Free Trade Agreements

Thailand-Australia Free Trade Agreement (TAFTA)

Under TAFTA, Australia will bind its current zero tariff on 3,080 tariff items for goods of Thai origin, accounting for 36% of current Australian imports from Thailand.
Under TAFTA, Australia will also eliminate its tariffs on goods of Thai origin under a further 2,003 tariff items, accounting for 47% of current Australian imports from Thailand.
Australia will phase current tariffs on goods of Thai origin under a further 786 tariff items to zero by 2010. These items cover 13% of current trade.
For all remaining tariffs on goods of Thai origin, consisting of the 239 tariff items for apparel and certain finished textiles with current tariffs at 25%, the tariffs will be phased to zero in 2015. These items cover 4% of current trade.

On entry into force, Australia eliminated existing tariffs on all passenger vehicles, off-road vehicles, goods vehicles and other commercial vehicles of Thai origin. These tariffs were 15% for passenger motor vehicles (although the general rate fell to 10% on 1 January 2005) and 5% for other vehicles.
Prior to 1 January 2005, there were 146 tariff items covering automotive parts and components where the Australian tariffs for goods of Thai origin were 10% or 15%. Of these, the tariffs on 98 items fell to 5% on entry into force of the Agreement, and will hold at that level until elimination in 2010. On the remaining 48 items, Australia and Thailand both eliminated relevant tariffs upon entry into force of the Agreement on 1 January 2005.
Australia eliminated all current tariffs of 5% or below on automotive parts and components of Thai origin on entry into force of the Agreement.

Australia reduced tariffs previously at 25%, consisting of the 239 tariff items for apparel and certain finished textiles, to 12.5% on entry into force of the Agreement for goods of Thai origin. The 12.5% tariff will be held until 2010, when it will be reduced to 5%. The 5% tariff will then be held until elimination in 2015.
For textiles, clothing, leather items and related products, but excluding carpets, with tariffs previously at 10% or 15%, the tariff was reduced to 5% on entry into force of the Agreement for goods of Thai origin. The 5% tariff will then be held until elimination in 2010. However, for the five tariff items listed below, Australia eliminated its tariffs for goods of Thai origin on entry into force of the Agreement.

For textile yarns and other textile products with tariffs at 5% or below prior to 1 January 2005, the tariff was reduced to 3% on entry into force of the Agreement for goods of Thai origin. The tariff will then be reduced to 2% in 2006, 1% in 2007, and eliminated in 2008. However, for the single tariff item, 5902.20.00, Australia eliminated its tariff for goods of Thai origin upon entry into force of the Agreement.
For carpets, with tariffs at 15% prior to 1 January 2005, Australia reduced the tariff to 10% upon entry into force of the Agreement for goods of Thai origin. The tariff will be reduced to 8% in 2008, 5% in 2009, and eliminated in 2010.
For footwear, with tariffs at 15% prior to 1 January 2005, Australia reduced the tariff to 9% upon entry into force of the Agreement for goods of Thai origin. The tariff will then be reduced to 8% in 2008, 5% in 2009, and eliminated in 2010.
For footwear parts under the tariff items, 6406.20.00 and 6406.99.99, mainly soles, with current tariffs for goods of Thai origin at 5%, Australia will hold the current tariff until 2009, when it will be eliminated. For other footwear parts, the pre 1 January 2005 tariffs for goods of Thai origin at 5% or 10%, Australia eliminated its tariffs on entry into force of the Agreement.

Australia will maintain its current tariff of 4% for goods of Thai origin on eight tariff items until 2010, when the tariff will be eliminated.
Australia eliminated tariffs of 5% or less on other steel items on entry into force of the Agreement for goods of Thai origin.

Australian will maintain the current tariffs of 5% on 71 tariff items until 2008, when Australia will eliminate the tariff for goods of Thai origin.
Australia eliminated tariffs of 5% or less on other plastics and chemicals items on entry into force of the Agreement for goods of Thai origin.

Australia reduced its tariff of 5% on canned tuna to 2.5% on entry into force of the Agreement for goods of Thai origin, and will eliminate this tariff in 2007.

Prior to 1 January 2005, Australian tariffs on all items in other sectors were at 5% or below. Australia eliminated these tariffs on entry into force of the Agreement for goods of Thai origin.