Thailand and Australia celebrate success of free trade agreement

BANGKOK: Thailand and Australia marked the 20th anniversary of the Thailand-Australia Free Trade Agreement (Tafta) by discussing potential investment and trade opportunities, along with strategies to enhance their strategic economic partnership.

The Thailand-Australia Strategic Economic Dialogue on Monday (Sept 23) was attended by Tim Ayres, Australia’s assistant Minister for Trade, Suchat Chomklin, Thailand’s Deputy Commerce Minister and representatives from the business sectors of both nations.

Ayres noted that since the signing of the Tafta, both countries have entered the top 10 of trading and investment partners.

According to data from the UN Comtrade Database for 2022, Thailand exported goods worth US$12.6 billion to Australia, with key products including delivery trucks, automobiles and air conditioners.

Australia’s exports to Thailand, meanwhile, totalled US$7 billion, led by petroleum gas, crude oil and coal briquettes.

The Tafta has significantly reduced tariffs on Thai goods, thereby creating new export opportunities for Australian businesses.

From 2017 to 2022, export growth between the two countries increased: Thailand's exports to Australia grew by 2.42 per cent, while Australia’s exports to Thailand also rose.

As a result, Thailand became Australia’s second-largest trading partner in South-East Asia, and Australia emerged as Thailand’s fourth-largest export market by 2023.

As the agreement reaches its 20th year, Ayres emphasised that further bilateral trade and investment can be anticipated as both economies adapt to evolving regional economic conditions.

He also expressed optimism about advancing clean energy initiatives and deepening strategic economic cooperation.

“The shift toward clean energy and net-zero emissions, combined with the intersection of economic growth priorities and questions of economic resilience in an increasingly uncertain geopolitical environment, makes it crucial to maintain focus on the Strategic Economic Dialogue to continually improve our trade and investment relations,” Ayres said. - The Nation/ANN