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Posted On: 15/08/2009
The Association of South-East Asian Nations and Thailand have signed a free trade deal with India after years of tough negotiations regarding such a deal. The deal is expected to increase trade between them to 60billion dollars within 7 years.
India is one of the ASEAN's biggest trading partners, with trade between the two recorded at 47billion dollars last year.
"The signing today is a good sign of the extended trade between ASEAN and India," said Porntiva Nakasai, commerce minister of Thailand, which holds the 10-member regional bloc's rotating chairman ship.
"The agreement comes at an appropriate time taking into account the current world economic crisis," she said in a statement.
Thailand is one of the few Asian emerging economies that has fallen into recession this year. This was possibly because of the political upset earlier this year and their effect on the tourism trade, but irrespective of what is behind it Thailand needs all the economic help it can get.
Thailand's economic growth has been one of its main strengths when it comes to overseas property investment, as well as the tourism industry, both taking a knock this year has led to the property market suffering a great deal -- especially in the luxury sectors favoured by overseas buyers.
It can only be hoped that small steps like this combine to bring a swift recovery to the economy, and that the lid is once and for all sealed on the political tension that is so damaging to the tourism industry.
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