Thailand, India ties enter new chapter, says Thai Premier
Thailand, India ties enter new chapter, says Thai Premier
Agence France-Presse, Bankok
Thai Prime Minister Thaksin Shinawatra said on Saturday that India-Thailand ties had entered a new era of cooperation with a newly concluded landmark free-trade pact.
"Indian-Thai relations have entered a new chapter with the signing of the FTA (free trade area) and aviation liberalization agreements," Thaksin said in his weekly radio address.
The accords were signed on Thursday, witnessed by Thaksin and his Indian counterpart Atal Bihari Vajpayee, who is on a four-day visit to the kingdom.
The agreement will see all tariffs slashed to zero by 2010, while an "early harvest" scheme provides for tariffs on 84 products worth about 7.6 percent of two-way trade abolished by March 2006.
Officials from both countries have said the agreement will boost bilateral trade from about US$1.2 billion to $2 billion annually.
The deal establishes India as a strategic partner to balance the kingdom's political and trade ties with China.
The two leaders also signed an "open skies" deal granting Thai airlines permission to fly daily to four already-served cities plus a further 18 destinations.
In return, Thailand will allow Indian carriers to fly to the northern city of Chiang Mai and the southern island of Phuket.
"Thailand has spent 15 years trying to negotiate to increase 3,000 seats per month flying from Thailand to India but they failed. Now India has opened up four cities for daily flights and 18 other cities on top of that with no limits," Thaksin said during his address.
Vajpayee was on Friday called on King Bhumibol Adulyadej at his summer palace in the southern resort town of Hua Hin.
The Indian premier was to visit the northern city, Chiang Mai, Saturday after touring Bangkok's Temple of the Emerald Buddha, according to his official schedule.
Thaksin was to host a dinner for Vajpayee in evening. Vajpayee departs for New Delhi on Sunday.