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| Capital city: |
Bangkok |
| Surface area: |
513,000 sq km |
| Population: |
65.7 million |
| Official language(s): |
Thai |
| Head of State: |
H.M. King Bhumibol Adulyadej |
| Head of Government: |
Prime Minister HE Mr Somchai Wongsawat |
| Australian exports to Thailand: |
A$4,643 million |
| Australian imports from Thailand: |
A$8,805 million |
| Thailand's principal export destinations: |
USA, Japan, China |
| Thailand's principal import sources: |
Japan, China, USA | (Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
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Key economic indicators and statistics for 2007:
GDP – US$245.4 billion
GDP per capita – US$3,732
Real GDP growth – 4.8 per cent
Inflation – 3.2 per cent
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
Thailand has slowly recovered from the 1997 economic crisis to become one of East Asia’s best performers for the period 2002-2008. It welcomes foreign investment and has a reported increase in consumption and investment spending. The increase spurred the GDP growth to five per cent in 2006 and four per cent in 2007 despite a slower global economy.
This growth is underpinned by a number of factors including the alleviated drought impacts on agricultural products, the pickup in the tourism sector and increasing industrial production following improvements in exports, particularly in food and electronic products.
The problem Thailand’s economy will face in the near future is an increase in inflation caused mainly by the rise in oil prices. Further difficulties may occur if there are major health outbreaks, such as avian flu, and if the political troubles in the south of the country are not resolved.
Thailand is vigorously pursuing a policy of bilateral trade agreements. As well as signing a Free Trade Agreement (FTA) with Australia in 2004 it signed an FTA with New Zealand in April 2005 which is similar to that signed with Australia. The first phase of Thailand’s Agreement with India, the so-called Early Harvest Agreement, covering 82 products started on 1 September 2004 and negotiations for a full FTA are currently underway. Thailand is also working with Bahrain and Japan on FTAs and began talks with the USA in June 2004. These talks are very controversial and there is still a strong anti-FTA lobby in Thailand.
Thailand concluded Free Trade Agreement (FTA) negotiations with Australia at the end of 2004 and the Agreement came into force on the 1 January 2005.
The Thailand-Australia Free Trade Agreement is a major market opening agreement. With its implementation on 1 January 2005 many went straight to zero per cent while others fell below that payable by competing nations. Thai tariffs on virtually all goods imported from Australia will be eliminated by 1 January 2010. It will also substantially improve the environment for bilateral services, trade and investment.
Australian business is urged to take a close look at the new opportunities created by the Thailand-Australia Free Trade Agreement. The reduction of Thailand's high tariff barriers (for some tariffs up to 200 per cent) means that exports may now become viable for a range of products. Opportunities are also opening in Thailand for Australian service providers, investors, manufacturers and processors.
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Governed by a constitutional monarchy, Thailand has a bicameral
legislature system with a House of Representatives and a Senate.
Thailand’s 76 provinces each administered by an appointed Governor are
divided into districts, sub-districts (tambons) and villages. |
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The Association of South East Asian Nations (ASEAN) comprises 10 member countries: Thailand, Indonesia, Malaysia, Philippines, Singapore, Brunei-Darussalam, Vietnam, Laos, Burma and Cambodia.
Thailand's relationship with other ASEAN countries is good, however, border disputes between Thailand, Burma and Cambodia are sometimes still an issue. In recent times tensions with Malaysia have increased in the southern border area where there has been problems with violence associated with separatists. One of the key objectives of ASEAN is to narrow the economic divide within ASEAN and enhance ASEAN trade and service competitiveness as a region. Essentially, it provides a framework for regional cooperation through which the more developed ASEAN members can assist those member countries more in need and thus achieve common goals.
As well as being a part of the Asian Free Trade Area (AFTA) Thailand is now working closely with other ASEAN members to establish a free trade area with other countries such as India, China, Japan, Korea and the Closer Economic Relationship (CER) with Australia and New Zealand. The negotiations between ASEAN and each of the other countries are expected to be concluded within two years in order to become full fledged FTAs by 2015 or at the latest 2020.
Major Australian exports to Thailand (2007-08):
- Crude petroleum – A$1,006 million
- Aluminium – A$740 million
- Gold – A$566 million
- Copper – A$376 million
Major Australian imports from Thailand (2007-08):
- Goods vehicles – A$2,103 million
- Passenger motor vehicles – A$1,268 million
- Gold – A$1,064 million
- Heating and cooling equipment and parts – A$417 million
In addition to the major ticket items above there is evidence of a significant increase in the export of information technology services, software, tourism, transport, education, consumer products and manufactured food from Australia.
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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