22-10-03 Thai and Chinese leaders have signed a Memorandum of Understanding (MoU) to increase bilateral trade value of the earlier agreed free trade agreement (FTA) to 10 bn baht within the end of this year.
According to the government's spokesman, the bilateral trade volume between Thailand and China is around 6 bn baht a year at the present time, of which Thailand's export value was 4 bn baht last year while that of China was 2 bn baht, leaving Thailand to post a trade surplus of 2 bn baht. So far this year bilateral trade for the first nine months stood at $ 6.7 bn against a total of $ 7.6 bn last year.

Sita said the MoU has not specifically mentioned which items will be additionally included in the agreement, but it confirmed that it will help reduce most of the two countries' bilateral trade barriers.
Under the MoU, the government's spokesman added that Thailand and Chinese commerce ministers can directly contact between each other when needed and visa requirements for the two countries' diplomats will be later revoked with the aim to speed up trading procedures.

Meanwhile, the Energy Minister Prommin Lertsuridej said PTT and Sinochem or China National Chemicals Import & Export Corporation have also signed an agreement to study the opportunity for Chinese firms to jointly invest in Thailand's petroleum and petrochemical industries.
Under the agreement, Prommin added, a special working committee comprising five representatives from each party will be set up and will meet every three months to monitor the possible opportunity to cooperate in the aspects of crude oil and natural gas explorations, including the setting up of joint marketing networks on oil, natural gas and petrochemicals.

Prommin said Sinochem's move to buy Thai Oil's shares being held by Thai Oil's overseas creditors is the first step of the bilateral economic co-operation. He added that PTT intends to comply with the government's energy policy to enhance Thailand as the Asian regional energy centre by seeking overseasstrategic partners, particularly China where its southern cities will need more oil, natural gas and electricity in the near future.
He said PTT's move is in line with the country's preparation plan for a trade liberation under the World Trade Organization's frame work on oil trading which will be effective in 2005. Prasert Boonsumpun, PTT's president, said PTT is now running an oil trading business on mainland China, exporting its oil products for sale in the southern part of the giant economic community at a combined value of billions of baht a year.

Meanwhile, China's target of a 7 % economic growth set for this year "is well within reach", Chinese President Hu Jintao told.
"China's economy remains in good shape with a strong momentum for expansion”, he said in a keynote address at the ongoing CEO Summit of the Asia-Pacific Economic Cooperation (APEC) forum. He said the past year had witnessed some heartening signs in global economy, but many uncertainties persist before a steady growth can takehold. Given this background, government and business leaders of all countries must take it as their crucial task to improve the environment for economic development and promote a sustained economic growth through effective policies and measures," the Chinese president said.