Swiss President Joseph Deiss, on a three-day visit to the Kingdom, met Prime Minister Thaksin Shinawatra to discuss the launch of talks on a pact between Thailand and European Free Trade Association (Efta) members Norway, Switzerland, Liechtenstein and Iceland.

"I'm very happy about the fact that Thailand and the prime minister are prepared to get into discussions and negotiations about an FTA between the Efta and Thailand in the coming months," Deiss said after the talks.

The Efta, whose members are not part of the European Union, has free trade status with the EU and 21 other trading partners.

Thaksin said he and Deiss discussed the prospect of closer economic ties between the Efta and the 10-member Association of Southeast Asian Nations (Asean). The PM expressed optimism that a Thailand-Efta free trade deal could be thrashed out by the end of Deiss' term in office late this year.

Thailand signed two major FTAs last year - one with China and another with India, which comes into force this month. Switzerland, meanwhile, has signed a deal with Singapore.

Thailand opened talks last month with Japan on an FTA, and on Tuesday will launch negotiations on a pact with the United States, its largest export customer.

While Efta-Thailand figures were not immediately available, bilateral trade between Switzerland and Thailand last year stood at 1.39 billion Swiss francs (Bt42.58 billion), a 1.3-per-cent drop from 2002.

Switzerland exports mainly machinery, watches and chemicals to Thailand, which in return ships watch parts, machinery and agricultural products.