India-Thai close to free trade deal

NEW DELHI: India is close to concluding a free trade agreement (FTA) with Thailand, Trade Minister Kamal Nath said on Friday after talks with the Thai deputy prime minister.

"The FTA is (moving) towards conclusion. We hope to conclude it in the next two months," Nath told reporters after holding talks with Thai deputy premier and industry minister Kosit Panpiemras.

The two countries signed a framework agreement to strike a free trade deal to boost bilateral trade in 2003.

Officials were negotiating the number of items to be included in the agreement, with both sides wanting the list to include 10,000 products by 2010, a Thai Embassy official said.

The India-Thai talks on free trade were launched during a visit by Indian Prime Minister Manmohan Singh to Thailand last year.

India also aims to seal a similar accord this year with the 10-member Association of Southeast Asian Nations of which Thailand is a member.

India is Thailand's largest trading partner in South Asia, with bilateral trade worth $3.4 billion last year. Thailand enjoyed a surplus of $200 million on shipments worth $1.8 billion to India.

Although far lower than bilateral trade with China, which totalled $25.1 billion last year, Thailand believes India could counterbalance China in its trading arrangements, officials say.