(14/2006)
The Ministry of Commerce (MOC) has recently confirmed the extension of the US-Thailand Treaty of Amity of Economic Relations (AER), which was previously scheduled to expire on 5 September 2006, for another 90 days, until 5 December 2006. This bilateral treaty allows US citizens and businesses to establish a company or branch office in Thailand with almost the same rights as Thai companies, (e.g. American companies may own a majority or all of the shares of their company or branch office located in Thailand with certain exceptions, engage in business on the same basis as Thais, and be exempted from most of the restrictions on foreign investment imposed by the Foreign Business Act B.E. 2542.
In order to comply with its WTO commitments, Thailand is required either to offer the same privileges as those offered to the US to all WTO members, or to cancel the Treaty. Therefore, although the Treaty has been extended, there is no guarantee that the MOC will continue to apply the terms of the Treaty indefinitely. We thus suggest that, if you are in the process of registering or intend to register with the US Embassy to receive protection under the Treaty, this registration should be completed prior to the expiry date of the Treaty on 5 December 2006.
