Thailand-Australia Free Trade Agreement (TAFTA)
The Thailand-Australia Free Trade Agreement (TAFTA) was signed on 5 July 2004 and came into effect on January 1, 2005. The Agreement calls for liberalization of trade in goods, services, and investment, as well as for cooperation in working out obstacles to trade caused by non-tariff measures, such as restrictive sanitary and phytosanitary regulations and anti-dumping measures.
On the date of entry into force of the Agreement (TAFTA), Australia eliminated tariffs on more than 83% of all goods imported from Thailand, including fresh fruit and vegetables, canned pineapple and pineapple juice, processed foods, small passenger vehicles and pick-up trucks, gems and jewelry. Tariffs on the remaining 17% of imports, comprising plastic products, rubber and rubber products, and textiles and apparel, are to be eliminated between 2010 and 2015.
The Agreement calls for Thailand to eliminate tariffs on nearly 50% of all goods imported from Australia as of January 1 2005, most of which is needed raw materials such as mineral ore, fuel, and chemicals, as well as raw and tanned hides. Tariffs on another 45% of Australian imports will be dropped by 2010, with the remaining 5%, comprising dairy and meat products (beef, pork, milk and cheese), tea, and coffee being gradually removed between 2010 and 2015.
At the same time, Thailand removed tariff quotas committed under WTO obligations on 15 of 23 categories of agricultural goods, and offered specific quotas of 10% more than the volume obligated in 2004 under WTO commitments for 6 of the remaining 8 products, including potatoes, coffee, tea, maize, and sugar. In addition, Thailand has also agreed to increase quotas each year by 5% to 10%.To ensure that domestic industries will have time to adjust to the impacts of the Agreement, Australia and Thailand have agreed to apply Safeguard Measures (SG) in accordance with WTO regulations. Thailand will be able to apply this special safeguard measure for specific products through 2015 and 2020.
Details of TAFTA
Thailand-Newzealand Closer Economic Partnership (TNZCEP)
Thailand and New Zealand Closer Economic Partnership (TNZCEP) was signed on April 19, 2005, and came into effect on July 1, 2005. The Agreement covers the liberalization of market access for goods, services, and investment, as well as cooperation in trade-related such as customs procedures, electronic commerce, intellectual property, government procurement, and competition policy.
In general, since the TNZCEP came into effect, Thailand has benefited from the elimination of duties on 79% of all goods imported into New Zealand, equivalent to 85% of the value of Thai products entering the country, covering such items as pick-up trucks, canned tuna, plastic pellets, preparations from cereals, gems and jewelry, frozen shrimp, electrical appliances, as well as glass and glass products. Tariffs on the remaining categories of imports will be eliminated in 2015.
At the same time, 54% of all imports from New Zealand, accounting for 49% of the total value of the goods imported, now enter Thailand duty free. Among these products are infant food preparations, wood and wood products, wool, plastic and plastic products, marine animals, paper and paper products, machinery, sugar and sugar-based foods, preparations for consumption such as vitamins and protein, animal feed, fruit, vegetables, and grains. Tariffs will be eliminated by 2010 on a further 10% of imported goods, while sensitive items such as milk and dairy products, beef, and pork, as well as onions and onion seeds, will be gradually eliminated during 2015-2020.
Further to Safeguard Measures in accordance with the WTO to enable domestic industries to adjust if a surge in imports resulting from tariff reductions negatively affects local producers and industries, New Zealand and Thailand have agreed to apply Special Safeguard Measures (SSG) in dealing with sensitive agricultural products during the transition, to ensure that Thai domestic industries will have time to adjust to the impacts of the Agreement.
Details of TNZCEP
The ASEAN-China Free Trade Area (ACFTA)
The 'Framework Agreement on ASEAN-China Comprehensive Economic Cooperation' was signed by ASEAN and China on November 4, 2002 to serve as the structure and mechanism for negotiations to establish a free trade area covering trade in goods, services, and investment, as well as to effect various measures for economic cooperation between China and ASAEN. Subsequently, an 'Agreement on Trade in Goods of the Framework Agreement on Comprehensive Economic Co-operation between the ASEAN and China' was successfully negotiated and was signed on November 29, 2004, during the ASEAN - China Summit meeting in Vientiane, Lao PRD.
Liberalization of trade in goods is divided into two categories : those under the Early Harvest Program (providing for immediate reduction or elimination of tariffs for certain goods), and goods that will come under the comprehensive reduction or elimination of tariffs.
Tariff reduction under the Early Harvest Program covers agricultural goods in the customs tariff schedule codes 01 through 08 as well as specific products agreed upon by two countries.
Reduction of Tariff on General Goods: two tracks have been established for trade in goods, a 'normal track' under which tariffs will finally be completely eliminated, and a 'sensitive track', which sets a more detailed and long-term schedule of tariff reduction and elimination for goods to be safeguarded.
Details of ACFTA
Japan - Thailand Economic Partnership Agreement (JTEPA)
Negotiations for a Japan - Thailand Economic Partnership Agreement - (JTEPA) began in February, 2004, and the Agreement was signed by government leaders in Tokyo, Japan, on April 3, 2007. The Agreement, which came into force on November 1, 2007, consists of trade in goods, rules of origin of products, trade in services, investment, and the movement of natural persons, as well as cooperation in 9 areas and 7 joint projects.
Tariffs on 99.51% of goods imported from Japan in 2006, amounting to 99.49% of the total value of imported Japanese goods, have been reduced or eliminated, or receive a special quota quantity from Japan. At the same time, tariffs on 92.95% of Thai exports to Japan were reduced or eliminated or granted special quotas, comprising 98.06% of all tariff lines for Thai exports to Japan in 2006. In services, Thailand has committed to allow Japan to establish business and provide services beyond the 14 subcategories obligated under the World Trade Organization covenant while Japan has committed to allow Thai nationals to establish business and to provide services, and/or to work to provide services in Japan beyond the 65 subcategories committed under WTO agreement, and has adjusted more than 70 additional subcategories.
Details of JTEPA
Source: Department of Trade Negotiations, Ministry of Commerce