FRAMEWORK AGREEMENT FOR ESTABLISHING FREE TRADE AREA
BETWEEN
THE REPUBLIC OF INDIA
AND
THE KINGDOM OF THAILAND

Article 7

Early Harvest Scheme

1. With a view to accelerating the realization of benefits from this Agreement, the Parties agree to implement an Early Harvest Scheme, which will form an integral part of the India-Thailand FTA covering trade in goods for products covered under paragraph 2(i) below and which will commence and end in accordance with the timeframes set out in this Article.

2. The product coverage, tariff reduction and elimination, implementation timeframes, Rules of Origin, trade remedies and emergency measures applicable to the Early Harvest Scheme shall be as follows:

(i) Product coverage;

The specific products listed in Annex-I of this Agreement shall be covered by the Early Harvest Scheme.

(ii) Tariff Reduction and Elimination:

(a) The products covered under this Article shall be subjected to the following tariff reduction and elimination:

(b) All products where the applied MFN tariff rates are 0%, shall remain at 0%.

(c) Where the implemented tariff rates are reduced to 0%, they shall remain at 0%.

(iii) Interim Rules of Origin:

The Interim Rules of Origin applicable to the products covered under the Early Harvest Scheme shall be further negotiated by the Sub-group of Expert on Rules of Origin. The Interim Rules of Origin shall be superseded and replaced by the Rules of Origin to be negotiated and implemented by the Parties under Article 3(6)(ii) of this Agreement.

(iv) Trade Remedies and Emergency Measures:

If any product, which is covered under EHS, is imported into the territory of a Party in such a manner or in such quantities as to cause or threaten to cause, serious injury to the domestic producers of such product in the importing Party, the importing Party may, after prior consultations, to be concluded within 90 days or on any mutually agreed timeframe, from the date of notifying the other Party, suspend provisionally without discrimination the preferential treatment so accorded.

(v) Application of WTO provisions

The WTO provisions governing modification of commitments, safeguard actions and other trade remedies, including anti-dumping and subsidies and countervailing measures, shall, in the interim, be applicable to the products covered under the Early Harvest Scheme and shall be superseded and replaced by the relevant disciplines negotiated and agreed to by the Parties under Article 3(6) of this Agreement.

3. In order to fully realize the potential benefits of the Early Harvest Scheme, the Parties shall promote and facilitate trade on all products listed in the Early Harvest Scheme. The Parties shall also endeavor to refrain from using non-tariff measures adversely affecting trade on early harvest products.

ARTICLE 8

Timeframes

1. For trade in goods, the negotiations for tariff reductions or elimination and other matters as set out in Article 3 of this Agreement shall commence in January 2004 and be concluded by March 2005 in order to establish the India-Thailand FTA covering trade in goods by 2010.

2. For trade in services and investments, the negotiations on the respective agreements shall commence in January 2004 and be concluded by January 2006. The identification and liberalisation of the sectors of services and investment shall be finalised for implementation subsequently in accordance with the timeframes to be mutually agreed, taking into account the sensitive sectors of the Parties.

3. For other areas of economic cooperation under Article 6 of this Agreement, the Parties shall continue to build upon existing or agreed programmes set out in that Article, develop new economic cooperation programmes, and conclude agreements on other areas of economic cooperation.

ARTICLE 9

General Exceptions

Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination in trade between the Parties where the same conditions prevail, or a disguised restriction on trade within the India-Thailand FTA, nothing in this Agreement shall prevent any Party from taking action and adopting measures for the protection of its national security or the protection of articles of artistic, historic and archaeological value, or such other measures which it deems necessary for the protection of public morals, or for the protection of human, animal or plant life, health and conservation of exhaustible natural resources.

ARTICLE 10

Dispute Settlement Mechanism

Any dispute arising between the Parties regarding interpretation, application or implementation of this Agreement shall be settled amicably through consultations.

ARTICLE 11

Institutional Arrangements for the Negotiations

1. The India-Thailand Trade Negotiating Committee (TNC) shall be established to carry out the program of negotiations set out in this Agreement.

2. The India-Thailand TNC may co-opt other members/experts and/or set up working groups as may be necessary to assist the negotiations from time to time.

3. The Parties may establish other mechanisms as may be necessary to coordinate and implement any economic cooperation activities undertaken pursuant to this Agreement.

ARTICLE 12

Miscellaneous Provisions

1. This Agreement and Annexes thereto as well as any legal instrument agreed upon by the Parties pursuant to provisions of this Agreement shall be integral parts of the Agreement and shall be binding on the Parties.

2. Except as otherwise provided in this Agreement, this Agreement or any action taken under it shall not affect or nullify the rights and obligations of the Party under existing agreements to which it is already a party.

3. The Parties shall endeavour to refrain from increasing restrictions or limitations that would affect the application of this Agreement.

4. The provisions of this Agreement may be modified through amendments mutually agreed upon in writing by the Parties.

ARTICLE 13

Duration and Termination of the Agreement

This Agreement shall remain in force until either Party terminates this Agreement by giving six months written notice to the other Party of its intention to do so.

ARTICLE 14

Entry into Force

This Agreement shall enter into force on the thirtieth day after the date on which the Parties hereto have exchanged diplomatic notes informing each other that their respective constitutional requirements and procedures have been completed.

IN WITNESS WHEREOF, the undersigned, being duly authorised thereto by their respective Governments, have signed this Agreement.

DONE at Bangkok, on the 9th day of October 2003, in duplicate copies in the English Language.

Part 3