Study on an Australia-Thai Free Trade Agreement (FTA) Points to Real Benefits for both Countries

Media release from the Australian Department of Foreign Affairs and Trade

D5

A Free Trade Agreement (FTA) between Australia and Thailand would deliver
significant benefits to both countries, according to a study released today
by the Department of Foreign Affairs and Trade.

The study, prepared by Australian and Thai officials, was commissioned by
the two Governments in July 2001.

According to independent consultants, an FTA would increase Australias GDP
by some A$12 billion and Thailands by A$46 billion over a 20 year period.

Trade between the two countries would expand substantially in both the goods
and services sector. Australian exports to Thailand of dairy and other agricultural
products, pharmaceutical goods, aluminium and large passenger motor vehicles
and components are likely to increase.

Australian firms, particularly banking and professional services, would also
gain significantly from being able to operate more freely in the Thai market.

Case studies of sectors like automobiles and auto parts, agribusiness and
processed food, and services confirm that an FTA would bring substantial improvements
in market access, to the benefit of both Australia and Thailand.

An FTA would also lead to an increase in investment flows into both countries.

The study shows that an FTA would provide a framework for improved cooperation
in many areas including harmonisation of standards, e-commerce, competition
policy, anti-dumping, quarantine and transportation.

The study recommends that both Governments should give close consideration
to entering into negotiations to establish an FTA. It has been forwarded
to both Governments for consideration.

The study is available from the website of the Department of Foreign Affairs
and Trade (/trade/negotiations/thai_fta/index.html).
A limited number of copies of the Executive Summary of the study are available
in hard copy from Jane Monico (phone (02) 6261. 3114, fax (02) 6261.3321,
or email jane.monico@dfat.gov.au).

Media inquiries: Lyndall Sachs, DFAT Media Liaison on 02 6261 1555