E-Malt.com News article: 1828

The successful conclusion of negotiations on the Australia-Thailand Free Trade Agreement was announced on October 19 by the Australia’s Prime Minister John Howard, Australian Department of Foreign Affairs and Trade reported. The text of the agreement is expected to be signed in the first half of 2004 and to enter into force after legal and parliamentary processes have been completed in both countries.

Immediately upon entry into force of the Free Trade Agreement, Thailand will eliminate the current tariffs on wheat (ad valorem equivalent of 12-20%), barley, rye and oats (ad valorem equivalents of up to 25%), and the tariff and tariff rate quota on rice.

It will also immediately eliminate the tariffs on unroasted malt (ad valorem equivalent of 28%) and wheat gluten (31%), and phase the tariffs on wheat flour (32.6%) and starch (31%) to zero in 2010.

For beer and spirits, Thailand will immediately reduce its current tariffs of 60% to 30%, before phasing to zero in 2010.

“Australia-Thailand Free Trade Agreement represents a significant breakthrough with substantial benefits for Australian exporters,” John Howard said. “More than half of Thailand’s five thousand tariffs will be eliminated as soon as the Agreement enters into force. Virtually all the remaining tariffs will be eliminated by 2010. Over $700 million of Australia’s current exports to Thailand will benefit from the tariff cuts under the Agreement. Many Australian companies currently locked out of the Thai market will now enjoy new export opportunities.”

“This Agreement, with the second largest economy in South East Asia, is a further symbol of Australia’s close economic integration with the countries of East Asia. The Agreement is Thailand’s first with a developed country. It positions Australian exporters to take advantage of a rapidly growing Thai economy and will also strengthen the linkages between Australia and the ASEAN Free Trade Area (AFTA).”

“This is the first comprehensive free trade agreement Thailand has concluded, and it raises the benchmark for trade liberalising agreements by one of the largest ASEAN economies,” Trade Minister Mark Vaile said. “This FTA will make a genuine contribution to future trade liberalisation in the region.”

Mr Vaile noted the Agreement should cover all products, including agricultural goods, which Thailand had carved out of its previous free trade agreements. “The conclusion of the Agreement demonstrates Thailand’s commitment to genuine trade liberalisation and sets a strong example for the region.”

The agreement also makes Australia the only country to have concluded two free trade agreements with ASEAN economies, following the conclusion of the Singapore-Australia Free Trade Agreement earlier this year.

Mr Vaile recognised the hard work of the negotiating teams of both Australia and Thailand in concluding the agreement within 17 months of commencing discussions in May last year.

Today, there are suggestions that the agreement will enter into force immediately which will hinder E.U. malt sales to Thailand.

According to the Commission official dealing with Thailand and bilateral agreements, the Commission will not react once the agreement is WTO compatible. At this time there is no date set for signing the agreement because there are problems with negotiations on agriculture and fish. It is far too early to consider a date when the agreement could be signed or enter into force.

The Australian Mission is of the opinion that there will be a phasing in period but are verifying the matter. The Thai mission likewise must verify with the Bangkok office.


21 November, 2003