Thailand's trade talks need to focus more on strategic partnerships rather than just free trade agreements, says Deputy Prime Minister Somkid Jatusripitak.
Mr Somkid yesterday told high-ranking officials in the Commerce Ministry, including Commerce Minister Apiradi Tantraporn, that the trade negotiation strategy needed to change.
"Considering the world's poor economic conditions, we would be better off looking into forming strategic partnerships," he said. "Trade talks should focus largely on those areas that the two parties mutually agree to and are interested in, leaving aside sensitive issues such as the agricultural sector."
Mr Somkid also urged the trade negotiators to put India and China, as well as Cambodia, Laos, Myanmar and Vietnam (CLMV) on the front burner of trade talks.
"As Thailand is now keen to draw investment in high technology, our trade negotiation strategy with India, for instance, should be based on a bilateral basis, including specific areas such as high-tech products, information technology and services."
Thailand and India signed a framework agreement covering the liberalisation of trade in goods, services and investment on Oct 9, 2003.
It was agreed that Thailand and India would begin talks and establish a Thai-Indian free trade agreement (FTA) by 2010. Both countries initially agreed to enact an early harvest scheme (EHS), meaning agreements on one or more topics must be concluded before the scheduled completion of a multi-issue round.
The agreement specified tariff reductions under the EHS for 82 items, including fruits, processed food products, gems and jewellery, iron and steel products, auto parts, electronic goods and electric appliances. Tariffs on these products were eliminated on Sept 1, 2006.
The government of Prayut Chan-o-cha revived negotiations on comprehensive free trade in 2015 after the talks had stalled for nearly 10 years.
A huge trade deficit was possibly one of the key reasons that India baulked at pursuing further trade talks.
India is Thailand's 15th-biggest trading partner and largest in South Asia. Over the last five years, annual two-way trade averaged US$8.47 billion.
In 2015, two-way trade reached $7.92 billion, constituting 1.9% of Thailand's exports. Thailand enjoyed a trade surplus with India of $2.67 billion last year.
Key shipments from Thailand included plastic pellets, chemicals, cars and parts, engines, steel, machinery, air conditioners and parts, gems and jewellery, and computers and parts. Thailand imported mainly chemicals, machinery, gold and precious stones, pharmaceutical products, ores and steel from India.
Commerce Minister Apiradi is set to lead a Thai trade delegation to China, India, Turkey, Sri Lanka and Pakistan in the coming months as FTA negotiations with those states continues.
Mr Somkid said Thailand may need to help provide financial aid or infrastructure development to CLMV, saying the Kingdom could eventually use those countries as a gateway to tap into other countries in the region.