The Thailand-Australia Free Trade Agreement (TAFTA) has eliminated most Thai tariffs on the goods imported from Australia. And this is indeed a significant win for the Australian businesses as it simultaneously opens up a wide range of export opportunities in the second-largest country of Southeast Asia. Additionally, this agreement improves the bilateral services trade and investments.
Enforced on 1st January 2005, this agreement was Australia’s first free trade agreement. Below mentioned are the key interests and benefits of TAFTA;
- Open access to Thailand’s services market for Australia and a commitment for liberalization of the two-way services trade;
- Waiving of 94% of Thailand’s tariff plus quota barriers on the imports from Australia;
- Better access for Australian investors in Thailand, allowing majority Australian ownership for businesses in some sectors, such as mining operations, restaurants, construction services, maritime cargo services, and tertiary education institutions;
- Provisions on protection, guaranteeing a wide range of rights to the direct investors of Australia in Thailand, which includes the right to transfer funds any time, and the right to look for impartial resolutions of disputes with the government in Thailand over their investments;
- Facilitates businesses by making visa obtaining easy for temporary entry of Australian business people, including access to a one-stop visa and work permit service, the extension of the maximum length, and reduced paperwork.