Thailand and Bhutan Commence Free Trade Talks for 2025 Deal

[webfact]

 

Thailand and Bhutan have officially launched negotiations for a comprehensive free trade agreement (FTA), aiming to finalise the deal by next year.

 

This significant development was confirmed by Thailand's Deputy Commerce Minister, Napintorn Srisunpang. Bhutanese Prime Minister Tshering Tobgay signed the terms to start FTA discussions, aligning both nations towards a shared goal of enhanced bilateral trade and investment.

 

They plan to eliminate trade barriers and improve market access, particularly for agricultural products, targeting a trade volume of US$120 million (approximately 4.38 billion baht) by 2025.

 

Apart from the FTA, discussions included the Mindfulness City project, a proposed economic hub and tourist gateway near Gelephu on the Indian border. The ambitious plan involves creating a city with low to mid-rise buildings centred around inhabitable bridges.

 

These bridges will house key city elements such as a new international airport, a university, a hydroponic greenhouse, a cultural centre, a spiritual centre, local markets, and a hydroelectric dam. This project aims to establish a vital economic corridor connecting South Asia with Southeast Asia through India’s northeast, presenting lucrative opportunities for Thai businesses.

 

 

Napintorn revealed that Thailand has requested more details on incentives and regulations concerning investment in these projects. Thailand and Bhutan share deep cultural bonds, rooted in Buddhist heritage and monarchical traditions, promoting robust economic cooperation in agriculture, tourism, investment, and handicrafts.

 

Bhutanese tourists frequently visit Thailand for health services, and Bhutan plans to join a tourism festival in Thailand to boost its cultural and tourism profile.

 

Thailand lauded Bhutan’s recent economic strides, noting its removal from the list of least developed countries in December last year. Thailand supports Bhutanese King Jigme Khesar Namgyel Wangchuck's vision to turn Bhutan into a South Asian economic hub, aiming for Bhutan to become a high-income nation by 2034.

 

Chotima Iemsawasdikul, Director-General of Thailand's Trade Negotiations Department, announced that the initial round of talks in May established the structure for the FTA. The next negotiation round is scheduled for August in Thailand, with the agreement expected to be completed by November 2025.

 

The FTA will aim to boost competitiveness by eliminating tariffs and non-tariff barriers on key exports such as dry fruits, garments, rubber and plastic products, and electronic appliances.

 

In 2023, trade between Thailand and Bhutan reached US$18.7 million, with the first quarter of 2024 recording US$3.06 million in trade. Key Thai exports to Bhutan include computers, textiles, wheat, electrical appliances, and ready-to-eat food, while Bhutan primarily exports aviation equipment, metal products, and fine arts to Thailand.

 

Picture courtesy: MGR online

 

-- 2024-05-23

 

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[brianthainess]

20 minutes ago, webfact said:

These bridges will house key city elements such as a new international airport, a university, a hydroponic greenhouse, a cultural centre, a spiritual centre, local markets, and a hydroelectric dam. This project aims to establish a vital economic corridor connecting South Asia with Southeast Asia through India’s northeast, presenting lucrative opportunities for Thai businesses.

 

So who will pay for all this ? Minimum wage is less than $2 a day, 18% lower than Thailand, and about the 153rd poorest county in the world. Very few will have money to come to Thailand, except of course government officials. 

[KhunBENQ]

37 minutes ago, webfact said:

Thailand supports Bhutanese King Jigme Khesar Namgyel Wangchuck's vision to turn Bhutan into a South Asian economic hub, aiming for Bhutan to become a high-income nation by 2034.

Another hub dreamer.

[brianthainess]

1 hour ago, webfact said:

and electronic appliances.

They struggle now to keep a regular power supply, with outages often, mainly through lack of Maintenance, now where have I heard that before.

[hotchilli]

3 hours ago, webfact said:

The FTA will aim to boost competitiveness by eliminating tariffs and non-tariff barriers on key exports such as dry fruits, garments, rubber and plastic products, and electronic appliances.

One way traffic again... 

[StayinThailand2much]

If they wait long enough, they can have the talks with Beijing, as China has already gobbled up 1/8 of Bhutan's territory in recent years.