Thai-Korean trade talks hung up on rice

Thailand and South Korea will continue to work toward a bilateral free-trade agreement, according to Nitya Pibulsonggram, the minister of foreign affairs. Trade talks between the two countries were now focused on cutting tariffs for rice and fruit, two key Thai exports.

South Korea, in turn, would benefit from a free-trade agreement through greater access to Thailand's service sector, he added. Diplomats from the two countries held meetings yesterday in Seoul on the sidelines of the Asia Cooperation Dialogue meeting. Mr Nitya said South Korean delegates raised questions about Thailand's moves to amend the Foreign Business Act.

A government amendment of the FBA significantly tightens the definition of foreign companies to include firms with a majority of voting rights held by foreign nationals. The National Legislative Assembly is reviewing the amendment.