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Published on August 9, 2007

The National Economic Committee on Tuesday appointed Chutima Bunyapraphasara, director-general of the Trade Negotiations Department, as the country's chief negotiator.

Chutima said the department would accelerate drawing up Thailand's guidelines for talks on an Asean-EU free-trade agreement (FTA) by November and seek political approval to start negotiations.

"The talks might be called a Closer Economic Partnership Agreement as the European Union wants the agreement as a comprehensive package which will cover not only trade, but also services and investment," she said.

Thailand will spend two months in preparing details of the negotiation focusing on market access by minimising sensitive lists. This will allow both sides to enjoy the highest benefits from the free-trade accords.

Normally, tariff rates would be eliminated for more than 90 per cent of bilateral trade in the agreement.

Chutima expressed concern that the agreement may not be easy to conclude as some members of Asean may refuse to join the deal. Cambodia, Laos, Burma and Vietnam already have special privileges, the so-called "Everything But Arms" programme from the European Union as they are least developed nations.

"It is necessary for Asean to hold free-trade negotiations with the EU to maintain their benefits as the EU have concluded many free-trade pacts with Asean's trading partners," Chutima said, adding that the FTA with the EU would facilitate trade growth between Thailand and the EU, as well as decrease trade barriers between both sides.

The EU has already wrapped up free-trade talks with South America's Mercosur group: Argentina, Brazil, Paraguay, Uruguay and Venezuela. The union is preparing to open talks with the Gulf Cooperation Council. The Gulf members are the United Arab Emirates, Kuwait, Bahrain, Oman, Qatar and Saudi Arabia.

EU and Asean governments decided to initiate the FTA in April this year after a study showed it would benefit both regions.

Negotiations for the Asean-EU FTA are expected to begin early next year, once the member states of each side have expressed their proposals to support the negotiations.

Petchanet Pratruangkrai

The Nation