During the official visit to the United States of America by the Prime Minister of Thailand on December 14, 2001, Colin Powell, U.S. Secretary of State, met with Surakiart Sathirathai, Thai Minister of Foreign Affairs, in Washington, D. C. and discussed ways to strengthen and enhance the bilateral relationship between the United States of America and the Kingdom of Thailand (hereinafter referred to as "the two sides") through a Framework for Economic Cooperation.

Conscious of their long-standing history of close and special relations since the signing of the Treaty of Amity and Commerce in 1833 and manifested further by the existing Treaty of Amity and Economic Relations of 1966 and acknowledging shared values of freedom, democracy and free and fair trade, the two sides recognize the desirability of a Framework of Economic Cooperation to serve the fundamental interests of each, to strengthen economic partnership between the two countries and to contribute to regional peace and prosperity.

The Framework for Economic Cooperation includes the following:

1. Trade and Investment Cooperation

1.1 Trade

The two sides recognize the need to enhance and strengthen their friendly and mutually beneficial cooperation in the field of trade through the further opening of markets and continuation of trade promotion.

1.2 Trade Barriers

Working bilaterally and through multilateral fora such as the Asia-Pacific Economic Cooperation (APEC) and the World Trade Organization (WTO), the two sides intend to cooperate in promoting and facilitating trade in goods and services between the two countries by reducing tariff and non-tariff barriers, to ensure that these barriers do not unduly impede trade between the two countries.

The two sides warmly welcome the results of the WTO Ministerial Conference in Doha, and the Doha Development Agenda. They plan to work toward a successful new round of negotiations aimed at liberalizing trade policies and removing barriers to trade.

1.3 Investment

Acknowledging the importance of foreign direct investment to sustainable development and economic growth, underscoring the continuing importance of the 1966 Treaty and recognizing the United States of America as a major investor and Thailand as a potential regional investment hub under schemes such as the Global TransPark (GTP) and Greater Mekong Subregion (GMS), the two sides anticipate cooperating in enhancing investment flows and developing an investor- supportive environment through joint efforts such as: industrial linkages promotion; networking; information sharing and human capacity building development.

1.4 Private Sector Cooperation

The two sides recognize the key role played by private sector organizations, including the Thailand-U.S. Business Council, the U.S.-Thailand Business Council, the American Chamber of Commerce in Thailand, the Kenan Institute Asia, the U.S.-ASEAN Business Council, the Thai Chamber of Commerce, and the U.S. Chamber of Commerce in promoting trade, investment and mutual understanding in Thailand and the United States. The two sides will continue to seek ways to strengthen cooperation and partnership between private and public sectors in the United States and Thailand to support higher standards and better practices in business, particularly in small and medium-sized enterprises (SMEs). To this end, the U.S. Trade and Development Agency (TDA) provides, on a case-by-case basis, grant assistance to encourage U.S. private sector participation in the planning and development of priority infrastructure projects.

1.5 Small and Medium-Sized Enterprises

Noting the important role of SMEs in economic growth, the two sides should explore ways and means to facilitate opportunities and to foster the competitiveness of SMEs. To this end, the U.S. Foreign Commercial Service and the U.S. Chamber of Commerce and the Thai Chamber of Commerce and Thai Federation of Industry are collaborating in the "Strategic International Assistance and Marketing," or SIAM, program, which uses both electronic and person-to-person contacts in matching the American and Thai SMEs interested in developing joint business opportunities. In addition, the Kenan Institute Asia, funded by USAID, offers a Business Advisory Center for SMEs providing highly qualified U.S. and Thai experts for consulting.

1.6 Double Taxation

Recognizing the mutual benefits derived from the 1996 bilateral tax treaty, the two sides are determined to fully apply the treaty, which enhances the investment climate for investors in both countries. Both sides welcome the exchange diplomatic notes fully implementing the treaty's provisions concerning information exchange.

1.7 Intellectual Property Rights Protection

The two sides recognize the significance of protecting IPR for mutual benefit. The two sides recognize also that IP piracy is a problem of international concern, and therefore closer bilateral and multilateral cooperation between the two countries should be expanded and strengthened. Such cooperation includes a U.S. Department of Justice program scheduled for December 2001 for judges, prosecutors and police investigators to develop best practices and improve cooperation for effective investigation and prosecution of IPR and computer crimes, and a joint Federal Bureau of Investigation/U.S. Customs program to be scheduled in 2002 to further develop investigatory techniques and practices on IPR crimes.

1.8 Tourism

Acknowledging the important economic and cultural benefits that accrue from tourism, the two sides plan to work to further cooperation between private sectors in both countries to encourage tourist traffic between the United States and Thailand. The two sides recognize that further liberalization of transportation and other service sectors will increase visitors to both nations.

2. Agricultural cooperation

2.1 Food Safety

The two sides should exchange experience and information to ensure standards, product quality, rule and regulation in food quality inspection, and technological transfer on food safety.

2.2 Global Rice Markets

The two sides recognize the desirability of transparency and predictability in the global rice market. Furthermore, both sides acknowledge the importance of regular information exchange to contribute to the improved evaluation of market trends and conditions affecting world trade in rice products.

2.3 Agricultural Research and Development

The two sides should explore ways and means to enhance and strengthen their friendly cooperation in the field of agricultural research and development in the areas of biotechnology, sustainability and biodiversity, natural resource management, community-based and rural development, and agricultural economics.

3. Scientific and Technical Cooperation

3.1 Capacity Building

The two sides recognize the close cooperation in technical assistance existing under the Agreement on Economic and Technical Cooperation signed in 1977.

Considering the common interest in cultivating and encouraging economic and technical cooperation for development, the two sides should continue their support of partnerships between the U.S. and Thai private and public sectors that implement capacity building activities in the areas of better business practices, human resource development, enhanced business competitiveness, and capacity building in Thai education, energy, environment and telecommunications. In order to further encourage the establishment of long-term partnerships, TDA can consider the provision of grant funds as a source of support for such capacity building activities. The two sides note the key role of the Kenan Institute Asia in implementing activities in these areas as well, with support from the U.S. and Thai governments, the Kenan Charitable Trust and American corporations in Thailand.

3.2 Scientific cooperation

The two sides should encourage and facilitate scientific cooperation between the two countries in fields such as materials technology, biotechnology, and nanotechnology, which may include exchanges of scientific and technical information, scientists, joint research programs, convening of joint seminars and meetings, and other forms of scientific and technical cooperation as may be mutually agreed.

3.3 Public Health

Recognizing the continuing cooperation between the two sides in the area of public health, especially the collaboration between the Centers for Disease Control and Prevention (CDC) and USAID, the Royal Thai Ministry of Public Health, the Royal Thai Army Medical Department and the Armed Forces Institute of Medical Sciences (AFRIMS) , the two sides are conducting joint work in fighting HIV/AIDS and other infectious diseases. These collaborative efforts are aimed at producing new drugs, vaccines and interventions for important infections including malaria, diarrheal disease, dengue and hepatitis and strengthening disease surveillance. In addition to these activities, the two sides support the contribution of CDC's annual $5 million LIFE (Leadership and Investment in Fighting an Epidemic) initiative, which will focus the fight against HIV/AIDS through support of prevention programs, care and support of victims, and capacity building of Thai public health infrastructure.

3.4 Environment

The two sides recognize the importance of joint environmental activities and take note of the Technical Agreement between the U.S. Environmental Protection Agency (EPA) and the Royal Thai Ministry of Science, Technology and Environment (MOSTE) .The two sides support and encourage further cooperative activities and exchanges under the latter program, as well as under programs supported by the U.S.-Asia Environmental Partnership program (US-AEP), exemplified by the on-going work on air pollution among the State of Maryland's Department of the Environment, the Chiang Mai Municipality and the Pollution Control Department. The two sides welcome further cooperation in strengthening environmental policy-making, as exemplified by their dialogue on environmental regulatory reform.

3.5 Alternative Energy and Energy Conservation

Recognizing the importance of alternative energy, the two sides should explore possibilities for cooperation on alternative energy sources including biofuels (ethanol and methanol), solar energy, and fuel cells.

On energy conservation, the two sides recognize the valuable contributions made by private sector organizations in both countries, such as the U.S. Alliance to Save Energy and the Thai Energy Efficiency Development Association, to build capacity, implement programs, and invest in new technologies. Such activities support mutual policies of reducing energy use, improving competitiveness, safeguarding the environment and contributing to energy security.

3.6 Tropical Forest Conservation

Pursuant to their bilateral Tropical Forest Conservation Act agreement, the two sides reiterate their commitment to protect the Thai environment and strengthen Thai civil society by signing an agreement in the near future to establish a Tropical Forest Conservation Foundation.

3.7 Man-made and Natural Disasters

Noting the threat posed by man-made and natural disasters to community safety and sustainable economic development, the two sides should explore ways and means to mitigate their effects. The two sides encourage the application of systems and technologies that enable better disaster preparedness.

3.8 Education

The two sides recognize close and continued bilateral ties in the fields of education and culture, with over 12,000 Thai currently studying in American universities and colleges, and over 300 active affiliation agreements between U.S. and Thai universities. The two sides reaffirm their commitment to the importance of educational exchanges, such as the Fulbright program, which enable U.S. and Thai nationals to study and conduct research in each other's countries. The two sides express deep appreciation to the Peace Corps volunteers who collaborate with Thais in educational programs. The two sides hope to deepen and broaden these exchanges, as exemplified in 2001 by U.S. Embassy (Bangkok) support for the Thai government's initiative to establish community colleges. The two sides recognize the importance of improving English language learning as a means to further mutual understanding, and wish to enhance cooperation in this area. The two sides also support the application of e-learning and distance learning capabilities to improve educational delivery mechanisms.

4. Transport and Telecommunications

4.1 Civil Aviation

The two sides plan to pursue broad liberalization of civil aviation markets with a view toward increasing cargo and passenger traffic. This will enable Thailand to become a regional aviation and tourism center.

4.2 Aviation Sector Infrastructure

Recognizing the importance of transportation infrastructure and air travel to economic development and global competitiveness, and taking note of Thailand's central location in Southeast Asia, the two sides should seek ways and means to cooperate on aviation infrastructure development in Thailand.

4.3 Bilateral Agreement on Aeronautical Production Oversight

The Royal Thai Government reaffirms its commitment to meeting the necessary resources, regulatory and procedural prerequisites for establishing an aviation manufacturing oversight system in Thailand. The United States supports that commitment and agrees that as these requirements are met, the two sides will work toward an agreement. Such an agreement would advance mutual interests in civil aeronautics and air safety, as well as provide for the establishment of mutual recognition of production standards and procedures that would further facilitate the development of Thailand's aeronautical products sector.

4.4 Ground Transportation Infrastructure

Recognizing the importance of sound road infrastructure to trade, investment and tourism, especially the network envisioned for the Greater Mekong Subregion, the two sides should seek ways and means to strengthen cooperation in the fields of development, management, environment, technical training and information technology.

4.5 Telecommunications

Recognizing the importance of an open and efficient telecommunications sector to economic development and global competitiveness, the two sides are pursuing a joint program of technical cooperation and education. Drawing on USAID resources administered through the Kenan Institute Asia and expertise of the U.S. Federal Communications Commission, the program focuses on regulatory procedures and the public process, competition and interconnection, licensing, convergence and new technologies, standardization and certification, and universal services obligation.

4.6 Information Technology

The two sides intend to work together to develop a Geospatial Information System Project, a better information technology (IT) infrastructure and human resource development in Thailand to include the development of IT for educational and economic purposes. The two sides note and encourage the growing number of IT applications across various sectors in order to improve efficiency and productivity.

5.0 Consultations

The two sides plan to have periodic consultations between the Secretary of State and the Foreign Minister or their authorized representatives to follow up the progress of this Economic Cooperation Framework.

Signed in Washington on December 14, 2001.