Home / Knowledge / News / Cabinet to finally approve FTA with Korea
Cabinet to finally approve FTA with Korea
Aug '08
A proposal for free trade agreement (FTA) between Thailand and Korea was submitted to the cabinet on August 19 which will pave the way for the two countries to sign the pact at the ASEAN economic ministers' meeting scheduled for August 25-27 in Singapore.

Sources informed Fibre2fashion that the proposal was accepted by the cabinet and will be followed by a signature ceremony at the end of this month which will formally join Thailand and Korea as a party to the Asean-Korea free trade agreement (AKFTA).

FTA talks between Asean and Korea were initiated in 2005 and came into effect in 2006. However, all the ASEAN members signed the contract except for Thailand which declined the proposal due to certain dispute regarding treatment of certain products by Korea.

Thailand finally concluded the trade talks under AKFTA last December after Seoul allowed an extension for import tariff reductions on certain Thai goods from 2010-12 to 2016-17. Another reason for agreeing to this pact was also that those who did not ink the AKFTA in August 2006 lost their competitiveness to other ASEAN members.

For instance, yarn from Thailand faced 20 percent tariff in South Korea while other ASEAN countries only had to pay a 5 percent charge due to which a lot of goods lost their competitive advantage.

Products given an extension for tax cuts or waiver include raw hides, tanned leather and leather goods. This apart, export of yarn would also benefit from this tariff cut.

Bilateral trade between the two countries reached US $7 billion last year with South Korea emerging to be the eighth largest trading partner of Thailand. Signing of this FTA is likely to further bolster trade ties between the two countries.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search