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					Thailand ‘s International Economic
               Policy




                      By
            Miss Poonsri Khulimakin
           Assistant Director General
        Department of Trade Negotiations
             Ministry of Commerce
                 28 June 2006
    THAILAND’S TRADE POLICY
   economic and financial crisis in 1997
   Thai Government has implemented
    ambitious domestic reforms in many areas
   increase the level of productivity and
    efficiency of market participants
   dual-track economic policy
   promoting Thailand's traditional openness
    to international trade and investment
    Thailand‘s International Trade Policy
            (Dual Track Policy)
   Thai government has adopted a dual track policy.

   Priority
      WTO (Multilateral Trading
       Agreement/System)

       RTAs/FTAs on paralleled basis
Thailand‘s International Trade Policy
        (Dual Track Policy)
• Many WTO members place bilateral approach as
the frontline strategy for market accession.


• Thailand will remain fully committed to the
multilateral trading system.

• Thailand is currently a member of The
WTO, APEC, ASEAN, BIMSTEC, ASEAN+1 FTA
(China, Korea, Japan, USA, EU, India, Australia, Ne
w Zealand)
Thailand‘s International Trade Policy
        (Dual Track Policy)

• FTAs can serve as a catalyst for further
cooperation and liberalization.

• Thailand’s involvement in both FTAs and the
multilateral trading system
           Thailand and FTA Strategy
   Goal
     To create an economic alliance, increase competitive
      performance, attract FDI, increase export
      opportunities, and enhance the efficiency and
      effectiveness of production.
   Strategy
     Maintain Thailand’s share in major traditional trading
      markets
     Expand into new markets and focus on potential
      markets
     Open gateway to other regions

     Establish FTAs with other important economies such
      as EU, Canada, South Africa, Chile, Mexico, Japan,
      Korea, Mercosur group and EFTA.
    Thailand’s FTA Negotiating Strategy
   FTAs should encompass a comprehensive
    framework, cover trade liberalization and also
    expand any other economic integration. The
    FTA should be flexible.
   FTAs should be in line with WTO rules, be
    transparent and provide disclosure for
    examination on other members.
   FTAs should be based on reciprocity and
    supportive of each others’ level of development.
    Thailand’s FTA Negotiating Strategy
                  (cont.)

    FTAs should incorporate a mechanism to prevent
     negative effects on domestic industries
    An early harvest scheme could accelerate the FTA
     negotiation process.
Goals and Implementation of Bilateral
               FTA
   Products that are expected to be affected:
       Products that will expand massively includes
        agriculture and food products
       Potential industrial products
       Products that are expected to be adversely
        affected and may need to adjust
       Service sector that would benefits Thailand
       Recent Progress of Thailand’s FTA



                                            China
      USA
                                    India
                                                            Japan
                          Bahrain



                                    BIMST-EC

       Peru



                                             Australia

                                                         New Zealand

• Total trade with Thailand 43.8%
• Include AFTA 62.5%


                   8+1 FTA
                Thailand-Australia FTA (TAFTA)

Negotiation Coverages
-Trade in goods, Trade in Services, investment
-Sectoral Economic Cooperation
-Conforming with WTO’s Rules

Negotiation Started
-May 30, 2002

Negotiation Concluded
-July 5, 2004

Entry into Forced
-Jan 1, 2005
      Thailand-New Zealand Closer Economic
              Partnership (TNZCEP)

Negotiation Coverages
-Trade in goods, Trade in Services, investment
-Sectoral Economic Cooperation
-Conforming with WTO’s Rules

Negotiation Started
-Oct 17, 2003

Negotiation Concluded
-Apr 19, 2005

Entry into Forced
-Jul 1, 2005
       Thailand/ASEAN-China Comprehensive
              Economic Co-operation
Negotiation Coverages
-Trade in goods, Trade in Services, investment
-Sectoral Economic Cooperation
-Conforming with WTO’s Rules

Negotiation Started
-Nov 7, 2001

Entry into Forced
-Thailand-China Early Harvest (Chapter 07-08) Oct 1, 2003
-ASEAN-China Early Harvest (Chapter 01-08) Jan 1, 2004
-ASEAN-China Trade in Goods Jul 20, 2005
                     Thailand-India FTA

Negotiation Coverages
-Trade in goods, Trade in Services, investment
-Sectoral Economic Cooperation
-Conforming with WTO’s Rules

Negotiation Started
-Nov, 2001

Entry into Forced
-Thailand-India Early Harvest in 82 items Oct 9, 2003
          Thailand-United States of America FTA

Negotiation Coverages
-Comprehensive (Trade in goods, Trade in Services, investment, Rules of
Origin, Standards, Commerce, etc.)

Negotiation Started
-Oct 23, 2002

Negotiation Status
-Under Negotiation
Japan-Thailand Economic Partnership (JTEP)

Negotiation Coverages
-Trade in goods, Trade in Services, investment
-Sectoral Economic Cooperation
-Conforming with WTO’s Rules

Negotiation Started
-Feb 16, 2004

Negotiation Concluded
-Feb 3, 2006

Current Status
-Agreement has not been signed yet.
                Thailand-Bahrain/GCC FTA)

Negotiation Coverages
-Trade in goods, Trade in Services, investment
-Sectoral Economic Cooperation
-Conforming with WTO’s Rules

Negotiation Started
-Jun 11, 2002

Negotiation Status
-Under Negotiation
-Coopperate with Gulf Cooperation Council (GCC)
 Thailand-Peru Closer Economic Partnership
                 (TNZCEP)

Negotiation Coverages
-Trade in goods, Trade in Services, investment
-Sectoral Economic Cooperation
-Conforming with WTO’s Rules

Negotiation Started
-Oct 17, 2003

Negotiation Status
-Negotiating on Rules of Origin for Early Harvest Scheme
                   Thailand-Chile
Joint Study on the Feasibility of a Free Trade Area
           between Thailand and Chile
 Joint Study Coverages
 -Main characteristics of the Chilean/Thai economies
 -Economic relation between Chile and Thailand
 -Trade and investment policies, Trade in services


 Joint Study Status
 -The third meeting of Joint Study Group to be held in
 Bangkok on 19-20 July 2006 to discuss the joint summary
 report and conclude the joint study
                     The BIMST-EC FTA
       The Bay of Bengal Initiative for Multi-Sartorial Technical
                      and Economic Cooperation

Member Countries
Bhutan, Bangladesh, India, Myanmar, Nepal, Sri Lanka and Thailand

Negotiation Coverages
-Trade in goods, Trade in Services, investment
-Sectoral Economic Cooperation
-Conforming with WTO’s Rules

Negotiation Started
-Mar 11-15, 2005

Negotiation Status
-Under Negotiation
   Economic Goals of Thailand


Trade and Investment Hub in Asia

          Top 20
        World Exporter

      Top 5 Investment
      Destination in Asia

    Economic Strengthen
     Dual track policies
              Expected Benefits
   Expand trade and investment

       Mutual Benefit
       The establishment of FTAs will eliminate tariffs
        and minimize non-tariff barriers, create more
        trade between each other.
             Expected Benefits (cont.)
   Expand trade and investment
   Open gateway to neighboring region
   Minimize barriers to trade and investment
    through tariffs elimination and NTMs
    reduction.
   Create economic partnership.
   The beneficiaries are:
       Producer;
       Exporter;
       Importer and;
       Consumer
            Thailand’s Preparation
   International Trade Negotiations Strategies
    and Policies Coordinating Task Force:
       prepares Thailand’s strategies and policies
        toward FTA negotiations;
       proposes strategies and policies for Committee
        on International Economic Policy
   FTA Monitoring Committee:
       prepares Thailand for FTA
   Chief FTA Negotiator for each countries:
       conducts a systematic, efficient, and beneficial
        FTA negotiation.
    Public Sector and Private Sector
              Preparation
   Free Trade Agreements between Thailand and
    other countries are expected to come into effect
    within 1-2 year.
   It will have both positive and negative effects.
   Thailand would also need to adjust production
    standards, and implement trade-related policies in
    line with those of International Standard.
        Public Sector and Private Sector
               Preparation (cont.)
    Macro Support System of Public Sector
    To speed up economic reforms and provide
     support in many important areas the
     following measures are carried out:
        Reform of financial and treasury systems
        Reform of the public sector
        Reform through development of primary
         infrastructure
        Encourage the development of small and
         medium enterprise (SMEs)
Enhancing the Competitive Performance of
            the Private Sector
   Maximizing the benefits from an FTA by:
       Increase productivity of management and trade.
       Enhance product design and quality to be able to
        compete in high quality markets.
       Engage in Research and Development (R&D)
       Human Resource Development.
       Develop relationships between Thailand and its
        FTA counterparts in the private sector.
Thailand Trade
  Statistics
Thailand Trade with the World

250000

200000

150000

100000                                             Total Trade
                                                   Import
 50000                                             Export
     0                                       Value : Mil. US $

         2002 2003 2004 2005 2005 2006
                             (Jan.- (Jan.-
                             Apr.) Apr.)
Major Thailand Export            Mil. US$     Major Thailand Import from             Mil. US$
to the World                       2005       the World                                2005
Automatic data processing
machines and parts thereof
                                   11,861.2   Crude oil
                                                                                       17,004.5
Motor cars, parts and
accessories
                                    7,750.8   Machinery and parts
                                                                                       11,206.2
Electronic integrated circuits
                                    5,524.6   Electrical machinery and parts
                                                                                        9,546.7
Polymers of ethylene,
propylene, etc in primary
                                    4,204.0   Iron, steel and products
                                                                                        8,704.0
forms
Rubber
                                    3,714.8   Chemicals
                                                                                        8,462.4
Precious stones and
jewellery
                                    3,233.1   Electrical circuit panels
                                                                                        7,986.0
Radio-broadcast receivers,
television receiver and parts
                                    3,177.9   Computers; accessories and parts
                                                                                        6,324.7
thereof
Garments
                                    3,162.9   Other metal ores, metal waste scrap,
                                              and products
                                                                                        4,340.0
Iron and steel and their
products
                                    2,909.7   Jewellery including silver bars and
                                              gold
                                                                                        3,924.7
Chemical products
                                    2,653.0   Parts and accessories
                                                                                        3,215.0
Thailand Trade with Pacific Island Forum (PIF)


      400
      350
      300
      250
      200
      150
      100                                               Total Trade
       50
        0
                                                Value : Mil. US $
            2002 2003 2004 2005 2005 2006
                                (Jan.- (Jan.-
                                Apr.) Apr.)
    Growth Rate of Trade between
140
          Thailand and PIF
120
100
                                         Import
 80
                                         Export
 60
                                         Total Trade
 40
 20
  0
      2003   2004   2005   2006 (Jan.-
                              Apr.)
Thailand Export to Pacific Island Forum (PIF)

    300
    250
    200
    150
    100
                                                      Export
     50
                                              Value : Mil. US $
      0
          2002 2003 2004 2005 2005 2006
                              (Jan.- (Jan.-
                              Apr.) Apr.)
             Market Share of Thailand in PIF

2006 (Jan.-Apr.)

2005 (Jan.-Apr.)

           2005
                                                                  East
           2004
                                                            Value : %
           2003

           2002

                   0   0.02   0.04   0.06   0.08   0.1   0.12
                                        Fiji 60.1
Thailand Export to PIF (2005)           Papua New Guinea 35.7
                                        Western Samoa 6.9
                                        Vanuatu 5.1
                                        Solomon Islands 5.1
                                        Tonga 2.7
                                        Kiribati 1.8
                                        Micronesia (Truk) 1.7
                                        Marshall Islands 1.6
                                        Cook Islands 1.5
                                        Palau 0.5
                                        Tuvalu 0.3
                                        Nauru 0
                    Value : Mil. US $   Niue 0
       Thailand Export to PIF
                                            Motorcars, parts and
                                            accessories
                                            Woven fabrics
                              27.3

49.7                                        Rice

                                            Polymers of ethylene,
                                       18   propylene

       6.7             12.2
                                            prepared or preserved fish
             8.9

                                            Others
                   Value : Mil. US $
Thailand Import from Pacific Island Forum (PIF)
     140
     120
     100
      80
      60
      40                                                Import
      20
                                               Value : Mil. US $
       0
           2002 2003 2004 2005 2005 2006
                               (Jan.- (Jan.-
                               Apr.) Apr.)
            Market Share of PIF in Thailand

2006 (Jan.-Apr.)

2005 (Jan.-Apr.)

           2005
                                                                       East
           2004
                                                                 Value : %

           2003

           2002

                   0   0.05   0.1   0.15   0.2   0.25   0.3   0.35
                                          Marshall Islands 119.5
Thailand Import from PIF (2005)           Palau 49.9
                                          Papua New Guinea 43.2
                                          Cook Islands 27.0
                                          Tonga 16.2
                                          Fiji 2.3
                                          Niue 0.1
                                          Kiribati 0.1
                                          Solomon Islands 0.1
                                          Western Samoa 0
                                          Micronesia (Truk) 0
                                          Tuvalu 0
                                          Vanuatu 0
                      Value : Mil. US $   Nauru 0
Thailand Import from PIF
                                                Fresh aquaticanimals, chilled,
                                                frozen
                                                Wood in rough, sawn or
             221.1                              chipped
                                                Vegetables and vegetable
                                                products
                                                Animals and animal products

                                                Chemicals
  18.4   0.2 6.8
          0          11.8
                                                Others
                            Value : Mil. US $
                                     Thailand Trade with Fiji                             Value:Mil. US$

                commodity                       2002      2003        2004    2005    2005      2006
                                                                                      Jan.-     Jan.-
                                                                                      Apr.      Apr.
Total Trade
                                                  16.4      20.4       30.6    62.4     12.9       14.8
Balance
                                                  16.2      19.3       30.5    57.9     11.9       14.8
                                            Thailand Export to Fiji
Polymers   of ethylene, propylene etc.
                                                    2.4       2.8       5.7     7.8      2.3         3.4
Motor   cars, parts and accreearies
                                                    1.8       2.2       3.1     9.8      1.9         2.9
Rice
                                                    4.1       4.3       6.4     8.0      2.5         2.2
Total Export                                       16.3      19.9      30.6    60.1     12.4       14.8

                                          Thailand Import from Fiji
Fresh   aquatic animals, chilled, frozen
                                                    0.0       0.5       0.0     2.2      0.5         0.0
Paper   and paper products
                                                    0.1       0.0       0.0     0.0      0.0         0.0
Wood    in rough, sawn or chipped
                                                    0.0       0.0       0.0     0.0      0.0         0.0
Total Import                                        0.1       0.5       0.1     2.3      0.5         0.0
                           Thailand Trade with Micronesia (Truk)                       Value:Mil. US$

                 commodity                    2002      2003     2004      2005    2005      2006
                                                                                   Jan.-     Jan.-
                                                                                   Apr.      Apr.
Total Trade                                     41.9      52.9     45.2     44.9     11.2         6.7

Balance                                         -38.1     49.1    -41.5    -41.5    -10.4        -6.3

                                   Thailand Export to Micronesia (Truk)
Prepared or preserved fish,                      1.3      1.3      1.3      1.2      0.3         0.2
crustaceans, molluscs
Ceramic   products                               0.0      0.1      0.0      0.1      0.0         0.0

Woven    fabrics                                 0.0      0.1      0.0      0.1      0.0         0.0
Total Export                                      1.9      1.9      1.8      1.7      0.4         0.2

                                  Thailand Import from Micronesia (Truk)
Fresh   aquatic animals, chilled, frozen       39.9      50.6     43.4     43.2     10.8         6.5

Machinery     and parts                          0.0      0.4      0.0      0.0      0.0         0.0

Scientific,   medical, testing appiiances        0.0      0.0      0.0      0.0      0.0         0.0

Total Import                                    40.0      51.0     43.4     43.2     10.8         6.5
                                 Thailand Trade with kiribati                            Value:Mil. US$

                 commodity                    2002      2003      2004       2005    2005      2006
                                                                                     Jan.-     Jan.-
                                                                                     Apr.      Apr.
Total Trade                                       6.6       1.9       1.9      1.8      0.5         1.2

Balance                                          -5.9      -0.9       -0.1     1.8      0.5        -0.5

                                        Thailand Export to kiribati
Wheat  products and other food                   0.1       0.2       0.3      0.3      0.1         0.2
preparations
Garments                                         0.1       0.1       0.1      0.1      0.1         0.1

Woven     fabrics                                0.0       0.0       0.3      1.1      0.2         0.1
Total Export                                      0.3       0.5       0.9      1.8      0.5         0.3

                                      Thailand Import from kiribati
Fresh   aquatic animals, chilled, frozen         6.2       1.4       0.9      0.0      0.0         0.8

Electrical   circuit panels                      0.0       0.0       0.1      0.0      0.0         0.0

Fabrics                                          0.0       0.0       0.0      0.0      0.0         0.0

Total Import                                      6.2       1.4       1.0      0.0      0.0         0.8
                                   Thailand Trade with Nauru                             Value:Mil. US$

                 commodity                     2002      2003        2004    2005    2005      2006
                                                                                     Jan.-     Jan.-
                                                                                     Apr.      Apr.
Total Trade                                        0.1      0.2        0.1     0.1      0.0         0.0

Balance                                           -0.1     -0.2       -0.1    -0.1      0.0         0.0

                                          Thailand Export to Nauru
Fresh    or frozen vegetables                     0.0      0.0        0.0     0.0      0.0         0.0

Other    electrical equipment and parts           0.0      0.0        0.0     0.0      0.0         0.0

Air   conditioning machine and parts              0.0      0.0        0.0     0.0      0.0         0.0
Total Export                                       0.0      0.0        0.0     0.0      0.0         0.0

                                        Thailand Import from Nauru
Ships,   boats and floating structures            0.0      0.0        0.0     0.1      0.0         0.0

Fresh    aquatic animals, chilled, frozen         0.0      0.1        0.0     0.0      0.0         0.0

Computer,     accessories and parts               0.1      0.0        0.0     0.0      0.0         0.0

Total Import                                       0.1      0.2        0.1     0.1      0.0         0.0
                                 Thailand Trade with Palau                             Value:Mil. US$


               commodity                     2002      2003        2004    2005    2005      2006
                                                                                   Jan.-     Jan.-
                                                                                   Apr.      Apr.
Total Trade                                      0.1      0.1        0.2     0.5      0.1         0.2

Balance                                          0.1      0.1        0.2     0.5      0.1         0.2

                                        Thailand Export to Palau
Motor   cars, parts and accessories             0.0      0.0        0.1     0.1      0.0         0.1

Prepared or preserved fish,                     0.0      0.0        0.1     0.3      0.1         0.0
crustaceans, molluscs
Rice                                            0.0      0.0        0.0     0.1      0.0         0.0
Total Export                                     0.1      0.1        0.2     0.5      0.1         0.2

                                       Thailand Import from Palau
Animals   and animal products                   0.0      0.0        0.0     0.0      0.0         0.0

Total Import                                     0.0      0.0        0.0     0.0      0.0         0.0
                          Thailand Trade with Solomon Islands                       Value:Mil. US$


                commodity                   2002      2003     2004     2005    2005      2006
                                                                                Jan.-     Jan.-
                                                                                Apr.      Apr.
Total Trade                                     7.9      9.2     31.7    21.2      7.5         7.1

Balance                                        -6.8     -6.9    -27.2   -11.1     -5.4        -4.2

                                  Thailand Export to Solomon Islands
Iron   and steel and their products            0.0      0.2      0.8     0.5      0.1         0.4

Prepared or preserved fish,                    0.2      0.1      0.2     0.3      0.0         0.2
crustaceans, molluscs
Motor   cars, parts and accessories            0.0      0.1      0.1     1.3      0.2         0.1
Total Export                                    0.6      1.1      2.3     5.1      1.0         1.5
                                Thailand Import from Solomon Islands
Fresh aquatic animal, chilled, frozen,         5.0      5.7     24.5    14.1      4.4         5.0
processed
Wood    in rough, sawn or chipped              2.3      2.4      5.0     1.9      1.9         0.6

Rubber    manufactureres                       0.0      0.0      0.0     0.0      0.0         0.0

Total Import                                    7.3      8.1     29.4    16.2      6.4         5.6
                                Thailand Trade with Vanuatu                                 Value:Mil. US$


                commodity                       2002      2003     2004        2005     2005      2006
                                                                                        Jan.-     Jan.-
                                                                                        Apr.      Apr.
Total Trade                                        20.3     28.9       107.1   124.6     124.6       51.5

Balance                                           -19.3    -26.3   -103.5      -114.4   -114.4      -49.1

                                          Thailand Export to Vanuatu
Motor    cars, parts and accessories               0.1      0.5         0.3      2.1      0.4         0.7

Prepared or preserved fish,                        0.1      0.3         0.4      0.2      0.0         0.1
crustaceans, molluscs
Garments                                           0.1      0.2         0.1      0.4      0.1         0.1
Total Export                                        0.5      1.3         1.8      5.1      5.1         1.2
                                        Thailand Import from Vanuatu
Fresh aquatic animal, chilled, frozen,            11.3     27.6       105.2   119.4      30.5       50.2
processed
Ships,   boats and floating structures             8.5      0.0         0.0      0.0      0.0         0.0

Animals   and animal products                      0.0      0.0         0.0      0.1      0.1         0.0

Total Import                                       19.8     27.6       105.3   119.5      30.5       50.3
                             Thailand Trade with Cook Islands                           Value:Mil. US$


                commodity                    2002     2003     2004         2005    2005      2006
                                                                                    Jan.-     Jan.-
                                                                                    Apr.      Apr.
Total Trade                                     0.4      0.4          0.7     1.5      0.3         0.3

Balance                                         0.2      0.4          0.6     1.4      0.1         0.3

                                    Thailand Export to Cook Islands
Motocycles,   parts and accessories            0.1      0.2          0.1     0.2      0.0         0.1

Woven    fabrics                               0.0      0.0          0.2     0.8      0.1         0.1

Motor   cars, parts and accessories            0.1      0.1          0.0     0.3      0.1         0.0
Total Export                                    0.3      0.4          0.6     1.5      0.2         0.3
                                   Thailand Import from Cook Islands
Jewellery                                      0.0      0.0          0.0     0.0      0.0         0.0

Ship,   boats and floating structure           0.0      0.0          0.0     0.0      0.0         0.0

Vegetables    and vegetable products           0.0      0.0          0.0     0.0      0.0         0.0
Total Import                                    0.1      0.0          0.0     0.1      0.1         0.0
                          Thailand Trade with Marshall Islands                         Value:Mil. US$


                 commodity                     2002     2003      2004     2005    2005      2006
                                                                                   Jan.-     Jan.-
                                                                                   Apr.      Apr.
Total Trade                                      67.8     29.2      22.4    28.6      4.0         1.5

Balance                                         -66.3     -27.2    -19.9   -25.4     -3.3        -0.5

                                    Thailand Export to Marshall Islands
Motor   cars, parts and accessories              0.4       0.3      0.6     0.3      0.1         0.2

Prepared or preserved fish,                      0.1       0.4      0.4     0.5      0.2         0.2
crustaceans, molluscs
Sugar                                            0.1       0.1      0.0     0.2      0.0         0.1
Total Export                                      0.7       1.0      1.2     1.6      0.4         0.5
                                 Thailand Import from Marshall Islands
Fresh aquatic animals, chilled, frozen,         67.0     27.9      21.1    26.7      3.4         0.8
processed
Animals   and animal products                    0.0       0.2      0.0     0.2      0.2         0.2

Electrical   machinery and parts                 0.0       0.0      0.0     0.0      0.0         0.0
Total Import                                     67.0     28.2      21.2    27.0      3.7         1.0
                                      Thailand Trade with Niue                            Value:Mil. US$


                 commodity                       2002     2003        2004    2005    2005      2006
                                                                                      Jan.-     Jan.-
                                                                                      Apr.      Apr.
Total Trade                                         0.0      0.0        0.0     0.0      0.0         0.0

Balance                                             0.0      0.0        0.0     0.0      0.0         0.0

                                            Thailand Export to Niue
Precious     stones and jewellerly                 0.0      0.0        0.0     0.0      0.0         0.0

Garments                                           0.0      0.0        0.0     0.0      0.0         0.0

Brassieres,    corsets and parts thereof           0.0      0.0        0.0     0.0      0.0         0.0
Total Export                                        0.0      0.0        0.0     0.0      0.0         0.0
                                        Thailand Import from Niue
Iron,   steel and products                         0.0      0.0        0.0     0.0      0.0         0.0

Electrical   household appliances                  0.0      0.0        0.0     0.0      0.0         0.0

Electrical   machinery and parts                   0.0      0.0        0.0     0.0      0.0         0.0
Total Import                                        0.0      0.0        0.0     0.0      0.0         0.0
                        Thailand Trade with Papua New Guinea                        Value:Mil. US$


                commodity                  2002     2003     2004      2005     2005      2006
                                                                                Jan.-     Jan.-
                                                                                Apr.      Apr.
Total Trade                                  46.9     74.9     56.0     85.6     15.5        27.4

Balance                                     -13.1    -32.7     -9.1     -14.2     -0.3        -1.9

                                Thailand Export to Papua New Guinea
Motor   cars, parts and accessories          1.9      1.6      3.0     11.2       1.4         2.9

Rice                                         0.5      1.2      5.1      4.0       1.2         2.4

Iron,   steel and products                   2.6      6.1      3.8      4.1       0.7         1.0
Total Export                                 16.9     21.1     23.5     35.7       7.6       12.8
                               Thailand Import from Papua New Guinea
Fresh aquatic animals, chilled, frozen,     23.7     38.8     20.5     15.5       2.4       10.0
processed
Vegetables    and vegetable products         3.1     10.7      8.1      6.8       3.1         2.4

Wood    in rough, sawn or chipped            2.9      3.6      3.8      9.8       2.2         2.2
Total Import                                 30.0     53.8     32.5     49.9       7.9       14.7
                                    Thailand Trade with Tonga                          Value:Mil. US$


                 commodity                    2002     2003        2004    2005    2005      2006
                                                                                   Jan.-     Jan.-
                                                                                   Apr.      Apr.
Total Trade                                     46.9     74.9       56.0    85.6    15.5        27.4

Balance                                          0.9      0.6        0.8     2.7      0.3         0.7

                                        Thailand Export to Tonga
Woven     fabrics                               0.1      0.0        0.1     1.4      0.1         0.4

Garments                                        0.3      0.2        0.2     0.3      0.0         0.1

Plastic   products                              0.2      0.2        0.1     0.2      0.1         0.1
Total Export                                     0.9      0.7        0.8     2.7      0.3         0.7
                                       Thailand Import from Tonga
Fresh aquatic animals, chilled, frozen,         0.0      0.0        0.0     0.0      0.0         0.0
processed
Rubber    manufactureres                        0.0      0.0        0.0     0.0      0.0         0.0

Electrical   machinery and parts                0.0      0.0        0.0     0.0      0.0         0.0
Total Import                                     0.0      0.1        0.0     0.0      0.0         0.0
                               Thailand Trade with Tuvalu                          Value:Mil. US$


                 commodity               2002     2003     2004        2005    2005      2006
                                                                               Jan.-     Jan.-
                                                                               Apr.      Apr.
Total Trade                                46.9     74.9        56.0    85.6    15.5        27.4

Balance                                     0.0      0.0         0.2     0.3      0.0         0.0

                                   Thailand Export to Tuvalu
Woven    fabrics                           0.0      0.0         0.2     0.2      0.0         0.0

Wheat  products and other food             0.0      0.0         0.0     0.1      0.0         0.0
preparations
Prepared or preserved fish,                0.0      0.0         0.0     0.0      0.0         0.0
crustaceans, molluscs
Total Export                                0.0      0.0         0.2     0.3      0.0         0.0
                                  Thailand Import from Tavalu
Machinery     and parts                    0.0      0.0         0.0     0.0      0.0         0.0

Electrical   circuit panels                0.0      0.0         0.0     0.0      0.0         0.0
Total Import                                0.0      0.0         0.0     0.0      0.0         0.0
                           Thailand Trade with Western Samoa                      Value:Mil. US$


                 commodity                  2002     2003     2004    2005    2005      2006
                                                                              Jan.-     Jan.-
                                                                              Apr.      Apr.
Total Trade                                    1.1      0.9     2.8     7.0      1.4         2.7

Balance                                        1.1      0.8     1.0     6.8      1.3         2.7

                                  Thailand Export to Western Samoa
Insulated    wire and cable                   0.0      0.0     0.3     1.4      0.2         1.2

Motor   cars, parts and accessories           0.2      0.3     0.2     1.9      0.2         0.4

Woven     fabrics                             0.0      0.1     0.4     1.2      0.5         0.3
Total Export                                   1.1      0.9     1.9     6.9      1.3         2.7
                                Thailand Import from Western Samoa
Fresh aquatic animals, chilled, frozen,       0.0      0.0     0.8     0.0      0.0         0.0
processed
Machinery     and parts                       0.0      0.0     0.1     0.0      0.0         0.0

Fabrics                                       0.0      0.0     0.0     0.1      0.0         0.0
Total Import                                   0.0      0.0     0.9     0.1      0.0         0.0
     Thailand
Investment Policies
     Major developments in the FDI
             policy regime
   State capitalism 1940s-1950s
   Import substitution 1958-1971
   Export promotion 1972-1992
   Promotion of industrial decentralization
    1993-1996
   Post-crisis liberalization 1997-present

Source: Tangkitvanich and Nikomborirak (2004)
        Current Investment policy (1)
   Good governance
       Transparent policy
       Performance-based incentives
   Strengthen competitiveness
   Comply with international trade and
    investment agreement
        Current Investment policy (2)
   Continue decentralization
       Maximun incentives for least developed provinces
   Support SMEs project
   Priority approvals
       Activities in agriculture and agricultural products
       Technological and human development projects
       Public utilities, infrastructure, environment protection
   More liberalized
       Foreign investor may hold a majority or all shares in
        most of manufacturing projects
        3 main investment laws
   Foreign Business Act of 1999
   Investment Promotion Act of 1977
   Industrial Estate Authority of Thailand Act
    of 1979
            Investment Zones
   Zone 1: 6 Central provinces with high income
    and good infrastructure: Bangkok, Samut
    Prakan, Samut Sakhon, Pathum Thani,
    Nonthaburi and Nakhon Pathom
   Zone 2: 12 provinces: Samut Songkhram,
    Ratchaburi, Kanchanaburi, Suphanburi, Ang
    Thong, Ayutthaya, Saraburi, Nakhon Nayok,
    Chachoengsao, Chon Buri, Rayong and Phuket
   Zone 3: The remaining 58 provinces with low
    income and less developed infrastruture.
            Priority Activities
   Agriculture & agricultural products
   Direct involvement in technological and
    human resource development
   Public utilities and infrastructure
   Environmental protection and conservation
   Targeted industries
    New Activities Eligible for Promotion

   E-Commerce Application Service Provider
   E-Commerce User
   Regional Headquarters
   International Distribution Centers
   International Procurement Offices
   Retirement Homes
   Dedicated Health Centers
     Promotion Certificate Issued (1)
 Unit: Billion Baht   2004           2005
 No. of Projects             1,053          1,134
 Total Investment            371.3          532.5
 Total Registered             56.0           57.1
 Capital
 Thai                         37.3   31.3 (55%)
 Foreign                      18.7   25.7 (45%)
 Employment             216,125        198,412

Source: BOI
   Promotion Certificate Issued (2)
 Major Foreign      No. of Projects
 Shareholders    2004            2005
 Japan                  359      378 (46%)
 Europe                 111      195 (24%)
 Taiwan                 67            58 (7%)
 U.S.A.                 57            56 (7%)
 Hong Kong              36            22 (3%)
 Singapore              73       105 (13%)
 Total                  703              814
Source: BOI
  Promotion Certificate Issued (3)
Ownership          No. of Projects
                2004            2005
100% Thai               369             381
100% Foreign            324             349
Joint Venture           360             404
Total                  1,053           1,134
Source: BOI
  Promotion Certificate Issued (4)
Export-Oriented      No. of Projects
Projects          2004            2005
30% - 79%                210             192
80% - 100%               380             381
Total                    590             573
Source: BOI
   Promotion Certificate Issued (5)
                            No. of Projects
            Sector
                           2004         2005
Agricultural Products          206         193
Minerals & Ceramics             26             37
Light Industry                  78         100
Metal Processing               252         236
Electronics & Electrical       172         213
Chemical Plastic Paper         131         144
Service & Infrastructure       188         211
Total                        1,053       1,134
 Promotion Certificate Issued (6)
Size of Investment         No. of Projects
                         2004            2005
<= 20 Million Baht               186            259
21-200 Million Baht              528            556
201-500 Million Baht             210            203
501-1,000 Million Baht            61            50
>1,000 Million Baht               68            66
Total                           1,053        1,134
Source: BOI
         FDI from Major Countries (Foreign Equity >=10%)

                                     Promotion Certificates Issued

                          2003                     2004                      2005
       COUNTRY
                   No.       Total       No.          Total        No.           Total
                            Invest                   Invest                     Invest
Total FDI           510     154,095      682         241,970       737              256,845
Japan               236      80,099       334         105,021       348      166,743 (65%)
ANIES                89       17,055      124             23,605     85        16,949 (7%)
ASEAN                64      13,248        92             28,727    119        23,746 (9%)
PRC.                  5           467      11              2,373     11         1,331 (1%)
India                10          1,617         7            267      12                  604
U.S.A.               33      24,136        31             29,803     34         5,904 (2%)
Canada                3           551          4            253          1               19
Australia             7           784      13              5,091         6               177
New Zealand           1           122          1              15         -                 -
Europe               62      16,016        65             46,815    121      41,372 (16%)

Source: BOI
            Thailand’s Net Flow of FDI with Oceania
Country                            2001      2002      2003     2004     2005     Million
                                                                                  USD
AUSTRALIA                           3.72     -13.70    11.07    87.86    36.92
COOK ISLANDS                         0.15      0.93      0.00    0.06      0.00

FIJI                                  0.00      0.00     0.00     0.00     0.00

MICRONESIA (FEDERATED STATES OF)      0.00      0.00     0.00     0.00     0.00

KIRIBATI                              0.00      0.00     0.00     0.00     0.00

MARSHALL ISLANDS                    -1.42     -0.06      0.00     0.00     0.00

NAURU                                 0.00      0.00     0.00     0.00     0.00

NIUE                                  0.00      0.00     0.00     0.00     0.00

NEW ZEALAND                         0.56      0.94      1.45     5.34     5.50
PAPUA NEW GUINEA                      0.00      0.00     0.00     0.00     0.00

PALAU                                 0.00      0.00     0.00     0.00     0.00

SOLOMON ISLANDS                       0.00      0.00     0.00     0.00     0.00

TONGA                                 0.00      0.00     0.00     0.00     0.00

TUVALU                                0.00      0.00     0.00     0.00     0.00

VANUATU                               0.00    0.11       0.00    0.12     0.10
SAMOA                                 0.00      0.00     0.00     0.00     0.00

TOTAL                               3.02     -11.78    12.51    93.37    42.53
Source: Bank of Thailand
                   Trend of Thailand Direct
                     Investment Abroad
                   1.2                                                6
           TDI                                                            FDI
                   1.0                                                5
(in billion US$)                                                          (in billion US$)
                   0.8                                                4

                   0.6                                                3

                   0.4                                                2

                   0.2                                                1

                   0.0                                                0

                         ‘92   ‘94   ‘96     ‘98   00      02    03
                                       FDI              TDI
                                                        (Thailand Direct Investment Abroad)


Source: Bank of Thailand
           TDI Structure by Destination
                   1997-2003
                                  EU
           Hong Kong       US                    Others
                                  3.3%
           10.3%           5.2%                  19.9%




   China
   11.9%




                                         ASEAN
                                         38.7%


Source: Bank of Thailand
              TDI structure by sectors
                     1997-2003
                            Financial
                           institution   Services   Others
         Trade                            5.8%
                                3.3%                3.5%
           15.1%

                                                             Industrial
                                                             37.9%



                    Holding
                   company
                       31.4%




Source: Bank of Thailand
      Opportunities for
  Mutual Economic Expansion

• Trade

• Investment

• Cooperation
                               TRADE
Goods that Thailand will mostly benefit     Goods that PIF will mostly benefit
Prepared  or preserved fish,             Fresh aquatic   animals, chilled, frozen
crustaceans, molluscs                     Paper  and paper products
Motor cars, parts and accessories        Wood in rough, sawn or chipped
Motocycles, parts and accessories        Electrical circuit panels
Rice                                     Fabrics
Ceramic produicts                        Ship, boats and floating structures
Wheat products and other food            Computer; accessories and parts
preparations                              Animals and animal products
Garment
                                          Rubber manufacturers
Woven fabrics
                                          Jewellery
Iron, steel and their products
                                          Machinery and parts
Polymers of ethylene, propylene
                                          Vegetables and vegetable products
                 Investments
Potential Sector/Industry

• Industries related to agriculture, aquatic animals,
feedstuff, wood products

• Jewelry

• Marina, Ship, boats and floating structures

• Tourism, Constructions
                         Cooperations
           Area                 Thailand                         PIF

Exchange of Technology & Training, Workshop on Mechanical Maintainance
Skills


Strategic Alliance / Joint       SME, Light Industry, Tourism, ICT
Venture
Exchange Trade and                Statistics, Laws and Regulations
Investment Information
HRD
                                       Agriculture / Fisheries

Tourism                                eg. Ecological Tourism
THANK YOU
For More Information
Please contact




  Bureau of Services Investment and Negotiations
          Department of Trade Negotiations
              Ministry of Commerce

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