Updates on Thailand’s Free Trade Agreements

(22/2009)

1 Jan 2010 marks a new era of Thailand’s liberalisation of trade in goods. Here are the highlights of import duty reductions under key Free Trade Agreements.
ASEAN Free Trade Area (AFTA)

Thailand (as well as Brunei, Indonesia, Malaysia, Philippines and Singapore) will eliminate their import duty for qualifying goods originating within ASEAN on 1 Jan 2010, while Cambodia, Laos, Myanmar and Vietnam will lower their import duty on such goods to 5%.

ASEAN – China
Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand and China’s import duty elimination for the Normal Track goods will be commenced on 1 Jan 2010. Meanwhile, Thailand is expected to officially permit 3rd-country invoicing under the ASEAN-China Free Trade Agreement by mid-2010. Such transactions are currently neither explicitly permitted nor prohibited but all Parties are working together to revise the text of the Agreement in this regard so that the imports sold through a 3rd country could also enjoy the FTA privilege. Before the official adoption of the revised text, Thailand must seek approval from the Parliament, as required by the Constitution, and also amend the relevant regulations.

ASEAN – Korea
Thailand, the last ASEAN member to adopt the ASEAN-Korea Free Trade Agreement, began the implementation of import duty reductions under the Agreement on 1 Oct 2009. Thailand’s import duty for the Normal Track goods will be eliminated on 1 Jan 2010. Duty elimination for such goods will be undertaken by Korea, Brunei, Indonesia, Malaysia, Philippines and Singapore within the same timeframe as well.

ASEAN – Australia – New Zealand
The FTA will enter into force on 1 Jan 2010 if sufficient nations ratify the protocol.  The ratification process in on track and further updates will be provided.