Thailand pledged closer trade cooperation with Europe yesterday in light of the unfolding world financial crisis.

Prime Minister Somchai Wongsawat said he welcomed European Commission President Jose' Manuel Barroso's initiative to set up a 1 billion emergency food crisis fund.

The fund, he said, would be useful for developing countries, particularly in Africa.

"With our capacity and experience, we are ready and willing to work more closely with the EU to create greater synergy on this effort," said Mr Somchai at a plenary session of the 7th Asia-Europe Meeting (Asem) yesterday.

The prime minister also told the summit that in order to find a permanent solution to the food crisis Asem should give priority to containing global warming, promote the use of alternative energy, stabilise oil prices and cooperate with Asia on broader trade agreements.

"As one of the world's major food producers and exporters, Thailand is prepared to do its part in this regard. We believe this crisis should be viewed as an opportunity, particularly in view of the green movement. We are aiming to develop and improve cultivation of food and energy crops, and to increase productivity per hectare. We are also working to improve standards of production, land quality and crop quality," said Mr Somchai.

He also urged Europe to cooperate with Thailand on issues such as food safety, standards and conformity assessment, as well as giving a harder push for the conclusion of the Doha Round. This would help reduce or eliminate food and agricultural subsidies that distort markets and impoverish developing countries.

Research and development promotion and technology transfer in agriculture must also be stepped up, he said.