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Published on July 18, 2007

After the implementation of Tafta in 2005, Australian exports to Thailand almost doubled to 5 billion Australian dollars (Bt136 billion) last year.

"Tafta is one of the best free-trade pacts that Australia has had. The agreement has not only driven export growth between the two nations, but also encouraged cross-country investment growth," said Fischer, who is also the chairman of the Australia-Thailand Institute.

"Tafta is a win-win agreement. The outcome of the pact is better than the Australia-Singapore Free-Trade Agreement. Traders and investors are confident that the pact will continue to promote a win-win situation for both sides for long in the future."

 Fischer noted that both countries have alternatively faced trade deficits, with Australia enjoying a trade surplus in 2005 and Thailand having one last year.

At the beginning, Tafta focuses on elimination of import tariffs on 50 per cent of 5,000 traded items. Under Tafta, 95 per cent of all trade between the two countries will be completely free by 2010.

Fischer said that in today's trading system, more countries will focus on bilateral trade pacts as the Doha Round of the World Trade Organisation has failed to make progress in liberalising trade under one umbrella.

He said Australian investors had shown more interest to invest in Thailand as closer cooperation has facilitated freer flow of trade and investment.

Fischer said that more Australian investors would invest in Thailand. Potential businesses include information technology, metal and steel, mining equipment, financing services, automobiles and gold mining.

Australian investment here includes gold mining, which relies on its advanced mining technology, in the Northeastern provinces.

Fischer called on the Thai government to provide more flexible regulations to ensure foreign direct investment continues to grow.

Petchanet  Pratruangkrai

The Nation