Japan, Thailand agree to work on early signing of FTA

Japan, Thailand agree to work on early signing of FTA

Japanese and Thai officials yesterday agreed to expedite efforts towards the early signing of a free trade agreement (FTA) between the two countries. During the meeting between the officials from both countries, the parties expressed their hope that the signing of the free trade pact would take place at an earlier date. Japanese Prime Minister and Thai Prime Minister agreed last September during a meeting in Tokyo on a basic FTA to make more than 90 percent of bilateral trade tariff-free in 10 years in value terms. Originally, the two countries initiated formal FTA talks in February 2004 and settled negotiations in March 2005 on the farm sector, but they had difficulties in settling negotiations in the industrial sector, since Thailand was unwilling to liberalize its auto and steel industries. Now the parties are planning to conclude the FTA in the first half of 2006.