Thailand and Turkey have agreed to create a new business council to boost trade and investment between the two countries.

By creating the Thailand-Turkey Business Council the countries expect bilateral trade to increase by up to six fold.

During a two-day visit to Turkey which ended yesterday, caretaker deputy prime minister Somkid Jatusripitak said the country would become a gateway for Thai goods to enter southern Europe while Thailand would become a springboard for Turkey to penetrate the Southeast Asian market.

Yesterday's meeting between Thai officials, representatives of the Thai Chamber of Commerce and Turkish businessmen, drew a consensus that the two countries are a good match for pursuing an economic partnership.

In addition, both sides agreed to establish the Thailand-Turkey Business Council in a bid to increase trade and investment between the two countries.

Turkey already imports raw materials from Thailand.

The Turkish Gemstone Chamber of Commerce has expressed interest in building a manufacturing plant in Thailand.

Somkid also witnessed a memorandum of understanding signing ceremony between representatives from the two country's textile and automobile industries.

The Thai Garment Manufacturers Association signed an agreement to provide a major Turkish textile importer with US$20 million (Bt769 million) worth of product.

Also, Isuzu Thailand Co Ltd signed an agreement with Isuzu Turkey to boost pickup exports from Thailand to Turkey, with the goal of shipping 200 a month.

To promote Thailand's "Kitchen of the World" campaign, the Export Promotion Department signed an agreement with the Swiss five-star hotel chain Movenpick to supply Thai food to its hotels in Turkey and arrange a Thai food festival.

Additionally, Turkey's Mudo Department store, which sells imported goods aimed at high-end customers, agreed to display more Thai furniture and decorative items.

Boonyarit Kalayanamit, director of the Thai Trade Centre in Turkey, said two-way trade between the two countries had great potential to increase. Turkey's economy is growing rapidly and it is a new export market for Thai companies.

Last year, Thailand's exports to Turkey reached $560 million, an increase of 60 per cent on 2004. The centre expects the Kingdom's exports to grow 30 per cent to at least $700 million this year.

"Turkey is a big market with 70 million people with high purchasing power," Boonyarit said.