Thailand and Ukraine expected to sign trade and investment deal

If the agreement is reached, it should increase two-way trade significantly. Trade was only US$264.8 million (Bt8.5 billion) last year.

Department director-general Chutima Bunyapraphasara said both sides were expected to wrap up the agreement this year after a year of talks.

Under the agreement, both nations will tighten trade and facilitate investment in order to boost economic growth.

"Closer trade and cooperation will facilitate mutual benefits for both countries as Ukraine foresees Thailand as the gateway to Asean markets, while Ukraine is a new potential market for Thai goods and energy investment," Chutima said.

A draft of the agreement is being proposed for the Cabinet's approval. Commerce Minister Mingkwan Sangsuwan should ink the agreement soon.

Ukraine is a new emerging country with a high demand for consumer goods. Its population has substantial purchasing power as Ukraine is a major oil producer. Closer cooperation should also increase opportunities for Thai energy investment as Ukraine has abundant natural gas, oil and mineral resources.

PTT joined the Commerce Ministry's trip to the Ukraine last year to survey investment channels. The conclusion of the pact should increase chances for Thai investors to operate in Ukraine, Chutima said.

Meanwhile, due to high demand for food grains in the world market, exports of Thai agricultural goods are expected to grow more than 10 per cent to $23.5 billion this year.

Export Promotion Department director-general Rachane Potjanasuntorn said yesterday that Thailand was confident about robust exports this year due to high demand.

Exports in the first quarter jumped 31.4 per cent to $6.7 billion.

Rachane said orders for Thai products should increase thanks to the 17th Thaifex World of Foods Asia, which will attract more than 10,000 international traders.

The exhibition will be held at Challenger Hall, Muang Thong Thani, from May 21-25. It is expected to generate more than Bt1.7 billion in immediate orders.