once, the FTA
is implemented.

--BERNAMA