Phuketians could soon be driving India?s super-cheap Tata Nano cars, thanks to a ground-breaking free trade agreement signed in Phuket earlier this month between Bangladesh, India, Myanmar, Sri Lanka, and Thailand.

Five years of negotiations concluded at the Millennium Hotel in Patong, where delegates from around the Bay of Bengal thrashed out the final deal which will eventually lead to more than $US3 billion in new trade between the seven countries.

Subject to a final thumbs up from each country?s trade minister, expected by year?s end, the BIMST-EC agreement will slash tariffs on thousands of products and raw materials and open the way for trading in many previously protected goods.

Chana Kanaratanadilok, deputy director-general of the Ministry of Commerce?s Trade Negotiations Department (PIC) said the agreement was a breakthrough in trade relations for the region.

He said Thailand?s industries would benefit greatly from reduced raw material costs, while the less developed countries would benefit from increased trade with their larger neighbours. ?Everyone, not only Thailand, will have more trade advantages because of this agreement,? he said.

Khun Chana would not list which particular products would be covered by the agreement, but he said motor car imports would benefit from the agreement.

India?s Tata Motors produces the world?s cheapest car, the Nano, which retails for less than 80,000 baht in India and is currently improving emissions and safety factors with the aim of exporting the Nano to the US.

Thanks to the BIMST-EC agreement?s tariff slashing, Thailand is now a potentially huge market for the Indian motor company. The delegates were positive about Phuket, and said they were impressed by just about everything they saw.

?Many of them have never been here and wanted to see what it was like,? said
Khun Chana.

Myanmar?s AFTA Director, Tin Tin Htwe, was particularly taken by the island?s abundance of tuk-tuks. ?I think Phuket is a very good tourist centre and I plan to go shopping in Patong after the meeting,? he said.

Abid Khan, from Bangladesh, said he was looking forward to getting onto a boat.
?I?ve heard there are many beautiful islands around here, so that?s where I plan to go,? he said. ?I think Phuket was an excellent choice for this meeting.?

Lava Raj Shreshta Dy, director-general of Nepal?s Ministry of Finance, liked Patong?s night market, and N.C. Magedaragamage from Sri Lanka said the island?s natural wonders and friendly people had won him over.

?Phuket people are helpful and full of smiles,? he said.