India, Thailand FTA meet in May

The joint working group on Indo-Thai free trade agreement will meet in May to iron out differences over the methodology on framing of rules of origin which led to the postponement of the implementation of the agreement.

The FTA was to take off from March 1, but due to some glitches over the methodology on framing of ROO, its implementation has been delayed and is now expected to come into force on July 1.

The meeting in May is likely to be held after the elections so that fresh political impetus can be given to the agreement which was signed with much fanfare.

Framing of ROO is a complicated issue which is holding back the FTA as both sides have not been successful in arriving at a consensus on it, sources said.

Differences surfaced as Bangkok, a member of the Asean wants to follow the Asean FTA model, while New Delhi is keen on comprehensive rules which it is currently following with other trading regions, they said.

The full-fledged FTA would be in place only by 2008.

According to Ram Upendra Das, from the Research and Information Systems for Non-aligned Nations and a member of the Indian negotiating group on FTA, "All negotiations take time to be completed. We are looking at our national economic concerns while trying to take theirs (Thai) into account."