Saturday, 1 January 2005 - MVT002/2005

$2.4 Billion Worth of Benefits Flowing From Today

Trade Minister, Mr Vaile said the Thai-Australia Free Trade Agreement (TAFTA), that comes into force from today, January 1, offered substantial benefits for Australian farmers, car manufacturers and mining companies.

TAFTA demonstrates the Government's commitment to opening up new opportunities for Australian exporters and investors in South East Asia. Thailand has the fastest growing economy in South East Asia and is the second biggest market.

"Today, Thailand will eliminate immediately its current tariffs on wheat, barely, rye and oats and its tariff and tariff rate quota on rice. It will also eliminate its 80% tariff on large passenger motor vehicles and lift its minority foreign investment limits in its mining sector."

The Centre for International Economics estimates TAFTA will boost the Australian economy by US$2.4 billion over the first twenty years of its operation.

"TAFTA is a major market opening agreement. Many Australian companies formerly locked out of the Thai market now have important new commercial opportunities."

Tariffs have been cut on more than $700 million of Australian exports to Thailand, with savings on Thai customs duties this year of around $100 million. By 2010, 95 per cent of all current trade between the two countries - valued at $6.14 billion in 2003/04 - will be free of all tariffs.

TAFTA also liberalises the environment for services trade and investment.

"Certain distribution, management consultancy and construction services in Thailand can now be 100 per cent Australian owned, while restaurant, hotel and certain education and maritime cargo services can be 60 per cent Australian owned."

Thailand's economic performance over the past few years has been consistently strong and the Thai government is promoting policies that are aimed at building a more open and deregulated economy.

Minister Vaile urged exporters to take advantage of new opportunities, "Austrade and the Department of Foreign Affairs and Trade stand ready to help new exporters break into these markets and existing exporters to increase their market share".

Contact: Mr Vaile's office 02 6277 7420 - DFAT Media LiaisonԸ?Ը? 02 6261 155

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