The Libyan government's goal of joining the World Trade Organisation (WTO), which has forced it to deregulate and open up its market more to the outside world, presents an opportunity for Thailand to boost trade in goods and services with the North African country.
To facilitate two-way trade, Libya's Foreign Trade and Eco-nomic Cooperation Department |has proposed a joint committee |be set up to exchange information and enhance cooperation.
"We are in the early stage of cooperation with a view to tightening our trade and investment," said director-general Dia Hammuda.
At present, Libya has WTO observer status. It will take a few years before it can join, as its trade and investment regulations have to be amended to fully comply with the global body's rules.
Hammuda said the Libyan government had already introduced many measures to ensure its ac-|cession to the WTO. For instance, the country now has a Competition Act and a Trademark Act, among other laws, and is reducing bar-|riers to facilitate trade and investment.
"The government is trying to supervise the market and improve companies in preparation for WTO accession. However, we want to have a transitional period from the public to the private sector," he said. "We have to be compatible when we join the WTO, so we have to know our priorities."
Trade and investment deregulation will create business opportunities for all parties, including giving Thailand greater access to the Libyan market.
Most imports from and exports to Libya can be conducted without the need for licences. However, among the sensitive items as far Libyan imports are concerned are chicken, fresh vegetables and some other foods.
The restrictions have been designed to protect its local producers, as well as to ensure food security and "traditional" security, as Libya is an Islamic country.
TRADE MISSION
Srirat Rastapana, director-general of Department of Export Promotion, said Libya was now a more open more market for trade and investment.
There is much potential for Thai exports of construction materials, auto parts, foods, decorative items, medical treatment and healthcare, and hotel and spa services.
The Commerce Ministry is currently heading a trade mission to Libya and Egypt to explore more business opportunities.
Thai investors should consider creating a manufacturing base in Libya, as that would ensure market access, said Srirat. In addition, Libya can become a distribution centre for Thai products in the wider North African market, and even to the European Union.
Foreign investors will enjoy |many benefits under Libya's new investment law - known as "law No 5" - which focuses on such privileges as a three-year income-tax exemption.
Foreign parties investing more than 5 million dinars (Bt133 million) are currently allowed 100-per-cent ownership.
The country has approved a three-year infrastructure development plan running until the end of next year, under which US$130 billion (Bt4.3 trillion) will be spent on projects including airport and residential construction.
"Libya is opening up its market more, and Thai investors should capture this opportunity," Srirat said.
Companies should not delay their moves, she added, as some Asian countries - notably China, Malaysia, India and South Korea - had already entered the market.
She said the department would bring a group of Thai exporters to take part in a trade exhibition in Libya in April.
