'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.