'US, Thailand to launch free-trade pact talks'

'US, Thailand to launch free-trade pact talks'

Agence-France Presse, Bangkok

The United States and Thailand will launch negotiations aimed
at crafting a bilateral free-trade agreement, U.S. President
George W. Bush announced Sunday as he began a state visit here.

"We want to move forward with a free-trade agreement, that we
have the intention to begin negotiations on a free-trade
agreement, which is a very important step in our bilateral
relations," Bush told reporters.

A free-trade agreement (FTA) between the two countries has
been discussed informally but negotiations could not begin until
the two sides officially announced they plan to pursue a deal.

Thai Prime Minister Thaksin Shinawatra, who held a bilateral
meeting with Bush Sunday, has said that officials from both sides
can now begin a detailed study of each sector of the economy to
be affected by the FTA.

Thailand has already signed two major FTAs this year -- one
with China, which went into effect earlier this month, and an
agreement with India that comes into force next March.

After the collapse of World Trade Organization (WTO) talks in
Cancun, Mexico last month, international trading rules will be
high on the agenda of Monday's Asia Pacific Economic Cooperation
(APEC) summit of 21 world leaders.

Individual trade agreements, like the United States' deal with
Thailand and an existing U.S. agreement with Singapore, are
mushrooming while multilateral talks under the WTO remain
stalled.

There are concerns, however, that the maze of bilateral and
regional FTAs could further sideline the WTO process.