Thailand, South Korea float free-trade pact
Thailand, South Korea float free-trade pact
Agence France-Presse
Chiang Mai, Thailand
Thailand and key trading partner South Korea on Saturday
considered a future free-trade agreement, although barriers on
rice and auto parts remain sticking points, officials said.
"We are exploring the possibility of setting up a free-trade
area between Thailand and South Korea," Thai Foreign Minister
Surakiart Sathirathai said after meeting with his South Korean
counterpart Yoon Young-Kwan.
"It will take some time," Surakiart said after an inaugural
joint commission on bilateral cooperation between the two
nations, adding that a timetable for the negotiations had yet to
be worked out.
Progress can be made immediately on problem-free sectors
including tourism and services, he said, but more discussion was
needed on "sensitive" sectors.
Thailand is concerned about the trade barriers Seoul has
imposed on Thai rice, chicken and tapioca exports, while Korea
has problems with Bangkok's tariffs on auto parts, a Thai
official said.
Thailand, which aims to become the auto manufacturing hub of
Southeast Asia, has resisted moves to lower taxes on imported
vehicles and parts beyond the minimum requirements set by the
World Trade Organization.
The discussions with South Korea are the latest in a series of
trade negotiations being pursued by Thai leaders.
On June 10 Prime Minister Thaksin Shinawatra agreed with US
President George W. Bush to pursue a possible free-trade deal
between the two countries.
Four days earlier, Japan's Prime Minister Junichiro Koizumi
sidestepped a request from Thaksin to sign a free-trade agreement
before the end of the year.
Surakiart and Yoon also discussed investment issues, including
the possibility of teaming up on joint investment projects in the
construction industry in post-war Iraq, a Thai foreign ministry
spokesman said.
Their talks took place on the sidelines of the Asia
Cooperation Dialogue (ACD), a forum focused on development and
economic issues which Thaksin founded last year.
This weekend's ACD being held in the northern Thai city of
Chiang Mai involves ministers from 18 Asian countries and is
expected to center on the launch of the billion-dollar Asian Bond
Fund.