A sea of opportunity under Mediterranean FTA plan

The FTA has been inked to eliminate import tariffs for all goods and it will be implemented in 2010. Member countries are Greece, Italy, Portugal, Spain, France, Malta, Algeria, Cyprus, Egypt, Israel, Jordan, Libya, Morocco, Syria, Tunisia and Turkey. Their total combined population is 450 million.

 So far, Thai goods have focused on penetrating the market in the northern and the central regions of Italy. However, people in the south and Sicily have high purchasing power with annual per capita income reaching an average of 12,000 euros (Bt684,747) per head.

 Giovanni Nania, honorary consul general to Thailand, said the FTA will draw more trade and investment into not only Sicily but all Mediterranean member countries.

 Potential export products to the FTA should not be expensive goods as people in most countries are still poor, he said.

However, they want essential goods, including air conditioners and refrigerators.

 "Sicily will be the gateway for Thai goods to access the free market," Nania said.

 As a leading businessman in Catania, Sicily, Nania suggested Thai exporters should focus more on the southern market of Italy, particularly Sicily, which is under a government trade and investment promotion policy.

 The economy in the southern region is growing, especially its petroleum business which controls 70 per cent of the supply in Italy. In addition, it is an area of hi-tech manufacturing, including information and communication technology, where companies such as Nokia, Siemens and Thompson are located.

 "We have designed Etna Valley like Silicon Valley of the US to be a venue of advanced technology manufacturing," Nania said.

 Sicily has been ranked an A-class region under EU government promotion with many incentives granted such as soft loans and tax waivers for three years.

 Up to now, Thai traders and investors have focused only on the big cities in Italy such as Rome and Milan and in limited businesses such as spas and Thai restaurants.