Thai PM allays concern over political uncertainty in his country

Visiting Prime Minister of Thailand Surayud Chulanont today allayed concerns over political uncertainty in his country in his bid to hasten negotiations on a free trade pact with India.

New Delhi, June 26 : Visiting Prime Minister of Thailand Surayud Chulanont today allayed concerns over political uncertainty in his country in his bid to hasten negotiations on a free trade pact with India.

Addressing Indian business leaders, Chulanont said that India, as the world's "fastest growing free-market democracy", should therefore not hesitate to strengthen its growing economic relationship with Thailand which has been built on centuries-old cultural links between the two countries.

"We will continue to take steps to further rebuild our economy while at the same time improve conditions for foreign trade and investment," Chulanont said.

India and Thailand have a limited free trade pact that was agreed in 2003 and are presently negotiating over a full treaty. Last year, trade touched 3.4 billion dollars, more than double the levels in 2001, and Indian industry groups expect it to reach 7 billion dollars by 2010.

Although some businessmen had expected the free trade agreement to be finalised during Chulanont's visit, Indian officials said differences had caused a delay.

While Bangkok wants to liberalise trade in goods first, New Delhi wants to pursue free trade in goods, services and investments simultaneously, they said.

However, both Chulanont and Indian Commerce Minister Kamal Nath said that officials were making good progress over concluding a pact soon.

Chulanont, who has been appointed by the army, said there would be no backtracking on Thailand's return to full democracy, and added, "We are working hard to ensure that general elections are held by the year-end if not, sooner."

Earlier today, Chulanont was accorded a ceremonial reception at the Rashtrapati Bhavan.

Chulanont arrived here on a three-day visit on Monday. His visit coincides with the 60th anniversary year of the establishment of diplomatic relations between the two countries.

India and Thailand are expected to sign two agreements on enhanced cooperation in the field of renewable energy and on a cultural exchange programme during the Thai Prime Minister's visit.

Chulanont is accompanied by his Foreign Minister Nitya Pibulsonggram, Commerce Minister Krirk-Krai Jirapaet and Energy Minister Piyasvasti Amranand.

The Thai Prime Minister will be visiting holy cities of Varanasi, Sarnath and Kolkata during his visit.

ANI