New Delhi, Aug. 29 (PTI): India and Thailand will sign a protocol tomorrow to pave the way for establishing a free-trade area (FTA) between the two nations by 2010.

The pact will operationalise the ‘early harvest scheme’. Under it, the two countries will bring down tariffs on 82 items to zero per cent in three phases by September 2006.

The protocol would also contain an annexure on rules of origin to ensure that goods from third countries are not diverted to India. Thailand has FTAs with China and Australia. Commerce and industry minister Kamal Nath and Thai commerce minister Watana Muangsook will sign the accord.

Early harvest scheme marks the implementation of first phase of the FTA under which tariffs are reduced on select items. In this phase, tariffs would be brought down by 50 per cent in the first year and by 75 per cent in the second. From 2006, both countries will have a duty-free trade regime.

The second phase will begin after that, leading both nations towards a free-trade area by 2010.