India Thailand FTA Early Harvest Scheme (EHS)

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FRAMEWORK AGREEMENT FOR ESTABLISHING FREE TRADE AREA BETWEEN THE REPUBLIC OF INDIA  AND THE KINGDOM OF THAILAND

 

Preamble

The Governments of the Republic of India and the Kingdom of Thailand hereinafter referred

to in this Agreement individually as "the Party" and collectively as "the Parties";

Desiring to strengthen the special bonds of friendship and economic relationship and also

cooperation that exist between the Parties with a view to improving living standards,

deepening economic linkages, promoting economic growth, investment opportunities,

minimising barriers, and creating a larger and more integrated market with greater

opportunities;

Desiring to raise the capacity and international competitiveness of their goods and services

as well as to promote their mutual interests through liberalization and expansion of trade

and investment between them and with a view to eventually establishing a bilateral Free

Trade Area;

Recognizing the important role and contribution of the business sector in enhancing trade

and investment between the Parties and the need to further promote and facilitate their

cooperation and utilisation of greater business opportunities provided by a comprehensive

free trade agreement between the Parties;

Re-affirming the rights and obligations with respect to each other under existing bilateral,

regional and multilateral agreements including the Marrakesh Agreement establishing the

World Trade Organization;

Recognizing the catalytic role that regional trading arrangements can play towards

accelerating regional and global liberalization and as building blocks in the framework of the

multilateral trading system;

Have agreed as follows:

ARTICLE 1

Objectives

The Parties shall make every effort to:

1. create favourable conditions for greater economic cooperation and promote fair

competition;

2. progressively liberalize and eliminate barriers to trade in, and facilitate the cross-border

movement of goods and services between the territories of the Parties on a reciprocal basis

as well as create a transparent, liberal and facilitative investment regime; and

3. explore new areas and develop appropriate measures for closer economic cooperation

between the Parties.

ARTICLE 2

Measures for Comprehensive Free Trade Area (FTA)

The Parties agree to expeditiously negotiate for establishing an India-Thailand FTA with a

view to strengthening and enhancing liberalization of trade through the following:

progressive elimination of tariffs and non-tariff barriers in substantially all trade in goods

between the Parties;

progressive liberalization of trade in services between the Parties with substantial sectoral

coverage;

establishment of an open and competitive investment regime that facilitates and promotes

investment within and between the Parties;

establishment of effective trade and investment facilitation measures, including, but not

limited to, simplification of customs procedures and development of mutual recognition

arrangements;

expansion of economic co-operation in areas as may be mutually agreed between the

Parties that will complement the deepening of trade and investment links between the

Parties and formulation of action plans and programmes in order to implement the agreed

sectors/areas of cooperation; and

establishment of appropriate mechanisms for the purposes of effective implementation of

this Agreement.

ARTICLE 3

Trade in Goods

1. With a view to expediting the expansion of trade in goods, the Parties agree to enter into

negotiations in which duties and other restrictive regulations of commerce except, where

necessary, those permitted under Article XXIV (8)(b) of the WTO General Agreement on

Tariffs and Trade (GATT) 1994, shall be eliminated on substantially all trade in goods

between the Parties.

2. The tariff reduction or elimination program of the Parties shall require tariffs on listed

products to be gradually reduced and where applicable, eliminated, in accordance with this

Article.

3. The products which are subject to the tariff reduction or elimination program under this

Article shall include all products not covered by the Early Harvest Scheme under Article 7 of

this Agreement, and such products shall be categorised into two tracks, namely, the Normal

Track and the Sensitive Track.

4. The commitments undertaken by the Parties under this Article and Article 7 of this

Agreement shall fulfil the WTO requirements to eliminate tariffs on substantially all the trade

between the Parties.

5. The tariff preferences to be mutually agreed between the Parties pursuant to this Article

shall set out only the limits of the applicable tariff preferences for the specified year of

implementation by the Parties and shall not prevent any Party from accelerating its tariff

reduction or elimination if it so desires.

6. The negotiations between the Parties to establish the India-Thailand FTA covering trade

in goods shall also include, but not be limited to the following:

(i) other detailed rules governing the tariff reduction or elimination programme for the

Normal Track and the Sensitive Track as well as any other related matters, including

principles governing reciprocal commitments, not provided for in the preceding paragraphs

of this Article;

(ii) Rules of Origin (ROO);

(iii) Treatment of out-of-quota rates;

(iv) Modification of a Party’s commitments under this Article on trade in goods based on

GATT/WTO principles;

(v) Non-tariff barriers (NTBs) imposed on any products covered under this Article or Article 7

of this Agreement, including, but not limited to quantitative restrictions or prohibition on the

importation of any product or on the export or sale for export of any product;

(vi) Safeguards based on the GATT/WTO principles;

(vii) Disciplines on subsidies and countervailing measures and anti-dumping measures

based on the existing GATT disciplines;

(viii) Facilitation and promotion of effective and adequate protection of trade-related aspects

of intellectual property rights based on existing WTO Agreements, World Intellectual

Property Organisation (WIPO) and other relevant disciplines; and

(ix) Dispute settlement mechanism.

ARTICLE 4

Trade in Services

With a view to expediting the expansion of trade in services, the Parties agree to enter into

negotiations to progressively liberalise trade in services with substantial sectoral coverage.

Such negotiations shall be directed to:

progressive elimination of substantially all discrimination between the Parties, prohibition of

new or more discriminatory measures, with respect to trade in services between the Parties

except for measures permitted under Article V(1)(b) of the General Agreement on Trade in

Services (GATS);

expansion in the depth and scope of liberalisation of trade in services; and

enhanced co-operation in services between the Parties in order to improve efficiency and

competitiveness.

ARTICLE 5

Investment

1. To promote investments and to create a liberal, facilitative, transparent and competitive

investment regime, the Parties shall endeavour to:

(i) enter into negotiations in order to progressively liberalise their respective investment

regimes;

(ii) strengthen co-operation in investment, facilitate investment and improve transparency of

investment rules and regulations; and

(iii) provide for the protection of investments.

2. With regard to the promotion and protection of investments, the Parties shall keep in view

the provisions of the Agreement for the Promotion and Protection of Investments signed by

them on 10 July 2000.

ARTICLE 6

Other Areas of Economic Cooperation

1. The Parties agree to strengthen their cooperation, but not limited to, in the following

areas:

(i) Trade Facilitation:

Mutual Recognition Arrangements (MRAs), conformity assessment, accreditation

procedures, and standards and technical regulations;

Removal of non-tariff barriers (NTBs);

Customs cooperation;

Trade finance; and

Business visa and travel facilitation.

(ii) Sectors of Cooperation:

(a) Fisheries and Aquaculture;

(b) Information & Communications Technology;

(c) Space Technology;

(d) Biotechnology;

(e) Finance and Banking;

(f) Tourism;

(g) Infrastructure Development;

(h) Health Care;

(i) Construction;

(j) Education; and

(k) Government Procurement.

(iii) Trade and Investment Promotion:

trade and investment fairs and exhibitions;

India-Thailand portal; and

business sector dialogues.

2. Co-operation shall be extended to other areas, including, but not limited to, industrial

cooperation, intellectual property rights, small and medium enterprises (SMEs), civil

aviation, environment, forestry and forestry products, mining, energy and sub-regional

development.

3. Measures to strengthen co-operation shall include, but not be limited to:

promotion and facilitation of trade in goods and services, and investment;

increasing the competitiveness of SMEs;

promotion of electronic commerce;

capacity building; and

technology transfer.

Article 7

Early Harvest Scheme

1. With a view to accelerating the realization of benefits from this Agreement, the Parties

agree to implement an Early Harvest Scheme, which will form an integral part of the India-

Thailand FTA covering trade in goods for products covered under paragraph 2(i) below and

which will commence and end in accordance with the timeframes set out in this Article.

2. The product coverage, tariff reduction and elimination, implementation timeframes, Rules

of Origin, trade remedies and emergency measures applicable to the Early Harvest Scheme

shall be as follows:

(i) Product coverage;

The specific products listed in Annex-I of this Agreement shall be covered by the Early

Harvest Scheme.

(ii) Tariff Reduction and Elimination:

(a) The products covered under this Article shall be subjected to the following tariff

reduction and elimination:

Period Tariff reduction on applied MFN

tariff rates as of 1st January 2004

1.3.2004-28.2.2005 50%

1.3.2005-28.2.2006 75%

1.3.2006 100%

(b) All products where the applied MFN tariff rates are 0%, shall remain at 0%.

(c) Where the implemented tariff rates are reduced to 0%, they shall remain at 0%.

(iii) Interim Rules of Origin:

The Interim Rules of Origin applicable to the products covered under the Early Harvest

Scheme shall be further negotiated by the Sub-group of Expert on Rules of Origin. The

Interim Rules of Origin shall be superseded and replaced by the Rules of Origin to be

negotiated and implemented by the Parties under Article 3(6)(ii) of this Agreement.

(iv) Trade Remedies and Emergency Measures:

If any product, which is covered under EHS, is imported into the territory of a Party in such a

manner or in such quantities as to cause or threaten to cause, serious injury to the domestic

producers of such product in the importing Party, the importing Party may, after prior

consultations, to be concluded within 90 days or on any mutually agreed timeframe, from

the date of notifying the other Party, suspend provisionally without discrimination the

preferential treatment so accorded.

(v) Application of WTO provisions

The WTO provisions governing modification of commitments, safeguard actions and other

trade remedies, including anti-dumping and subsidies and countervailing measures, shall, in

the interim, be applicable to the products covered under the Early Harvest Scheme and

shall be superseded and replaced by the relevant disciplines negotiated and agreed to by

the Parties under Article 3(6) of this Agreement.

3. In order to fully realize the potential benefits of the Early Harvest Scheme, the Parties

shall promote and facilitate trade on all products listed in the Early Harvest Scheme. The

Parties shall also endeavor to refrain from using non-tariff measures adversely affecting

trade on early harvest products.

 

 

ARTICLE 8

Timeframes

1. For trade in goods, the negotiations for tariff reductions or elimination and other matters

as set out in Article 3 of this Agreement shall commence in January 2004 and be concluded

by March 2005 in order to establish the India-Thailand FTA covering trade in goods by

2010.

2. For trade in services and investments, the negotiations on the respective agreements

shall commence in January 2004 and be concluded by January 2006. The identification and

liberalisation of the sectors of services and investment shall be finalised for implementation

subsequently in accordance with the timeframes to be mutually agreed, taking into account

the sensitive sectors of the Parties.

3. For other areas of economic cooperation under Article 6 of this Agreement, the Parties

shall continue to build upon existing or agreed programmes set out in that Article, develop

new economic cooperation programmes, and conclude agreements on other areas of

economic cooperation.

ARTICLE 9

General Exceptions

Subject to the requirement that such measures are not applied in a manner which would

constitute a means of arbitrary or unjustifiable discrimination in trade between the Parties

where the same conditions prevail, or a disguised restriction on trade within the India-

Thailand FTA, nothing in this Agreement shall prevent any Party from taking action and

adopting measures for the protection of its national security or the protection of articles of

artistic, historic and archaeological value, or such other measures which it deems necessary

for the protection of public morals, or for the protection of human, animal or plant life, health

and conservation of exhaustible natural resources.

ARTICLE 10

Dispute Settlement Mechanism

Any dispute arising between the Parties regarding interpretation, application or

implementation of this Agreement shall be settled amicably through consultations.

ARTICLE 11

Institutional Arrangements for the Negotiations

1. The India-Thailand Trade Negotiating Committee (TNC) shall be established to carry out

the program of negotiations set out in this Agreement.

2. The India-Thailand TNC may co-opt other members/experts and/or set up working groups

as may be necessary to assist the negotiations from time to time.

3. The Parties may establish other mechanisms as may be necessary to coordinate and

implement any economic cooperation activities undertaken pursuant to this Agreement.

ARTICLE 12

Miscellaneous Provisions

1. This Agreement and Annexes thereto as well as any legal instrument agreed upon by the

Parties pursuant to provisions of this Agreement shall be integral parts of the Agreement

and shall be binding on the Parties.

2. Except as otherwise provided in this Agreement, this Agreement or any action taken

under it shall not affect or nullify the rights and obligations of the Party under existing

agreements to which it is already a party.

3. The Parties shall endeavour to refrain from increasing restrictions or limitations that would

affect the application of this Agreement.

4. The provisions of this Agreement may be modified through amendments mutually agreed

upon in writing by the Parties.

ARTICLE 13

Duration and Termination of the Agreement

This Agreement shall remain in force until either Party terminates this Agreement by giving

six months written notice to the other Party of its intention to do so.

ARTICLE 14

Entry into Force

This Agreement shall enter into force on the thirtieth day after the date on which the Parties

hereto have exchanged diplomatic notes informing each other that their respective

constitutional requirements and procedures have been completed.

IN WITNESS WHEREOF, the undersigned, being duly authorised thereto by their respective

Governments, have signed this Agreement.

DONE at Bangkok, on the 9th day of October 2003, in duplicate copies in the English

Language.

For the Government of

the Republic of India

For the Government of

the Kingdom of Thailand

Sd/- Sd/-

(Arun Jaitley)

Minister of Commerce

and Industry

(Adisai Bodharamik)

Minister of Commerce

 

Annex-I

India-Thailand Consolidated List of Items for EHS

NO. HS. DESCRIPTIONS

1 080450 EX. FRESH MANGOSTEENS, MANGOES

2 080610 FRESH GRAPES

3 080810 APPLES

4 081060 EX. FRESH DURIANS

5 081090 EX. FRESH RAMBUTANS, LONGANS, POMEGRANATES

6 100110 DURUM WHEAT

7 100190 OTHER WHEAT AND MESLIN

8 160411 SALMON, WHOLE OR IN PIECES BUT NOT MINCED,

PREPARED OR PRESERVED

9 160413 SARDINES, SARDENELLA AND BRISLING OR SPRATS,

WHOLE OR IN PIECES BUT NOT MINCED, PREPARED

OR PRESERVED

10 160415 MACKERAL WHOLE OR IN PIECES BUT NOT MINCED,

PREPARED OR PRESERVED

11 160510 CRAB PREPARED OR PRESERVED

12 250100 SALT (INCL TABLE SALT & DENATRD SALT) & PURE

SODIM CHLRDE W/N AQS SOLN SEA WTR

13 261000 CHROMIUM ORES & CONCENTRATES

14 281119 OTHER INORGANIC ACIDS

15 281820 OTHER ALUMINIUM OXIDE

16 281830 ALUMINIUM HYDROXIDE

17 291739 OTHR ARMTC PLYCRBOXYLC ACIDS THR ANHYDRDS

HALIDES PEROXIDES PEROXYACDS & THR DRVTVS

18 390210 POLYPROPYLENE, IN PRIMARY FORMS

19 390690 OTHER ACRYLIC POLYMERS IN PRIMARY FORMS.

20 390710 POLYACETALS IN PRIMARY FORMS.

21 390730 EPOXIDE RESINS IN PRIMARY FORMS.

22 390740 POLYCARBONATES IN PRIMARY FORMS.

23 390760 POLYETHYLENE TEREPHTHALATE IN PRIMARY FORMS.

24 390799 SATURATED POLYALLYL ESTERS AND OTHER

SATURATED POL

25 390810 POLYAMIDE-6,-11,-12,-6,6,-6,9,-6,10 OR -6,12,IN PRIMARY

FORMS

26 390890 OTHER POLYAMIDES IN PRIMARY FORMS.

27 390950 POLYURETHANES IN PRIMARY FORMS.

28 391990 OTHER SELF-ADHESIVE PLATES, SHEETS, FILM, FOIL,

TAPE, STRIP AND OTHER FLAT SHAPES OF PLASTICS

29 441219 OTHR PLYWD COMSSTNG ONLY SHTS OF WOOD OF

THIKNESS OF EACH SHEET NT EXCD 6 MM

30 710310 PRECIOUS STONES (OTHER THAN DIAMONDS) AND

SEMI-PRECIOSSTONES, UNWORKED OR SIMPLY SAWN

OR ROUGHLY SHAPED

31 710490 OTHER SYNTHETIC OR RECONSTRUCTED PRECIOUS

OR SEMI-PRECIOUS STONES

32 710510 DUST AND POWDER OF DIAMONDS

33 711319 ARTICLES OF JEWELLERY AND PARTS THEREOF, OF

OTHER PRECIUOS METAL, WHETHER OR NOT PLATED

OR CLAD WITH PRECIUOS METAL

34 720150 ALLOY PIG IRON: SPIEGELEISEN

35 720711 PRDCTS CONTNG BY WT<0.25% CRBN,OF RCTNGLR

(INCL SQR)CRS-SCTN;WDTH<TWICE THE THCKNS

36 720719 OTHR PRDCTS CONTNG BY WT<0.25% OF CARBON

37 722619 FLT-ROLD PRDCTS OF SILICON ELECTRICL STL OTHR

THN GRAIN-ORIENTED

38 722990 OTHER WIRE

39 730792 THREADED ELBOWS, BENDS AND SLEEVES OF IRON

OR STEEL

40 732020 HELICAL SPRINGS, OF IRON OR STEEL

41 732690 OTHER ARTICLES OF IRON OR STEEL WIRE, NOT

FORGED

42 760110 ALUMINUM, NOT ALLOYED

43 760120 ALUMINUM ALLOYS

44 840490 PARTS OF THE ITEMS OF 840410 & 840420

45 840991 PARTS SUITABLE FOR USE SOLELY OR PRINCIPALLY

WITH SPARK-IGNITION INTERNAL COMBUSTION

PISTON ENGINES

46 841360 OTHER ROTARY POSITIVE DISPLACEMENT PUMPS

47 841381 OTHER PUMPS

48 841451 TABLE,FLOOR,WALL,WINDOW,CEILING/ROOF

FANS,WTH SLF-CNTND ELCTRC MOTOR OF

OUTPT<=125 W

49 841459 OTHER FANS

50 841490 PRTS OF AIR/VACUM PUMPS,CMPRSSRS & FANS

51 841510 WINDOW/WALL TYPES SELF-CONTAINED AIR

CONDITIONING MACHINES

52 841821 COMPRESSION-TYPE REFRIGERATORS, HOUSEHOLD

53 841990 PRTS OF MCHNRY,PLNT/LBRTRY EQMPMNT ETC OF

THE ITEMS OF HDG 8419

54 842199 OTHR PARTS OF FLTRNG/PURFYNG MCHNRY

55 842390 WEIGHNG MCHN WEIGHTS & PRTS OF THE MCHNRY

56 842549 JACKS, HOISTS, OF A KIND USED FOR RAISING

VEHICLES

57 843221 DISC HARROWS

58 843780 OTHER MACHNRY FOR CLNG,SRTNG/GRADNG SEEDS

59 844820 PRTS & ACCSSRS OF MCHNS OF HDG. NO.8444/OF

THEIR AUXLRY MCHNRY

60 844833 SPINDLES,SPINDLE FLYERS,SPINNING RINGS AND

RING TRAVELLERS

61 847141 OTHR DGITL AUTOMATIC DATA PROCESNG MACHNS

COMPRISNG IN SAMEHOUSNG A CENTRLPROCESNG

UNIT & INPUT & OUTPUT UNIT,WH/NOT COMBIND

62 847190 OTHER

63 847290 OTHR OFFICE MACHINES

64 847751 MCHNRY FR MOULDNG/RETREADNG PNEUMTC TYPES

OR FR MOULDNG/OTHRWSE FORMNG INNR TUBES

65 847989 OTHR MCHN &MCHNCL APPLNCS OF HDG 8479

66 847990 PARTS OF MACHINES OF HDG 8479

67 848079 OTHR MOULDS FOR RUBBER/PLASTICS

68 848180 OTHER APPLIANCES FOR PIPES, BOILER SHELLS,

TANKS, VATS OR THE LIKE

69 848210 BALL BEARINGS

70 848350 FLYWHEELS AND PULLEYS, INCLUDING PULLEY

BLOCKS

71 850431 OTHR TRNSFRMRS HVNG A PWR HNDLNG CAPACITY

NOT EXCDNG 1 KVA

72 851220 OTHER LIGHTING OR VISUAL SIGNALLING EQUIPMENT

73 851711 LINE TELPHON SET WTH CORDLESS HAND SETS.

74 851790 PARTS OF TELEPHONIC/TELEGRAPHIC APPARATUS

75 852390 OTHER PREPARED UNRECORDED MEDIA

76 852812 RECEPTN APARTS FOR TV ETC COLOUR

77 852910 AERIALS & AERIALS REFLECTORS OF ALL KINDS PRTS

SUITABLE FR USE THEREWTH

78 853400 PRINTED CIRCUITS

79 854011 CATHODE-RAY TV PICTURE TUBES, INCLUDING VIDEO

MONITOR-CATHODE-RAY TUBES-COLOUR

80 870840 GEAR BOXES

81 903289 OTHR ATMTC RGLTNG/CNTRLNG INSTRMNTS&APPRTS

82 903290 PARTS AND ACCESSORIES OF INSTRMNTS OF 9032

83 910211 WRST-WTCHS,ELECTRLY OPERATED,W/N INCRPRTNG

STOP-WTCH FCLTY WITH MCHNCL DISPLAY ONLY

84 940190 PARTS OF SEATS, WHETHER OR NOT CONVERTIBLE

INTO BEDS

*****

 

 

 

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Comments


rajkumar: Sir, Let me know the import duty concession tariff rate for the product of A4 copier paper (HSCode No.48025690) in the event of importing from Thailand toIndia? as per ASEAN free trade agreement or any other trade agreement between india and Thailand An early reply will highly be appreciable regards, rajkumar chennai

Sunil Agrawal : I want to import paper from Thailand. what formality I would need other than ie license. Plz help.

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