Media Release

Vaile Welcomes Thai PM's Strong Commitment to Early Conclusion of Bilateral Free Trade Agreement

Trade Minister Mark Vaile and Thai Prime Minister Thaksin Shinawatra today agreed to aim to conclude negotiations for the Australia-Thailand free trade agreement in time for the APEC Leaders’ meeting in October.

Mr Vaile met with the Thai Prime Minister at the APEC meeting of ministers responsible for trade (MRT) in Khon Kaen, Thailand.

“I warmly welcome Prime Minister Thaksin’s enthusiasm for an FTA with Australia. It reinforces the strong political support in both countries for an agreement that delivers tangible improvements in the trading relationship.”

Mr Vaile said that encouraging progress had been made in the negotiations to date. He stressed, however, that more work was needed to finalise the deal.

“A number of complex issues remain outstanding, including tariff issues, rules of origin and investment, but I am confident that these can be resolved with a view to concluding the negotiations as soon as possible,” Mr Vaile said.

Mr Vaile reiterated the substantial potential benefits for Australia from an FTA with Thailand, particularly through the removal of Thailand’s relatively high tariff barriers. He emphasised that Australia’s goal remained a high quality, comprehensive agreement that would contribute positively to global trade liberalisation efforts.

“Following our FTA with Singapore, an agreement with Thailand will reinforce Australia’s commitment to the ASEAN region,” Mr Vaile said.

He highlighted Australia’s strong partnership with Thailand and the leadership role of the two countries in advancing the global trade liberalisation agenda.

“As members of the Cairns Group and active players in the WTO, as well as close partners in APEC, we see our bilateral efforts as not only an extension of this cooperation but also as setting a positive example for others,” Mr Vaile said. “We hope this will be translated into a successful outcome to the Doha round of WTO negotiations, including an ambitious outcome on agricultural trade reform.”

Negotiations for an Australia-Thailand free trade agreement (known as the Closer Economic Relations Free Trade Agreement, CER-FTA) were launched by the two Prime Ministers in May 2002 during Prime Minister Thaksin’s visit to Australia. The next round of negotiations is scheduled for 10-12 June, in Australia.