India, Thailand hope to clinch free trade pact by mid-2012

India and Thailand hope to sign a comprehensive free trade pact by mid2012, according to a joint statement issued after talks between the prime ministers of the two countries in New Delhi Wednesday.

Thai Prime Minister Yingluck Shinawatra and her Indian counterpart, Manmohan Singh, signed several agreements after the talks, including a protocol that is expected to hasten the free trade pact.

Thailand and India agreed to a partial free trade agreement in 2004 and have been discussing a more comprehensive deal on liberalising trade, services and investments since.

A large part of the discussions between the two leaders focused on bilateral and regional economic cooperation.

Trade between the two nations amounted to $8.2 billion in 2011, a 34.2percent increase over 2010.

The two leaders also agreed that the Association of South East Asian Nations (Asean), of which Thailand is a member, should conclude trade and investment agreements with India by 2012.

Agreements signed during Yingluck’s visit include a treaty on the transfer of sentenced persons and a memorandum of understanding on defence cooperation.

Yingluck and Singh also discussed exploring the possibilities of collaboration between their oil and gas companies in exploration and production opportunities in Thailand, India and in other countries.

The two sides agreed to focus on developing road and shipping infrastructure, which would establish an economic corridor linking India with Thailand and Southeast Asia.

A working group on infrastructure and connectivity would be set up to expedite infrastructure initiatives.

Yingluck is in India on a threeday trip during which she will be the chief guest at the Republic Day celebration on January 26, when the country commemorates the constitution adopted in 1948.

The Thai prime minister was given a ceremonial reception in the forecourt of India’s presidential palace and later visited a memorial to Mahatma Gandhi, the leader of India’s freedom movement.

Yingluck met President Pratibha Patil and Foreign Minister SM Krishna before a lunch meeting with business leaders.