Canada hopes Thailand will be a gateway to spread its investments throughout Southeast Asia on alternative and renewable energies, but is calling on Thailand to avoid protectionism.

Heading a trade mission to Thailand, Minister of International Trade Stockwell Day said alternative energy is the most promising sector for Canadian investments, along with financial services including insurance, and infrastructure projects such as transport and water treatment.

The three-day trade mission, the first Canadian ministerial visit in six years, consists of 10 Canadian energy companies vying for a share of investment in natural gas vehicles, and wind, solar, and nuclear energies.

"Thailand has a very ambitious program [of renewable energies] and Canada has something to offer. This mission will open the door for Canadian businesses who have expertise in the area," said Mr Day, referring to a 15-year renewable energy development plan that targets 20% alternative energy consumption by 2022.

Given the Kingdom's location, Thailand could potentially serve as a gateway for Canadian investments in Southeast Asia, he added.

During the mission, Canada reached an agreement with the Thai Energy Ministry to develop a strategic partnership to strengthen Thailand's energy security. The Commerce Minister also agreed to remove barriers to bilateral trade, which rose slightly to US$3.2 billion last year with Thai exports totalling $2.5 billion.

Canadian investments in Thailand edged up 3% to C$1.3 billion in 2008, including projects in electronics, heavy industries, and financial services.

Kiat Sittheeamorn, president of the Thailand Trade Representative, said a new initiative on renewable energies is expected to be launched by the end of this year to step up security and draw investments. A new law will be enforced to promote cluster-based developments of food and energy crops.

A new programme will also be introduced to lend Thailand more appeal for high-tech industries and research and development activities.