Thailand, Japan to form trade pact

Thailand, Japan to form trade pact

Associated Press, Bangkok

Thailand and Japan agreed in principle Friday to create a free
trade area within one year, a Thai government spokesman said.

The agreement was reached during 45-minute talks between
visiting Japanese Prime Minister Junichiro Koizumi and his Thai
counterpart, Thaksin Shinawatra. Koizumi arrived earlier in the
day on a two-day official visit.

Government's spokesman Yongyut Tiyapairat said the
cooperation, under the name Closer Economic Partnership, would
cover all areas of trade and investments between the two nations.
Many goods would also enjoy lower tariffs and non-trade barriers.

The free trade proposal would apparently bolster Japan's
standing in the region following the November signing of an
agreement to set up a free trade zone between Southeast Asian
countries and China.

"We will soon extend our cooperation to the whole region. That
simply means we have to work harder," Yongyut told a news
conference. He said a working group will go to Japan to discuss
the guidelines for the free trade area. He said no dates have
been set.

Thailand is the second country after Singapore to agree on a
free trade area with Japan.

It is Koizumi's first visit to Thailand since taking office in
April. He is on the third leg of a five-nation tour of Southeast
Asia, designed to galvanize ties with the region.

He has already made stops in the Philippines and Malaysia, and
after Thailand, will visit Indonesia and Singapore. The other
members of Asean are Brunei, Cambodia, Laos, Myanmar and Vietnam.