Thailand is proposing use of the early harvest scheme (EHS) during the first round of free trade agreement (FTA) talks with Sri Lanka to accelerate implementation, as talks began on Friday.
Deputy Commerce Minister Chutima Bunyapraphasara said the EHS will help the FTA conclude negotiations faster.
Normally FTA talks take 2-3 years at the soonest before a pact is settled.
The EHS is an agreement between two states (or regional trading blocs) that liberalises tariffs on certain goods preceding the conclusion of an FTA. India is particularly fond of such EHS arrangements and has used them in the past as a trust-building measure while an FTA is being negotiated.
India used an EHS in 2003 with Thailand, which paved the way to negotiate an FTA through the elimination of tariffs on 83 goods.
Ms Chutima said the government assigned Auramon Supthaweethum, director-general of the Trade Negotiations Department, as the negotiator for the scheme.
Prime Minister Prayut Chan-o-cha and Maithripala Sirisena, president of Sri Lanka, jointly announced the first round of FTA talks on Thursday after meeting in Colombo.
Ms Chutima also signed a memorandum of understanding (MoU) on a strategic partnership with Malik Samarawickrama, Sri Lanka's development strategies and international trade minister. The strategic partnership covers 10 sectors: investment, infrastructure, development of the agro-industry, fisheries, gems and jewellery, tourism, SMEs, financial cooperation, packaging industries and IT sector development.
Sri Lanka is the fourth-largest trading partner of Thailand in South Asia. During 2013-17, bilateral trade between Thailand and Sri Lanka averaged US$491 million (16.4 billion baht) per year. Last year, bilateral trade totalled $513 million, up 8.7% from 2016. Thai exports accounted for $442 million and imports were worth $70.5 million.
Ms Chutima said Sri Lanka wants Thailand to open imports for Sri Lankan products, particularly for agricultural products such as tea, fruit, textile, jewellery, while Colombo is calling for more investment from Thai investors.
Thai companies are set to invest in Sri Lanka in the sugar and sugar cane, furniture, cement and agricultural industries, she said.
Mrs Auramon said the first round of FTA negotiations will cover the FTA framework on general issues, including tax reduction format, sensitive lists and trade rules such as sanitary and phytosanitary measures, services, investment, and intellectual property.
The aim is to conclude the FTA talks in 2020, and there will be two rounds of talks this year, she said, adding the second round will be held in Thailand in September.