Talks on the agreement, which began in 2004, were suspended in February after the country fell into a protracted period of political unease that escalated dramatically yesterday into a bloodless military coup.

US Trade Representative Susan Schwab, speaking on the sidelines of a trade meeting in Australia, said Washington had expected the talks to resume after elections that, before the coup, were scheduled for October 15.

"Formal negotiations were suspended pending the elections that had been anticipated later this year and we had assumed that the formal negotiations would resume in December," Schwab said.

Of the coup, she said: "It's too early to tell what the impact will be" on the negotiations.

She said Washington would be looking for "a government that is ready, willing and able to negotiate a free-trade agreement" when the situation is resolved, she said.

On Tuesday night, a US official said the United States Embassy viewed the coup attempt negatively and was keeping a close watch on political developments in Thailand.

"We hope that the Thai society and the political actors find a way through peacefully, but the US reacts negatively to what is happening in Thailand now," he said.

Apart from allegations of corruption and scandals, controversy surrounding the bilateral trade talks with the US also partly triggered the downfall of the government of Thaksin Shinawatra, which resulted in the successful attempt to overthrow his administration on Tuesday night.

Associated Press, The Nation

CAIRNS, Australia