PRESS RELEASE                                                                       
Department of Foreign Affairs
2330 Roxas Blvd., Pasay City, Philippines                                      *          Tel. No. 834-4000                                                 *          www.dfa.gov.ph
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No. 591-03; 21 October  2003 

STRONG RP-THAILAND RELATIONS REINFORCED BY TWO NEW AGREEMENTS

At the sidelines of the 11th APEC economic Leaders’ Meeting held in Bangkok, Thailand on 19 October 2003, the close ties between the Philippines and Thailand was reinforced by the signing of two new agreements in agriculture and in oil and gas activities.

Secretary Luis P. Lorenzo of the Department of Agriculture and Secretary Vicente S. Perez, Jr. of the Department of Energy signed the two agreements on behalf of the Philippines.

In welcoming the latest addition to the string of twenty-four bilateral agreements between the Philippines and Thailand, Foreign Affairs Secretary Blas F. Ople underscored the dynamism of one of the oldest diplomatic relations in Philippine history.  “A half-century of close ties characterized by cordiality, harmony, and cooperation, bilaterally and multilaterally, best describe our two countries’ relationship” he stated.

On the economic relations, Thailand has remained as the Philippines 10th largest trading partner in 2002.  Total bilateral trade in Y2002 was valued at US$2,11 billion.  Philippine exports, primarily consisting of semi-conductors, metal automotive parts and electronic data processing amounted to US$1.071 billion, while Philippine imports to Thailand totaled US$1.041 billion.

The Memorandum of Understanding on Agricultural Cooperation seeks to promote further collaboration in agricultural research and development through technology transfer, trade, training, and scientific and technical cooperation.

On the other hand, the Memorandum of Understanding on Cooperation in Oil and Gas Activities establishes an ASEAN Petroleum Hub in the Philippines as a joint business venture between the governments of the Philippines and Thailand through its subsidiary, Subic Bay Fuels Company, Inc. (SBFCI), a subsidiary of PTT Public Company (PTT PLC).  This joint undertaking will (a) provide energy security in both normal and emergency situations; b) stabilize the pricing of oil; c) minimize importation thus reducing foreign currency requirements; and d) allow full utilization of Subic Bay Terminal, thereby creating more profit for the Philippines.  END