U.S. says Thailand strong free-trade deal prospect

U.S. says Thailand strong free-trade deal prospect

Jim Wolf, Reuters, Washington

`U.S. President George W. Bush sees Thailand as an excellent prospect for a free-trade agreement with the United States, Washington's Trade Representative Robert Zoellick said on Tuesday.

Zoellick, speaking at a dinner for visiting Thai Prime Minister Thaksin Shinawatra, has put Thailand, Indonesia and the Philippines at the top of his list for free trade negotiations.

"President Bush believes Thailand is a very strong candidate," he told the dinner, which was sponsored by the U.S.-ASEAN Business Council.

Under Bush and Thaksin, "I think that the prospects for progress are excellent," Zoellick added.

Earlier, Thaksin and Bush agreed Myanmar's military rulers should immediately free detained pro-democracy leader Aung San Suu Kyi, White House spokesman Ari Fleischer said.

The business council promotes trade and investment between the United States and the Association of South East Asian Nations (ASEAN).

Thaksin told the dinner Thailand was set to sign a "bilateral zero-tariff" agreement on fruit and vegetables with China.

"We are expecting to sign an FTA (Free Trade Agreement) with India and Australia within this year" and "hopefully, we might be able to sign one with Japan as well," he said.

Thaksin said he discussed a free trade agreement with Bush "and we acknowledged that the FTA would be mutually beneficial."

The United States signed a free trade agreement this year with Singapore and has signed Trade and Investment Framework agreements with the Philippines, Indonesia and, most recently, Thailand.

Washington uses the "framework" pacts to push such issues as regulatory transparency, the protection of intellectual property rights and trade facilitation.

Bush will visit Thailand in Oct., when the kingdom hosts a an Asia-Pacific Economic Cooperation (APEC) summit, grouping leaders of 21 countries from Asia and the Americas.

Trade between the United States and Thailand improved markedly during the first quarter of 2003. U.S. exports to the kingdom rose 14 percent, while imports from Thailand rose seven percent, the U.S.-ASEAN Business Council said.

Thaksin said Thailand, where the Asian economic crisis began in 1997, would repay next month all of its International Monetary Fund loans two years ahead of schedule.

"I am certain that Thailand is now back on track," he said.