Thailand, Peru sign FTA pact

BANGKOK, January 7 (TNA) - Thailand and Peru have signed their long-awaited free trade agreement (FTA), known as the Early Harvest Protocol, in which tariffs of half of total products traded between the two countries are at zero per cent immediately; while those on another 20 per cent of the products traded between the Thai and Peruvian economies will drop to zero per cent by January 1, 2016. According to an announcement released today by the Ministry of Commerce’s Department of Foreign Trade, the Thai-Peruvian FTA has become effective since December 31, 2011. Under the new FTA, Thailand immediately gains from tariff exemption on 3,985 items of goods exported to Peru, or 54.2 per cent of the total, while Peru also immediately benefits from 3,844 items of goods, or 46.3 per cent of the total, exported to Thailand. Thai exports to Peru immediately beneficial from the new FTA include automobile and parts, washing machine and parts and rubber products; while Peruvian exports immediately beneficial from the FTA include mineral products, fish cod, frozen seafood and tanning products. Combined two-way trade between Thailand and Peru totaled about 590 million US dollars last year and the new FTA between the two countries is believed to create more confidence among Thai business operators to expand their trade with Peru, a key member of the Mercosur and the Andean groups. (TNA)