Thailand market snapshot
- GDP: US$318.9 billion (2010)
- GDP per capita: US$4,992 (2010)
- GDP growth: 7.8 per cent (2010)
- Population: 63.9 million (2010)
- Trade with Australia: AU$19,829 billion (2010)
About TAFTA
The Thailand-Australia Free Trade Agreement (TAFTA) has eliminated the majority of Thai tariffs on goods imported from Australia. The reduction of Thailand's previously high tariff barriers (for some goods, up to 200 per cent) is a significant win for Australian businesses, opening up a range of export opportunities in Southeast Asia's second-largest economy. TAFTA also improves the environment for bilateral services trade and investment.
The agreement entered into force on 1 January 2005 and was Australia’s third free trade agreement. It was Thailand’s first comprehensive free trade agreement and its first with a developed country. Total two-way trade between Australia and Thailand has more than doubled since TAFTA entered into force.
Key interests and benefits
- The elimination of 94 per cent of Thailand’s tariff and quota barriers on imports from Australia as of 2010, with the remaining tariffs phasing to zero in 2015 or 2020 (with the exception of skim milk powder and liquid milk and cream, for which the tariff rate quotas will be eliminated in 2025).
- More open access for Australian companies to Thailand’s services market and a commitment to liberalise two-way services trade in future.
- Increased access for Australian investors in Thailand, permitting majority Australian ownership for businesses in certain sectors including mining operations, construction services, restaurants and hotels, tertiary education institutions, maritime cargo services and more.
- Provisions on investment protection that guarantee a range of rights to Australian direct investors in Thailand, including the right to transfer their funds out of Thailand at any time, and the right to seek impartial resolution of any disputes with the Thai government over their investments.
- Facilitates business by easing visa and other requirements for the temporary entry of Australian business people to Thailand, including through reduced paperwork, access to a one-stop visa and work permit service, and extension of the maximum length of stay under business visa arrangements.
News
Improving TAFTA
Australia hosted the second TAFTA Joint Commission (JC) meeting on 3 February 2011 in Canberra. The TAFTA JC allowed for a frank and constructive discussion of how TAFTA is working and how its implementation can be improved. It also included scoping discussions on the TAFTA inbuilt agenda, dealing with services, government procurement, competition policy, business mobility and investment issues. Australia raised concerns and priority interests that industry had expressed during consultations in the last quarter of 2010 and in submissions to the Department of Foreign Affairs and Trade.
Key outcomes of the JC included agreement to an active work program to address implementation issues and market access concerns, including by convening a number of overdue TAFTA subsidiary bodies. Specifically:
- the Working Group on Market Access to discuss market access issues and concerns;
- the Joint Working Group on Agriculture to discuss special agricultural safeguards and the administration of Thai tariff rate quotas, and
- the Committee on Rules of Origin to address both certificate and rules of origin issues and take forward Australia’s proposals to streamline procedures.
The three working groups met in July 2011. Their findings will be discussed at the next meeting of the TAFTA JC to be held in 2012.
There will also be further discussions between Australia and Thailand on our respective interests under the TAFTA inbuilt agenda.
TAFTA and Changes to the Tariff Classification System (HS2012)
In 2012, changes will be made to Australia’s tariff structure to reflect the latest five yearly amendments to an International Convention for classifying goods for trade purposes — known as HS2012.
HS2012 changes will impact on tariff classifications, Australian Harmonised Export Commodity Classifications (AHECC) and Rules of Origin.
HS2012 changes will not affect the tariff rates under the TAFTA.
Advice for importers and exporters arising from HS2012 can be obtained from the Australian Customs and Border Protection Service [DOC]Official documents
Here you can locate the full text of the Thailand-Australia Free Trade Agreement and other associated official documents.
For business
Here are practical guides for Australian exporters on how to benefit from the provisions of TAFTA, how to interpret the services and investment chapters, and how to determine the origin of goods.
- Taking advantage of TAFTA's benefits and opportunities: a five step guide for Australian exporters
- Information for Australian importers [Australian Customs and Border Protection Service website]
- How to read each country's commitments on services and investment
- Step-by-step guide to determining a good's origin
Doing business in Thailand
The Australian Trade Commission’s (Austrade) TAFTA website has further information about the agreement.
Austrade has identified potential opportunities for Australian suppliers of goods and services in a number of sectors. Austrade's Thailand country page supplies general information on doing business and on specific export opportunities. The Austrade website has a database that can be searched by industry.
Australian exporters seeking to access new opportunities under TAFTA may wish to obtain more information on rules of origin and other requirements from the Australian Customs Service.
Resources
- Key outcomes of the Thailand-Australia Free Trade Agreement
- The Australia-Thailand Free Trade Agreement: economic effects [PDF 228 KB] - report by the Centre for International Economics, March 2004
- Australia-Thailand Free Trade Agreement brochure, 2004 [PDF 210 KB]
Contact us
If you would like to know more about the Thailand-Australia Free Trade Agreement, contact:
- Email: tafta@dfat.gov.au
- Mail:
Executive Officer (Thailand Desk)
Thailand, Philippines and Cambodia Section
Department of Foreign Affairs and Trade
Annex R.G. Casey Building
John McEwen Crescent
Barton, ACT, 0221 - Phone: +61 2 6261 1111