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TAFTA : Thailand-Australia Free Trade Area

TAFTA : Thailand-Australia Free Trade Area. TAFTA. Thailand’s first bilateral FTA. Negotiation sign date: 05 Jul 2004 Official begin date: 01 Jul 2005. Agreement Fact. Australia : In 2005, zero-tariff on 5,083 items (83.12% of all product)

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TAFTA : Thailand-Australia Free Trade Area

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  1. TAFTA : Thailand-Australia Free Trade Area

  2. TAFTA • Thailand’s first bilateral FTA. • Negotiation sign date: 05 Jul 2004 • Official begin date: 01 Jul 2005

  3. Agreement Fact • Australia : • In 2005, zero-tariff on 5,083 items (83.12% of all product) • By 2010, zero-tariff on another 786 items (12.86% of all product in the agreement) • By 2015, zero-tariff on fabric and garment 239 items (3.91% of all product in the agreement)

  4. Thailand • Thai has longer period in reducing tariff than Australia, and will reduce tariff to zero within 20 years. • By 2005, zero tariff on 2,724 items (49.84% of all product in the agreement) • By 2010, zero tariff on another 2,411 items for agricultural and industrial product (43.1% of all product in the agreement) • By 2015, zero tariff on 395 items of highly sensitive industrial products, and 71 items of highly sensitive agricultural product within 2020. This product group is milk and meat.

  5. Trade Relationship • Export Destinations 2008 • Japan 21.75% • China 15.07% • Korea, South 8.10% • India 6.15% • United States 5.50% 10. Thailand 2.53% • Import Sources 2008 • China 15.31% • United States 11.87% • Japan 9.13% • Singapore 7.36% • Germany 5.06% • Thailand 4.51%

  6. Thailand's Trade with Australia (2008) (US$m)

  7. Benefit from TAFTA

  8. Benefits from TAFTA • Example of Thai products that will be benefit from TAFTA, which account for 50% of all export products to Australia. • Compact car • Canned food • Preserved foods, vegetable and fruits. • Textile and garment • Electronic devices • Gem & Jewelry

  9. There is an establishment of SPS, it is the organization that undertake about sanitary . Providing the solution for some product that need some improvement in order to be able to export, this group of product is consist of durian, chicken and shrimp. This problem will be solved within 2 years and Thai product will be able to export to Australia all year long. • For Australian products that will be benefit, for example plastic product, steel, wheat, malt, fuel, copper and some daily product. Which accounted for 39% of Australian export to Thailand

  10. An increase in Australian investment in Thailand.

  11. Australia exporters taking advantage of Thai • "The tariff on Australian wine was reduced from 60 to 40 per cent and will be phased to zero by 2015. Australian exports of wine for the first ten months of the agreement's operation were up 8 per cent to $6.5 million. • "Now in operation for one year, TAFTA has seen the elimination of more than half of Thailand's 5,000 tariffs - accounting for nearly 80 per cent of Australian exports. Many Australian companies formerly locked out of the Thai market have enjoyed new opportunities." • Over 450 Australian companies have registered to take advantage of these opportunities and some 5,300 certificates of origin have been issued to these companies. • As well as tariff cuts Australian businesses are benefiting from a range of other gains. Services exporters and investors are benefiting from Thailand's relaxation of foreign equity restrictions in sectors such as mining, construction and distribution services, management consultancy, maritime cargo, and restaurant and hotel services. Thailand has also agreed to relax conditions for visas and work permits resulting in significant improvements in business mobility.

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