FTA (Free Trade Area) Thailand’s Free Trade Agreement in 2024

A Free Trade Area (FTA) is a trade agreement between countries, which can be bilateral (between two countries) or multilateral (among multiple countries). It involves cooperation to eliminate trade barriers, both tariff and non-tariff barriers.

Free Trade Policy

• Production follows the principle of division of labor, focusing on producing goods with low production costs where the country has high production potential.

• No imposition of protective duties to safeguard domestic industries.

• No granting of special privileges or discrimination against products from any particular country.

• Tariffs are charged at a uniform rate, ensuring fairness to products from all countries, with no trade restrictions that hinder international trade.

• No control on imports or exports that create obstacles to international trade, except for controlling certain goods related to health, safety, moral issues, or national security.

Benefits of Establishing an FTA

• Reduces trade barriers, both tariff and non-tariff barriers.

• Increases trade value between member countries.

• Expands export opportunities, opens new markets, and enlarges existing ones.

• Enhances competitiveness, develops economic potential, and attracts foreign investment.

• Strengthens economic and political bargaining power.

• Provides customs cooperation, sharing knowledge and information on smuggling, dangerous goods, and copyright infringement.

• Promotes other economic cooperation and production technology.

• Strengthens closer relationships.

In 2024, Thailand will have 15 FTAs with 19 countries, categorized as:

• Bilateral level: Thailand-Australia / Thailand-New Zealand / Thailand-Japan / Thailand-India / Thailand-Peru / Thailand-Chile / Thailand-Sri Lanka

• Regional level: AEC / ACFTA / AJCEP / AKFTA / AANZFTA / AIFTA / AHKFTA / RCEP

Source : Customs Department, Department of Foreign Trade and Ministry of Commerce
Photo : Freepik