The Framework Agreement ensures liberalization trade in goods, services and investment, and economic cooperation expansion.
- Trade in Goods
It was agreed that India and Thailand begin the negotiation on trade in goods to establish the India-Thailand FTA. To accelerate tariff reduction, both countries agreed to apply for an Early Harvest Program. The tariff reduction of the remaining products will be classified into Normal Track and Sensitive Track.
- Economic Cooperation
Both the countries agreed to promote or enhance economic cooperation in the regions that would be beneficial to the countries, like tourism, healthcare, information and communication technology, and construction.
- Trade in Services and Investment
Thailand and India agreed to promote a progressive liberalization of Trade in Services plus an establishment of the open and competitive investment regimes, facilitating investment within both the countries.
Early Harvest Scheme
The agreement specifies tariff reduction under EHS of 82 items of goods and embracing items of interest of both of countries, including fruits, gems and jewelry, automobile parts, processed food products, electrical appliances, iron, and steel products, etc.
Thailand and India have agreed on Change in Tariff and local content of 35% as the basic rule for consideration of origins of products. Also, they have concurred on the Product Specific Rules for another 200 items.
To determine the eligibility for the preferential tariff concessions for the Early Harvest pursuant to the agreement between the two countries, certain rules are applicable. According to the rule no.1, the regulations are applicable to the products consigned from the territory of any of the party. Plus these rules shall be superseded by the Rules of Origin in order to be implemented by the parties under Article 3(6) (ii) of the Agreement for FTA in goods.
However, this being one, there are several other rules related to the Indo Thai free trade agreement.
