During a half-hour discussion with Trade Minister Phil Goff, Kantathi said the political instability in Thailand was a short-term matter that would be dealt with in accordance with the country's constitutional framework.

"It will not affect bilateral trade. We strongly encourage continued trade between the two countries," Kantathi said.

Thailand and New Zealand signed a free-trade agreement (FTA) on April 19, 2005. It took effect on July 1 the same year. The FTA's first anniversary finds trade between the two countries to have grown by more than 30 per cent, said Kantathi.

The two countries also signed a Closer Economic Partnership (CEP) pact in April last year. Kantathi said this had resulted in Thai exports to the country increasing by 50 per cent. Currently, Thailand enjoys a trade surplus of US$269.2 million (Bt10.5 billion) with New Zealand.

Goff, also the defence minister, expressed concern about violence in three provinces in southern Thailand, making a special mention of more than 60 simultaneous bomb blasts last month. Kantathi said the Thai government was trying hard to find a comprehensive solution to promote unity amid diversity.

Goff also asked Thailand to join countries such as Australia, New Zealand, Portugal and Malaysia in sending police to East Timor.

Kantathi is on a four-day visit to New Zealand.

Today, he will meet the Kiwi prime minister, Helen Clark, and attend a reception celebrating the 50th anniversary of diplomatic relations between the two countries.

Kantathi will fly to the US from New Zealand to meet several prominent political figures, including his counterpart, Condoleezza Rice.

Sopaporn Kurz

The Nation

Wellington