PERU FTA TO BE INKED IN NOVEMBER

       Leaders of Thailand and Peru will sign the long-awaited bilateral free-trade agreement when they meet in Singapore to attend the Asia-Pacific Economic Cooperation summit in mid-November.

       The agreement is then expected to be implemented early next year.
       The Cabinet on Tuesday approved the signing of the Thailand-Peru FTA to liberalise trade and increase trade facilitation between the countries.
       Nuntawan Sakuntanaga, director-general of the Trade Negotiations Department, said two-way trade would rise significantly after the FTA comes into effect.
       The countries have reached agreement on all details, including rules of origin and a harmonised system. It has also come up with an exchange system on aqua products and industrial goods to minimise the risk of arguments on rules of origin, said Nuntawan.
       "Tightening trade cooperation with Peru will also pave the way for more products to be exported from Thailand to Latin America, as Peru will also be a gateway for penetrating South America," said Nuntawan.
       Thailand and Peru started FTA talks in 2003. They have succeeded in their negotiations to reduce import duties for up to 70 per cent of the products traded between them, worth up to US$80 million (Bt2.68 billion).
       For Thailand, products with potential are pickup trucks, electrical appliances, plastic and plastic products, washing machines, rubber, automotive parts and home appliances. Peru will focus on products such as fresh shrimp, fish oil and pesticides.
       Once the FTA is implemented, Thai businessmen will be eligible for incentives to expand their investments in Peru. Peru has much potential for Thai investors, having abundant natural resources such as fisheries, forests, oil and natural gas.
       In addition, Lima wants Thai investors to expand their business in the country, especially in the energy, construction, furniture and fishery sectors.