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India, Thailand ratify pact on investments

Our Bureau

NEW DELHI, July 13

INDIA and Thailand today ratified an agreement to protect and promote bilateral investments. The instruments of ratification were exchanged by the Finance Minister, Mr Yashwant Sinha, and Thailand's Foreign Minister, Mr Surakiart Sathirathai.

Apart from encouraging and creating favourable conditions for investors, each country is required to accord fair and equitable treatment to investment from the other country. The core of the agreement lies in its positive assertion of the principles of ` Most Favoured Nation' and `National Treatment'.

The agreement provides for elaborate dispute resolution mechanics.

At a separate meeting organised by FICCI, the Thai Minister said his country attached top priority to IT as it was a promising area of bilateral cooperation. India and Thailand have set a bilateral trade target of $2 billion to be achieved in three years .

In order to achieve this figure, it has been proposed that a study for a bilateral free trade agreement (FTA) should be contemplated.

He has invited India to join in the rice pool arrangement that Thailand has with Vietnam. This will help avoid price undercutting.