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Economic conditions

Thailand and Australia Sign Landmark Free Trade Agreement

Strategic Insights

— 1 min read

Thailand and Australia have signed a significant free trade agreement (FTA) that is expected to strengthen economic ties between the two nations. The agreement, which was signed by Prime Ministers Thaksin Shinawatra and John Howard, also covers agreements on environment, heritage, education, and training. The FTA is a major milestone in the growing relationship between Australia and Thailand, with Prime Minister Howard stating that it is beneficial for both countries, particularly in the current economic climate. The agreement will provide a boost to the Australian economy, estimated to be around $A3 billion, and will also facilitate increased trade between the two nations.

Key Takeaways:

  • The free trade agreement (FTA) between Thailand and Australia is expected to boost the Australian domestic economy by $A3 billion.
  • The FTA will come into operation on January 1 next year, with around $700 million worth of Australian exports to benefit from immediate tariff cuts.
  • By 2010, 95% of all trade between Australia and Thailand will be tariff-free.
  • Some tariffs, particularly in the agricultural area, will take an additional 10 years before being removed.
  • The FTA is a major milestone in the growing relationship between Australia and Thailand, strengthening economic links between the two nations.
  • Australia and New Zealand have been invited to a meeting of ASEAN nations in November to discuss the two countries joining a South East Asian free trade deal.
  • Dr Thaksin Shinawatra hopes that the Australian-Thai FTA will lead the way to other FTAs with other members of ASEAN.

Statistics:

  • Estimated boost to the Australian domestic economy: $A3 billion.
  • Value of Australian exports benefiting from immediate tariff cuts: $700 million.
  • Percentage of trade between Australia and Thailand expected to be tariff-free by 2010: 95%.
  • Time period for removal of remaining tariffs for agricultural products: 10 years.
  • Date when the FTA comes into operation: January 1 next year.

Sources:

  • ASIA PULSE - Thailand and Australia sign landmark free trade agreement
  • Asia Pulse - July 5, 2003
  • Australia-Thai Business Council

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