THAILAND WILL NOT REDUCE TARIFFS ON AGRI PRODUCTS

By Arul Rajoo

BANGKOK, Aug 13 (Bernama) -- In order to protect Thai farmers, Thailand will
not reduce tariffs on some agricultural products despite its joining other
Asean members in signing a Free Trade Agreement (FTA) with India Thursday.

Thai Commerce Minister, Porntiva Nakasai said the products included onions,
garlic, milk, dairy products and chilled and frozen beef.

She said Thailand would benefit greatly from the Rules of Origin because
producers would be able to import and use raw materials from both Asean and
India at a lower tax rate.

Speaking to reporters after leading other Asean trade and economic ministers
to sign the FTA with India at the 41st Asean Economic Ministers (AEM) Meeting
here, Porntiva said Thailand hoped to increase its trade with India to US$10
billion after the agreement goes into effect on January 1, next year.

Its trade with India stood at US$3.35 billion in 2008, with Thailand having
a US$750 million surplus.

Thailand expects to increase its export to India on many products including
gems and jewellery, automotive parts, communications equipment, electrical
appliances, furniture, cosmetics, vegetables and legumes, spices, processed
food, processed sardines, and fruit juices.

Under this agreement, Asean member countries and India will lift import
tariffs on more than 80 percent of traded products between 2013 and 2016.

Tariffs on sensitive goods will be reduced to five percent in 2016 while
tariffs will be maintained on up to 489 items of very sensitive products.
-- BERNAMA