Thailand, Madagascar to sign trade pact
Thailand and Madagascar will sign a trade and investment protection agreement next week aimed at increasing bilateral business activity, Radifera Jocelyn, a special envoy for Madagascar, said yesterday.
Marcel Ranjeva, Madagascar's foreign minister, is scheduled to visit Bangkok on Monday to sign the agreement with caretaker Foreign Minister Kantathi Supha-mongkhon. Thailand and Madagascar are also in talks to create two other pacts - a duty-free agreement and a visa-exemption agreement - to promote a free flow of goods and people between the two countries. On trade and investment, Jocelyn said an agreement would encourage economic activity because it will provide guarantees that investors from both countries can repatriate the gains they make from their businesses. More than 30 investors from Madagascar yesterday attended a trade show in Bangkok to look for business partners. Thailand currently imports jewellery, silver bars and gold from Madagascar. Daniel Delevaux, honorary consul, said Madagascar also planned to negotiate a duty-free or free-trade pact with Thailand. However, the idea to exempt duty on trade between the two countries is in the early stages and will take some time to finalise. The countries are also negotiating an agreement to enable visa-free travel between the two. Howard Noble, regional sales development for Asia at Air Madagascar, said Thailand had become one of the favourite destinations for people from Madagascar. Over the past three months, the average passenger load factor has been as high as 80 per cent. The average for the whole year is around 65 per cent, which is deemed to be satisfactory. Noble said Air Madagascar plans to enter into an agreement with Thai Airways International next month on code sharing to enable it to expand routes in Asia. He said Thai Airways had also suggested Air Madagascar join the Star Alliance network, but the airline wants to proceed step by step. He added that it would be costly for Air Madagascar to join the alliance at this stage. Thailand's trade value with Madagascar from January to April last year was US$23.9 million (Bt900 million), $22 million of which was exported from the Kingdom. Madagascar, located 400 kilometres off the East coast of Africa, has become a member of the common market for Eastern and Southern Africa, which includes 20 countries. The country's main sources of income are textiles, tourism, agro business and mining. Thailand has imported a high number of precious stones from Madagascar.
Jeerawat Na Thalang The Nation
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