U.S., Thailand make 'significant progress' in free trade talks

U.S., Thailand make 'significant progress' in free trade talks

Agence France-Presse
Washington

The United States and Thailand have made "significant progress"
in their latest round of talks to forge a free trade agreement,
the U.S. Trade Representative's office said on Monday.

The fifth round of FTA talks in Honolulu, Hawaii followed a
meeting between U.S. President George W. Bush and Thai Prime
Minister Thaksin Shinawatra, during which they directed their
officials to conclude a FTA as soon as possible.

"Following this directive, the two sides made significant
progress on the range of issues, including services, investment
and financial services, covered by the FTA," the USTR office said
in a statement after the talks which ended last Friday.

The United States, it added, welcomed the "constructive
proposals" offered by the Thai negotiators, which contributed to
the "concrete progress" achieved during the week of talks.

The two countries are scheduled to meet again next month to
"maintain the momentum and position" them to conclude the FTA
"expeditiously," the USTR office said.

Negotiations have been held for more than a year by the two
sides but there has been no breakthrough, with sensitivities in
agriculture and intellectual property rights among the stumbling
blocks.

USTR Rob Portman last month stressed the need for the
conclusion of a "comprehensive" FTA that included financial
services, intellectual property rights protection, labor, and
environment, "which are critical to ensuring strong support in
Congress."

Free trade pacts have to be approved by the U.S. Congress
before implementation.

The United States is Thailand's largest export market, and
Thailand is the 18th biggest U.S. trading partner.

Thailand reportedly wants its financial services industry kept
out of the free trade pact as it wants more time for its banks
and financial institutions to face unfettered competition.

In addition, the United States seems worried over the
protection of intellectual property rights in Thailand.

Two-way U.S.-Thailand goods trade was US$23.9 billion last
year, an increase of 14 percent over the previous year, U.S.
figures showed.

Other Asian economies South Korea and Malaysia have expressed
interest in a possible FTA with the United States.

Singapore is the only Southeast Asian nation to have a FTA
with the United States.