Thailand calls for Strategic Economic Partnership with SL

Thursday, 8 June 2017 00:10 - - {{hitsCtrl.values.hits}}

Members from both sides pose at Bangkok’s Eastin Grand Hotel with Director-General of Thailand’s Department of Trade Negotiations Boonyarit Kalayanamit (eighth from right) and Director General of Commerce of Sri Lanka Sonali Wijeratne (seventh from right)

Sri Lanka and Thailand have reached a consensus on a Trade in Goods FTA as an initial step before an ensuing comprehensive FTA.

Thailand has proposed an MoU on Strategic Economic Partnership (SEP) with Sri Lanka as a steppingstone, on 2 June in Bangkok.

This latest breakthrough in Sri Lanka-Thai trade was reported at the ‘2nd Sub Committee Meeting on Trade Related Matters’ between top level trade officials of both countries held in Bangkok on 2 June.

The bilateral meeting was held at the Eastin Grand Hotel in Sathorn, Bangkok. The Thai delegation was led by Director-General of Thailand’s Department of Trade Negotiations Boonyarit Kalayanamit, while the Sri Lankan side was led by Director General of Commerce of Sri Lanka Sonali Wijeratne.

While exchanging views on the trade and economic situations of both countries, the two parties expressed their interest in further enhancing their trade and achieving the targets set by the leaders of the two countries to raise total trade to $ 1.5 billion by 2020. Current annual trade levels between Thailand and Sri Lanka are about $ 550 million.

To achieve the $ 1.5 billion trade objective, it was agreed to explore the possibilities of establishing a bilateral Free Trade Agreement (FTA) and developing the SEP between Thailand and Sri Lanka in identified sectors of mutual interest.

Under the proposed FTA, the possibility of establishing an FTA on Trade in Goods was explored as the first step towards a comprehensive FTA with the offer lists under the BIMSTEC to be considered as the basis for the FTA negotiation on the goods under the enabling clause of the WTO.

The Thai side submitted a draft MOU on Economic Strategic Partnership to Sri Lanka for consideration on which both sides exchanged views, and the Sri Lankan side suggested some additions and an action plan. The MoU is expected to be concluded with an action plan in order to be signed during Thai Deputy Prime Minister Somkid Jatusripitak’s visit to Sri Lanka in August 2017.

Both sides also discussed areas such as basic infrastructure in Sri Lanka, the food preservation and food processing industry, the gem and jewellery industry, tourism and hospitality industry, export credit line, small and medium enterprises, agricultural products such as floriculture and tea, automobile component manufacture, the electronics and electrical sector, trade fair participation, capacity building, quarantine clearance to export fresh strawberries to Thailand and the long processing time in the issuance of a business visa to Sri Lankan exporters.

The Sri Lankan side tabled investment opportunities in Sri Lanka and invited investments and technical cooperation in those areas. The Thai side pledged to look into these matters upon the receipt of proposals from the Sri Lankans.

The meeting concluded with the formulation of positive initiatives for the trade and investment areas of both countries. The third meeting will be held in Colombo, the date and venue for which will be finalised based on mutual agreement.