Thailand

The Thailand-Australia Free Trade Agreement (TAFTA) entered into force on 1 January 2005.

The TAFTA has resulted in the elimination of over 94% of tariffs. All remaining tariffs will be phased to zero in:

  • 2020 – eg beef, pork, butter, cheese, sugar;
  • 2025 – eg skim milk powder and liquid milk and cream.

Since the TAFTA entered into force, two-way trade between Thailand and Australia has more than doubled. In particular, two-way trade in agriculture, processed food and beverages, mining and automotive products has increased most significantly.

Two-way trade in goods and services totalled $18.4 billion in 2012, $19.5 billion in 2013 and $18.8 billion in 2014.

In addition to the TAFTA, exports to Thailand are also covered by the ASEAN-Australia-New Zealand Free Trade Agreement which entered into force on 1 January 2010.

For detailed FTA information, please visit: http://dfat.gov.au/trade/agreements/tafta/Pages/thailand-australia-fta.aspx

Date in force

  • 1 January 2005

Direct benefits

Elimination of over 94% of tariffs, and scheduled elimination of the remainder of tariffs in 2020 and 2025. Some tariffs were previously 200%.

Below you will find a way to look up the tariffs associated with a SELECTION of popular Australian exports. PLEASE NOTE: this is not a tariff calculator OR an exhaustive list. We recommend obtaining professional advice for products not listed here.

Indirect benefits

Open services and investment regimes.

Relaxation of visa and work permit regulations.

Reduction of limits on Australian ownership of Thai companies.

Certificate of Origin

Tariff concessions on Australian exports under the TAFTA are available to goods that "originate" in Australia or Australia and Thailand.

Goods must be either wholly obtained in Australia, produced in Australia from originating materials, or produced in Thailand and Australia from non-originating materials, or a combination of originating and non-originating materials. Origin must be evidenced by a certificate of origin.

The non-originating materials must have undergone a change in tariff classification.

Some goods must meet the minimum regional value content.

Doing business with Thailand

There are many things to consider before embarking upon an export journey. Doing business with Thailand presents some unique challenges, but there are a number of key areas to consider before doing any international business.

The areas to consider are:

Business activities and risks

  • Location
  • Legal Structure
  • Direct tax
  • Funding
  • Repatriation of profits
  • Transfer pricing
  • Withholding tax
  • Indirect tax
  • Staffing

For a full checklist that will put you on the right path to doing business in Thailand, click HERE.

Want to know more? Visit the Export Council of Australia’s website.