Multinational and bilateral agreements

Free Trade Agreements

To mitigate the long-term debate of the WTO, which it is a founder member, Thailand privileged the regional integration. It makes so left the members of AFTA (ASEAN Free Trade Area), a free trade area, covering, in 2007, 98 % of the tariff lines (98 % of the tariff lines of the customs list is between 0 % and 5 %). AFTA puts together 8 other members (Brunei, Cambodia, Indonesia, Malaysia, Myanmar (Burma), Philippines, Singapore and Vietnam). Commercial negotiations, between ASEAN and the European Union, could begin in a near future.

The participation of Thailand in AFTA is a success for the country. The regionalization of the exchanges continues. AFTA is the first customer of Thailand. It absorbs 21 % of the exports.

The Thailand is also member of APEC (Asia Pacific Economic Cooperation, 21 members in Asia, America and Oceania). APEC has for objective to discuss, at the level of the heads of state, economic questions, mainly in the field of the investment and the exchanges.

At the same time, Thailand multiplied the bilateral agreements the main things (head teachers) of which are:

Bilateral agreement with Japan (2007)

Bilateral agreement with Australia (2004)

Bilateral agreement with New Zealand (2005)

Bilateral agreement with India (2003)

Bahrain (2002)

China (on 2002, then 2005)

Structure of the Foreign Trade

The Foreign Trade is the mainspring of Thai growth. The commercial surplus is significant: balance of current account 6, 6 billion dollar, that represents 4,1 % of Thai economy’s GDP in 2004. The part of the foreign trade in the GDP of the country reached more than 150 %.

The three main partners in the import are: Japan, China and the United States.

The base of export of Thailand is diversified, even if manufactured goods (produced electric and electronics, machines and electronics, machines and vehicles) represent 80 % of the total. Thailand tries to rise in range to face the competition of its neighbours with moderate costs of hand of work (China and Vietnam).

Thailand imports mainly electric and electronic equipments, mineral fuels and oils, machines, iron and steel and plastics.