The government is looking to expand the free-trade agreement between Thailand and Australia.
Commerce Minister Apiradi Tantraporn said Thailand will host a joint ministerial meeting with Australia in the second half of this year, aiming to increase trade and investment. The exact date is not set.
The Thailand-Australia Free Trade Agreement (Tafta) was signed on July 5, 2004 and took effect on Jan 1, 2005. The deal calls for liberalisation of trade in goods, services and investment, as well as cooperation in working out obstacles to trade caused by non-tariff barriers such as restrictive sanitary and phytosanitary regulations and anti-dumping measures.
The cooperation extends also to facilitation of trade in certain categories, such as customs procedures, e-commerce, intellectual property, government procurement and competition.
When Tafta came into force, Australia eliminated tariffs on 83% of all goods imported from Thailand, including fresh fruit and vegetables, canned pineapple and pineapple juice, processed foods, small passenger vehicles and pickup trucks, and gems and jewellery.
Tariffs on the remaining 17% of imports, comprising plastic products, rubber and rubber products, and textiles and apparel, were to be eliminated between 2010 and 2015.
The agreement called for Thailand to eliminate tariffs on nearly 50% of all goods imported from Australia initially, mostly raw materials such as mineral ores, fuel, chemicals and raw and tanned hides. Tariffs on another 45% of Australian imports dropped by 2010, with the remaining 5%, comprising meat and dairy products (beef, pork, milk and cheese), tea and coffee, being gradually removed between 2010 and 2015.
Australia eliminated tariffs on all goods imported from Thailand on Jan 1, 2015, while Thailand waived tariffs on 98.99% of all goods from Australia at the end of last year. Thailand asked for a 15-year extension until 2020 for the remaining 1.01%, mainly for meat and dairy products as well as coffee.
Ms Apiradi said two-way trade between Thailand and Australia averaged US$14.8 billion a year during 2013-15 compared with $3.84 billion from 2002-04. Australia is Thailand's seventh-largest trading partner. Trade amounted to nearly $14 billion in 2015, up 5% from a year before.