Australia Achieves Closer Economic Integration with Southeast Asia's Leading Economy

Trade Minister Mark Vaile today welcomed the Thailand-Australia Free Trade Agreement (TAFTA) as a landmark in trade relations between Australia and Thailand.

In a ceremony at Parliament House, Mr Vaile and his Thai counterpart, Commerce Minister Watana Muangsook signed the Agreement witnessed by Prime Minister John Howard and Thai Prime Minister Thaksin Shinawatra.

"TAFTA positions Australia at a new and exciting phase of its economic partnership with Southeast Asia's fastest growing economy," Mr Vaile said.

"When TAFTA comes into force in January 2005, more than $700 million of current Australian exports to Thailand will benefit immediately from tariff cuts, while the savings on Thai customs duties are expected to be around $100 million in the first year alone.

"By 2010, 95 per cent of all current trade between Australia and Thailand will be completely free.

"Many Australian companies formerly locked out of the Thai market by high tariffs and quotas will enjoy new opportunities, particularly in areas such as agriculture, processed foods and beverages, mining and automotive products.

"TAFTA is comprehensive, covering trade in goods and services, and investment. The Agreement promotes best practice in a wide range of areas, including competition policy, e-commerce, industrial standards, quarantine procedures, intellectual property, government procurement and dispute settlement.

"Thailand will also eliminate or relax foreign equity restrictions in a number of sectors of interest to Australia, including mining, certain construction and distribution services, and management consultancy and hospitality services."

Trade between Australia and Thailand continues to grow. In 2003, Thailand was Australia's 12th largest market for exports and 13th largest source of imports. Two-way trade was worth $5.9 billion.

Contact: Ursula Carolyn (Ministerial) 02 6277 7420 or Nicole Guihot (Departmental) 02 6261 1555