"We agreed in principle to meet and remove all obstacles to our two-way trade so as to meet the target of $2.4 billion," Thaksin said.
"I wish to offer the assurance to work side by side with the Philippines toward greater progress and prosperity for our two countries and region," he added.
He also disclosed that he and Mrs. Arroyo agreed to finalize soon on-going talks on bilateral cooperation in agriculture.
"It would serve as instrument to help enhance trade between our two countries as well as reduce risks arising form monetary adjustments and dependency on the US dollar," Thaksin said.
Thailand will host next year’s meeting of the Joint Commission on Thailand and the Philippines to find ways and means to strengthen economic cooperation between the two countries.
During a state banquet hosted by Mrs. Arroyo for the visiting Thai official, the two leaders also renewed their commitments to expand diplomatic, economic and cultural relations.
In her remarks, the President said Thaksin’s overnight visit elicited "fond memories" of the visit of King and Queen of Thailand in the 60s as guest of her late father, President Diosdado Macapagal.
Mrs. Arroyo described Thaksin as a "dynamic new leader" who, like her, will attend for the first time the biennial Leaders’ Summit of the ASEAN in Brunei next month.
"It is an honor to work together with him in meeting the challenges that face our region in the 21st century," Mrs. Arroyo said.
She reiterated her acceptance of the invitation by Thaksin to make a reciprocal visit to Thailand.
She also cited the conclusion of a tie-up between Ford Motor Philippines and Auto Alliance of Thailand under the aegis of the ASEAN Industrial Cooperation Scheme.
Mrs. Arroyo noted that there are about 5,000 Filipino workers in Thailand, while some 150 Thai students are studying in the Philippines.
Mrs. Arroyo and Thaksin earlier witnessed the signing of a new treaty between their two countries and a private sector agreement between Filipino and Thai businessmen.
Thaksin expressed approval of Mrs. Arroyo’s proposal for a "twinning arrangement" to simultaneously promote the tourism industry of the two countries.
"It would be an attractive and cost-effective package for tourists to see both Thailand and the Philippines in one long-haul trip," Mrs. Arroyo said. — Marichu Villanueva