Understanding Regional Free Trade Agreement of Thailand

Thailand signed an agreement namely, the Framework Agreement on Enhancing ASEAN Economic Cooperation in January 1992. The reason behind this was to establish an ASEAN Free Trade Area that includes countries like Cambodia, Laos, Myanmar, Indonesia, Brunei, Vietnam, Singapore and Philippines and Thailand of course.

In order to strengthen the regional economy, the ASEAN leaders confirm that the AEC will be established by 2020. In view of the same, the leaders also affirmed their commitment and so speed up the establishment by 2015 for free trade and investment within the zone, whereby movement of investment, capital, skilled labour, and goods and services, freely.

Owing to this, Thailand negotiated for free trade with Australia and thus the Thailand-Australia Free Trade Agreement was implemented (2005). Similarly, the country also signed an agreement with New Zealand and Japan in April 2005 and April 2007, respectively.

On the other hand, the first phase with the agreements with China and India (Early Harvest Agreements) though started in October 2003; Thailand was found negotiating the details of the FTAs with China and India as well as BIMSTEC that includes countries like Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan, and Nepal, much after that.

Additionally, Thailand and Chile signed FTAs between the Government of the Kingdom of Thailand and the Government of the Republic of Chile to strengthen the economic partnership and expand and secure markets for the products or goods produced by each territory in order to promote bilateral trade by establishing clear and mutually beneficial trade rules and lessen trade barriers.