TAFTAThailand’s first bilateral FTA.

Negotiation sign date: 05 Jul 2004

Official begin date: 01 Jul 2005

Agreement FactAustralia :

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)

ThailandThai 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.

Trade Relationship Export Destinations

2008 1. Japan 2175. %

2. China 1507. %

3. Korea, South 8.10%4. India 6.15%5. United States 550.

%10. Thailand 253. %

Import Sources 2008

1. China 1531. %

2. United States 11.8 7 %

3. Japan 9.13%4. Singapore 736. %5. Germany 506. %6. Thailand 4.51%

Benefit from TAFTA

Benefits from TAFTAExample of Thai products that will be benefit

from TAFTA, which account for 50% of all export products to Australia. Compact carCanned foodPreserved foods, vegetable and fruits.Textile and garmentElectronic devicesGem & Jewelry

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

An increase in Australian investment in Thailand.

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.