Thailand Trade Agreements List

The single highest average tariff applied in 2011 in Thailand was 9.8%. While the average tariff applied to agricultural products is higher than that of non-agricultural goods, the high average tariff was applied to beverages and tobacco, clothing, fruits, vegetables and plants. Although Thai exporters have few barriers to exporting, the country`s high import tariffs, which apply even to small domestic production, are barriers to trade (Shiino, K. 2012). The country has imposed a series of regional trade agreements. Among them, Thailand is a founding member of ASEAN, the third largest trading bloc in the world after the European Union (EU), which wants to transform itself into the ASEAN Economic Community (AEC) by 2015. During the process, the original ASEAN-6 member countries, including Thailand, have abolished almost all import duties, with a few exceptions, and the other ASEAN-4 countries will be reduced by 2015. Thailand also has bilateral trade agreements with Australia, India, Japan, Laos and New Zealand. Thailand`s free trade agreements sometimes include bilateral and regional agreements. For example, trade between Australia and Thailand is governed by an agreement between the two countries, as well as a pact between Australia-New Zealand and ASEAN, of which each member is a member. In addition to these examples, there is a specific FTA term called “ratchet mechanism”[1] or “Automatically initiates the unilateral liberalization of new services under this agreement.” This mechanism, if included in the free trade agreement clause, is only a means of blocking any modification or future modification of national laws, directives or regulations, in particular for trade in services and investment parties, and cannot be replaced by more restrictive amendments than the previous conditions. Thus, this mechanism is being developed to ensure that the measures provided for in national legislation become increasingly advantageous The Kingdom of Thailand is considered a middle-income country in Southeast Asia. The country took 57th place out of 132 in the World Economic Forum`s (WEF) Trade Inablage Index (2012), which measures institutions, policies and services to facilitate trade within countries.

Despite the financial crisis, natural disasters and political turbulence, the country has maintained a resilient and open economy, especially as a member of the Association of Southeast Asian Nations (ASEAN). The efficiency of the country`s import and export procedures and the attractiveness to foreign investors are a competitive advantage, while the country has still imposed high import tariffs and limited market entry. . . .

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