WT/TPR/S/400/Rev.1  
18 January 2021  
(21-0440) Page: 1/165 
Trade Policy Review Body   
 
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
THAILAND  
Revision  
This report, prepared for the eighth Trade Policy Review of Thailand, has been drawn up by the WTO 
Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing 
the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World 
Trade Organization), sought clarification from Thailand on its trade policies and practices.  
 
Any technical questions arisin g from this report may be addressed to Martha Lara Fernández 
(tel: 022 739 6033), Zheng Wang (tel: 022 739 5288), and Xinyi Li (tel:  022 739 5579).  
 
Document WT/TPR/G/400 /Rev.1  contains the policy statement submitted by Thailand.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report was drafted in English.  
  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  8 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  12 
1.1   Main Features of the Economy  ................................ ................................ ..................... 12 
1.2   Recent Economic Developments  ................................ ................................ ................... 14 
1.2.1    The COVID -19 pandemic  ................................ ................................ .......................... 14 
1.2.2    Growth, income and employment  ................................ ................................ .............. 16 
1.2.3    Fiscal policy and debt  ................................ ................................ ............................... 19 
1.2.3.1   Tax reforms  ................................ ................................ ................................ ......... 21 
1.2.4    Monetary and exchange rate policies  ................................ ................................ .......... 22 
1.2.5    Balance of payments  ................................ ................................ ................................ 25 
1.3   Developments in Trade and Investment  ................................ ................................ ........ 26 
1.3.1    Trends and patterns in merchandise and services trade  ................................ ................ 26 
1.3.1.1    Merchandise trade  ................................ ................................ ................................ .26 
1.3.1.2    Services trade  ................................ ................................ ................................ ......28 
1.3.2    Trends and patterns in Foreign direct investment (FDI)  ................................ ................ 29 
2   TRADE AND INVESTMENT REGIMES ................................ ................................ ...........  33 
2.1   General Framework  ................................ ................................ ................................ ....33 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ........ 35 
2.3   Trade Agreements and Arrangements  ................................ ................................ ........... 36 
2.3.1    WTO ................................ ................................ ................................ ...................... 36 
2.3.2    Regional and preferential agreements  ................................ ................................ ........ 38 
2.3.2.1    Overview  ................................ ................................ ................................ ............. 38 
2.3.2.2    ASEAN  ................................ ................................ ................................ ................. 39 
2.3.3    Other agreements and arrangements  ................................ ................................ ......... 41 
2.3.3.1    Preferential trade agreements  ................................ ................................ ................ 41 
2.3.3.2    Asia-Pacific Economic Cooperation (APEC)  ................................ ................................ 42 
2.3.3.3    Asia-Europe Meetings (ASEM)  ................................ ................................ ................. 43 
2.3.3.4    Other cooperation arrangements  ................................ ................................ ............. 43 
2.4   Investment Regime  ................................ ................................ ................................ ....44 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ........................  48 
3.1   Measures Directly Affecting Imports  ................................ ................................ .............. 48 
3.1.1    Customs procedures, valuation, and requirements  ................................ ....................... 48 
3.1.1.1    Registration and documentation  ................................ ................................ .............. 48 
3.1.1.2    Customs valuation procedures  ................................ ................................ ................ 50 
3.1.1.3    Rules of origin  ................................ ................................ ................................ ......51 
3.1.2    Tariffs  ................................ ................................ ................................ .................... 51 
3.1.2.1    Tariff structure  ................................ ................................ ................................ .....51 
3.1.2. 2   Tariff bindings  ................................ ................................ ................................ ......52 
3.1.2.3    Applied tariff  ................................ ................................ ................................ ........ 52 WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.1.2.4    Tariff quotas  ................................ ................................ ................................ ......... 55 
3.1.2.5    Tariff exemption  ................................ ................................ ................................ ...55 
3.1.2.6    Preferential tariffs  ................................ ................................ ................................ .56 
3.1.3    Other charges affecting imports  ................................ ................................ ................. 56 
3.1.4    Import prohibitions, restrictions, and licensing  ................................ ............................ 57 
3.1.4.1    Import prohibitions  ................................ ................................ ............................... 57 
3.1.4.2    Import licensing  ................................ ................................ ................................ ....58 
3.1.5    Anti-dumping, countervailing, and safeguard measures  ................................ ................ 61 
3.1.5.1    Anti-dumping and countervailing measures  ................................ .............................. 61 
3.1.5.2    Safeguards  ................................ ................................ ................................ ........... 62 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............. 63 
3.2.1    Customs procedures and requirements  ................................ ................................ .......63 
3.2.2    Taxes, charges, and levies  ................................ ................................ ........................ 63 
3.2.3    Export prohibitions, restrictions, and licensing  ................................ ............................. 64 
3.2.3.1    Export prohibitions  ................................ ................................ ................................ 64 
3.2.3.2    Export licensing  ................................ ................................ ................................ ....65 
3.2.4    Export support and promotion  ................................ ................................ ................... 66 
3.2.4.1    Bonded warehouses  ................................ ................................ .............................. 66 
3.2.4.2    Duty drawback  ................................ ................................ ................................ .....67 
3.2.4.3    Tax and duty compensation  ................................ ................................ .................... 67 
3.2.4.4    Customs free zones  ................................ ................................ ............................... 67 
3.2.4.5   Free zones under the Industrial Estate Authority of Thailand  ................................ ......68 
3.2.4.6    Export promotion  ................................ ................................ ................................ ..69 
3.2.5    Export finance, insurance, and guarantees  ................................ ................................ ..70 
3.3   Measures Affecting Production and Trade  ................................ ................................ .......72 
3.3.1    Incentives  ................................ ................................ ................................ ............... 72 
3.3.1.1    Taxation  ................................ ................................ ................................ .............. 72 
3.3.1.2    Tax and non -tax incentives  ................................ ................................ .................... 75 
3.3.1.2.1    Overview  ................................ ................................ ................................ .......... 75 
3.3.1.2.2    Activity - and merit -based incentives  ................................ ................................ .....77 
3.3.1.2.3    Other incentives offered by the BOI: SEZs and others  ................................ ............. 78 
3.3.1.2.3.1    Measures to promote investment in SEZs  ................................ ........................... 78 
3.3.1.2.3.2    Other incentives offered by the BOI  ................................ ................................ ...79 
3.3.1.2.4    Other incentives  ................................ ................................ ................................ .79 
3.3.2    Standards and other technical requirements  ................................ ............................... 83 
3.3.3    Sanitary and phytosanitary requirements  ................................ ................................ ....85 
3.3.4    State trading, state -owned enterprises, and privatization  ................................ ............. 89 
3.3.4.1    State trading  ................................ ................................ ................................ ........ 89 
3.3.4.2    SOEs  ................................ ................................ ................................ ................... 89 
3.3.5    Government  procurement  ................................ ................................ ......................... 91 WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.3.5.1    Overview  ................................ ................................ ................................ ............. 91 
3.3.5.2    Legislation, general policies and institutional arrangements  ................................ ........ 92 
3.3.5.3    Procurement methods  ................................ ................................ ........................... 93 
3.3.5.4    Electronic government procurement  ................................ ................................ ........ 95 
3.3.5.5    Remedies  ................................ ................................ ................................ ............. 95 
3.3.5.6    Other policy considerations  ................................ ................................ .................... 95 
3.3.5.7    Bilateral initiatives and international cooperation  ................................ ...................... 96 
3.3.6    Competition policy and price r egulation  ................................ ................................ ......96 
3.3.6.1    Legal and institutional frameworks  ................................ ................................ .......... 96 
3.3.6.2    Prohibitions and permissions under the Trade Competition Act B.E. 2560 (2017)  .......... 99 
3.3.6.2.1    Anti-competitive agreements  ................................ ................................ ............... 99 
3.3.6.2.2    Abuse of dominant market position  ................................ ................................ ......99 
3.3.6.2.3    Mergers  ................................ ................................ ................................ ............ 99 
3.3.6.3    Enforcement  ................................ ................................ ................................ ......... 99 
3.3.6.4    Price regulation and control  ................................ ................................ ..................  101 
3.3.7    Intellectual property rights (IPRs)  ................................ ................................ ............  104 
3.3.7.1    Overview  ................................ ................................ ................................ ...........  104 
3.3.7.2    Economic policy context  ................................ ................................ .......................  104 
3.3.7.3    Structure and use of the IP system  ................................ ................................ ....... 105 
3.3.7.4    International context and WTO participation  ................................ ...........................  107 
3.3.7.5    Patents  ................................ ................................ ................................ ..............  108 
3.3.7.6    Trademarks  ................................ ................................ ................................ ........  109 
3.3.7.7    Geographical indications (GIs)  ................................ ................................ ..............  109 
3.3.7.8    Copyright and related rights  ................................ ................................ .................  110 
3.3.7.9    Enforcement  ................................ ................................ ................................ ....... 111 
4   TRADE POLICIES BY SECTOR  ................................ ................................ ...................  113  
4.1   Agriculture  ................................ ................................ ................................ ...............  113 
4.1.1    Features  ................................ ................................ ................................ ...............  113 
4.1.2    Trade  ................................ ................................ ................................ ...................  114 
4.1.3    Agricultural policies  ................................ ................................ ................................  115 
4.1.3.1   Legal, institutional, and policy framework  ................................ ..............................  115 
4.1.3.2    Border measures  ................................ ................................ ................................  117 
4.1.3.3    Domestic support  ................................ ................................ ................................  120 
4.2   Fisheries  ................................ ................................ ................................ ..................  122 
4.2.1    Features  ................................ ................................ ................................ ...............  122 
4.2.2    Trade  ................................ ................................ ................................ ...................  123 
4.2.3    Fisheries policies  ................................ ................................ ................................ .... 124 
4.2.3.1    Legal, institutional, and policy framework  ................................ ..............................  124 
4.2.3.2    Border measures  ................................ ................................ ................................  125 
4.2.3.3    Domestic support  ................................ ................................ ................................  126 WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  4.3   Energy  ................................ ................................ ................................ ....................  127 
4.3.1    Introduction  ................................ ................................ ................................ ..........  127 
4.3.2    Hydrocarbons  ................................ ................................ ................................ ........  131 
4.3.3    Electricity  ................................ ................................ ................................ .............  133 
4.4   Manufacturing  ................................ ................................ ................................ ..........  134 
4.5   Services  ................................ ................................ ................................ ..................  136 
4.5.1    Financial services  ................................ ................................ ................................ ... 136 
4.5.1.1    Banking  ................................ ................................ ................................ .............  138 
4.5.1.1.1    Market structure and overview  ................................ ................................ ...........  138 
4.5.1.1.2    Legal framework  ................................ ................................ ..............................  140 
4.5.1.2    Insurance  ................................ ................................ ................................ ..........  141 
4.5.1.2.1    Market structure  ................................ ................................ ..............................  141 
4.5.1.2.2   Legal framework  ................................ ................................ ..............................  142 
4.5.2    Communications  ................................ ................................ ................................ .... 145 
4.5.2.1    Telecommunications  ................................ ................................ ............................  145 
4.5.2.2    Postal and courier services  ................................ ................................ ...................  149 
4.5.3    Transport  ................................ ................................ ................................ ..............  149 
4.5.3.1    Civil a viation  ................................ ................................ ................................ ...... 149 
4.5.3.2    Terrestrial transport  ................................ ................................ ............................  153 
4.5.3.2.1    Road transport  ................................ ................................ ................................ . 153 
4.5.3.2.2    Rail transport  ................................ ................................ ................................ ... 154 
4.5.3. 3   Maritime transport  ................................ ................................ ..............................  155 
4.5.4    Tourism  ................................ ................................ ................................ ................  156 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 159 
CHARTS  
 
Chart 1.1 Contribution to percent change in real GDP, FY2015 -18 ................................ ............ 16 
Chart 1.2 Nominal and real effective exchange rates, 2015 -January 2020  ................................ .24 
Chart 1.3 Product composition of merchandise trade (SITC Rev.3), 2015 and 2019  .................... 27 
Chart 1.4 Direction of merchandise trade, 2015 and 2019  ................................ ....................... 28 
Chart 3.1 Distribution of MFN tariff rates, 2014 and 2020  ................................ ....................... 54 
Chart 3.2 Average applied MFN and bound tariff rat es, by HS section, 2014 and 2020  ................ 54 
Chart 3.3 Charges for the use of IP n.i.e., 2005 -18 ................................ ..............................  105 
Chart 4.1 Agricultural land use, 2019  ................................ ................................ .................  114 
Chart 4.2 Trade in agriculture, 2015 -19 ................................ ................................ ..............  114 
Chart 4.3 Distribution of MFN applied WTO agricult ure tariff rates, 2020  ................................ . 117 
Chart 4.4 Agricultural support, 2014 -16 ................................ ................................ ..............  121 
Chart 4.5 Catch of marine fisheries, 2007 -19 ................................ ................................ ...... 122 
Chart 4.6 Marine capture fisheries: national landings in domestic ports, 2009 -18 .....................  123 
Chart 4.7 Main aquaculture productio n, 2009 -18 ................................ ................................ . 123 WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Chart 4.8 Imports and exports of energy products, 2015 -19 ................................ .................  127 
Chart 4.9 Electricity generation and installed generating capacity, as at 31  December  2019 ...... 133 
Chart 4.10 Main manufacturing subsectors, 2018  ................................ ................................ . 134 
TABLES  
 
Table 1.1 Selected macroeconomic indicators, 2015 -19 ................................ .......................... 12 
Table 1.2 Selected relief measures to cope with the effects of COVID -19 ................................ ..15 
Table 1.3 Basic economic indicators, 2015 -19 ................................ ................................ ........ 17 
Table 1.4 Key fiscal rules under the Fiscal Re sponsibility Act  ................................ ................... 19 
Table 1.5 Balance of payments, 2015 -19 ................................ ................................ .............. 25 
Table 1.6 Trade in services, 2015 -19 ................................ ................................ .................... 29 
Table 1.7 Inflows of FDI, 2015 -19 ................................ ................................ ........................ 30 
Table 1.8 Outflows of FDI, 2015 -19 ................................ ................................ ...................... 31 
Table 2.1 Ministry of Commerce Action Plan, main objectives  ................................ .................. 36 
Table 2.2 Selected notifications to the WTO, 2015 -2020 (26 July)  ................................ ............ 37 
Table 2.3 ASEAN and Thailand's RTAs in force, June 2020  ................................ ....................... 39 
Table 2.4 Thailand's utilization of preferential tariffs under GSP schemes, 2015 -19 .................... 42 
Table 2.5 Businesses res tricted for foreign investment under the Foreign Business Act  ............... 45 
Table 3.1 Differences between the old and new Customs Acts  ................................ ................. 48 
Table 3.2 Structure of the tariff schedule, 2014 and 2020  ................................ ....................... 51 
Table 3.3 Summary analysis of the MFN tariff, 2020  ................................ ............................... 53 
Table 3.4 Tariff lines with applied rates higher than their bound rates ................................ .......55 
Table 3.5 Summary analysis of preferenti al tariffs, 2020  ................................ ......................... 56 
Table 3.6 Products prohibited from importation, 2020  ................................ ............................ 57 
Table 3.7 Products subject to import licensing requirements, 2020  ................................ ........... 58 
Table 3.8 Products subject to other import requirements, 2020  ................................ ............... 59 
Table 3.9 Export duties, 2020  ................................ ................................ .............................. 63 
Table 3.10 Products subject to export licensing requirements, 2020  ................................ ......... 65 
Table 3.11 Other products subject to export requirements, 2020  ................................ ............. 66 
Table 3.12 Exported goods: duty compensation rate as percentage of f.o.b. value, 2015 -19 .......67 
Table 3.13 I -EA-T free zones, 2015 -19 ................................ ................................ ................. 68 
Table 3.14 Central government tax re venue, by source, FY2015 -FY2019  ................................ ..72 
Table 3.15 VAT exemptions and zero -rate VAT  ................................ ................................ ......73 
Table 3.16 Excise tax  ................................ ................................ ................................ ......... 74 
Table 3.17 I ncentives  ................................ ................................ ................................ ......... 76 
Table 3.18 Incentives granted to SEZs  ................................ ................................ .................. 78 
Table 3.19 Notified subsidies at sectoral levels  ................................ ................................ ......82 
Table 3.20 Performance of SOEs, 2015-18 ................................ ................................ ............ 89 
Table 3.21 Value of government procurement by type of procuring entity, 2015 -19 ................... 91 
Table 3.22 Regulations issued by the Ministry of Finance on the implementation of the Public 
Procurement and Supplies Administration Act B.E. 2560  ................................ ......................... 93 WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Table 3.23 Procurement methods for the procurement of supplies under the 2017 Act  ................ 94 
Table 3.24 Value of annual procurement by method of procurement, 2018 and 2019  ................. 95 
Table 3.25 Penalties for different types of anti -competitive conduct  ................................ ........  100 
Table 3.26 Goods and services subject to price monitoring, March 2020  ................................ . 101 
Table 3.27 List of goo ds and services under price control, March 2020  ................................ .... 102 
Table 3.28 Applications for trademarks, industrial designs, and patents, and pat ents granted, 
2014-19 ................................ ................................ ................................ .........................  106 
Table 3.29 Cases brought to the CIPITC, 2014 -19 ................................ ................................  111 
Table 4.1 Production of selected agricultural products, 2015 -19 ................................ .............  113 
Table 4.2 Exports of selected agricultural products, 2015 -19 ................................ .................  115 
Table 4.3 Imports of selected agricu ltural products, 2015 -19 ................................ .................  115 
Table 4.4 Tariff quotas fill rates, 2019  ................................ ................................ ................  118 
Table 4.5 Main exports and imports of fish and fish products, 2015 -19 ................................ ... 124 
Table 4.6 Strategies for fisheries management  ................................ ................................ .... 125 
Table 4.7 Energy production and consumption,  2015-19 ................................ .......................  127 
Table 4.8 Renewable energy incentives, 2019  ................................ ................................ ...... 129 
Table 4.9 Imports and exports of main energy products (2018 -19), and MFN tariff  ..................  131 
Table 4.10 Number and assets of financial institutions, December 2019  ................................ .. 137 
Table 4.11 Structure of the banking system: number of institutions and their respective market 
share, 2015 -19 ................................ ................................ ................................ ................  138 
Table 4.12 Thai banks' key financial indicators, 2015 -19 ................................ .......................  139 
Table 4.13 Selected telecommunications indicators, 2015 –19 ................................ ................  145 
Table 4.14 Leading telecommunications service providers, June 2020  ................................ ..... 147 
Table 4.15 HHI of the telecommunications sector, 2013 -19 ................................ ...................  148 
Table 4.16 Selected indicators of aviation transport, 2015 -19 ................................ ................  150 
BOXES  
 
Box 2.1 Thailand's Bogor Goals Progress Report (September 2018)  ................................ .......... 42 
Box 2.2 Bilateral investment treatie s and double taxation agreements in force, 2019  ................. 47 
Box 3.1 Responsibilities of the Department of International Trade Promotion (DITP)  .................. 69 
APPENDIX TABLES  
 
Table A1.1 Merchandise exports by group of products, 2015 -19 ................................ .............  159 
Table A1.2 Merchandise imports by group of products, 2015 -19 ................................ ............  160 
Table A1.3 Merchandise exports by destination, 2015 -19 ................................ ......................  161 
Table A1.4 Mer chandise imports by origin, 2015 -19 ................................ .............................  162 
 
Table A2.1 Thailand 's preferential tariff utilization rate under RTAs, 2015 -19 ...........................  163 
 
Table A3. 1 State involvement in the economy, 2019  ................................ ...........................  164 
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  SUMMARY  
1. Since its previous Trade Policy Review in 2016, Thailand has maintained macro -financial 
stability, supported by prudent fis cal and monetary policies. These policies have resulted in subdued 
inflation, relatively low levels of public debt, a sizable current account surplus, substa ntial foreign 
exchange  reserves , and a sound  financial system . Between 2015 and 2019, t he economy g rew at 
an annual average rate of 3.4% in real terms, driven mainly by private consumption  and, in some 
years, by net exports, wh ereas  the contribution of gross investment remained modest. On the supply 
side, the services sector (including construction) rem ained the largest contributor to GDP, with its 
share rising to 61% in 2019 (from 58% in 2015), while the shares of manufacturing and agriculture 
declined. Nominal GDP per capita reached almost USD 8,000 in 2019, placing Thai land in the upper -
middle -income group of countries.  
2. After a period of solid growth, in  2019 the Thai economy entered a downturn , caused mainly 
by the global economic slowdown and international trade tensions , which resulted in a contraction 
in exports, private investment and consumption. T he Government adopted accommodative fiscal 
and monetary policies to support economic growth  from the second half of 2019.   
3. During 2020, the difficulties facing the Thai economy have been exacerbated by the adverse 
impact of the COVID -19 pande mic. The contraction of global trade has severely affected Thai 
merchandise exports and disrupted global supply chains, including in the automobile sector, which 
is one of Thailand's main industries. The tourism sector, a major contributor to GDP, has also  
suffered a deep contraction due to international travel bans and Thailand's own inbound restrictions, 
resulting in a virtual halt of foreign tourist arrivals, and a severe impact on businesses and jobs in 
tourism -related activities. Private investment and  consumption have further contracted, due to weak 
demand, economic uncertainty, and weakening employment and income conditions. To mitigate the 
economic effects of COVID -19, the  central bank responded with monetary policy action s, such as 
reducing the poli cy interest rate and addressing liquidity strains. In addition, the Government 
launched a three -phase COVID -19 Relief Package , worth about 14% of GDP , primarily targeted at 
the most vulnerable households and businesses , and consist ing mainly of cash transf ers, soft loans 
and tax relief measures. In June 2020, t he authorities projected that the economy would contract 
by 8.1% in 2020, with the contraction affecting almost all GDP components . It has also been  
estimated that some 8.4 million jobs are at risk in the manufacturing and services industries.  
4. Throughout the review period, Thailand posted a surplus in the current account, reflecting a 
persistent savings -investment gap, and leading to a substantial accumulation of foreign exchange 
reserves (USD 2 24.3 billion at end -2019) . As a flip -side effect of this, the Thai baht (THB) 
appre ciated during the review period, putting pressure on competitiveness. However, amid 
heightened volatility in global financial markets due to the COVID -19 crisis, the baht ha s depreciated 
slightly in 2020. The adoption of accommodative fiscal policies to address the economic downturn 
has been possible thanks to the Government's healthy fiscal position. In 2018, the Fiscal 
Responsibility Act (FRA) was enacted to further strengt hen fiscal discipline , medium -term planning , 
and fiscal transparency. The FRA introduce d new targets relating to debt level and budget allocation , 
including for capital investment.  Some of these targets have been revised to address the COVID -19 
contingency .  
5. Thailand's two-way trade in goods and services represent ed 110%  of GDP  in 2019, reflecting 
the country's outward -orientation and integration into global value chains. Thailand's international 
trade flows show the growing importance of China and ASEAN as  its main regional market s and 
supplier s, although the United States, the European Union and Japan are still among its top trading 
partners. Thai merchandise exports continue to be dominated by manufactured products (73% of 
total exports), with computer pa rts and automotive products being the leading export items. Imports 
are also concentrated in manufactured goods, followed by fuels and other mining products. Foreign 
direct investment (F DI) trends also show Thailand's deep integration with ASEAN countr ies and other 
economies in the region , while the significant increase in investment outflows indicates that Thailand 
has become a net capital exporter . 
6. In addition to the immediate threats to its economic outlook, looking forward , Thailand faces 
some important  challenges. Domestic structural constraints, notably low levels of public and private 
investment, added to the effect of natural disasters and socio -political tensions, have weighed on 
Thailand's recent economic performance. Persistent inequality also rem ains a challenge, as income 
and regional disparities have increased in recent years. Thailand will also need to complete fiscal WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  reform to face the increasing spending requirements associated with a rapidly aging population , and 
deal with structural problem s in its labour market, including the existence of a large informal sector. 
Another challenge is to achiev e higher and sustained increases in total factor productivity, a key 
indicator of international competitiveness. Th ailand's  prospects of sustained eco nomic growth could 
be further improved by increasing public and private investment, implementing policies to enhance 
innovation, productivity and competitiveness, and pursuing the liberalization of trade and 
investment, particularly in the services sector.  
7. Since Thailand's last Review, a new Constitution was promulgated in 2017, and general 
elections were held in 2019. The new Government issued the National Strategy (2018 -2037), 
underpinned by its development policy, Thailand 4.0 . The latter aims at  transfo rming Thailand into 
a value -added, innovative, and knowledge -based economy  through, inter alia , promoting innovation 
and the development of new technology -based industries , and enhancing Thailand's position as a 
regional hub by upgrading its physical infrastructure.  
8. Thailand remains strongly committed to the multilateral trading system and is actively 
engaged in WTO activities. At the same time, it has continued to pursue its economic integration 
agenda within the ASEAN (where progress has been made towards the consolidation of the ASEAN 
Economic Community ), and with other economic partners through the conclusion of RTAs. Currently, 
Thailand has 13 RTAs, 2 of which came int o force during the period under review: the Thailand -Chile 
Free Trade Agreement (2015) and the ASEAN -Hong Kong, China Free Trade Agreement (2019). 
Overall, Thailand has maintained a good record of notifications to the WTO; however, notifications 
on agricul tural domestic support for the past few years remain outstanding. During the period under 
review, Thailand was involved in two new dispute settlement cases in the WTO, one as a complainant 
and the other as a respondent.  
9. There were no major changes to Thai land's foreign investment regime during the review 
period. While s ome steps were taken to liberalize FDI in infrastructure development and in certain 
services industries , restrictions on foreign participation remain in several sector s, such as media, 
rice farming, fisheries, mining, transportation, financial services, telecommunications, transport, and 
tourism.  
10. Since its last Review, Thailand has improved its customs regime and adopted a new Customs 
Act (2017), which helped simplify customs procedures and improved transparency. In 2015, Thailand 
ratified the WTO Trade Facilitation Agreement and has now implemented 97.1% of its commitments. 
Under the e -Customs system, customs registration, declaration and document submission are 
conducted electronically, and  e-declarations now represent 100% of import declarations.  
11. Thailand's average MFN tariff rose from 13.4% in 2014 to 14.5% in 2020, mainly due to 
nomenclature changes. Its tariff structure remains relatively complex: non -ad valorem  duties 
account for 8% of  tariff lines, and tariff rates range from zero to 226% when ad valorem equivalents 
are excluded, and 557.4% when they are included. Non -agricultural products face considerably lower 
tariff rates than agricultural products. In the WTO, Thailand bound 76.3%  of its tariff lines at the 
HS eight-digit level; the gap between bound and applied rates is significant. Tariff quotas and import 
surcharges remain in place. Import tariffs account for about 4% of total tax revenue.  
12. Import prohibitions and licensing requi rements apply for reasons of economic stability, public 
health, national security, public morals and national interest. Legislation on anti -dumping was 
amended in 2019 to clarify certain provisions, including on anti -circumvention. Thailand has never 
initiated any countervailing investigation, although it has had recourse to other trade remedies. 
During the review period, it initiated 23 anti -dumping investigations, and imposed one safeguard 
measure and extended two others.  
13. Export duties are levied on a fe w goods; although in most cases they are not applied in 
practice, the persistence of relatively high statutory export taxes remains an element of uncertainty 
for traders. Some products are prohibited from exportation and, during the COVID -19 pandemic, 
export bans on bird eggs and surgical masks were adopted, with the ban on the latter still in place. 
Thailand continues to operate several schemes to facilitate exports, such as bonded warehouses, 
duty drawback, tax and duty compensation, customs free zones, a nd incentives under the Industrial 
Estate Authority of Thailand. The Department of International Trade Promotion offers a wide range 
of services to Thai entrepreneurs, particularly SMEs, to promote their exports of goods and services. WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  The state -owned Expor t-Import Bank of Thailand provides export credit and export -credit insurance 
at competitive market rates to enhance the participation of Thai businesses in international markets.  
14. Thailand maintains a myriad of tax and non -tax investment incentives schemes,  with a rather 
complex structure. These include the incentives provided by the Board of Investment, and those 
offered to special economic zones, SMEs, and certain sectors such as farming, fishing, and renewable 
energy. Among the main support measures intro duced during the review period are: incentive 
packages for promoted activities under the Eastern Economic Corridor (EEC) Act (May 2018); a tax 
incentive scheme operated by the Revenue Department to promote Thailand as an international 
business centre (Octo ber 2018); and the "Thailand plus " package to attract foreign businesses to 
relocate to Thailand and to expedite large -scale investment (September 2019). As there is no specific 
budget earmarked for investment promotion incentives, no information on revenu e forgone due to 
such schemes is available.  
15. The Industrial Products Standards Act B.E.2511 (1968) was amended in 2019; as a result, 
mandatory standards are now enforced by ministerial regulations instead of royal decrees, and 
penalties were increased for m anufacturing, importing, and selling products under technical 
regulations without the relevant certificates. The procedure to develop standards and technical 
regulations remains unchanged. Since 2015, Thailand has developed 743 new standards, of which 
32 are mandatory. The share of national standards that are identical or similar to international 
standards is 37.4%. At the WTO TBT Committee, specific trade concerns have been raised regarding 
Thailand's measures on certification and labelling requirements on  spirits, alcoholic beverages, and 
infant food. There has been no major change to Thailand's SPS regime since 2015. Members have 
raised concerns in the SPS Committee regarding measures maintained by Thailand on certain meat, 
animals and animal products, so me fruits, and food containing pesticide residues.  
16. Thailand notified to the WTO its three state -trading enterprises for the period 2014 -16, 
concerning agricultural products, pure alcohol, and cigarettes. State -owned enterprises (SOEs) 
continue to have a s ignificant presence in many sectors of the economy (e.g. financial services, 
energy, telecommunications, transport, industry, commerce, agriculture, natural resources, and 
public utilities), and some are among the top receivers of public funds. In 2019, th e State -Owned 
Enterprise Development Act and the Public Private Partnership Act came into force with a view to 
reforming and improving the performance of SOEs.  
17. The Public Procurement and Supplies Administration Act was adopted in 2017 , aimed at 
preventing  corruption and anti -competitive behavior. The Act brought SOEs under its coverage and 
requires that due consideration be given to the performance aspect in addition to the price of a 
tender; it also aims to enhanc e transparency via the use of e -procuremen t. The price preference 
programme for domestic suppliers was eliminated; however, preferences are still given to certain 
domestic suppliers via the use of the specific procurement method. Thailand has not undertaken 
market access commitments on government procurement in its RTAs. It is an observer to the WTO 
Committee on Government Procurement but has no intention to join the Plurilateral Agreement on 
Government Procurement in the near future.  
18. Thailand adopted a new Trade Competition Act in 2017. The Act covers, for the first time, 
SOEs, public organizations and other state agencies; however, central, provincial and local 
governments and sectors subject to specific laws (e.g. telecommunications and energ y) remain 
excluded. The competition authority's independence was strengthened and its powers increased, 
including the power to issue administrative penalties for violations. However, the legal framework 
for price regulation remains unchanged, and many good s and services are subject to price monitoring 
or control (e.g. food, farm inputs, medical supplies, and delivery services for online shopping).  
19. As a net intellectual property importing country with an expanding deficit in IP licensing fees, 
Thailand has implemented reforms to its IP system, aimed at boost ing performance in the areas of 
science, technology  and innovation . During the review period, the Trademark Act was amended to 
provide for the registration of sound marks , and the Copyright Act and the Co mputer Crime Act were 
amended to better address online IP infringement. C onsiderable efforts have also been made 
towards streamlining  trademark and patent examination processes. During the review period, 
Thailand joined  the Madrid Protocol and the Marrakes h Treaty , and began the implementation of the 
ASEAN IPR Action Plan 2016 -25. Despite these efforts, there remain concerns regarding certain 
enforcement issues, such as the use of unlicensed software, and cable and satellite signal theft.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  20. Thailand is a net  exporter of agricultural commodities, and a major global producer of several 
crops. Agriculture receives more trade protection than the rest of the economy: the average tariffs 
on agricultural products (32.7%) is much higher than on non -agricultural produ cts (11.8%); tariff 
quotas remain in place for 128 tariff lines (although the fill rates are very low for a number of them); 
and some products are subject to import surcharges, import and export licensing, and export taxes. 
Domestically, the Government app lies price monitoring, and provides investment incentives and 
subsidies; Thailand's latest notification to the WTO on domestic support covered 2014 -16. Foreigners 
are not permitted to buy land for agriculture, but they may lease it; they are prohibited fro m 
engaging in certain activities, such as rice farming, plantation or crop growing, and livestock farming. 
They must obtain approval to engage in sugar production, rice milling and flour production  from rice 
and other crops. Thailand is also a net fish exp orter, and has adopted measures to tackle illegal, 
unreported, and unregulated (IUU) fishing. The Fisheries Act 2015 was amended in 2017 to allow 
for stricter penalties for illegal fishing. Support has been provided for fishermen and fishing vessel 
owners affected by the measures to combat IUU fishing. F oreigners are prohibited from engaging in 
fisheries of aquatic animals in Thai waters and specific  economic zone s, but they  may work as crew 
of a fishing vessel provided they are registered  in Thailand as fo reign workers . 
21. Thailand imports energy products to meet its consumption needs. The Petroleum Act was 
amended in 2017, adding two concession regimes: production -sharing contracts and service 
contracts. The Oil Fuel Fund Act, which came into force in 2019, a ims to stabilize fuel prices in the 
event of a fuel crisis. The Fund is financed from levies on the consumption of petroleum products 
except jet fuel. The prices of energy products remain under monitoring and/or control. Thailand 
notified to the WTO its su pport measures to the energy sector, including incentives for renewable 
energy. The manufacturing sector has been facing challenges, including currency appreciation and 
the global economic slowdown. In line with Thailand 4 .0, which promotes growth through innovation, 
several incentives schemes are provided to facilitate industrial restructuring .  
22. The financial sector remained sound and stable during the review period, despite challenging 
external and internal conditions. The authorities continued to improve  the regulatory and supervisory 
frameworks to enhance financial stability. Measures were also taken to modernize the sector (such 
as the adoption of regulations to enable the use of digital technologies and support a more inclusive 
FinTech system) and to a llow greater foreign participation in financial institutions.  
23. The telecommunications infrastructure was significantly enhanced during the review period. A 
national broadband network now covers all villages across the country, providing "open access " to 
any duly licensed operators. The regulatory regime was modernized since the last concession 
agreements expired in 2018. The licensing procedure for telecommunication service providers was 
streamlined: Internet services are no longer regulated with separate l icences. Foreign equity in 
telecom operators is capped at 49% of total capital. There is no requirement for data localization.  
24. The regulatory regime for air transport was also modernized since the last Review. Most of 
Thailand's air services agreements cov er up to the fourth freedom of traffic rights, with varying 
restrictions on destination, designation and capacity. During the review period, low -cost carriers in 
Thailand grew rapidly, in terms of both fleet size and transport capacity. Facing the COVID -19 
pandemic, air passenger numbers dropped by almost 100% on a year -on-year basis. Road transport, 
especially of freight, is competitive among private operators. Rail transport plays a relatively small 
role compared with other modes of transport, but Thailan d has now begun the construction of its 
high-speed rail projects. Restrictions on foreign capital participation remain in place for all modes of 
transport; Thai citizens or enterprises must hold at least 51% of total equity and have a controlling 
power ove r management.  
25. Tourism plays an important role in the economy. Hotels and restaurants alone accounted for 
5.9% of GDP and 7.6% of employment in 2019. Tourism is also the country's main foreign exchange 
earner; in 2019, travel services generated USD 60.5 bi llion, or 73.8% of total services exports. Like 
air transport, the tourism sector has been adversely impacted by the COVID -19 travel restrictions. 
The Government has provided various assistance measures, including loans to support MSMEs' 
liquidity and gran ts to boost domestic tourism demand. The regulator y regime for the sector was 
updated with the aim of ensuring service quality and enhancing competitiveness. A 49% cap on 
foreign ownership remains in place for hotels, travel agencies and travel operators. There is no 
foreign capital restriction on restaurants and catering services, nor a specific regulatory regime for 
the operation of virtual travel agencies.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  Thailand is an upper -middle -income country, with a diversified economy in which the services 
and industrial sectors are the main contributors to GDP and exports. At the same time, the country 
remains an important producer and exporter of some agric ultural products, such as rice and rubber. 
Thailand is the seventh -largest economy in Asia, and the second largest in the Association of 
Southeast Asian Nations (ASEAN).1 
1.2.  Between 2015 and 2019, the Thai economy grew at an annual average rate of 3.4%  in real 
terms, driven mainly by private consumption throughout the period, and by net exports in some of 
the years covered by the Review, while the contribution of gross investment remained modest. 
During the same period, the economy was characterized by subdue d inflation, relatively low levels 
of public debt, a sizable current account surplus, large international reserves, and appreciation of 
the Thai  baht (THB) (Table 1.1 ). In addition, the financial system remained sound  (Section 4.5.1). 
Table 1.1 Selected macroeconomic indicators, 2015 -19 
  2015  2016  2017  2018  2019  
Real GDP (THB billion, 2002 prices)  9,521.4  9,847.9  10,248.4  10,673.7  10,926.9  
Real GDP (USD billion, 2002 prices)  278.0  279.0  302.0  330.4  351.9  
Current GDP (THB billion)  13,743.5  14,592.6  15,486.6  16,365.6  16,879.0  
Current GDP (USD billion)  401.2  413.4  456.3  506.5  543.7  
GDP per capita (USD)  5,839.2  5,994.0  6,593.2  7,467.1  7,996.2  
National accounts       
Real GDP (at 2002 prices) (% change)  3.1 3.4 4.1 4.2 2.4 
Consumption (% change)  2.6 2.7 2.4 4.1 3.8 
   Private consumption  2.6 2.9 3.1 4.6 4.5 
   Government consumption  2.5 2.2 0.1 2.6 1.4 
Gross fixed capital formation (% change)  4.4 2.9 1.8 3.8 2.2 
   Private  -2.1 0.6 2.9 4.1 2.8 
   Public  28.4 9.6 -1.4 2.9 0.2 
Exports of goods and services (% change)  1.3 2.7 5.2 3.3 -2.6 
Imports of goods and services (% change)  0.0 -1.0 6.2 8.3 -4.4 
   XGS/GDP (%) (at current market prices)  67.6 67.1 66.7 64.9 59.7 
   MGS/GDP (%) (at current market prices)  57.2 53.5 54.2 56.0 50.6 
Unemployment rate (%)  0.9 1.0 1.2 1.1 1.0 
Contribution of total factor productivity (TFP) to 
GDP growth (2002=1.0)  2.11 1.98 2.78 1.76 .. 
Prices and interest rates       
Headline inflation (% change, period average)  -0.9 0.2 0.7 1.1 0.7 
   Core inflationa (% change, period average)  1.1 0.7 0.6 0.7 0.5 
Deposit rate  1.43 1.30 1.29 1.29 1.42 
Lending rate  4.73 4.47 4.42 4.15 4.08 
Exchange rate       
THB/USD (annual average)  34.25  35.30  33.94  32.31  31.05  
Nominal effective exchange rate (annual 
average, % change)  4.1 -2.2 4.2 4.5 6.6 
Real effective exchange rate (annual average, 
% change)  0.7 -3.6 3.0 3.4 5.3 
Fiscal accountb (% GDP)  
General government balance  0.2 0.4 -0.4 0.1 0.4 
Revenue  22.2 21.4 20.8 21.2 20.9 
   Tax revenue  17.6 16.8 16.3 16.5 16.1 
Expenditure  22.0 21.0 21.2 21.1 20.5 
Government debt  30.6 31.2 32.5 33.7 33.7 
   Domestic  30.0 30.5 31.9 33.2 33.2 
   External  0.6 0.7 0.6 0.5 0.5 
Public sector balancec -0.6 0.0 -1.9 0.1 0.5 
Total public debtd 42.6 41.7 41.8 42.0 41.1 
   Domestic  39.9 39.3 39.8 40.3 39.8 
   External  2.7 2.4 2.0 1.6 1.3 
 
1 World Bank indicators, data for 2018. Viewed at: 
https://databank.worldbank.org/data/download/ GDP.pdf . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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    2015  2016  2017  2018  2019  
Savings and investment (% of GDP)       
Gross national savings  29.3 31.5 32.5 31.4 31.0 
Gross domestic investment  22.4 20.9 22.8 25.0 24.9 
Savings -investment gap  6.9 10.5 9.7 6.4 6.1 
External sector (% of GDP, unless otherwise indicated)  
Current account  6.9 10.5 9.6 5.6 7.0 
Net merchandise trade  6.5 8.7 7.1 4.4 4.9 
   Exports  53.2 51.6 51.2 49.6 44.7 
   Imports  46.7 43.0 44.1 45.2 39.8 
Services balance  3.9 4.9 5.3 4.4 4.3 
Capital account  0.0 0.0 0.0 -0.1 0.0 
Financial account  -4.2 -5.0 -2.7 -3.0 -2.4 
   Direct investment  1.0 -2.6 -2.3 -1.6 -1.4 
Balance of payments  1.5 3.1 5.7 1.4 2.5 
Terms of trade (2012=100)  109.9  112.5  110.5  108.2  108.3  
Merchandise goods exports (% change)e -5.9 0.1 9.5 7.5 -3.2 
Merchandise goods imports (% change)e -10.6 -5.1 13.2 13.7 -5.4 
Service exports (% change)e 11.8 9.8 11.3 9.2 5.9 
Service imports (% change)e -6.0 2.3 7.3 17.7 7.0 
International reserves (USD billion, end period)  156.5  171.9  202.6  205.6  224.3  
External debt (USD billion)  131.1  132.2  155.2  162.4  172.1  
   % of GDP  32.7 32.0 34.0 32.1 31.7 
Debt service ratio  6.4 6.0 5.8 6.2 6.8 
.. Not available.  
a Excluding raw food and energy items.  
b Fiscal year runs from 1 October to 30 September. GDP for that period is used for the calculations.  
c Includes General Government and state -owned enterprises (SOEs). Figures taken from IMF, 
Article  IV Country Report No.  19/309. FY2018 and FY2019 are preliminary figures.  
d Includes government debt, SOEs debt, Special Financial Institutions (government guaranteed) debt, 
and government agencies debt.  
e Growth rates on merchandise  goods and services trade are based on US dollars.  
Note:  For 2019, most figures are preliminary.  
Source:  Office of the National Economic and Social Development Council (NESDC). Viewed at: 
http://www.nesdc.go .th/nesdb_en/ ; Fiscal Policy Office, Ministry of Finance, Statement of 
Government Operations – General Government . Viewed at: http://www.fpo.go.th/gfs/Annual -
Data/General -Government -(Since -1999-2014) -(1).aspx ; Bank of Thailand. Viewed at: 
https://www.bot.or.th/English/Pages/default.aspx ; Public Debt Management Office. Viewed at: 
https://www.pdmo.go.th/en ; IMF, IMF Data . Viewed at:  https://www.imf.org/en/data ; and data 
provided by the authorities.  
1.3.  Underpinned by its ample fiscal and monetary buffers, Thailand maintained macro -financial 
stability throughout the review period. However, domestic structural constraints (in particular, low 
levels of public and private investment) , added to the effect of natural disasters and socio -political 
tensions, have w eighed on Thailand's  economic performance in recent years, which has lagged 
behind other countries in the region. Persistent inequality also remains a challenge; although 
nominal GDP per capita has reached almost USD  8,000 (2019), income and regional dispa rities have 
increased.  
1.4.  Thailand's two-way trade in goods and services represent ed 110% of GDP in 2019 (124.8% in 
2015). In 201 9, it was the world's 1 9th largest exporter and the 17th largest importer of goods, and 
it ranked 1 2th and 1 6th among the world's  top exporters and importers of commercial services, 
respectively.2 Thailand's international trade flows reflect the growing importance of Asia (in 
particular  of China and ASEAN) as its main regional market and supplier, although the United States, 
the Eu ropean Union and Japan continue to be among its top trading partners. Foreign direct 
investment ( FDI) trends also show Thailand's deep integration with ASEAN countries  and other 
economies in the region , and the significant increase in investment outflows i ndicates that it has 
become a net capital exporter.  
1.5.  Given its reliance on trade and its integration into global value chains (notably in the 
automotive sector), in 2019, Thailand was affected by the global economic downturn and trade 
 
2 Rankings exclude intra -EU trade. WTO Trade Statistical Review 2020 . Viewed at: 
https://www.wto.org/english/res_e/statis_e/wts2020_e/wts2020_e.pdf .  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  tensions, which caused  its exports to decline, dragging down overall economic growth. In response, 
in the second half of 2019, the Government implemented fiscal stimulus measures and monetary 
easing to spur consumption and investment, and renewed its commitment to increase publ ic 
spending in major infrastructure projects in a bid to stimulate growth.  However, the problems facing 
the Thai economy have been exacerbated by the severe effects of the COVID -19 pandemic, 
prompting the authorities to adopt extraordinary measures to cope  with economic fallout 
(Section  1.2.1).  
1.6.  In addition to the immediate threats to the country's economic outlook, looking forward, 
Thailand will need to address structural challenges, including a persistently low investment -to-GDP 
rate (which stayed below 2 5% for most of the review period), sluggish productivity growth, the need 
to complete fiscal reform to face the increasing spending requirements associated with a rapidly 
aging population and social disparities , and the need to deal with structural problem s in the labour 
market, including the existence of a large informal sector.  The prospects of sustained economic 
growth could further be improved by upgrading the overall business climate to boost private 
investment,  and implementing policies to enhance inn ovation, productivity and competitiveness, and 
pursuing the l iberaliz ation of trade and investment, particularly in the services sector.  
1.2  Recent Economic Developments  
1.2.1   The COVID -19 pandemic  
1.7.  The COVID -19 outbreak, which hit Thailand in early 2020, has had an adverse impact on the 
economy due to a sharp decrease in external and domestic demand. The contraction of global trade 
has severely affected Thai merchandise exports and disrupted global supply chains, including the 
automobile sector, which is one of Th ailand's main industries. In May 2020, the value of merchandise 
exports contracted by 23.6% from the same period in 2019 (29% if gold exports are excluded).3 
The tourism sector, a major contributor to GDP, has also suffered a deep contraction due to both 
international travel bans and Thailand's inbound travel restrictions, resulting in a virtual halt of 
foreign tourists arrivals, and a severe impact on businesses and labour in the tourism -related 
sectors. Private investment and consumption have also contra cted, the former due to businesses' 
delayed investment plans in the face of weak demand and economic uncertainty, and the latter due 
to weakening employment, income and consumer confidence, although the recent relaxation of 
lockdown restrictions and the Go vernment's relief measures have helped reduce somewhat the 
contraction of private consumption.4 Regarding financial stability, the Bank of Thailand, the country's 
central bank, has indicated that , while the financial system remains sound and has adequate buffers, 
vulnerabilities have increased , notably with respect to the debt servicing capability of households 
and SMEs.5 As regards the external sector, the surplus in the current account has narrowed and 
capital outflows have increased, although the level  of foreign reserves remains adequate.6  
1.8.  In response to the pandemic, the Government has implemented a comprehensive package of 
monetary and fiscal measures. Between February and May 2020, the Bank of Thailand reduced the 
policy interest rate from 1.25% t o 0.5% (Section 1.2.4 ) and adopted measures to address liquidity 
strains and accelerate debt restructuring for borrowers, especially households and SMEs. In addition, 
the Cabinet  approved and is implementing a three -phase COVID -19 Relief Package worth 
THB 2.25 trillion (approximately USD 71.6 billion) or about 14% of GDP. The relief measures 
primarily target the most vulnerable households and businesses (in particular, informal workers and 
SMEs) and consist mainly of cash transfers, provision of soft loans , and tax relief measures 
(Table  1.2). Increased spending on local infrastructure projects is also contemplated. At the 
 
3 Bank of Thailand, BOT Press Release No. 36/2020, 30 June 2020 . Viewed at: 
https://www.bot.or.th/English/PressandSpeeches/Press/2020/Pages/n3663.aspx . 
4 Bank of Thailand, BOT Press Release No. 36/2020 , 30 June 2020. Viewed at: 
https://www.bot.or.th/English/PressandSpeeches/Press/2020/Pages/n3663.aspx . 
5 Bank of Thailand, BOT Press Release No. 16/2020 , 25 March 2020. Viewed  at: 
https://www.bot.or.th/English/PressandSpeeches/Press/2020/Pages/n1663.aspx ; and BOT Press Release No. 
40/2020 , 10 July 2020. Viewed at: 
https://www.bot.or.th/Thai/PressandSpeeches/Press/News2563/n4063e.pdf . 
6 World Bank  Group , Thailand Economic Monitor, Thailand in the Time of COVID -19, June 2020. Viewed 
at: https://www.worldbank.org/en/country/thailand/publication/thailand -economic -monitor -june-2020-
thailand -in-the-time-of-covid-19. WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  beginning of June 2020, the Finance Minister announced plans to introduce new stimulus measures 
from the third quarter onward to spur dom estic consumption and tourism.7 
Table 1.2 Selected relief measures to cope with the effects of COVID -19 
Tax measures  Non-tax measures  
Phase 1  (Total value THB 200 billion ) 
Speedier  VAT refund to exporters  Provision of hazard pay  for medical staff  
Reduction of withholding tax rate  Reduction of contributions to the social security fund by 
employers and employees  
Higher tax deduction of wage expenses for 
companies that did not la y off workers  Relief from payment of utility bills and refund of electricity 
bills 
 Preferential loans by the Government Savings Bank (GSB)  
 Preferential loans to promote employment by the Social 
Security Office  
 Postponement of principal payments, reduction of interest 
and deferral of interest payments for debtors affected by 
COVID -19 
Phase 2  (Total value THB 117 billion)  
Deferral of personal and corporate income 
tax payments  Provision of THB 5,000 per person per month for 3 months 
for labourers, temporary and freelance workers not covered 
by the social security system and affected by mandatory 
business closures during the pandemic  
Deferral of revenue tax payment (VAT, 
special business tax, etc.) for affected 
entrepreneurs  Higher deduction of health insurance premium  
Income tax exemption on hazard pay for 
medical staff  Provision of skills training programmes  
Deferral of excise tax payment for service 
businesses and for  entrepreneurs in the oil 
and oil products industr ies Emergency loans without collateral from the GSB and the 
Bank of Agriculture and Agricultural Cooperatives; and 
special loans with collateral from the GSB  
Import duty exemption on products for the 
preve ntion and treatment of COVID -19 Preferential loans to SMEs provided by the Small and Medium 
Enterprise Development Bank  
 Special loans to the Office of the Government Pawnshop by 
the GSB  
Phase 3  (Total value THB 1.9 trillion)  
 Emergency Decree of the Ministry of Finance to borrow in 
order to fund:  
- public health response;  
- relief cash transfers; and  
- econom ic and social rehabilitation plan  in the wake of the 
pandemic  
 Emergency Decree of the Bank of Thailand to provide soft 
loans to SMEs through Specialized Financial Institutions and 
commercial banks  
 Emergency Decree of the Bank of Thailand to maintain 
financial stability  with the creation of the Corporate Bond 
Liquidity Stabilization Fund  
Source:  Information provided by the authorities.   
1.9.  Thailand's  public health policy intervention has been quite effective in containing the spread of 
the COVID -19 infection fast and with relatively small numbers of confirmed cases and deaths by 
regional and international standards.8 Nonetheless, the economic and social costs of the pandemic, 
resulting from the containment measures applied by many countries and Thailand, have been 
significant. In the first quarter of 2020, the Thai economy contracted by 1.8% year -on-year, while 
more t han 170,000 workers in the formal sector applied for unemployment benefits. Job losses are 
expected to increase in the second and third quarters of 2020, with an estimated 8.4 million jobs at 
risk in the manufacturing and services industries as a result of  the COVID -19 outbreak; added to 
another 6 million farm jobs affected by widespread drought.9  
 
7 Reuters , Thailand plans extra stimulus measures to support virus -hit economy , 8 June 2020. Viewed 
at: https://www.reuters.com/article/us -health -coronavirus -thailand -economy/thailand -plans -extra-stimulus -
measures -to-support -virus-hit-economy -idUSKBN23F1V5 . 
8 World Bank  Group , Thailand Economic Monitor, Thailand in the Time of C OVID -19, June 2020.  
9 NESDC, Thailand 's Social Situation and Outlook of Q1/2020 . (Thai and English). Viewed at: 
http://social.nesdc.go.th/social/Portals/0/Documents/Social%20Press_Q1 -2563%20Thai -Eng_2326.pdf . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  1.10.   According to the latest estimates (June 2020), the Thai economy is projected to contract by 
8.1% this year, with the contraction affecting almost all growth com ponents, except public 
expenditure. Economic growth is expected to pick up from the third quarter onwards and achieve 
5% in 2021. This projection is based on the assumptions that there will not be a severe second  wave 
of COVID -19 outbreak in Thailand and t hat there will be widespread access to a vaccine as from the 
second quarter of 2021.10 
1.2.2   Growth, income and employment  
1.11.   Between 2015 and 2019, Thailand's economy expanded at an average rate of 3.4%  a year. 
From the expenditure side, private consumption was a relatively steady contributor to GDP growth 
throughout the period, while the contribution of investment was generally modest, and that of 
government consumption still more limited ( Chart 1.1 ). The performance of net exports fluctuated, 
making a positive co ntribution to GDP growth in the first three years (2015 -17) but turning negative 
in 2018 due to a faster increase in imports than exports. In 2019, both exports and imports declined 
due to the economic slowdown. During the review period, the economy was al so characterized by 
strong fluctuations in inventories. A period of contracting  inventories (starting in 2014 and continuing 
through 2016) anticipated the acceleration of growth in 2017 and 2018; during these two years, on 
the other hand, there was a stron g accumulation of inventories, which was a prelude to the 
deceleration of growth posted in 2019. Overall, during the review period, Thailand's growth rates 
remain ed below their pre -global financial crisis levels and continue d to trail those of other countr ies 
in the region.  
Chart 1.1 Contribution to percent change  in real GDP, FY2015 -18 
(Percentage points)  
 
Note:  FY2018 is the latest available official data.  
Source:  NESDC, National Account . Viewed at:  
http://www.nesdc.go.th/nesdb_en/main.php?filename=national_account . 
1.12.   In 2019, the Thai economy entered a downturn, with real GDP growing by 2.4%,  the weakest 
pace in the past f ive years ( Table 1.1 ). This reflected both the prevailing global slowdown and 
international trade tensions, which affected Thai merchandise exports, especially electronic products. 
 
10 Bank of Thailand, BOT Press Release No. 39/2020 , Monetary Policy Report, June 2020 , 8 July 2020. 
Viewed at: https://www.bot.or.th/English/MonetaryPolicy/MonetPolicyCo mittee/MPR/Monetary%20Policy 
%20Report/PressMPR_June2020.pdf . 
-3-2-101234567
FY2015 FY2016 FY2017 FY2018Chart 1. [THA] Contributions to percent chang8 in real GDP, FY2015 -19
(Percentage points )
Office of the National Economic and Social Development Council.  Viewed at:
http://www.nesdc.go.th/nesdb_en/main.php?filename=national_account [February 2020].Private final consumption expenditure
Government final consumption expenditureNet exports of goods & services
Gross fixed capital formationTotal GDP growthChange in inventories
Source: Note:    FY2018 is the latest available official data.WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  A 2.6% contraction in exports, in turn, weighed on private consumption (alr eady affected by high 
household debt), while private investment growth remained subdued.11 Weak domestic demand 
contributed to subdued inflation, and led to a significant contraction in imports ( -4.4%) and a further 
increase in the country's large current account surplus. This resulted in a massive accumulation of 
foreign exchange reserves and stronger appreciation pressures on the baht, raising concerns about 
Thailand's international competitiveness.12 In response to the economic slowdown, the Government 
adopted accommodative fiscal and monetary policies to support economic growth by boosting 
consumer spending and investment  (these measures preceded those taken in response to the 
COVID -19 pandemic).  Several fiscal stimulus measures were implemented in the s econd half of 
2019, mainly addressing  vulnerable population groups and SMEs, although enhanced FDI incentives 
were also adopted. On the monetary policy side, the Bank of Thailand cut its key policy rate on two 
occasions in 2019 (August and November) in order to boost the economy; the cuts were also 
expected to help mitigate foreign exchange appreciation pressures and discourage short -term 
speculative capital inflows. Three additional cuts were implemented d uring February -May 2020 as a 
response to the economic fallout caused by the COVID -19 outbreak (Section 1.2.4).  
1.13.   On the supply side, services  (including construction) remain the main contributor to Thailand's 
economic activity, with their combined share in G DP steadily increasing throughout the review period 
to 61.1% in 2019 ( Table 1.3 ). In terms of their contribution to GDP, the main services subsectors 
are wholesale and retail trade, financial and insurance activities, transport and storage, and 
accommodati on and food services, with the latter two reflecting the importance of the tourism 
industry. On the other hand, there has been a decline in the shares of manufacturing (affected by 
weak global demand), agriculture (hit by severe droughts and low prices) an d mining.   
Table 1.3 Basic economic indicators, 2015 -19 
    2015  2016  2017  2018a 2019a 
GDP by economic activity at constant 2002 prices (% change)     
Agriculture, forestry and fisheries  -6.5 -1.2 4.7 5.5 0.1  
Fishing  -10.6 0.7 -2.4 5.3 .. 
Mining and quarrying  2.4 0.8 -6.0 -3.0 1.7 
Manufacturing  1.5 2.3 2.8 3.2 -0.7 
Electricity, gas and steam and air -conditioning supply  4.9 2.9 1.8 2.2 4.9 
Water supply; sewerage, waste management  9.0 7.5 5.9 5.7 1.9 
Construction  17.1 8.0 -3.0 2.4 2.0 
Services  5.1 4.7 5.5 4.9 4.1  
Wholesale and retail trade, repair of vehicles and household goods  5.6 6.2 6.4 6.6 5.7  
Transport and storage  4.0 5.3 7.8 4.4 3.4  
Accommodation and food service activities  15.0 9.3 10.8 7.6 5.5  
Information and communication  10.1 2.4 4.1 7.6 8.8  
Financial and insurance activities  8.4 7.0 6.4 3.4 2.7  
Real estate activities  1.5 7.0 6.5 5.7 3.4  
Professional, scientific and technical activities  -1.5 -2.2 6.1 3.3 1.6  
Administrative and support activities  3.6 1.5 2.5 3.4 1.8  
Public administration and support services activities  1.1 0.4 0.8 1.5 1.0  
Education  0.2 -0.2 0.4 1.3 2.1  
Health and social work  3.2 3.0 2.8 5.1 4.6  
Arts, entertainment and recreation  9.2 21.3 12.1 12.2 11.4  
Other services  3.1 3.9 4.8 4.3 2.7  
Private household s with employed persons  3.7 -0.1 -2.0 -3.2 0.9 
Share of main sectors in current GDP (%)       
Agriculture, forestry and fisheries  8.9  8.5  8.4  8.1  8.0   
Fishing  0.7 0.8 0.7 0.7 .. 
Mining and quarrying    3.1  2.7     2.5     2.5  2.5  
Manufacturing   27.4   27.1   27.0   26.7   25.3  
Electricity, gas and steam and air -conditioning supply     2.5     2.6     2.6     2.6     2.7  
Water supply; sewerage, waste management     0.4   0.4     0.4     0.4     0.4  
Construction     2.8     2.7     2.5     2.5    2.5  
Services   54.9   55.9   56.5   57.1   58.6   
Wholesale and retail trade, repair of vehicles and household goods   14.3   15.0   15.4   15.9   16.5   
Transport and storage     5.7     5.9     5.9     5.8     6.0   
Accommodation and food service activities     4.4     4.8     5.3     5.6     5.9  
 
11 World Bank Group, Thailand Economic Monitor. Productivity for Prosperity , January 2020. Viewed at: 
http://documents.worldbank.org/curated/en/394501579357102381/Thailand -Economic -Monitor -Produc tivity-
for-Prosperity . 
12 IMF (2019), Thailand : 2019 Article IV Consultation . IMF Country Report No. 19/309, October. Viewed 
at: https://www.imf.org/en/Publications/CR/Issues/2019/10/07/Thailand -2019-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-48724 . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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      2015  2016  2017  2018a 2019a  
Information and communication     2.4     2.3     2.3     2.4     2.5   
Financial and insurance activities     7.6     7.7     7.6     7.5     7.6   
Real estate activities     2.4     2.4     2.4     2.5     2.5   
Professional, scientific and technical activities     1.9     1.7     1.8     1.7     1.7   
Administrative and support activities     1.7     1.7     1.6     1.6     1.6   
Public administration and support services activities     6.1   6.0     5.9     5.8     5.9   
Education   4.3     4.2     4.1  4.0     4.0   
Health and social work     2.1     2.1     2.1     2.1     2.2   
Arts, entertainment and recreation     0.5     0.6     0.6     0.6     0.7   
Other services     1.4   1.3     1.3     1.3     1.3   
Private household s with employed persons   0.2  0.2     0.2     0.2  0.2  
Share of sector in total employment (%)       
Agriculture, forestry and fisheries   32.3   31.2   31.5   32.1  31.4 
Mining and quarrying     0.2     0.2     0.2     0.2  0.2 
Manufacturing   17.0   16.7   16.3   16.5  16.3 
Electricity, gas, steam supply   0.3   0.3   0.3   0.3  0.3 
Water supply   0.2   0.3   0.3     0.2  0.3 
Construction   6.0   6.2   5.8   5.6  5.8 
Services   43.9   45.0   45.5   44.9  45.7  
Wholesale and retail trade   16.2   16.8   16.9   16.6  16.6  
Transportation , storage   3.2   3.2   3.3   3.3  3.5  
Accommodation and food service   7.0   7.2   7.4   7.5  7.6  
Information and communication   0.6   0.6   0.6   0.5  0.5  
Financial and insurance activities   1.4   1.4   1.4   1.3  1.4  
Real estate activities   0.5   0.5   0.5   0.5  0.5  
Professional, scientific and technical   1.0   0.9   1.0   1.0  1.0  
Administrative and support services   1.4   1.5   1.6   1.5  1.6  
Public administration and defence   4.2   4.2   4.2   4.3  4.3  
Education   3.1   3.1   3.2   3.1  3.1  
Human health and social work   1.8   1.9   1.9   1.7  1.7  
Arts, entertainment   0.7   0.7   0.6     0.7  0.7  
Other service activities   2.0     2.2     2.3     2.3  2.5  
Activities of household s as employers     0.6     0.6   0.6     0.6  0.6 
Other     0.2     0.2     0.2     0.2  0.2 
.. Not available.  
a Provisional.  
Source:  NESDC. Viewed at:  http://www.nesdc.go.th/nesdb_en/ewt_news.php?nid=4417 ; and data provided 
by the authorities.  
1.14.   In 2019, services (including construction) accounted for over 50% of total employment, while 
the share of manufacturing decreased to  16.3%  (Table 1.3 ). Agriculture contributed nearly a third 
to total employment ; this is a s ignificantly higher share than in Thailand's peers with similar levels 
of GDP per capita, and has been identified as an indicati on that the reallocation of resources from 
agriculture to higher value -added sectors has stalled since the Asian financial crisis .13 The 
contribution of total factor productivity (TFP) to GDP growth did not show a consistent trend between 
2015 and 2018 (la test year available) ( Table 1.1 ), and achieving higher and more stable TFP growth, 
to a large extent a measure of the impact of innovation and technology on growth, remains a 
challenge. In this respect, increasing investment in physical capital and impleme nting policies to 
enhance innovation would help improve TFP growth.  
1.15.   Over the review period, the official unemployment rate remained stable at around 1.0%, one 
of the lowest in the world ( Table 1.1 ). This surprisingly low rate masks some structural problems  in 
the labo ur market, including the existence of a large informal sector, underemployment and 
skills/jobs mismatches.14 According to a 2018 Survey by the National Statistics Office, the proportion 
of informal employment (i.e. employed persons who are not protected and not eligible for social 
security provision) has declined since 2014, but remains high , at 55.3% of total e mployment.15 The 
 
13 World Bank Group, Thailand Economic Monitor. Productivity for Prosperity , January 2020. Viewed at: 
http://documents.worldbank.org/curated/en/394501579357102381/Thailand -Economic -Monitor -Productivity -
for-Prosperity . 
14 Bank of Thailand (2019), Implications of low unemployment rate in Thailand , Monetary Policy Report , 
March . Viewed at:  https://www.bot .or.th/English/MonetaryPolicy/MonetPolicyComittee/MPR/BOX_MRP/ 
BOXMPR_EN_March2019_01.pdf . 
15 Bank of Thailand , Anotai , B. and Pornsawan , R. (2019), A Better Understanding of Thailand's Informal 
Sector , FAQ Issue  156, July. Viewed at: 
https://www.bot.or.th/Thai/MonetaryPolicy/ArticleAndResearch/FAQ/FAQ_156.pdf   WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  informal sector continues to account for a large share of enterprises in all economic sectors , and is 
not comprehensively covered by the tax system.  
1.16.   Robust economic growth over most of the past 40 years (except during the 1997 Asian 
financial crisis and the 2008 -09 global financial crisis) has enabled Thailand to reach upper -
middle -income country status and substantially reduce poverty levels. However, slower growth 
during the period under review has stalled progress in poverty reduction. The official poverty 
headcount ratio increased from 7.1% in 2015 to an estimated 9.9% in 2018.16 A decline in net farm 
income due to a fall in agricultural prices is deemed to have been one of the main factors contributing 
to the recent increase in poverty .17 Moreover, income and regional disparities have also increased 
recently. Thailand's GINI index rose from 36 in 2015 to 36.5 in 2017 (latest year available)18, 
indicating growing income inequality; and , while the increase in poverty was experienced acros s all 
regions, the most affected were the Northeast and the South regions.  
1.2.3   Fiscal policy and debt  
1.17.   Under the Fiscal Sustainability Framework established by the Cabinet, the Government has 
maintained a healthy fiscal position for over a decade. In 2018, the Fiscal Responsibility Act (FRA) 
was enacted to further strengthen fiscal discipline and medium -term planning , and promote fiscal 
transparency. The FRA introduce d new targets relating to debt level and budget allocation, including 
for capital investment ( Table 1.4 ). It also mandates the Government to prepare a Medium -term 
Fiscal Framework to serve as a master plan for fiscal and budget planning, annual budget 
formulation , and public debt management. Pursuant to the FRA, borrowings , apart from those under 
the Public Debt Administration Act , may only be made through a specifically enacted law and only 
in the case of urgent need. In addition, a new Budget Procedures Law was enacted in 2018 with the 
aim of enhancing overall budget management to make it more resul t-oriented, efficient and 
effective. Under this new Law, the emphasis is placed on outcomes derived from budget spending; 
it allows for the consideration of other sources of funds,  and requires ministers and head s of 
government agencies to monitor spending  and improve spending accountability.  
Table 1.4 Key fiscal rules under the Fiscal Responsibility Act  
 Maximum allowable ratio (%)  
 Public debt rules  
Public debt to GDP  60 
Government debt service to estimated revenue  35 
Public debt in foreign currency to total public debt  10 
Public debt service in foreign currency to exports income  5 
 Annual budget allocation rules  
Budget for capital investment  Greater than 20% of the annual budget and no 
less than the FY budget deficit  
Central Fund for Emergency Uses and Needs as % of 
annual budgeta 2.0-3.5 
Budget for principal repayment as % of annual budgeta 2.5-3.5 
Multi-year Commitment Budget  10 
a Due to the COVID -19 pandemic, these targets were tempora rily modified as follows: Central Budget 
for Emergency Uses and Needs (2.0% –7.5%), and Budget for principal repayment (1.5% -3.5%).  
Source:  Fiscal Policy Office, Ministry of Finance.  
1.18.   The Government's fiscal balance posted a modest surplus during most of the period under 
review, except in 2017 ( Table 1.1 ). In 2017, the fiscal deficit (-0.4% of GDP) was mainly the result 
of a decline in revenue , owing to a reduction in income tax and the effect of lower oil prices on oil 
tax revenue. In 2019, revenue collec tion as a share of GDP declined to 20.9%, driven by a fall in 
revenues from income and VAT, partly reflecting the economic downturn; while the share of 
expenditure declined to 20.5% of GDP, resulting in a modest fiscal surplus (0.4% of GDP).  Tax 
 
16 World Bank information, Poverty headcount ratio at USD 5.50 a day  (2011 PPP) (% of po pulation). 
Viewed at: https://data.worldbank.org/indicator/SI.POV.UMIC?locations=TH . 
17 World Bank Group, Thailand Economic Monitor. Productivity for Prosperity , January 2020. Vie wed at: 
https://documents.worldbank.org/en/publication/documents -reports/documentdetail/3 94501579357102381 
/thailand -economic -monitor -productivity -for-prosperity . 
18 World Bank, GINI Index (World Bank estimate) -Thailand . Viewed at: 
https://data.worldbank.org/indicator/SI.POV.GINI?locations=TH . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  revenue co llection showed a downward trend over the review period, standing at 16.1% of GDP in 
2019. The share of customs duties in tax revenue also declined, accounting for 2.8% of total tax 
collection in 2019. On the expenditure side, delays in the budget approval  process in recent times 
prevented the full execution of capital budgets.19  
1.19.   The Government's debt slightly increased over the last five fiscal years, representing 33.7% 
of GDP at the end of FY2019 ( Table 1.1 ). Total public debt remained stable during the period under 
review and stood at 41.1% of GDP in 2019, well below the statutory cap of 60% of GDP under the 
FRA, and comparatively low by regional and international standards. Public debt is distributed as 
follows: Government (82.1%), SOEs (12.9%), Special ized Financial Institutions 
(government -guaranteed) (4.9%), and government agencies (0.1%). Most of Thailand's pub lic debt 
(96.8%) is domestic, denominated in local currency, and contracted in the long term.  Due to the 
adoption of the COVID -19 Relief Packa ge, the authorities expect the public debt -to-GDP ratio to 
increase in FY2020 and FY2021 , while still keeping below the statutory limit of 60%.  
1.20.   Thailand's fiscal policy stance was moderately expansionary over most of the review period, 
consisting mainly of short -term fiscal stimulus measures to help economic growth. Support was 
principally targeted at vulnerable sectors of the population, and included measures such as 
subsidized loans, credit guarantees, cash support, and tax incentives. In 2019, a s the Thai economy 
slowed down, the Government adopted countercyclical fiscal measures to boost domestic demand. 
A stimulus package of THB 316 billion (USD  10.3 billion) was announced in August 2019 to support 
low-income earners, the elderly, drought -affected farmers and SMEs, in the form of cash transfers 
and debt relief and lower interest rates on loans contracted with state -owned banks. In order to 
bolster the struggling tourism sector (affected by a strong baht), the package also included cash 
allowance s and rebates for domestic tourists and visa waivers for tourists from some countries. In 
November 2019, the Government introduced a second stimulus package worth THB 100 billion. The 
new package allocated THB 200,000 to support local businesses across the  country through 
community funds; it also provided for THB 50 billion in low -interest loans for agricultural 
cooperatives and farmers as well as handouts of up to THB 10,000 to small -scale rice farmers; plus 
a cash -back scheme for home purchases by low -income households (earning less than 
THB 1.2 million annually).20 New tax incentives and other benefits designed to attract FDI (mainly 
production relocations from China) have also implemented during the review period (Section  3.3.1 ). 
1.21.   In the first months of 2 020, t he outbreak of the COVID -19 pandemic prompted the 
Government to adopt relief measures  in an effort to mitigate the economic impact of the outbreak . 
On 10 March 2020, the Cabinet approved Phase 1 of the COVID -19 Relief Package (worth 
THB 200 billion),  followed by Phase 2 (worth THB 117 billion)  on 24 March 2020, and Phase 3, which 
was approved o n 7 April 2020 for an amount of THB 1.9 trillion. The relief measures take different 
forms, including cash transfers, soft loans, tax deductions, exemptions and  deferrals, for individuals 
and businesses  (Section 1.2 .1). To support economic growth and reinforce the impact of the stimulus 
measures, the Bank of Thailand cut the key policy rate from 1.25% to 0.5% between February and 
May 2020 ( Section 1.2.4 ).  
1.22.   In order to stimulate private investment and demand, the Government has also committed 
to the completion of several public infrastructure mega -projects, including the Eastern Economic 
Corridor (EEC), which were postponed due to delays in the disbursement of the capital budget. 
Increasing in vestment in infrastructure is crucial to boost growth and enhance Thailand's 
competitiveness . The approval of the budget for the current fiscal year in January 2020, which set 
a 6.7%  increase in overall spending to THB 3.2 tril lion, was expected to help speed up the 
implementation of these projects.21 However, given the urgent need to stem the spread of COVID -19 
and mitigate its economic effects, spending priorities may need to be revised . 
 
19 In 2019, the capital budget disbursement rate was 70%. World Bank Group, Thailand Economic 
Monitor. Productivity fo r Prosperity , January 2020. Viewed at: https://documents.worldbank.org/en/publica tion 
/documents -reports/documentdetail/394501579357102381 /thailand -economic -monitor -productivity -for-
prosperity . 
20 The Nation Thailand , Finance Ministry to submit latest economic stimulus package to Cabinet , 
26 November 2019. Viewed at: https://www.nationthailand.com/business/30378742 . 
21 The budget also sets a deficit of THB 469 million, up 4.2% from the previous fiscal year . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  1.2.3.1   Tax reforms  
1.23.   In the medium - to long -term, the Government will face increasing expenditure pressures to 
address the needs of a rapidly aging population. This will require additio nal revenue, and thus a 
thorough tax reform, which could include broadening the tax base, reviewing tax rates, reducing tax 
exemptions and deductions, and enhancing tax collection, along with additional efforts to reduce the 
large informal sector. Rational izing the numerous investment incentives (Section 3.3.1) based on 
cost-benefit analysis could also help increase spending efficiency.  
1.24.   During the period under review, Thailand adopted some tax reforms aimed at increasing the 
tax base and making taxation mo re progressive and efficient. For example, in February 2016, the 
country's first inheritance tax was introduced. The new tax is imposed on inherit ors of assets worth 
over THB 100 million ; the tax rate is 5% for l ineal descendants  and 10% for other heirs .22 Also, a 
new land and building tax was instituted in March 2019 and became effective on 1 January 2020.23 
All individuals or "juristic " (i.e. legal) persons owning land or buildings (including condominiums) are 
subject to this tax. During the first two yea rs, the land and building tax are levied at progressive 
rates, ranging from 0.01% to 0.7% depending on the value of the asset and its proposed use; for 
subsequent years, the rates range between 0.15% and 3.0%. Land and buildings worth up to 
THB 50 million for either agricultural or residential use are exempted from the tax. According to 
observers, these measures would appear to be steps in the right direction, but there could still be 
room for further reform.24 Also, measures in the opposite direction have been adopted; for  instance, 
there have been cuts in personal income tax (PIT) and increases in deductible expenses and tax 
allowances over the last few years in order to support economic growth.25  
1.25.   The Ministry of Finance is currently drafting a tax reform  plan that will include changes to tax 
policy and tax administration. The main objectives of the tax reform plan are: (i) to make the tax 
system fair and transparent; i.e. with a tax structure that reduces income inequality, with clear rules 
and regulation s to minimize authorit ies' discretion and to fight against corruption; (ii) to make the 
tax system easy and efficient by using advanced technologies (e.g. National e -Payment, e -Tax 
Invoice, e -Receipt, e -Withholding Tax,  and income tax returns via PromptPay ); and (iii) to make the 
tax system competitive and sustainable with competitive tax rates to attract investors while still 
generating sustainable revenues for the future.  
1.26.   The pension system is another area that has been identified as requiring reform in o rder to 
ensure fiscal sustainability and to prepare for expenditure pressures related to population aging.26 
The pension system is fragmented (with public, private and informal regimes), with low replacement 
rates (particularly for private -sector workers) and low coverage (less than 40% of the working -age 
population is covered by a formal pension). Adding to these challenges, a low retirement age  (55) 
and a shrinking labour force raise questions regarding the sustainability of the system that need to 
be addressed.27 The authorities are currently considering amendments to the laws and regulations 
of the Government Pension Fund (GPF) for government officers in order to improve its operational 
efficiency and sustainability in the long term. The propose d modifications include a higher maximum 
contribution rate; increasing the variety of investment choices available to members; and enabling 
the GPF to invest the reserve fund in a wider range of assets, among others.  
 
22 Inheritance Tax Act and Gift Tax Regulations , 5 August 2015.  
23 Land and Building Act B.E. 2562.  
24 OECD (2018), Multidimensional Review of Thailand , Volume 1. Initial Assessment. Chapter 3. Viewed 
at: https://www.oecd.org/dev/multi -dimensional -review -of-thailand -volume -1-9789264293311 -en.htm . 
25 Revenue Code Amendment Act (No. 44) B .E. 2560, 27 January 2017. The updated PIT rates ease the 
tax burden for a relatively small portion of the population, w hile the new deductions and allowances affect a 
much broader swathe of people. Overall, however, the changes are relatively modest.  
26 OECD (2018), Multidimensional Review of Thailand , Volume 1. Initial Assessment. Chapter 3. Viewed 
at: https://www.oecd.org/dev/multi -dimensional -review -of-thailand -volume -1-9789264293311 -en.htm ; and 
IMF (2019), Thailand 2019 Article IV Consultation . IMF Country Report No. 19/309, October . Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2019/10/07/Thailand -2019-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-48724 . 
27 IMF (2019), Thailand 2019 Article IV Consultation . IMF Country Report No. 19/309, October . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  1.2.4   Monetary and exchange rate policies  
1.27.   The Bank of Thailand (BOT) is responsible for the formulation and implementation of monetary 
and exchange rate policies.28 According to the Bank of Thailand Act, B.E. 2551 (2008) , the BOT's 
main objectives are to maintain price stability  as well as the  stability of the financial and payments 
system s. In setting monetary policy, the BOT operates through the Monetary Policy Committee. By 
the end of each year, the Committee, in agreement with the Minister of Finance, determines the 
monetary policy targets for th e following year; the Minister of Finance then proposes the agreed 
targets to the Cabinet for approval.29 In 2015, a monetary policy target using headline inflation 
instead of core inflation (excluding fresh food and energy prices) was approved, and the annual 
average target was set at 2.5  ± 1.5% . This target remained unchanged until 2020 when it was 
replaced by a headl ine inflation range target of 1% -3%, deemed more appropriate to account for 
Thailand's low inflation outlook.30  
1.28.   In several instances during the review period, the BOT adopted an accommodative, albeit 
cautious, monetary policy stance in order to maintain p rice stability and ensure favourable financial 
conditions for economic growth. In 2015, it reduced the policy interest rate twice (in March and 
April) to 1.50%. The rate was kept unchanged throughout 2016, 2017 and most of 2018. In 
December 2018, assessing  that the economy would continue to grow in line with its potential and 
that the headline inflation would move toward its target, the BOT raised the policy rate to 1.75%. 
This move was largely to pre -empt the potential build -up of financial vulnerabilities  from investors' 
"search -for-yield" behaviour and under -pricing of risk over a long period of low interest rates.31  
1.29.   As the Thai economy slowed down in 2019, the BOT cut the policy interest rate twice (in 
August and November) by 0.25 percentage points each  time, in order to support both growth and 
the increase of headline inflation  towards the target.  A third cut was implemented in February 2020, 
taking the policy interest rate to 1.0%, as the COVID -19 outbreak, the months -long delay in the 
approval of the 2020 budget bill and a severe drought put further pressures on the flagging economy , 
while financial stability became more vulnerable given the impact of the economy's slowdown on the 
capability of households and SMEs to service  their debt.32  
1.30.   In March and May 2020, the BOT made two further cuts to the policy interest rate , setting it 
at a record low of  0.50%, in an effort to reduce the interest burden on borrowers affected by the 
COVID -19 outbreak, alleviate liquidity problems, and safeguard finan cial stability.33 In addition, in 
mid-March  2020, the BOT purchased government bonds amounting to more than THB 100 billion to 
shore up liquidity in the financial markets.34 Given the persistently high volatility in the bonds 
market, on 22 March 2020, the BOT, the Ministry of Finance, and the Securities and Exchange 
Commission jointly decided to implement additional measures to restore financial market stability. 
Firstly, the BOT set up a facility to provide liquidity for mutual funds through commercial ban ks. 
Secondly, it was agreed to set up a Corporate Bond Stabilization Fund to invest in high -quality, 
newly issued bonds by corporations that were not able to fully rollover maturing corporate bonds. 
 
28 Section 28/16  of the BOT Act provides that, f or the performance of duties, the Governor shall be 
independent in the management and administration of the BOT 's affairs . 
29 Section 28/8 of the BOT Act.  
30 Bank of Thailand, Policy Target Setting . Viewed at: 
https://www.bot.or.th/English/MonetaryPolicy/MonetPolicyKnowledge/Pages/Target.aspx . 
31 BIS, Dr. Veerathai Santiprabhob, Governor of the Bank of Thailand, The Thai Economy: The Current 
State and the Way Forward , Speech at Japanese Chamber of Commerce, 27 March 2019. Viewed at: 
https://www.bis.org/review/r190328d.htm . 
32 Bank of Thailand, BOT Press Release No. 5/2020 , 5 February 2020. Viewed at: 
https://www.bot.or.th/Thai/MonetaryPolicy/Documents/PressMPC_12020_375EOC6A.pdf . 
33 Bank of Thailand, BOT Press Release No. 14/2020 , 20 March 2020. Viewed at: 
https://www.bot.or.th/English/PressandSpeeches/Press/2020/Pages/n1463.aspx ; and BOT Press Release 
No. 27/2020 , 20 May 2020. Viewed at:  
https://www.bot.or.th/English/PressandSpeeches/Press/2020/Pages/n2763.aspx . 
34 Bank of Thailand, BOT, Ministry of Finance, and Securities and Exchange Commission, Joint 
Statement on the Measures to Stabilize the Financial Markets, 22 March 2020 . Viewed at: 
https://www.bot.or.th/English/AboutBOT/Activities/Pages/Joint_22032020.aspx . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Thirdly, the BOT w as to c ontinue to purchase government b onds to provide liquidity to the 
government bond market and ensure it function ed normally.35  
1.31.   Inflation remained subdue d throughout the review period (at less than 1.0%, except in 2018) 
and well below its monetary policy target, on account of both demand - and supply -side factors 
(Table  1.1). The appreciation of the baht since 2016 and price controls also contributed to the 
long-lasting low inflation. In addition, according to the BOT, structural changes such as the expansion 
of e-commerce, rising price comp etition, and technological developments which reduce production 
costs, caused inflation to rise at a slower pace than in the past.36 In 2019, the average headline 
inflation dropped to 0 .7%, driven by falling global energy prices and low domestic demand, wh ile 
core inflation averaged 0 .5%, the lowest level during the review period. In March 2020, amid the 
COVID -19 outbreak, the BOT's Monetary Policy Committee announced that the annual average of 
headline inflation was projected to be negative in 2020,  reflec ting the declin e in energy prices and 
the contraction of the economy.37 In July 2020, t he Committee expected headline inflation to 
be -1.7% and core inflation 0.0% in 2020.38 
1.32.   Thailand maintains a managed float exchange rate regime. The value of the baht is essentially 
determined by supply and demand in the foreign exchange market. The BOT closely monitors 
movements in the baht's value, and its interventions are limited to cases  of excess volatility 
(particularly resulting from speculative capital flows) that substantially deviate from Thai economic 
fundamentals.  Information about foreign exchange interventions remains confidential, as the 
authorities consider that disclosure wou ld compromise their market operations.  
1.33.   Thailand still applies limited foreign exchange controls for the purpose of ensuring financial 
and economic stability.39 Currently, proceeds from exports and other income must be repatriated if 
they exceed USD 1 mill ion. During the period under review, the BOT continued to relax foreign 
exchange regulations in order to facilitate international trade and investment transactions 
(paragraph 1.35).  
1.34.   Thailand's large current account surplus and sizable portfolio investment  inflows exerted 
appreciation pressures on the baht during most of the review period , with the sharpest increase in 
the value of the baht taking place in 2019. This trend was suddenly reversed due to the COVID -19 
outbreak, which led to currency depreciatio n, as in many of the world's emerging economies.  
1.35.   In 2019, the average exchange rate rose to THB 31.0 5/USD (compared to THB 34.2 5/USD in 
2015) (Table 1.1 ), with the average nominal effective exchange rate (NEER) appreciating by 6.6% 
and the average real eff ective exchange rate (REER) by 5.3% from 2018 ( Chart 1.2 ). According to 
the BOT, the fast appreciation of the baht throughout 2019 did not reflect Thai economic 
fundamentals, but was the result of accommodative monetary policies implemented by advanced 
economies and the perceived safe -haven status of bah t-denominated assets,  which led to an 
increase in short-term foreign portfolio investment into Thailand. In order to avoid potential 
macroeconomic stability risks due to the baht's rapid appreciation relativ e to its regional peers, in 
July 2019, the BOT adopted measures to mitigate the impact of short -term speculative investment 
flows and to enhance surveillance of non -residents' investment behaviour. One of these measures 
was to reduce the limit on the aggre gated daily balance of non -resident baht accounts (NRBA) and 
non-resident baht accounts for securities (NRBS) from THB 300 million to THB 200 million per 
non-resident.40 Another measure was the application of stricter reporting requirements for 
 
35 Bank of Thailand, BOT, Ministry of Finance, and Securities and Exchange Commission, Joint 
Statement on the Measures to Stabilize the Financial Markets, 22 March 2020 . Viewed at: 
https://www.bot.or.th/English/AboutBOT/Activities/Pages/Joint_22032020.aspx . 
36 Reuters, Thailand's new inflation target no changes in monetary policy – Deputy Govern or, 
24 December 2019. Viewed at: https://twitter.com/Reuters/status/1209428944635736064 . 
37 Bank of Thailand, BOT Press Release No. 16/2020, 25 March 2020 . Viewed at: 
https://www.bot.or.th/English/PressandSpeeches/Press/2020/Pages/n1663.aspx . 
38 Bank of Thailand, BOT Press Release No. 39/2020 , 8 July 2020. Viewed at: https://www.bot.or.th 
/English/MonetaryPolicy/MonetPolicyComittee/MPR/Monetary%20Policy%20Report/PressMPR_ June2020.pdf . 
39 The legal basis for foreign exchange control is the Exchange Control Act B.E. 2485 and Ministerial 
Regulation No. 13 B.E. 2497 . Since 1997, when the managed float exchange rate regime was adopted, foreign 
exchange regulations have been grad ually relaxed.  
40 NRBA s and NRBS s are accounts opened by non -residents in a financial institution in Thailand. NRBS 
accounts  may be debited or credited for the purpose of investment in securities and other financial 
instruments.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  non-residen ts' holdings of debt securities, including the obligation to report the names of 
end-beneficiaries.41  
Chart 1.2 Nominal and real effective exchange rates, 2015 -January 2020 
 
Source:  Bank of Thailand . Viewed at: https://www.bot.or.th . 
1.36.   In order to stem the rise of the baht over the past few years, the BOT has also put in place 
measures to make it easier for Thai businesses and residents to invest abroad. Capital outflow 
regulations have been liberalized, including the relaxation of restrictions on outward transfers and 
on portfolio investment abroad by institutional and retail in vestors.42 In addition, as part of a reform 
of foreign exchange regulations that started in 2017, the BOT has removed obsolete regulations and 
given Thai firms more flexibility to use foreign exchange risk management tools.43 In 2019, the 
reform process focused on m easures such as the relaxation of repatriation requirements by 
exporters; simplifying rules on outflows and foreign currency deposits; and permitting retail 
investors, regardless of their asset amounts, to invest in securities abroad up to certain limits, 
without going through local intermediaries. In February 2020, the BOT eased foreign exchange rules 
to lessen pressure on the baht by raising the threshold for export (and other income) proceeds that 
do not need to be repatriated from USD 200,000 to USD 1 m illion, effective from 2 March 2020. 
Exporters with proceeds equal to or above the new threshold may use them to settle or offset foreign 
currency expenses abroad, without having to repatriate them.44  
1.37.   During the first two months of 2020, largely as a resu lt of the COVID -19 outbreak, the baht 
depreciated by about 5% against the US dollar, following a similar trend to other emerging economy 
currencies around the world, affected by heightened volatility in international financial markets. The 
baht also deprec iated against regional currencies , as reflected in the decline in the NEER and the 
REER since the beginning of 2020. This was mainly due to investors ' concerns about the outlook of 
the Thai economy , which was affected by both external and domestic factors,  especially by the rapid 
spread of the COVID -19 pandemic worldwide . 
 
41 Bank of Thailand, BOT Press Release No. 38/2019 , 12 July 2019. Viewed at: 
https://www.bot.or.th/Thai/PressandSpeeches/Press/News2562/n3862e.pdf . 
42 Bank of Thailand,  BOT Press Release No. 66/2019 , 6 November 2019. Viewed at: 
https://www.bot.or.th/English/PressandSpeeches/Press/2019/Pages/n6662.aspx ; and Notice of the Competent 
Office r, Rules and Practices Regarding Investment in Overseas Securities and Derivatives. Viewed at: 
https://www.bot.or.th/Thai/FinancialMarkets/Fore ignExchangeRegulations/DocLib/E_BOTPortfolio.pdf . 
43 Bank of Thailand, BOT Press Release No. 27/2017 , 5 June 2017. Viewed at:  
https://www.bot.or.th/Thai/FinancialMarkets/ForeignExchangeRegulations/Documents/BOT%20Press%2 0Relea
se_Foreign%20Exchange%20Regulation%20Reform.pdf . 
44 Bank of Thailand, BOT Press Release No. 11/2020 , 28 February 2020. Viewed at: 
https://www.bot.or.th/Thai/Pressand Speeches/Press/News2563/n1163e.pdf . 
Jan-15Mar-15May-15Jul-15Sep-15Nov-15Jan-16Mar-16May-16Jul-16Sep-16Nov-16Jan-17Mar-17May-17Jul-17Sep-17Nov-17Jan-18Mar-18May-18Jul-18Sep-18Nov-18Jan-19Mar-19May-19Jul-19Sep-19Nov-19Jan-209095100105110115120125130
NEER (2012=100) REER (2012=100)Chart 1.2 Nominal and real effective exchange rates, 2015 -February 2020
Source:  Bank of Thailand. Viewed at: https://www.bot.or.thIndex (2012=100)WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  1.2.5   Balance of payments  
1.38.   Thailand posted a surplus in the current account of the balance of payments throughout the 
review period ( Table 1.5 ), reflecting a persistent savings -investment gap. Ho wever, in the last 
two years, the size of the surplus has narrowed, in part due to the impact of global trade tensions 
on Thai exports, and stood at 6.9% of GDP in 20 19. 
Table 1.5 Balance of payments, 2015 -19 
(USD million)  
   2015  2016  2017  2018a 2019a 
Current account  27,752.9  43,438.0  43,951.9  28,456.7  37,911.3  
Goods and services balance  41,680.3  56,051.0  56,877.0  44,922.2  49,875.7  
Goods balance  26,116.5  35,776.1  32,581.2  22,387.7  26,630.1  
Exports  213,364.0  213,487.5  233,688.0  251,108.1  242,981.0  
Imports  187,247.5  177,711.4  201,106.8  228,720.5  216,350.9  
Service balance  15,563.8  20,275.0  24,295.8  22,534.5  23,245.6  
Receipts  58,082.2  63,786.4  70,964.1  77,473.6  82,010.4  
Payments  42,518.3  43,511.5  46,668.3  54,939.1  58,764.8  
Income balance  -20,622.2  -19,427.5  -20,461.8  -24,477.0  -19,247.4  
Credit  4,895.9  6,463.3  8,529.4  8,672.5  12,323.5  
Compensation of employees  2,029.6  2,230.2  2,060.6  2,115.0  2,177.6  
Investment income  2,769.7  4,080.8  6,322.7  6,392.3  10,003.2  
Debit  25,518.1  25,890.8  28,991.2  33,149.5  31,570.9  
Compensation of employees  1,433.9  1,606.9  1,789.8  2,008.7  2,161.5  
Income on equity  22,093.8  22,206.2  24,921.4  28,904.0  26,894.1  
Income on debt  1,990.4  2,077.7  2,279.9  2,236.8  2,515.3  
Current transfers  6,694.8  6,814.5  7,536.6  8,011.5  7,283.0  
Credit  10,474.8  10,585.3  11,161.1  11,795.7  11,299.2  
Debit  3,780.05  3,770.83  3,624.47  3,784.18  4,016.2  
Capital account  0.1 12.7 -140.9  -610.5  4.0 
Financial account  -16,799.2  -20,839.7  -12,497.7  -14,948.4  -12,925.2  
Direct investment  3,936.5  -10,551.6  -10,301.5  -8,043.4  -7,701.2  
Direct investment in Thailand  8,927.6  2,810.2  8,229.2  13,205.1  6,315.8  
Thailand's direct investment abroad  -4,991.1  -13,361.8  -18,530.6  -21,248.5  -14,017.0  
Portfolio investment  -16,508.1  -2,797.6  -2,149.9  -5,863.8  -8,712.0  
Assets  -3,817.2  -4,279.0  -11,550.5  -1,952.3  -7,752.6  
Equity securities  -3,397.9  -1,816.9  -7,668.2  -2,476.8  -1,794.0  
Debt securities  -419.3  -2,462.1  -3,882.3  524.5  -5,958.5  
Liabilities  -12,690.9  1,481.4  9,400.7  -3,911.5  -959.4  
Equity securities  -8,969.4  -786.1  598.4  -7,101.4  42.1 
Debt securities  -3,721.5  2,267.5  8,802.3  3,189.9  -1,001.6  
Financial derivatives  903.3  303.3  118.3  133.7  2,060.9  
Assets  7,040.6  5,548.4  4,418.1  4,711.4  6,316.5  
Liabilities  -6,137.3  -5,245.1  -4,299.8  -4,577.7  -4,255.6  
Other investment  -5,130.9  -7,793.9  -164.7  -1,174.9  1,427.1  
Assets  -3,445.3  -7,234.0  -9,700.4  -4,134.7  -1,096.1  
Trade credits  -1,403.5  797.0  -6,466.6  2,540.8  -832.4  
Loans  -3,062.9  1,340.3  -827.1  -1,175.9  828.0  
Currency and deposits  1,006.9  -9,602.0  -891.1  -6,722.2  -434.6  
Other assets  14.2 230.7  -1,515.6  1,222.6  -657.1  
Liabilities  -1,685.7  -559.9  9,535.7  2,959.8  2,523.2  
Trade credits  -155.4  -945.8  3,783.3  76.7 -1,842.0  
Loans  -2,148.1  78.3 5,239.6  2,342.0  2,688.3  
Currency and deposits  -37.0 549.4  -54.8 367.5  945.4  
Other liabilities  654.8  -241.7  567.7  173.6  731.5  
Net errors and omissions  -5,094.8  -9,766.5  -5,356.5  -5,631.4  -11,407.2  
Balance of payments  5,858.9  12,844.5  25,956.7  7,266.4  13,583.0  
a Provisional.  
Source:  Bank of Thailand , Balance of Payments . Viewed at:  
https://www.bot.or.th/English/Statistics/EconomicAndFinancial/Pages/StatBalanceofPayments.aspx . 
1.39.   The goods balance showed a surplus over the entire review period. In 2019, the surplus 
widened in absolute terms, due to a larger contraction of merchandise imports relative to exports. 
Indeed, the fall in exports had a severe impact on imports of intermediate goods, dragging down 
total imports. The servic es balance posted a positive result throughout the period under review, 
mainly due to the strong performance of the travel subsector. On the other hand, the income balance WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  recorded a deficit during the same period, mostly on account of the repatriation of profits and 
benefits from foreign -invested companies in Thailand. The financial account  showed more 
fluctuations, although it remained in deficit throughout the reporting period, mainly due to net capital 
outflows from Thai FDI and portfolio investment abr oad. This may be associated with the recent 
relaxation of regulations on capital outflows.  The overall balance of payments was positive during 
the period under review, and represented 2.5% of GDP in 2019.  
1.40.   Given its strong current account surplus, Thailand  accumulated substantial foreign exchange 
reserves over the last five years, which reached USD  224.3 billion at end -2019, equivalent to more 
than 12 months of imports ( Table 1.1 ). As noted above, said strong external position was in part 
responsible for th e appreciation of the baht until the beginning of 2020. Thailand's external debt 
increased moderately during the period under review in absolute terms but remained at around 30% 
of GDP . In 2019 , the external debt -GDP ratio was 31.7%, and the debt-service r atio was 6.8%. This 
reflects Thailand's lower dependency on external  financing compared to other emerging market 
economies. Amid the global economic fallout caused by the COVID -19 pandemic, Thailand's surplus 
in the current account has continued to narrow and capital outflows have increased ; however, the 
level of foreign reserves remains adequate.  
1.3  Developments in Trade and Investment  
1.3.1   Trends and patterns in merchandise and services trade  
1.3.1.1   Merchandise trade  
1.41.   Thailand remains a predominantly outward -oriented economy, as indicated by the high ratio 
of its trade (exports and imports) of goods and services to GDP. However, this ratio decreased over 
the last decade, from a peak of 150% in 2008 to 110% in 2019. The authorities explained that this 
was the result of Thailand's policy to maintain potential economic growth while expanding the 
domestic economy and reducing its high dependency on international trade. In 2019, Thailand's 
share in global merchandise exports was 1. 6%, and its share in world merchandise imports stood 
at 1.5%.45  
1.42.   Thailand's merchandise export structure continues to be dominated by manufactured 
products, which contribute 73.3% to total exports (2019), although their share decrease d slightly  
during the review period ; the share of agricultural goods (17.5%) rose slightly , and that of mining 
(5.1%) remained stable ( Chart 1.3 and Table A1.1 ). Office machines and telecommunication 
equipment (mainly computer parts) remain the leading export items, accou nting for 15.1% of total 
merchandise exports in 2019, followed by automotive products (of which Thailand is among the 
world's top ten exporters46), chemicals, other semi -manufactures, consumer goods, and other 
electrical machines. Other important export pr oducts are food (rice, sugar, and meat/seafood 
preparations), fuels , rubber (tyres), gems and precious metals.  
1.43.   Manufactures accounted for 68.4% of the value of Thailand's merchandise imports in 2019 
(Chart 1.3 and Table A1.2 ). Office machines (electronic i ntegrated circuits), telecommunication 
equipment (radio -telephony transmission tools) and other electrical machines made up the largest 
share (19.2% of total imports), followed by chemicals, consumer goods, non -electrical machinery, 
transport equipment, an d other semi -manufactures. The share of mining, consisting mostly of crude 
oil and petroleum products, increased during the review period and accounted for 19.4% of the total 
import bill in 2019; while the share of agricultural imports fluctuated around 8%  during the same 
period, and was 7.9% in 2019.  
1.44.   During the period under review, Thailand conducted most of its two -way merchandise trade 
with countries in Asia, reflecting the country's active participation in regional value chains and its 
integration within ASEAN ( Chart 1.4 ). In 2019, 64% of exports were shipped to Asian markets 
(Table  A1.3). ASEAN members, as a group, remain Thailand's largest export market, accounting for 
25.5% of total exports. Exports to  the CLMV countries47 have contin ued to grow collectively, driven 
 
45 Excluding intra -EU trade. WTO, World Trade Statistical Review 2020 . Viewed at: 
https://www.wto.org/english/res_e/statis_e/wts2020_e/wts2020_e.pdf.  
46 WTO, World Trade Statistical Review 2019 . Viewed at: 
https://www.wto.org/english/res_e/statis_e/wts2019_e/wts2019_e.pdf . 
47 Cambodia, Lao PDR, Myanmar and Viet Nam.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  by increases in shipments to Viet Nam and Cambodia. The United States maintained its position as 
Thailand's largest individual market, receiving 12.7% of total exports in 2019, followed closely by 
China (11.8%), Japan (10 .0%) and the European Union (9.6%).  
Chart 1.3 Product composition of merchandise trade (SITC Rev.3), 2015 and 2019  
 
Source:  Based on data from the Ministry of Commerce and the Customs Department.  
1.45.   On the import side, China remains by far Thailand's largest supplier (21.3% of total imports 
in 2019), having taken over that position from Japan (which now accounts for 14 .0%) in 2014 
(Table  A1.4). Collectively, ASEAN is the second largest source of imports, acc ounting for 19% of the 
total in 2019. Imports from Middle East countries (mainly crude oil) made up 8.3% of the import bill 
the same year. Other important suppliers are the European Union and the United States; the share 
Chart 1.3 Product composition of merchandise trade (SITC Rev.3), 2015 and 2019
20152019
Exports (f.o.b.)
Other semi -
manufactures
10.2%Manufactures
75.2%
Total:   USD 214.3 billion Total:  USD 246.2 billion
Imports (c.i.f.)
Chemicals
10.3%Transport
equipment
7.9%
Manufactures
69.0% Electrical 
machines  
20.0%
Non-electrical 
machinery  
9.7%Iron & steel
5.4%Electrical
machines
19.2%Electrical 
machines
20.8%
Other semi -
manufactures
7.2%Chemicals
10.7%Manufactures
68.4%
Total:  USD 202.7 billion Total:  USD 236.6 billionOther mining
1.7%Gold
3.4%
Textiles & clothing
3.4%
Consumer
goods  9.4%Gold
3.6%Non-electrical 
machinery
7.3%Transport 
equipment
15.1%
Manufactures
73.3%
Other semi -
manufactures
10.3%Textiles & clothing
3.1%
Other mining
1.1%
Source:  Data from the Ministry of Commerce and the Customs Department, Thailand.Consumer 
goods  8.7%Other consumer 
goods  7.2 %
Other mining
3.7%
Other semi -
manufactures
7.2%Gold
1.8%
Agriculture
7.9%Agriculture
7.7%
Transport
equipment
7.6%Chemicals
9.3%Chemicals
9.8%Agriculture
17.5%Other consumer
goods   7.6%
Fuels
15.5%Fuels
14.9%Gold
3.2%
Iron & steel
5.3%
Non-electrical 
machinery
8.9%Transport 
equipment
15.0%Agriculture
16.8%
Other mining
3.9%Non-electrical 
machinery
7.1%Electrical 
machines
22.3%Fuels
3.4%Fuels
3.9%
Other 
1.1%Other 
1.0%Other 
0.7%Other 
1.2%WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  of imports from the European Union in 2019 (8.8%) was practically the same as in 2015, while the 
share of imports from the United States showed a modest increase over the same period.  
Chart 1.4 Direction of merchandise trade, 2015 and 2019  
 
Source: Based on data from the Ministry of Commerce and the Customs Department.  
1.3.1.2   Services trade  
1.46.   Thailand posted a surplus in the trade in services balance throughout the review period 
(Table  1.6), reflecting mainly the strong performance of tourism -related se rvices but also the 
country's over -reliance on the tourism industry. In 2019, travel and passenger transportation 
accounted for 79.4% of total services exports. The second -largest contributor, with 14.2% of export 
receipts, was the item "Other business ser vices"48. Regarding imports, transportation services 
(mostly freight) had the highest share (32.2%), followed by "Other business services " and travel 
(mainly personal travel). The share of services in Thailand's external trade increased over the last 
ten years: in 2019, services accounted for 25.2% of the country's total exports (goods and services) 
 
48 Definition based on IMF Balance of Payments and International Investment Position Manual 
(Sixth  Edition BPM6).  
Chart 1.4 Direction of merchandise trade, 2015 and 2019
2015 2019
Exports (f.o.b.)
Source:  Data from the Ministry of Commerce and the Customs Department, Thailand.Other Asia
7.2%
Other Asia
4.2%U.A.E.
4.0%Imports (c.i.f.)
Kore, Rep. of
3.5%
Japan
15.4%Total:  USD 214.3 billion Total:  USD 246.2 billion
Total:  USD 202.7 billion Total: USD 236.6 billionOther
7.1%
Other
9.0%ASEAN
25.5%
China
11.8%Other ASEAN 
13.2%
ASEAN
19.0%ASEAN
19.0%
Other ASEAN
7.3%Africa 2.8%EU-28
10.2%
Other Asia
7.7%
Other ASEAN
6.3%Japan
14.0%EU-28
8.9%ASEAN
25.7%
China
21.3%Korea, Rep. of
3.7%EU-28
8.8%Australia
4.6%
Japan
9.4%Viet Nam
4.2%
Other  
9.0%
China
20.3%Other Asia
5.2%Other 
7.5%
Other ASEAN
12.7%Japan
10.0EU-28
9.6%
Viet Nam
4.9%
China
11.1%Indonesia
3.7%Hong Kong, 
China  5.5%United States
11.2%
Malaysia
4.8%Middle East
4.8%Africa
3.2%
Indonesia
3.7%Malaysia
4.2%United States
12.7%
Australia
4.2%
Malaysia
5.4%Malaysia
5.9%
Indonesia
3.2%Indonesia
3.1%
Singapore
3.2%Singapore
3.5%Hong Kong, 
China  4.8%
United States
6.8%United States
7.3%Middle East 3.4%
U.A.E.
3.1%
Other Middle East
5.1%Other Middle East
5.2%Chinese Taipei
3.4%Chinese Taipei
3.7%WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  and 21.3% of its total imports, compared to 14.9% and 13.3%, respectively , in 2010. However , 
Thailand's heavy reliance on tourism exports makes it vulnerable to  external shocks, such as the 
recent COVID -19 pandemic and its ad verse impact on inbound tourism.  
Table 1.6 Trade in services, 2015 -19 
 
2015  2016  2017  2018a 2019a 
Trade in services balance (USD million)  15,563.8  20,275.0  24,295.8  22,534.5  23,245.6  
Total credit (USD million)  58,082.2  63,786.4  70,964.1  77,473.6  82,010.3   
(% of total credit)  
Transportation  9.9 9.0 9.7 9.9 8.8 
     Freight  2.9 2.5 2.4 2.6 2.3 
     Passenger  6.2 5.8 6.6 6.5 5.6 
     Other  0.7 0.7 0.7 0.9 0.9 
Travel  71.0 70.2 73.8 72.8 73.8 
     Business  6.2 5.8 3.0 3.2 3.0 
     Personal  64.8 64.4 70.8 69.5 70.8 
Construction  0.9 0.7 0.5 0.4 0.3 
Insurance and pension services  0.1 0.1 0.1 0.2 0.2 
Financial services  1.0 1.1 1.1 1.0 0.9 
Charges for the use of intellectual property, n.i.e.  0.1 0.1 0.1 0.2 0.2 
Telecommunications, computer, and information services  0.9 0.8 0.6 0.8 0.9 
Other business services  15.4 17.4 13.5 14.3 14.2 
Personal, cultural, and recreational services  0.1 0.1 0.1 0.1 0.2 
Government goods and services, n.i.e.   0.6 0.5 0.4 0.4 0.5 
Total debit (USD million)  42,518.3  43,511.5  46,668.3  54,939.1  58,764.8   
(% of total debit)  
Transportation  36.8 34.6 36.1 34.5 32.2 
     Freight  30.8 28.0 29.9 28.6 25.9 
     Passenger  4.3 5.0 4.7 4.2 4.4 
     Other  1.7 1.5 1.5 1.6 1.8 
Travel  18.2 20.9 22.5 22.0 24.2 
     Business  1.7 2.0 2.2 2.1 2.2 
     Personal  16.5 18.9 20.3 19.9 22.1 
Construction  2.0 1.2 0.6 0.5 0.7 
Insurance and pension services  3.7 3.3 3.9 4.2 3.9 
Financial services  1.6 1.5 2.1 1.9 2.2 
Charges for the use of intellectual property, n.i.e.  9.7 9.1 9.2 9.6 9.0 
Telecommunications, computer, and information services  1.4 1.3 1.2 1.2 1.6 
Other business services  25.8 27.3 23.8 25.6 25.6 
Personal, cultural, and recreational services  0.1 0.1 0.1 0.1 0.1 
Government goods and services, n.i.e.  0.7 0.7 0.6 0.5 0.5 
a Provisional.  
Source:  Bank of Thailand , Balance of Payments . Viewed at: 
https://www.bot.or.th/English/Statistics/EconomicAndFinancial/Pages/StatBalanceofPayments.aspx . 
1.3.2   Trends and patterns in Foreign direct investment (FDI)  
1.47.   FDI inflows into Thailand were volatile during the period under review. After a sharp decrease 
in 2016, consistent with a general drop of FDI to emerging markets in Asia, FDI inflows rebounded 
in the following years, reaching a peak of USD  13,2 billion in 2018 (driven mainly by investments in 
real estate and the financial sector), only to fall again significantly in 2019 ( Table 1.7 ). During most 
of the review period, Japan was the main source of FDI. However, in 2019, Singapore became the 
top origin of inbound FDI flows (84.7% of the total), reflecting its position as a regional financial 
hub, and pushing ASEAN's share to 86.7%.49 Other important sources of FDI in 2019 were China 
(17.1%), Hong  Kong,  China (11.1%) and the United States (9.7%) , while investment inflows from 
the European Union contracted.  
1.48.   Manufacturing operations (especially export -oriented industries such as computers, 
electronics and electrical equipment) are still the largest recipient of FDI, with 76.1%  of total inflows 
in 2019 ( Table 1.7 ). Other important recipients of FDI were real estate activities and wholesale and 
retail trade, whereas financial and insurance activities saw a significant drop in 2019.   
 
49 The increase in Singapore's sh are was partly due to two large investment deals by multinational 
enterprises in the insurance and electronics sector in Thailand, made through Singapore.   WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Table 1.7 Inflows of FDI, 2015 -19 
 
2015  2016  2017  2018a 2019a 
Total inflows (USD million)  8,927.6  2,810.2  8,229.2  13,205.1  6,315.8   
(a) Inflows by origin      
 
ASEAN  433.6  2,003.4  1,814.0  1,671.2  5,476.6  
  Brunei Darussalam  2.3 2.6 1.5 2.5 1.6 
  Cambodia  4.3 3.3 13.8 -3.8 11.4 
  Indonesia  -44.1 23.5 22.5 -31.6 -11.5 
  Lao PDR 1.2 17.0 5.1 4.7 5.2 
  Malaysia  -4.9 6.6 57.2 17.6 111.4  
  Myanmar  0.6 1.1 -0.2 1.4 0.8 
  Philippines  6.8 21.6 -13.1 -16.7 4.4 
  Singapore  467.0  1,928.5  1,726.7  1,695.6  5,350.1  
  Viet Nam  0.6 -0.8 0.6 1.5 3.2 
EU-28 1,065.1  -4,378.9  710.6  1,539.4  -3,240.1  
  Austria  32.0 15.6 -124.3  9.1 -78.5 
  Belgium  577.6  -289.4  -99.8 -68.7 4.7 
  Cyprus  1.8 1.2 -0.3 2.4 0.6 
  Denmark  -359.3  -3.9 -314.6  332.6  -53.9 
  Finland  4.6 10.5 10.7 25.5 38.9 
  France  265.3  -1,901.0  -44.2 90.2 79.5 
  Germany  130.9  114.5  400.3  235.3  261.7  
  Ireland  28.7 0.1 14.0 97.4 26.9 
  Italy 9.3 8.4 17.2 2.4 -0.4 
   Luxembourg  70.7 54.9 47.1 39.9 0.9 
   Netherlands  250.8  -2,227.4  467.6  475.7  -3,469.0  
  Spain  -3.6 1.4 2.6 11.8 14.2 
  Sweden  -40.5 -0.1 70.5 138.9  -47.0 
  United Kingdom  87.7 -177.9  253.2  137.9  -20.0 
  Other EU  9.2 14.3 10.6 8.9 1.3 
Middle East  36.1 -10.7 57.8 52.3 14.9 
  United Arab Emirates  -4.1 18.1 14.6 29.6 -1.6 
Australia  661.9  42.1 80.7 48.0 77.2 
Bahamas  30.5 45.9 35.8 11.5 -2.5 
Bermuda  -33.1 3.9 62.6 26.6 1.8 
British Virgin Islands  1,132.1  2.4 -169.4  -178.9  85.4 
Cayman Islands  68.6 -1,027.4  88.1 70.9 253.8  
China  238.1  1,071.9  72.9 662.4  1,082.2  
Hong Kong, China  461.8  1,148.4  971.1  2,189.2  705.7  
India -3.9 31.9 39.5 22.4 -5.5 
Japan  3,006.3  2,986.8  3,131.6  5,250.9  2,546.0  
Liechtenstein  2.6 3.3 5.4 18.3 10.4 
Mauritius  79.1 -36.8 295.8  450.7  -1,822.1  
New Zealand  1.2 1.6 2.6 6.5 3.6 
Panama  37.0 -25.6 2.3 -6.4 11.1 
Russia  -7.8 37.4 40.9 45.2 26.2 
Samoa  12.6 30.3 13.5 27.2 -10.4 
Korea, Rep. of  142.6  27.2 168.4  223.7  262.8  
Switzerland  271.0  107.0  329.4  -176.2  17.8 
Chinese Taipei  117.4  195.2  723.3  120.6  280.8  
United States  1,083.1  438.6  -120.5  810.1  611.8  
Others  91.8 112.5  -127.2  319.4  -71.5 
(b) Inflows by sector       
Agriculture, forestry, and fishing  5.3 6.7 2.7 16.0 3.8 
Mining and quarrying  490.4  -29.1 101.3  -302.3  262.6  
Manufacturing  3,180.5  1,155.8  1,132.5  4,828.0  4,804.1  
  Food products  188.3  694.7  282.5  37.8 366.5  
     Beverages  -89.4 10.0 56.6 522.0  2.3 
  Paper and paper products  47.4 107.9  -393.2  54.8 114.1  
  Coke and refined petroleum products  -321.4  101.9  14.7 -124.4  155.4  
  Chemicals and chemical products  1,108.2  -235.6  -171.4  653.1  757.5  
  Pharmaceuticals  4.5 -46.8 -17.8 67.3 75.0 
  Rubber and plastic products  815.4  288.2  89.9 -52.8 256.3  
  Computer, electronic and optical products  1,334.0  -374.8  790.1  850.2  920.5  
Electrical equipment  323.1  -625.5  -105.5  205.5  1,194.9  
Machinery and equipment  752.7  465.0  52.7 414.5  337.4  
Motor vehicles, trailers  -780.6  237.4  181.1  985.1  282.3  
Furniture  -42.1 0.3 0.2 7.2 32.5 
Electricity, gas, steam and air -conditioning supply  96.0 -115.5  625.4  -71.4 -609.2  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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2015  2016  2017  2018a 2019a 
Construction  -336.2  -320.0  -34.5 246.8  294.3  
Wholesale and retail trade; repair of motor vehicles 
and motorcycles  1,524.8  -1,107.6  994.3  1,793.2  1,041.3  
Transportation and storage  64.7 -134.6  -116.5  -24.1 -136.3  
Accommodation and food service activities  127.6  629.9  -318.1  109.0  -561.8  
Financial and insurance activities  2,986.5  1,058.2  3,374.5  4,181.5  -1,231.9  
Real estate activities  1,289.8  1,427.7  1,798.5  2,256.6  2,383.2  
Others  -501.7  238.8  669.0  171.7  65.8 
a Provisional.  
Source:  Bank of Thailand , International Investment Position [Tables 057 + 059]. Viewed at: 
https://www.bot.or.th/English/Statistics/EconomicAndFinancial/Pages/StatInternationalInvestmentP
osition.aspx . 
1.49.   FDI outflows soared dur ing the review period, exceeding by far FDI inflows. In 2018, outflows 
reached a record high of USD 21,2 billion, but fell to USD 14,0 billion  in 2019 , due to divestment 
from some business closures and the repayment of loan and trade credits to Thai invest ors 
(Table  1.8). The sustained increase until 2018 reflects the authorities' gradual liberalization of 
outward investment and Thailand's deeper regional integration. However , it is also an indication that 
Thailand has been losing competitiveness due to slu ggish productivity growth and relatively higher 
labour costs in the region, prompting Thai firms to invest abroad.50 Domestic political instability may 
also have had a dampening effect on investors' confidence.  
Table 1.8 Outflows of FDI, 2015 -19 
 
2015  2016  2017  2018a 2019a 
Total outflows (USD million)  4,991.1  13,361.8  18,530.6  21,248.5  14,017.0  
(a) Outflows by destination       
ASEAN  629.6  4,755.1  6,023.2  6,976.5  4,816.1  
   Brunei Darussalam  3.7  0.0  0.0  18.0  0.7  
   Cambodia  32.1  352.5  88.9  236.5  80.8  
   Indonesia  288.6  434.4  349.9  208.2  -74.4  
   Lao PDR 450.8  429.2  495.4  380.9  344.3  
   Malaysia  1.8  152.1  327.7  376.8  390.8  
   Myanmar  745.2  471.7  474.6  346.1  420.8  
   Philippines  21.4  132.4  9.3  223.6  62.3  
   Singapore  -1,181.2  1,576.0  2,917.6  4,058.6  2,456.2  
   Viet Nam  267.3  1,206.8  1,359.9  1,127.8  1,134.7  
EU-28 1,364.8  1,491.5  5,414.9  4,718.0  3,070.0  
   Austria  -0.1  19.7  321.5  11.4  29.6  
   Belgium  52.6  34.9  20.4  -74.5  37.9  
   Denmark  -34.0  -2.4  13.4  30.5  -16.0  
   France  -140.8  127.9  36.0  21.8  -43.9  
   Germany  574.9  -239.1  189.1  451.4  502.5  
   Ireland  18.9  12.5  178.1  -0.4  0.4  
   Lithuania  -29.4  -37.0  1.9  9.0  -15.9  
   Netherlands  1,848.2  415.8  2,409.8  2,491.4  893.4  
   United Kingdom  -886.2  350.6  2,184.8  1,664.4  1,430.8  
   Other EU  -39.3  808.6  59.9  112.9  251.4  
Australia  -29.4  -125.2  411.5  -337.0  130.8  
Bangladesh  31.3  48.5  22.9  -1.7  14.8  
British Virgin Islands  451.9  573.6  151.1  318.8  -524.5  
Canada  412.4  635.0  34.3  34.9  74.4  
Cayman Islands  1,095.9  -351.4  725.3  -179.7  99.8  
China  -264.6  212.6  280.0  249.3  200.1  
Egypt  -6.2  -112.8  0.3  0.4  0.4  
Hong Kong, China  2,042.5  1,474.7  3,680.7  2,628.4  4,646.4  
India -11.3  124.9  105.5  262.8  328.0  
Japan  59.6  770.8  -204.1  1,741.4  1,389.7  
Mauritius  386.4  558.4  -377.4  3,222.0  -2,041.8  
Korea, Rep. of  -95.6  8.4  8.7  30.5  20.9  
Switzerland  -35.0  70.2  32.2  22.4  114.7  
Chinese Taipei  -61.3  27.0  12.8  67.2  139.5  
 
50 IMF (2019), Thailand : 2019 Article IV Consultation . IMF Country Report No. 19/309, October. Viewed  
at: https://www.imf.org/en/Publications/CR/Issues/2019/10/07/Thailand -2019-Article -IV-Consultation -Press -
Release -Staff-Report -and-Statement -by-the-48724 . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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2015  2016  2017  2018a 2019a 
United Arab Emirates  -56.1  -0.9  282.1  0.2  74.3  
United States  -320.1  2,570.1  1,687.3  431.3  722.1  
Others  -603.8  631.4  239.4  1,062.9  741.1  
(b) Outflows by sector       
Agriculture, forestry, and fishing  1.0  0.0  125.1  52.5  14.1  
Mining and quarrying  2,752.3  895.4  1,301.7  952.7  1,375.1  
Manufacturing  2,362.2  4,730.6  7,633.0  9,323.7  4,133.1  
   Food products  679.9  2,332.7  937.9  2,269.2  121.6  
   Beverages  1,113.6  823.2  3,216.8  1,831.4  49.0  
   Textiles  72.6  -60.3  89.6  -2.0  4.9  
   Chemicals and chemical products  744.5  -80.4  306.1  554.9  471.2  
   Computer, electronic and optical products  25.3  33.8  72.1  769.5  326.8  
   Electrical equipment  88.5  123.5  268.2  534.8  615.2  
   Machinery and equipment, n.e.s.  254.3  -92.2  90.8  681.1  183.5  
Electricity, gas, steam and air -conditioning supply  296.1  586.2  785.9  243.7  245.0  
Construction  183.9  -30.7  100.3  20.6  -8.0  
Wholesale and retail trade; repair of motor 
vehicles and motorcycles  2,091.0  1,965.2  2,492.6  1,970.5  2,188.1  
Transportation and storage  53.7  6.6  200.4  215.7  139.4  
Accommodation and food service activities  120.0  232.6  855.1  2,978.7  -592.1  
Financial and insurance activities  1,176.8  2,003.8  335.6  1,288.8  -347.9  
Real estate activities  237.8  655.3  875.4  359.3  576.4  
Others (financial transactions)  -4,283.8  2,316.7  3,825.8  3,842.4  6,293.8  
a Provisional.  
Source:  Bank of Thailand,  International Investment Position [Tables 057 + 059]  Viewed at:  
https://www.bot.or.th/English/Statistics/EconomicAndFinancial/Page s/StatInternationalInvestmentP
osition.aspx . 
1.50.   During the review period, investment outflows to ASEAN rose steadily , to reach USD  6,9 billion 
in 2018 (a ten -fold increase from 2015) but declined in 2019. Collectively, ASEAN countries received 
34.3% of Thailan d's FDI outflows in 2019, with the CLMV  countries as a group receiving almost 
17.0% of the total. The main individual destination of outward investment was Hong  Kong, China 
(33.1% of total FDI outflows); followed by Singapore (17.5%), the United Kingdom (1 0.2%) and 
Japan (9.9%). Thai FDI flows to the United States declined during 2016 -18 but increased in 2019, 
whereas the value of direct investments in China remained relatively stable. In 2019, almost 
a third of Thai direct investment abroad  was concentrate d in the manufacturing sector, with 
electronic products, chemicals and computers being among the main target industries. Other 
important sectors were wholesale and retail trade; mining ; and real estate.  
 WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  2  TRADE AND INVESTMENT REGIMES  
2.1  General Framework  
2.1.  Thailand is a constitutional monarchy and a unitary state. The head of state is a hereditary 
monarch1, and the Government is headed by a Prime Minister. Since the military coup in May 2014, 
new political developments have taken place in the country. A new  constitution was drafted in 2015, 
which was approved through a national referendum in August 2016, and promulgated by the King 
in April 2017.2 General elections were held in March 2019 to select the members of a new House of 
Representatives. In June 2019 , General Prayut Chan -o-cha was elected as Prime Minister.3 
2.2.  The executive branch of government comprises the Prime Minister and the ministers and 
deputy ministers of the various government agencies, who collectively form the Council of Ministers 
(the Prim e Minister plus 35 ministers) and are responsible for the administration of state affairs and 
the establishment of government policies. The Prime Minister is appointed by the King upon approval 
and recommendation by the House of Representatives. Under the 2017 Constitution, the Prime 
Minister need not be an elected member of the House of Representatives. His term in office may not 
exceed eight years in total (including non -consecutive terms).   
2.3.  The legislative power is exercised by the National Assembly, con sisting of the House of 
Representatives (lower house) and the Senate (upper house). Pursuant to the 2017 Constitution, 
the House of Representatives has 500 members, who serve four -year terms, 350 of whom are  
elected directly on a constituency basis ; the re maining 150 are selected from party lists  based on 
the percentage of votes that each of the major parties received in the elections. The Senate consists 
of 250 members during the current initial period (2019 -23); thereafter, there will be 200 senators 
serving five -year terms "…installed from a selection by and among persons having the knowledge, 
expertise, experience, profession, or characteristics or common interests or working or having 
worked in varied areas of the society ".4  
2.4.  Thailand's legal system is  based primarily on civil law , although it also has certain elements of 
common law . Under the 2017 Constitution, a bill (other than an organic act bill5) may be introduced 
to the House of Representatives by: the Council of Ministers; members of the House of 
Representatives (at least 20); or petition (not less than 10,000 signatures).6 Money bills (including 
those related to taxes and duties and the use of state funds) may be introduced only with the 
endorsement of the Prime Minister, except in the case of  bills introduced by the Council of Ministers.7 
When the House of Representatives has considered a bill and resolved to approve it, the bill is 
submitted to the Senate. If the Senate gives its approval, the bill is passed. In the case of rejection, 
the bi ll is returned to the House of Representatives for reconsideration. If disagreement between 
the two houses persists, a joint committee is formed. The committee prepares a report and the bill 
is resubmitted. It passes if both houses give their approval. Onc e the bill has been approved, the 
Prime Minister must present it to the King for signature, and it becomes effective upon publication 
in the Government Gazette.8  
 
1 HM King Maha Vajiralongkorn Bodindradebayavarangkun  was formally crowned on 4 May 2019.  
2 Constitution of the Kingdom of Thailand of 6 April B.E. 2560 (2017), hereafter "2017 Constitution".  
3 General Prayut Chan -o-cha, the former coup leader,  resigned as head of the military government on 
15 July 2019. In August 2014, he had been appointed Prime Minister under the Interim Constitution adopted 
by the military government.  
4 Section 107 of the 2017 Constitution and Section 11 of the Organic Act on Installation of Senators 
B.E 2561 (2018).  
5 Organic acts refer to: Election of Members of the House of Representative; Installation of Senators; 
Election Commission; Political Parties; Ombudsmen; P revention and Suppression of Corruption; State Audit; 
Procedures of the Constitutional Court; Criminal Procedure for Persons Holding Political Positions; and Human 
Rights Commission.  
6 This refers only to bills under Chapter III Rights and Liberties of th e Thai People or Chapter V Duties of 
the State.  
7 Section 134 of the 2017 Constitution provides that money bills are those with provisions dealing with: 
(1) the imposition, repeal, reduction, alteration, modification, remission, or regulation of taxes and duties; 
(2) the allocation, receipt, custody or payment of state funds, or transfer of expenditure estimates of the 
State; (3) the raising of loans, guarantees, redemption of loans, or any act binding state properties; or 
(4) currency.  
8 Section 81 of the  2017 Constitution.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  2.5.  The Constitution is the supreme law of the country. Other legislative sources are: acts (law s) 
passed by the National Assembly; royal decrees (promulgated by the executive branch to set forth 
regulations under a specific Act); emergency decrees ( enacted by the executive branch in an 
emergency, but subject to subsequent confirmation by the Nationa l Assembly ); orders issued by 
administrative agencies (consisting of rules and regulations to carry out their government functions); 
and cabinet resolutions (with no binding effect but influencing the enforcement or interpretation of 
rules and regulations by governm ent agencies). International treaties and conventions entered into 
by Thailand are incorporated into domestic law after being approved by the National Assembly and 
signed by the King.  
2.6.  Under the 2017 Constitution, the judicial system consists of four types  of courts: Courts of 
Justice; Administrative Courts; the Constitutional Court; and Military Courts. There are three levels 
of Courts of Justice: Courts of First Instance; Courts of Appeal; and the Supreme Court of Justice, 
which includes a Criminal Divisi on for Persons Holding Political Positions, as mandated by the 
Constitution. The Courts of First Instance include specialized courts such as the Tax Court, the 
Intellectual Property and International Trade Court, and the Bankruptcy Court. The Administrativ e 
Courts adjudicate cases between private individuals and government entities/officials; however, they 
do not have jurisdiction over the direct exercise by a constitutional organ of powers granted to it 
under the Constitution. The Constitutional Court has jurisdiction to determine whether the provisions 
of any law or regulation are contrary to, or inconsistent with, the Constitution, and its decisions are 
not subject to review by any court, including the Supreme Court. Military Courts have the power to 
adjudicate on criminal cases against persons subject to their jurisdiction. Judicial decisions do not 
develop a body of law but interpretations by the Supreme Court become precedents, which lower 
courts, although not bound to, normally adhere to in subsequent cases.  
2.7.  In 2017, the Government issued its 20 -Year National Strategy ( 2018-37), developed by the 
Office of the National and Economic Development Council (NESDC). The National Strategy's main 
goal is for Thailand to attain developed country status and to tra nsit to a digital economy, based on 
the principle of self -sufficiency. It sets out six key strategies: maintaining national security; 
enhancing national competitiveness; developing human capital; improving social cohesion and social 
equality; promoting eco -friendly growth and development; and improving public -sector efficiency. 
The Twelfth National Economic and Social Development Plan (NESDP) 2017 -21 is the main tool for 
the implementation of the first five years of the National Strategy. It establishes in more detail the 
economic, social and environmental targets to be achieved during this period , and provides a 
framework for government agencies to use as a guideline in formulating their own sectoral plans. In 
addition to the six key strategies mentioned ab ove, the NESDP 2017 -21 sets out four complementary 
strategies: advancing infrastructure and logistics; developing science, technology, research and 
innovation; developing regional, urban and economic zones; and strengthening international 
cooperation for d evelopment.9 The authorities have indicated that , in the areas of competitiveness 
and trade and investment under the NESDP, especial emphasis has been placed on encouraging 
public-private partnerships in mega -projects (e.g. infrastructure development and logistic systems), 
and on  strengthening investor confidence and supporting entrepreneurs to expand production 
capacity, especially through incentives under the Thailand Plus Package (Section 3.3.1).    
2.8.  Thailand 4.0 is the Government's key development policy  underpinning the National Strategy. 
Its aim is to transform Thailand into a value -added, innovative and knowledge -based economy. 
Thailand 4.0 is based on the following core elements: advancing technology and innovation to 
increase productivity of already high-performing industries; developing new technology -based 
industries with great growth potential; enhancing Thailand's position as a regional hub by upgrading 
its physical infrastructure (ports, road and rail links, and airports); and promoting the digit al 
competitiveness of Thai SMEs. Ten industries have been targeted under Thailand 4.0: the first five 
(called S -curves) are existing industries: next -generation automotive; smart electronics; medical 
and wellness tourism; agriculture and biotechnology; and  "food for the future ". The other five (new 
S-Curve) industries are: robotics; aviation and logistics; biofuels and biochemicals; digital; and 
medical hub. In order to attract investment to these targeted industries, the Government 
implements various incen tives measures (Section 3.3.1).  
2.9.  Moreover, with the aim of taking advantage of Thailand's strategic location at the heart of 
Southeast Asia, the Government has established the Eastern Economic Corridor (EEC) project, which 
 
9 Office of the NESDB. The Twelfth National Economic and Social Development Plan (2017 -2021).  
Viewed at: https://www.nesdc.go.th/nesdb_en/ewt_dl_link.php?nid=4345 . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  is a 13,000 km2 special economic zone covering three eastern provinces. With improved 
infrastructure and logistics facilities currently under construction, the EEC is aimed at enhancing 
regional connectivity and serving as a hub for targeted industries (Section 3.3.1). As part of the 
initiatives to promote the digitalization of SMEs, the New Economy Academy has been established 
as a digitally driven knowledge centre offering training and development programmes to SMEs; in 
addition, a new website (Thaitrade.com) provides an e -marketplace li nking Thai enterprises, 
particularly SMEs, with international clients.  
2.2  Trade Policy Formulation and Objectives  
2.10.   The institutional framework for the formulation of trade policy has not changed since 
Thailand's last Review. The Ministry of Commerce (MoC) con tinues to be the main government 
agency responsible for formulating and implementing trade policy. Other agencies involved in the 
implementation of specific aspects of trade policy generally include the Ministries of: Finance; 
Agriculture and Cooperatives;  Industry; Energy; Public Health; Digital Economy and Society; and 
Transport; the Bank of Thailand ; and the Office of the NESDC.   
2.11.   Within the MoC, the Foreign Trade Cluster continues to operate. It is formed by the three 
main departments responsible for int ernational trade: the Department of Trade Negotiations is 
responsible for conducting bilateral, regional and multilateral trade negotiations; the Department of 
Foreign Trade oversees compliance with international trade agreements, issues import and export 
certificates , and administers trade contingency measures; and the Department of International 
Trade Promotion is charged with expanding foreign markets for Thai products and services, 
increasing the value -added of exports of goods and services and enhancin g the competitiveness of 
Thai entrepreneurs in overseas markets through capacity building.   
2.12.   Thailand's trade policy is formulated within the broader framework of the 20 -Year National 
Strategy (2018 -2037) and the NESDP 2017 -2021. In this context, the M oC has issued its own action 
plan for 2020 -2022. In addition to the objectives and strategies that have guided trade policy since 
the last Review, the current version of the M oC Action Plan includes the objective of "Enhancing 
Capacity Building and Internationa l Development Cooperation ", aimed at increasing Thailand's 
capabilities and competitiveness in order to expand its presence in foreign markets , and at enhancing 
its economic partnerships with key trading partners (Table 2. 1).10 To this particular end, the Action 
Plan sets out three  implementation guidelines: (i) expansion of Thailand's foreign markets by 
encouraging Thai  enterprises to increase their business in foreign countries through activities such 
as trade fairs and marketing events to promote Thai pr oducts and services, brand awareness 
programmes (e.g.  Thai Halal products), and improving Thailand's international trade services; 
(ii) promotion of border and cross -border trade through marketing activities that encourage trade 
and investment in Thailand' s border provinces and special economic zones ; and (iii) enhanc ement 
of international trade and economic cooperation through FTA negotiations, and promoti on of  
technical cooperation with neighbouring countries (i.e. Cambodia, Lao PDR, Myanmar and Viet Nam) , 
among other actions. The Action Plan also includes a strategy for increasing private sector 
competitiveness through innovation, technologies and creativity, and for integrating micro, small 
and medium -sized enterprises ( MSMEs ) into global value chains.  
2.13.   The Joint Public and Private Sector Consultative Committee is the main channel for 
consultations on trade policy issues between the Government and the private sector. Regular public 
hearings are another channel enabling private -sector participation in trade policy formulation. 
Holding a public hearing is mandatory for government agencies before they can submit any law to 
the Cabinet for consideration. In addition to presential public hearings, the M oC must maintain an 
online publi c-hearing platform.  
2.14.   During the period under review, Thailand passed new or amended legislation in several 
trade -related areas , including: customs; comp etition policy; government procurement ; intellectual 
property rights ( copyright and patents ); SOEs; fishe ries; oil fuel; financial services; cybersecurity; 
personal information protection; electronic transactions; telecommunications; air transport; and 
trade/business registration.  
 
10 The MoC Action Plan is only available in Thai. A summary of its key po ints in English was made 
available to the Secretariat.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Table 2.1 Ministry of Commerce Action Plan, main objectives  
Objective  Strategies  
Empower the competitiveness of 
MSMEs and community 
enterprises  − Upgrade and enhance the productivity of MSMEs to move up the 
value chain and integrate them into global value chains ; 
− Encourage a new generation of entrepreneurs ; 
− Promote access to financial and technical support ; and  
− Facilitate the development of business networks  
Strengthen the local economy  − Stabilize the price of agricultural commodities using appropriate 
measures ; and  
− Address cost -of-living issues and ensure consumer protection  
Exert l everage on comparative 
advantages for high value -added 
products and services  − Ensure protection of intellectual property rights ; 
− Foster utilizat ion of intellectual property rights and innovation 
commercialization ; 
− Promote development of emerging, high value -added sectors ; 
− Support Thai arts and crafts products ; and  
− Promote One Tambon  (meaning sub -district) One Product (OTOP) 
products in international markets  
Create a conducive and fair 
business environment for trade  − Reform rules and regulations to ensure a free and fair environment 
for trade  
Maintain and expand market and 
trade cha nnels  − Expand domestic and international markets ; 
− Promote the use of electronic commerce and mobile commerce ; 
− Cultivate national image through Branding Thailand ; 
− Develop the service sector and service trade ; and 
− Promote food industry and halal products  
Build capacity and promote 
international development 
cooperation  − Expand markets for Thai products and services as well as business 
operations in foreign countries ; 
− Promote trade and investment under cooperation frameworks in 
Thailand's borders and neighbou ring countries' border areas ; and  
− Engage in negotiations on trade and development cooperation and 
strengthen Thailand's role in ASEAN  
Strengthen organizational 
capacity and good governance  − Promote and strengthen measures to prevent and combat corruption ; 
− Promote and enforce ethical conduct in public service ; and 
− Develop public -sector personnel that are qualified, highly responsible 
and result -orientated  
Source:  Information provided by the authorities.  
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.15.   Thailand is a fo unding Member of the WTO, and participated in the post -Uruguay Round 
negotiations on telecommunications and financial services. It became an Observer to the WTO 
Committee on Government Procurement in June 2015. In 2016, it accepted the Protocol Amending 
the TRIPS Agreement, and notified to the WTO its Least -Developed Country Services Waiver, 
granting preferential treatment to services and services suppliers of LDCs. As a party to the WTO's 
1996 Information Technology Agreement (ITA), Thailand participated i n the negotiations to expand 
the ITA's product coverage, finalized in mid -201511, and implemented the tariffs commitments under 
the ITA expansion on 1 July 2016. Thailand ratified the Protocol concerning the Trade Facilitation 
Agreement (TFA) on 5 October 2015, and notified most of its commitments (over 90%) in Category  A 
(i.e. implemented upon entry into force of the TFA) and the remaining commitments in Category  B 
(i.e. to be fully implemented by 2024).12 The TFA entered into force on 22 February 2017.   
2.16.   The trade policies and practices of Thailand have been reviewed at the WTO seven times; the 
last review took place on 24 and 26 November 2015. Thailand grants at least most -favoured -nation 
(MFN) tariff treatment to all its trading partners.  
2.17.   Thailand is act ively engaged in the WTO's negotiations and regular work. Acknowledging the 
multilateral trading system's contribution to enhanced stability, predictability, and transparency in 
world trade over the past decades, Thailand remains committed to the WTO and b elieves it is the 
platform to effectively subdue trade protectionism and promote broad -based, inclusive development 
and growth through trade. Thailand's priorities in the WTO agenda include: agriculture, where it 
 
11 WTO documents WT/L/956, 28 July 2015; and WT/MIN(15)/26, 16 December 2015.  
12 WTO documents WT/PCTF/N/TH A/1, 25 July 2014; WT/PCTF/N/THA/1/Add.1, 19 September 2016; 
G/TFA/N/THA/1, 24 May 2017; and G /TFA/N/THA/1/Add.1, 27 February 2018.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  strives to secure the concept of an overall  Trade Distorting Support Limit as the first and most 
important step towards agricultural reform; tangible outcomes in market access in both agriculture 
and NAMA; and, in services, progress towards developing domestic regulation disciplines. In fisheries 
subsidies, Thailand looks forward to a substantive outcome, that will take into account appropriate 
and effective special and differential treatment. It is also constructively engaged in discussions on 
new issues including e -commerce and MSMEs.13  
2.18.   With resp ect to its transparency obligations, Thailand has maintained a good record of 
notifications to the WTO. However, notifications on agricultural domestic support for recent years 
remain outstanding (Table 2.2).  
Table 2.2 Selected n otifications to the WTO, 2015 -2020 (26 July ) 
Agreement/Article  Requirement  Symbol and date of latest 
notification  
Agreement on Agriculture  
Articles 10 and 18.2  Export subsidies (ES:1)  G/AG/N/THA/ 95, 06/06/2019 
Articles 10 and 18.2  Export subsidies (ES: 2)  G/AG/N/THA/ 100, 07/06/2019 
Article 12.1(b)  Export prohibitions (ER:1)  G/AG/N/THA/ 107, 30/03/2020 
Article 18.2  Domestic support (DS:1)  G/AG/N/THA/ 85, 06/10/201 7 
Article 18.2  Market access, administration of  tariff and 
other quota commitments (MA:1)  G/AG/N/THA/ 103, 26/06/2019 
Article 18.2  Market access, volume of imports under 
tariff and other quotas (MA:2)  G/AG/N/THA/ 106, 27/08/2019 
Articles 5.7 and 18.2  Market access, special safeguard (MA:5)  G/AG/N/THA/ 90, 06/06/2019 
General Agreement on Trade in Services  
Article III:3  Laws/regulations  S/C/N/ 971 to S/C/N/979 , 01/11/2019 
Article s III:4 and/or IV:2  Contact /enquiry  points  S/ENQ/78/Rev. 20, 25/03/2020 
Article V:7(a)  Economic integration agreements  S/C/N/ 895, 12/09/2017 
Article VII:4  Regulation  S/C/N/980, 01/11/2019  
Decisions on Preferential Treatment to Services and Service Suppliers of Least -Developed Countries  
WT/L/847  Services LDC waiver  S/C/N/860, 19/02/2016  
GATT 1994  
Article XVII:4(a)  State trading activities  G/STR/N/1 6/THA, 17/04/2020 
Article XXIV:7(a)  Agreement establishing a free trade area  WT/REG 387/N/1, 12/09/2017 
WT/REG2 77/N/3, 24/08/2018 
Decision on Differential and More Favourable Treatment, Reciprocity and Fuller Participation of 
Developing Countries  
Paragraph 4(a)  Notification of RTA under Enabling Clause  WT/COMTD/RTA9/N/1, 12/09/2019  
WT/COMTD/RTA13/N/1, 14/01/20  
Agreement on Import Licensing  
Articles 1.4(a) and/or 
8.2(b)  Publications and/or legal texts  G/LIC/N/1/THA/2, 24/10/2016  
Articles 5.1 to 5.4  New licensing regulations/procedures  G/LIC/N/2/THA/5, 04/06/2020  
Agreement on Trade Facilitation  (WT/L/931)   
Articles 1 .4, 10.4.3, 
10.6.2 , and 12.2.2  Contact and information points  G/TFA/N/THA/3, 26/02/2020  
Article 15, Section II  Category A commitments  WT/PCTF/N/THA/1/Add.1, 19/09/2016  
Article 16  Category B commitments  G/TFA/N/THA/1/Add.1, 22/02/2018  
Decision on Notificatio n Procedures for Quantitative Restrictions  
G/L/59 /Rev.1 - biennial  Quantitative restrictions  G/MA/QR/N/THA/2/Add.1, 29/03/2019  
Agreement on Rules of Origin   
Article 5: 4 of Annex II – 
ad hoc  Preferential rules of origin  G/RO/N/167, 24/05/2018  
Article 5:4 of Annex II – 
first time  Preferential rules of origin for least 
developed countries  G/RO/LDC/N/THA/1, 07/08/2017  
Agreement on the Implementation of Article  VI of the GATT 1994 (anti -dumping)  
Article 16.4  Anti-dumping actions (taken within the  
preceding 6 months)  G/ADP/N/ 342/THA, 22/07/2020 
Agreement on Subsidies and Countervailing Measures  
Article 25.1 and GATT 
Article XVI:1  Subsidies  (new and full notification)  G/SCM/N/ 343/THA, 04/07/201 9 
Article 25.11  – semi-
annual  Countervailing duty actions  G/SCM/N/ 356, 13/12/2019 
Agreement on Safeguards  
Article 7.2  Extension of safeguard measures  G/SG/N/ 6/THA/ 4/Suppl.4; 
G/SG/N/ 14/THA/ 3/Suppl.3 , 16/06/2020 
 
13 Statement by H.E. Ms. Sunanta Kangvalkulkij, Ambassador Permanent Representative of Thailand to 
the WTO and WIPO, Ministerial Conference, Buenos Aires, 10 -13 December 2017, WTO document 
WT/MIN(17)/ST/100, 4 January 2 018. WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Agreement/Article  Requirement  Symbol and date of latest 
notification  
Article 9.1, footnote  2 Non-application of safeguard measures 
against a product originating in a 
developing country Member  G/SG/N/8/THA/3 /Suppl.3/Corr.1 ; 
G/SG/N/10/THA/3 /Suppl.3/Corr.1; 
G/SG/N/11/THA/ 6/Corr.1 , 28/06/2018 
Article 12.1(a)  Safeguard measures (initiating an 
investigation relating to serious injury or 
threat thereof , and the reasons for it)  G/SG/N/6/THA/ 5/Corr.1, 11/04/2016  
Article 12.1(b)  Safeguard measures (making a finding of 
serious injury or threat thereof caused by 
increased imports)  G/SG/N/8/THA/3 /Suppl.3/Corr.1 ; 
G/SG/N/10/THA/3 /Suppl.3/Corr.1; 
G/SG/N/11/THA/ 6/Corr.1 , 28/06/2018 
Article 12.1(c)  Safeguard measures (taking a decision to 
apply or extend a safeguard measure)  G/SG/N/8/THA/3 /Suppl.3/Corr.1 ; 
G/SG/N/10/THA/3 /Suppl.3/Corr.1; 
G/SG/N/11/THA/ 6/Corr.1 , 28/06/2018 
Agreement on Sanitary and Phytosanitary Measures  
Article 7, Annex B  Sanitary/phytosanitary emergency 
measures  G/SPS/N/THA/ 325, 10/07/2025 
Agreement on Technical Barriers to Trade  
Article 2.9  Technical regulations  G/TBT/N/THA/ 576, 14/05/2020  
Article 2.10  Information about standards and 
conformity assessment procedures  G/TBT/N/THA/571, 05/0/2020  
Articles 2.9 and 5.6  Technical regulations and conformity 
assessment procedures  G/TBT/N/THA/ 514, 26/06/2018  
Article 5.6  Conformity assessment procedures  G/TBT/N/THA/38 4/Rev. 4, 17/07/2017 
Article 5.7  Conformity assessment procedures  
(urgent)  G/TBT/N/THA/574, 04/05/20  
Agreement on Trade -Related Aspects of Intellectual Property Rights  
Article 63.2   Checklist of issues  on enforcement ( IP/C/5)  IP/N/6/THA/1, 14/01/2015  
 Legislation  IP/N/1/THA/3/Rev.1; 
IP/N/1/THA/3/U/2/Rev.1, 27/05/2020  
  IP/N/1/THA/5; IP/N/1/THA/T/2, 
27/05/2020  
Source:  WTO Secretariat.  
2.19.   Thailand has been an active user of the WTO's dispute settlement mechanism. Overall, the 
country has been involved directly in 18 cases: 14 as a complainant and 4 as a respondent. It has 
also participated as a third party in 93 cases.14 During the period under review, Thailand was involved 
in two new dispute settlement cases: one as a complainant15, and the other as a respondent.16 In 
addition, it kept engaged in the new developments of a previous dispute brought by the Philippines 
against certain Thai customs and fiscal measures on cigarettes.17 In this case, in Septemb er 2019, 
Thailand appealed the second compliance panel report (Article 21.5 of the DSU)18, which was 
circulated on 12 July 2019.19  
2.3.2   Regional and preferential agreements  
2.3.2.1   Overview  
2.20.   Participation in regional trade agreements (RTAs) is another key component of Thailand's 
trade policy strategy. Over the period under review, two RTAs involving Thailand came into force: 
the Thailand -Chile Free Trade Agreement (on 5 November 2015) and the ASEAN -Hong Kong, China 
Free Trade Agreement (11 June 2019).  
2.21.   As a member of the Association of South East Asian Nations (ASEAN)20, Thailand is a party to 
the ASEAN Economic Community ( see below),  and a signatory to ASEAN's RTAs with third countries 
(Austra lia and New Zealand; China; India; Japan; Republic of Korea; and Hong Kong, China). 
 
14 Details of each of the dispute cases involving Thailand can be viewed at: 
https://www.wto.org/english/tratop_e/dispu_e/dispu_by_country_e.htm . 
15 DS573, Turkey–Additi onal duties on imports of air conditioning machines from Thailand . 
16 DS507, Thailand -Subsidies concerning Sugar , brought by Brazil.  
17 DS371, Thailand –Customs and Fiscal Measures on Cigarettes from the Philippines .  
18 WTO document WT/DS371/30, 11 September 2019.  
19 WTO documents WT/DS371/RW2 and WT/DS371/RW2/Add.1, 12 July 2019.  
20 ASEAN comprises ten member States : Brunei Darussalam; Cambodia; Indonesia; Lao PDR; Malaysia; 
Myanmar;  the Philippines; Singapore; Thailand; and Viet Nam.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Bilaterally, Thailand has trade agreements in force with Australia, Chile, Japan, India, New Zealand, 
and Peru. In total, Thailand currently has 13 RTAs in force (Table 2.3 ).21 
Table 2.3 ASEAN and Thailand's RTAs in force, June 2020  
RTA name  Date of 
entry into 
force  Coverage  GATT/WTO notification  
Year WTO provision  
ASEAN member States - collectively  
ASEAN Free Trade Area (AFTA)  01-Jan-93 Goods  1993 Enabling Clause  
ASEAN -Australia -New Zealand  01-Jan-10 Goods & Services  2010 GATT Art. XXIV & GATS Art. V  
ASEAN –Republic of Korea  01-Jan-10 
14-Oct-10 Goods & Services  2010 Enabling Clause, GATT Art. XXIV & 
GATS Art. V  
ASEAN –Japan  01-Dec-08 Goods  2009 GATT Art. XXIV  
ASEAN -China  01-Jan-05 
01-Jul-07 Goods  
Services  2005 
2008 Enabling Clause  
GATS Art. V  
ASEAN -India 01-Jan-10 
01-Jul-15 Goods  
Services  2010 
2015 Enabling Clause  
GATS Art. V  
ASEAN –Hong Kong, China  11-Jun-19 Goods & Services  Not notified  
Thailand  
Chile–Thailand  05-Nov-15 Goods & Services  2017 GATT Art. XXIV & GATS Art. V  
Japan -Thailand  01-Nov-07 Goods & Services  2007 GATT Art. XXIV & GATS Art. V  
New Zealand -Thailand  01-Jul-05 Goods & Services  2005 GATT Art. XXIV & GATS Art. V  
Australia -Thailand  01-Jan-05 Goods & Services  2004 GATT Art. XXIV & GATS Art. V  
India–Thailand  01-Sep-04 Goods  2017 Enabling Clause  
Peru-Thailand  31-Dec-11 Goods  Not notified  
Source:  WTO, Regional Trade Agreements  Database . Viewed  at: http://rtais.wto.org . 
2.22.   Thailand's preferential tariff utilization rates for exports under its RTAs are generally high and 
grew during the review period. In 2019, utilization rates higher t han 90% were achieved under the 
RTAs with Chile, Australia, Japan, Peru and China ( Table A2.1 ). 
2.23.   Negotiations on RTAs between Thailand and the European Union, and between Thailand and 
the European Free Trade Area (EFTA), respectively, have been put on hold since 2014. However, 
the current Government, elected in June 2019, has launched an  internal procedure on the possibility 
of resuming negotiations with the E uropean Union and EFTA in the near future. As regards the 
Thailand -Peru Closer Economic Partnership agreement, while the Early Harvest Scheme was 
implemented in 2011, negotiations regarding the remaining trade liberalization in goods and services 
are still ongoing. Tha iland continues to be engaged in negotiations under the Bay of Bengal Initiative 
for Multisectoral Technical and Economic Cooperation (BIMSTEC).22 Thailand has also actively 
participated in the negotiations for the Regional Comprehensive Economic Partnersh ip (RCEP), a 
mega trade deal among Asia -Pacific nations. At their third summit held in Bangkok in November 
2019, the RCEP leaders announced that 15 of the 16 participating countries had concluded the 
negotiations of the agreement and would be ready to sign  it in 2020.23 On a bilateral level, Thailand 
continues trade negotiations with Pakistan, Sri Lanka and Turkey.  
2.24.   Thailand grants preferential tariff treatment to a limited number of imports from other 
developing countries under the Global System of Trade P references (GSTP).   
2.3.2.2   ASEAN  
2.25.   Thailand is a founding member of ASEAN. The regional bloc is Thailand's major trading 
partner , accounting for 19% of its merchandise imports and 25.5% of its exports in 2019.  Since 
2015, Thailand belongs to the ASEAN Economic Comm unity (AEC), the economic pillar of ASEAN. 
The AEC aims to transform ASEAN into a single market and production base with the free flow of 
goods, services, investment, skilled labour, and capital. Currently, ASEAN is implementing the AEC 
Blueprint 2025 , adopted in November 2015, which sets out measures to attain the following strategic 
objectives: achieving an AEC that is highly integrated and cohesive; competitive, innovative and 
dynamic; with enhanced connectivity and sectoral cooperation; and a more resil ient, inclusive, and 
 
21 A partial scope trade agreement between Lao PDR and Thailand (1991) was notified to the WTO and 
is still in force. However, it appears that Lao PDR has not utilized the preferential tariff treatment under this 
agreement in the last five years, as it enjoy s more benefits under the AFTA.  
22 BIMSTEC includes Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand.  
23 RCEP participants are the ten  ASEAN members  plus China, India, Japan, the Republic of  Korea, 
Australia and New Zealand . India did not a gree to sign the pact in November 2019.   WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  people -oriented  community, integrated into the global economy . In addition, the Blueprint 
incorporates new focus areas s uch as integration into global value chains, good regulatory practices, 
and sustainable development. Thailand chair ed the ASEAN bloc in 2019.  
2.26.   Over the review period, ASEAN member States continued to advance towards deeper 
economic integration. In the area of trade in goods, as a result of further trade liberalization under 
the ASEAN Trade in Goods Agreement (ATIGA), 9 8.6% of import tariffs on intra -ASEAN trade had 
been eliminated by 2019.24 The ATIGA Information Technology Agreement was concluded in 2019 
and its implementation was expected in 2020.  As regards non -tariff barriers, however, no progress 
appears to have be en made towards elimination.25 In the area of trade facilitation, recent 
developments include the adoption of the ASEAN Trade Facilitation Framework in 2016; the launch 
of the ASEAN Single Window among Indonesia, Malaysia, Singapore, Thailand and Vietnam in 
January 2018 , and Brunei Darussalam in April 2019; the finalization of the First Protocol to Amend 
the ATIGA to allow for the operation of the ASEAN -Wide Self Certification Scheme with a target date 
of March 2020; and preparatory work for the implementat ion of the ASEAN Customs Transit System 
Pilot Project along two corridors including seven member States (Malaysia, Singapore, Thailand, 
Cambodia, Lao PDR, Viet Nam and Myanmar), scheduled for 2020. Progress was also made in the 
harmonization of technical r egulations and the conclusion of ASEAN mutual recognition agreements 
in several sectors.  
2.27.   Regarding trade in services, 12 main service sectors comprising 128 subsectors have been 
liberalized. The Protocol to Implement the 10th Package of Commitments under t he ASEAN 
Framework Agreement on Services (AFAS) was signed in 2018. Moreover, the ASEAN Trade in 
Services Agreement (ATISA), under negotiation since 2013 , was concluded in April 2019 , and is 
currently in the process of signing and ratification.  ATISA conso lidates the achievements under the 
AFAS, provides for a transition to an eventual negative list approach in scheduling liberalization 
commitments, and will eventually supersede the AFAS.26 A work plan for the submission of schedules 
of non -conforming measu res is in progress. On financial integration, the Protocol to Implement the 
8th Package of Commitments on Financial Services under the AFAS was signed in April 2019 and 
entered into force in October 2019, and members have started negotiations on the 9th package. 
Likewise, efforts to facilitate mobility of services professionals have continued through the 
implementation of the ASEAN Ag reement on Movement of Natural Persons, the ASEAN Mutual 
Recognition Arrangement on Services, and the ASEAN Qualifications Re ference Framework.  
2.28.   In the area of investment, the ASEAN Comprehensive Investment Agreement (ACIA), in force 
since 2012, sets out provisions on investment liberalization, protection, promotion , and facilitation, 
with the aim of creating an open investment e nvironment in the ASEAN region. Under the ACIA, 
ASEAN -based investors enjoy non -discriminatory treatment, with a single negative list of 
reservations, and provisions on further progressive liberalization. The Fourth Protocol to Amend the 
ACIA was signed in  April 2019; the text of the Protocol is not publicly available yet. Reportedly, it 
incorporates into the ACIA some provisions prohibiting performance requirements that go beyond 
commitments in the WTO Agreement on Trade -related Investment Measures.  
2.29.   The A SEAN Agreement on Electronic Commerce, signed in 2019 and currently under the 
ratification process, aims to facilitate cross -border e -commerce transactions, contribute to creating 
an environment of trust in the use of e -commerce, and intensify e -commerce t o drive inclusive 
growth. The Agreement covers provisions on paperless trading, electronic authentication and 
electronic signatures, online consumer protection, cross -border transfer of information by electronic 
means, online personal information protectio n, and the location of computing facilities , among 
others . Also, the ASEAN Digital Integration Framework was developed in 2018, followed by the 
ASEAN Digital Integration Framework Action Plan 2019 -2025, which focuses on facilitating seamless 
trade, protecting data while supporting innovation, enabling seamless digital payments, broadening 
the digital talent base, and fostering entrepreneurship.  
 
24 By 2019, the ASEAN -6 (i.e. Brunei  Darussalam , Indonesia, Malaysia, the Philippines, Singapore and 
Thailand)  had eliminated import duties on 99. 3% of their tariff lines , and the CLMV group  (i.e. Cambodia, 
Lao PDR, Myanmar and Viet Nam)  had eliminated import duties on 97.7% of their tariff lines.  Import tariffs on 
sensitive goods (coffee, potatoes, coconuts, and cut flowers) have been reduced to 5%.  
25 ASEAN Prosperity Initiative , ASEAN Integration Report 2019, API re port No. 03, September 2019.  
Viewed at: https://asia.fnst.org/sites/default/files/uploads/2019/10/07/aseanintegration2019v4.pdf . 
26 ASEAN, ASEAN Economic Integration Brief , No. 05, June 2019. Viewed at: 
https://asean.org/storage/2019/06/AEIB_5th_Issue_Released.pdf . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  2.30.   In addition, ASEAN has adopted common strategies, guidelines and actions in a number of 
trade -related areas , including intellectual property, competition policy, consumer protection, good 
regulatory practices, MSMEs, transport and connectivity, tourism, and external economic relations.27  
2.31.   ASEAN maintains a network of regional trade agreements (RTAs) with major economic 
partners , and is engaged in several negotiating initiatives  to conclude new agreements or amend 
existing ones . Since November 2012, ASEAN and its RTA partners (China, India, Japan, the Republic 
of Korea, Australia and New Zealand) have been involv ed in the negotiations f or the Regional 
Comprehensive Economic Partnership (RCEP) . Concluding the se negotiations has been one of 
Thailand's top priorities , in particular as it chaired ASEAN in 2019. At the third RCEP Summit held in 
Bangkok in November  2019, the participating countries (except India) agreed to sign the RCEP 
agreement in 2020. At the time of writing, RCEP negotiators were in the process of finalizing some 
remaining issues and the legal review in preparation for the signature of the agreement.   
2.32.   The Protocol Upgrading the ASEAN -China free trade agreement (ACFTA)  entered into force in 
July 2016, and its implementation started in August 2019. It simplifies customs procedures and rules 
of origin; improves services commitments in specific sectors; a nd strengthens investment 
provisions. The ASEAN -Hong Kong, China Free Trade Agreement and the ASEAN -Hong Kong, China 
Investment Agreement were concluded in September 2017, and came into force on 11 June and 
17 June 2019, respectively. Other developments we re the signing, in 2019, of the First Protocol to 
Amend the ASEAN -Japan Comprehensive Economic Partnership (AJCEP) to incorporate new chapters 
on trade in services, movement of natural persons, and investment; and the implementation of the 
First Protocol t o Amend the ASEAN -Australia -New Zealand Free Trade Agreement in March 2019. In 
addition, ASEAN is working with the European Union to develop a framework setting out the 
parameters for a future ASEAN -EU free trade agreement; and with Canada to prepare a joi nt 
feasibility study and explore the potential of an ASEAN -Canada free trade agreement.  
2.3.3   Other agreements and arrangements  
2.3.3.1   Preferential trade agreements  
2.33.   Thailand benefits from trade preferences under the GSP schemes of the United States, 
Switzerland, Norway , and the Russian Federation and ten other members of the Commonwealth of 
Independent States (CIS). As an upper -middle -income country, Thailand no longer receives GSP 
treatment from the European Union, Canada and Turkey since January 2015, nor from Japan s ince 
April 2019. In October 2019, the United States announced a planned suspension of trade preferences 
under its GSP scheme for 573 Thai products (mainly industrial goods) on the grounds of concerns 
about worker rights.28  
2.34.    In 201 9, most of Thailand's GSP  exports were destined to the United States ( 91.1%) 
(Table  2.4). Overall, exports of air -conditioning parts, vulcanized rubber gloves, food preparations, 
non-alcoholic beverages and spectacle lenses are reported to have been the top five Thai products 
benefitting from GSP treatment.29  
2.35.   Since April 2015, Thailand has granted duty -free quota -free access to its market for imports 
from least developed countries.  
 
27 ASEAN, The 51st ASEAN Economic Ministers' (AEM) Meeting , 6 September 2019, Bangkok, Thailand, 
Joint Media Statement . Viewed at: https://as ean.org/asean -economic -community/asean -economic -ministers -
aem/asean -economic -ministers -aem/51st -asean -economic -ministerial -meetings -thailand -2019/ . 
28 Bangkok Post, Thailand seeks clarity on scrapping of US trade preferences , 26 October 2019. Viewed 
at: https://www.bangkokpost.com/business/1780229/trump -suspends -duty-free-trade-for-some -thai-goods . 
29 Bangkok Post, Exporters improve FTA and GSP use , 17 October 2018. Viewed at: 
https://www.bangkokpost.com/business/1559250/exporters -improve -fta-and-gsp-use. WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Table 2.4 Thailand's utilization of preferential tariffs under GSP schemes, 201 5-19 
(USD million)  
Countries  2015  2016  2017  2018  2019  
United States  3,605  4,034  4,159  4,344  4,787  
Switzerland  271 310 304 360 299 
CISa 137 142 152 163 139 
Norway  25 21 21 28 28 
Japanb 16 18 19 8 1 
a CIS includes the Russian Federation and ten other members of the CIS. 
b Thailand graduate d from Japan's GSP scheme on 31 March 2019.  
Source:  Trade Preference Division, Department of Foreign Trade, Ministry of Commerce.  
2.3.3.2   Asia-Pacific Economic Cooperation (APEC)  
2.36.   Thailand is a member of APEC since November 1989. As stated in the Bogor Goals, APEC 
members seek to achieve free and open trade and investment by 2010 for industrialized economies 
and by 2020 for developing economies.30 The group's trade objective is "open regionalism ", and it 
relies on its members meeting unilateral voluntary targets for progressive liberalization. Individual 
Action Plans (IAPs) are roadmaps setting out APEC members ' intended actions in a number of polic y 
areas to achieve the Bogor Goals. IAPs are submitted every two years , and their progress is regularly 
assessed.  
2.37.   As a developing economy, Thailand intends to meet the target of free and open trade and 
investment by 2020. The 2018 progress report on Thailand's IAP highlights the country's 
achievements as well as the areas where there is room for improvement (Box 2.1). For example, 
the report acknowledges that tariffs have been reduced, but that agricultural products still have 
relatively higher tariff s than non -agricultural products and some are subject to tariff -rate quotas; 
import/export licensing requirements are in place ; and foreign restrictions remain in some sectors. 
The report also highlights the introduction of the Digital Government Plan 2017 -2021; a new 
Customs Act aimed at facilitating trade, and improvements in the IP and competition regimes, among 
others.31 The next progress report is due to take place in 2020.  
Box 2.1 Thailand's Bogor Goals Pro gress Report (September 2018)  
Highlights of achievements , and areas for improvement : 
• Average tariffs are lower than those in the first half of this decade. However, agricultural products are 
still maintaining higher tariffs than non -agricultural products. Tariff-rate quotas still apply to some 
agricultural products.  
• No import/export levies, export subsidies and minimum import prices are in place. Import/export 
licensing requirements apply for some products.  
• The new Digital Government Plan 2017 -2021 aims to improve digital capabilities in all sectors by 
integrating digital technologies into public services.  
• Foreign ownership restriction remains in some areas. Some professions are still reserved for Thai citizens 
only. 
• The new Customs Act is looking to facilit ate trade and increase transparency. More certainty added to 
the appeal process.  
• The 2017 Computer Crime Act provides new tools for combating online IP crimes , and empowers officials 
to conduct investigations and confiscations.  
• The Trademark Act was amende d in 2016 with significant structural policy changes.  
• The Trade Competition Act introduced the Office of Trade Competition Commission as an independent 
government agency. SOEs are subject to this Act.  
 
 
30 APEC's member economies are: Australia; Brunei Darussalam; Canada; Chile; China; 
Hong Kong,  China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua N ew Guinea; 
Peru; the Philippines; the Russian Federation; Singapore; Chinese Taipei; Thailand; the United States; and 
Viet Nam.  
31 APEC, Thailand's Bogor Goals Progress Report and its 2018 IAP. Viewed at: 
https://www.apec.org/About -Us/About -APEC/Achievements -and-Benefits/2018 -Bogor -Goals .  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  • A new Constitution which aims to introduce laws only t o the extent of necessity and repeal unnecessary 
ones, conduct consultations with stakeholders, and evaluate the outcomes of the law regularly , among 
other things, was enacted in 2017.  
• A new SMART Visa , targeting highly  skilled professionals in areas such as robotics, biotechnology and 
digital issues, was launched in February 2018 to encourage knowledge transfer and improve the 
competitiveness of Thailand.  
Source:  APEC Policy Support Unit, APEC's Bogor Goals Progress Report, November 2018 . Viewed at: 
https://www.apec.org/Publications/2018/11/APEC -Bogor -Goals -Progress -Report . 
2.3.3.3   Asia-Europe Meetings (ASEM)  
2.38.   Thailand is an act ive participant in the Asia -Europe Meetings. ASEM is an informal platform 
for dialogue and cooperation among 53 partners from across Europe and Asia.32 Summit meetings 
take place biannually to discuss the main challenges facing a rapidly  changing world, in cluding trade 
and investment, climate change, political and social issues, and security matters such as counter -
terrorism, and cyber and migration issues. A few years ago, ASEM worked on a Trade Facilitation 
Action Plan, aimed at reducing non -tariff barrie rs, increas ing transparency and foster ing trade ties 
and opportunities between the two regions. Currently, participants are engaged in the exchange of 
experiences with the implementation of the WTO Trade Facilitation Agreement. In the last couple of 
years,  ASEM has focused on fostering connectivity in all its dimensions, including economic, political, 
digital, institutional and socio -cultural.33 Thailand contributed to  the exchange of ideas by presenting 
its Eastern Economic Corridor Project, aimed at conne cting the East Asian region through 
improvements in physical, transportation and digital infrastructure.  
2.3.3.4   Other cooperation arrangements  
2.39.   Thailand takes part in other subregional cooperation frameworks, notably the following: the 
Bay of Bengal Initiative on  Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), which 
aims to enhance and accelerate economic growth through mutual cooperation in a number of areas 
among its members34; they are currently negotiating several constituent agreements that will 
eventually form part of a free trade agreement.35 The Ayeyawady -Chao Phraya -Mekong Economic 
Cooperation Strategy (ACMECS) is a cooperation framework among Cambodia, Lao PDR, Myanmar, 
Viet Nam and Thailand aimed at promoting balanced development in the subr egion.36 The Greater 
Mekong Subregion Economic Cooperation (GMS) programme seeks to enhance prosperity and 
integration among participating economies37; its strategic plan 2012 -2022 is based on a 
three -pronged strategy: increasing connectivity through the development of physical infrastructure 
and transnational economic corridors; improving competitiveness through facilitation of the cross-
border movement of people and goods and the integration of markets, production processes, and 
value chains; and building a greater sense of community through program mes that address shared 
social and environmental concerns.38 The Asia Cooperation Dialogue (ACD) is aimed at fostering 
strategic partnerships and cooperation in all of the Asian subregions.  
 
32 ASEM partners are: the EU member States, the European Commission, Norway, Switzerland, the 
ASEAN 10, the ASEAN Secretari at, Australia, Bangladesh, China, India, Japan, Kazakhstan, the Republic of 
Korea, Mongolia, New Zealand, Pakistan and the Russian Federation.  
33 European Commission, Press release, ASEM Summit: Europe and Asia – Global Partners for Global 
Challenges , 19 O ctober 2018. Viewed at: https://europa.eu/rapid/press -release_IP -18-6136_en.htm . 
34 The members are Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand. The areas of 
coope ration include: trade and investment ; transport and c ommunication ; energy; tourism; technology; 
fisheries and agriculture; public health; poverty alleviation; climate change; and cultural cooperation.  
35 The constituent agreements include trade in goods, tr ade in services, investment, trade facilitation, 
economic cooperation, and technical assistance. An agreement on customs cooperation was expected to be 
concluded by end -2019.  
36 Key areas of cooperation include trade and investment facilitation, transport, agriculture, industry and 
energy, tourism, public health, and human resource development.  
37 The GMS programme's participants are: Cambodia, China, Lao PDR, Myanmar, Thailand a nd 
Viet Nam.  
38 Asian Development Bank, Greater Mekong Subregion Economic Cooperation Program: Overview . 
Viewed at: https://www.adb.org/publicat ions/greater -mekong -subregion -economic -cooperation -program -
overview . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  2.4  Investment R egime  
2.40.   Thailand encourages foreign direct investment (FDI) in order to foster the country' transition 
to a high -income, well -connected and knowledge -based economy, in line with its Thailand 4.0 policy. 
Accordingly, some amendments to legislation on FDI have  recently been made in order to remove 
restrictions to foreign participation in infrastructure development and in certain services industries, 
notably financial services. However, FDI restrictions continue to apply in several economic sectors.  
2.41.   The Foreign Business Act B.E. 2542 (1999) (FBA)  remains the main law governing foreign 
investment. It stipulates a range of business activities that may not be carried out by foreigners, 
and defines the term "foreigner " as: (i) a person who is not a Thai national; (ii ) a "juristic " (i.e. legal) 
person registered under foreign laws; or (iii) a juristic person registered under Thai law with 50 % 
or more of its shares held by foreign parties (either natural or legal persons). Foreigners conducting 
business in Thailand must  comply with FBA requirements, and other applicable laws.  Indeed, foreign 
investment in certain business activities (e.g. transportation, mining, financial services,  
telecommunications, and tourism) is restricted under sector -specific laws.   
2.42.   Under the FBA, industries are classified into three categories or lists according to the level of 
restrictiveness, with different foreign equity limits and approval requirements for each of them 
(Table  2.5). List 1 sets out the industries in which foreign investment is not permitted, including 
businesses such as newspapers, media broadcasting, rice farming, livestock, forestry and timber 
processing from natural forest s, fisheries, and trading in land. The industrie s in List 2 are permitted 
only if foreign investors obtai n prior approval from the Cabinet and a licence from the Minister of 
Commerce (MoC). Moreover, they are subject to a foreign equity limit of 60% (up to 75% in some 
cases), and at least two fifths of the board of directors must be Thai nationals. List 2 ind ustries 
include those concerning national safety and security, and those which have an impact on the arts, 
culture, tradition, local handicrafts, natural resources or the environment. List 3 includes industries 
in which "Thai nationals are not yet ready to  compete with foreigners ". These are open to foreign 
investors provided they receive a licence from the Director -General of the Department of Business 
Development of the MoC and approval from the Foreign Business Committee; no foreign equity limits 
apply i n this case. A wide range of businesses are covered under List 3, including rice milling, 
construction, engineering, legal and accounting services, and hotel businesses (except 
management). Notwithstanding the above, foreign companies making substantial in vestments that 
benefit the Thai economy may be authorized by the Board of Investment to operate businesses in 
Lists 2 and 3.  
2.43.   The FBA allows the MoC to review and remove categories of business from the above -
mentioned lists through ministerial regulations . During the period covered by this Review, the MoC 
issued such ministerial regulations in a few instances: in 2016, a regulation removed the foreign 
business licence requirement on banking and insurance investments39; in 2017, the exemption was 
extended to  other businesses governed by the laws on financial institutions (group 1) and to 
businesses under other specific laws such as asset management, representative offices, regional 
offices and contractual services provided to government agencies or SOEs (grou p 2).40 A ministerial 
regulation issued in June 2019 exempted domestic loan services, the lease of office space, and 
consultancy services (management, marketing, human resources and IT) among parent companies, 
their affiliates and subsidiaries, from the fo reign business licence requirement.41  
2.44.   There are rules and procedures for submitting licence applications for restricted businesses 
(Lists 2 and 3), and time -frames for deciding on applications. As a general rule, licence applications 
must be decided withi n 60 days of being filed and issued within 15 days of approval. In early 2015, 
the Department of Business Development established that the issuance of foreign business licences 
for international headquarters and international trading centres must be comple ted within 30 days 
 
39 Ministerial Regulation Prescribing Service Businesses Not Subject to Application for Foreign Business 
Permission (No.  2), B.E. 255 9 (2016) . 
40 Ministerial Regulation Prescribing Service Businesses Which Do Not Require a Foreign Business 
Licence (No. 3), B.E. 2560 (2017), 9 June 2017. Exempted businesses are still subject to licensing 
requirements and foreign equity limits under specific regulations, especially those in group 1. Companies in 
group 2 need to register with the Government and notify the place where they conduct their businesses in 
Thailand, in order to comply with their obligations under the Accounting Act.  
41 Ministerial Regulation Prescribing Service Businesses Not Subject t o Application for Foreign Business 
Permission (No.  4), B.E. 2562 (2019) . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  from the filing date42; this is in line with the authorities' objective to promote the role of Thailand as 
an international business hub. The number of licence applications approved annually during the 
period under review was: 404 in 2015 ; 352 in 2016 ; 270 in 2017 ; 272 in 2018 ; and 217 in 2019.43 
Table 2.5 Business es restricted  for foreign investment under the Foreign Business Act  
No. Business activity  
List 1 - Businesses not permitted for foreigners to operate due to special reas ons 
Maximum foreign equity participation of less than 50% for foreigners and foreign companies  
1. Newspapers, radio or television stations  
2. Rice farming, plantation or crop growing  
3. Livestock farming  
4. Forestry and timber processing from natural forests  
5. Fisheries, only in respect of aquatic animals in Thai waters and Thai specific economic zones  
6. Extraction of Thai medicinal herbs  
7. Trading and auction sale of antiques objects of Thailand or objects of historical value for the country  
8. Making or casting of Buddha images and monk alms bowls  
9. Land trading  
List 2 - Businesses related to national safety or security or affecting arts and culture, tradition, folk 
handicraft or natural resources and environment  
Maximum foreign equity participation of 60% (and up to 75% on a case -by-case basis). At least two  fifths of 
the board of directors must be Thai nationals. Approval required from the Cabinet , and licence granted by the 
Minister of Commerce  
1. Production, distribut ion and maintenance of ( i) firearms, ammunition, gun powder, and explosives; 
(ii) components of firearms ammunition and explosives; ( iii) armaments, military ships, aircraft or 
vehicles; and ( iv) equipment or components of all war materials  
2. Domestic transportation by land, water or air, including domestic aviation  
3. Trading of antiques or artistic objects that are artistic works or handicrafts of Thailand  
4. Production of wood carving s 
5. Silkworm raising, production of Thai silk yarn, weaving of Thai silk or printing of Thai silk patterns  
6. Production of Thai musical instruments  
7. Production of goldware, silverware, nielloware, bronzeware and lacquerware  
8. Production of crockery of Thai arts and culture  
9. Production of sugar from sugar cane  
10. Salt farming, including non -sea salt farming  
11.  Production of rock salt  
12. Mining, including rock blasting or crushing  
13. Timber conversion for the production of furniture or utensils  
List 3 - Businesses in which Thai nationals are not yet ready to compete with foreigners  
No foreign equity limits. Approval required from the Foreign Business Committee , and licence granted by the 
Director -General of the Department of Business Development  
1. Rice milling, and production of flour from rice and other crops (e.g. cassava)  
2. Fishery, only in respect of hatching and raising of aquatic animals  
3. Forestry from a grown forest  
4. Production of plywood, veneer, chipboard or hardwood  
5. Production of lime  
6. Accounting services  
7. Legal services  
8. Architecture services  
9.  Engineering services  
10.  Construction, except for ( i) that of infrastructure for delivery of public services in the sphere of public 
utilities or transportation, requiring the use of special machinery, technology or expertise and having a 
minimum foreign capital of THB 500 million; and ( ii) other types of constru ction as prescribed by 
ministerial regulations  
11. Brokerage or agency businesses, except: ( i) for underwriting securities or services related to futures 
trading of agricultural commodities or financing instruments or securities; ( ii) for trading or procu ring 
goods or services necessary for the production or provision of services among st affiliated enterprises; 
(iii) for trading, purchasing or distributing, or seeking both domestic and foreign markets for distributing 
domestically manufactured or imported goods in the manner of international business operations, having 
a minimum foreign capital of THB 100 million; and ( iv) other types as prescribed by ministerial 
regulations  
12. Sale by auction, except ( i) in the manner of international bidding of items other than antiques, historical 
or artistic objects which are Thai works of art, handicrafts or antiques , or having historical value for the 
country ; and ( ii) other types as prescribed by ministerial regulations  
 
42 Notification of the Department of Business Development, B.E. 2558 (2015), 14 January 2015.  
43 Information provided by the Department of Business Development, MoC.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  No. Business activity  
13. Internal trade related to traditional agricultural products or produce not yet prohibited by law, except 
agricultural futures trading on the Agricultural Futures Exchange of Thailand without delivery or taking 
delivery of agricultural commodities within th e country  
14. Retail sale of all types of goods having a total minimum capital of less than THB 100 million, or less than 
THB 20 million per shop  
15. Wholesale of all types of goods having a total minimum capital of each shop of less than THB 100 million  
16. Advertising businesses  
17. Hotel businesses, except hotel management  
18. Guided touring  
19.  Sale of  food or beverages  
20. Cultivation, propagation or development of plant varieties  
21. Other categories of business services except for those  prescribed in ministerial regulationsa 
a Pursuant to Ministerial Regulation, B.E. 2560 (2017), businesses governed by the laws on financial 
institutions  (including banking and insurance), and businesses under other specific laws such as 
asset management, representative offices, regional offices and business operators who are 
contracted to provide services to government agencies or SOEs were excluded from List 3. Under 
Ministerial Regulation, B.E. 2562 (2019), the provision of loan services, the leasing of office space, 
and certain consultancy services were also excluded from List 3.  
Source:  Foreign Business Act (B.E. 2542).  
2.45.   For foreign investors from count ries with which Thailand has signed an international treaty, 
some requirements under the FBA are exempted for specific sectors.  Such is the case of investors 
from the ASEAN Economic Community, Australia, Japan, and the United States.44  
2.46.   Pursuant to the FBA , any initial foreign investment is subject to a minimum capital 
requirement of THB 2 million. In the case of restricted businesses, the requirement is equivalent to 
25% of the total three -year average expected annual expenditure, but not less than THB 3 m illion. 
However, these requirements shall not apply if the business in question is being promoted by the 
Board of Investment (BOI) at the time of entry.  
2.47.   Land ownership by foreign individuals and legal persons is regulated under several laws, i.e. 
the Land  Code, the Industrial Estate Authority of Thailand Act, the Investment Promotion Act , and 
the Condominium Act. In general, under the Land Code, a foreign company or a Thai company with 
foreign capital in excess of 49% may not own land in Thailand, unless t he company is promoted by 
the BOI or the land is on a government -approved industrial estate, and provided certain conditions 
are met. A foreign company that is promoted by the BOI may apply for land ownership under 
Section  27 of the Investment Promotion Ac t; if the land acquisition is approved, the use of the land 
is limited to the activity being promoted. A foreign company that is allowed to undertake industrial 
or commercial activities in an industrial estate will be granted the right to own land for the business 
undertaking and commerce under Section 44 of the Industrial Estate Authority Act (1979) and its 
revisions. Under the Condominium Act, foreign individuals and companies may hold ownership in a 
condominium, provided they do not own more than 49% of the total area of the condominium unit.  
2.48.   The Government offers several tax and non -tax incentives, mostly through the Board of 
Investment (BOI), which is the main promotion authority; some of these incentives were introduced 
during the period under review ( Section 3.3.1). The BOI also offers business support to investors, 
and can help expedite investment approvals and ease certain FBA requirements for investments that 
are eligible under its promotional schemes.  
2.49.   Thailand is a member of the World Bank Multilat eral Investment Guarantee Agency (MIGA) 
and party to the Convention on the Recognition of Foreign Arbitral Awards. It is also a signatory to, 
but has not yet ratified, the International Convention on the Settlement of Disputes between States 
and Nationals of other States (ICSID Convention). Several free trade agreements signed by Thailand 
incorporate provisions on investment, or are being reviewed in order to allow for the inclusion of 
investment provisions.  
 
44 Under the 1966 T reaty of Amity and Economic Relations with the United States, Thailand extends 
national treatment to US investors, thereby exempting them from most restrictions. However, Thailand can still 
apply restrictions in communications, transport , fiduciary functio ns, banking involving depository functions, 
exploitation of land or other natural resources, and domestic trade in indigenous agricultural products.   WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  2.50.   Thailand has 36 bilateral investment treaties in  force, one of which (with the 
United  Arab Emirates) came into force during the period under review. The country also maintains 
61 double taxation treaties (DTAs), 3 of which entered into force since the last Review (with 
Cambodia, Ireland and Tajikistan);  previously existing DTAs with India and Singapore were revised 
during the review period, and a new DTA with the Philippines was concluded and came into force 
in 2018 (Box 2.2).  
Box 2.2 Bilateral investment treaties and double taxation agreements in force, 201 9  
Bilateral investment treaties (year of entry into force)  
Argentina (2002); Bahrain (2002); Bangladesh (2003); Belgium -Luxembourg Economic Union  (2004); 
Bulgaria  (2004); Cambodia (1997); Canada (1998); China (1985); Chinese Taipei (1996); Croatia (2005); 
Czech  Republic (1995); Egypt (2002); Finland (1996); Germany (2004); Hong Kong, China  (2006); Hungary 
(1991); Indonesia (1998); Israel (2003); Jordan (200 7); Korea, DPR  (2002); Korea, Rep. of (1989); Lao PDR 
(1990); Myanmar (2012); Netherlands  (1973); Peru  (1991); Philippines (1996); Poland (1993); Romania 
(1994); Slovenia  (2002); Sri  Lanka  (1996); Sweden (2000); Switzerland (1999); Turkey (2010); 
United  Arab Emirates (2016); United  Kingdom  (1979); and Viet Nam (1992).  
Double taxation agreements (year of entry into force)  
Armenia (2002); Australia (1989); Austria (1986); Bahrain (1998); Bangladesh (1998); Belarus  (2006); 
Belgium (1980); Bulgaria (2001); Cam bodia (2017); Canada (1985); Chile (2010); China (1986); Cyprus 
(2000); Czech Republic (1995); Denmark (1999); Estonia (2013); Finland (1986); France  (1975); Germany 
(1968); Great Britain and Northern Ireland (1981); Hong Kong, China  (2005); Hungary (1989) ; India (2017); 
Indonesia (2003); Ireland (2015); Israel  (1996); Italy (1980); Japan (1990); Korea , Rep. of (2007); Kuwait 
(2006); Lao PDR (1997); Luxembourg (1998); Malaysia (1983); Mauritius (1998); Myanmar (2011); Nepal 
(1998); Netherlands (1976); New  Zealand (1998); Norway (2003); Oman (2004); Pakistan (1981); 
Philippines (2018); Poland  (1983); Romania (1997); Russian Federation (2009); Seychelles (2006); 
Singapore  (2016); Slovenia (2004); South  Africa (1996); Spain (1998); Sri Lanka (1990); Sweden  (1989); 
Switzerland (1996); Chinese  Taipei  (2012); Tajikistan (2013); Turkey (2005); Ukraine (2004); 
United  Arab Emirates (2000); United States of  America  (1997); Uzbekistan (1999); and Viet  Nam (1992).  
Source:  UNCTAD , International Investment Agreements Navi gator . Viewed at: 
https://investmentpolicy.unctad.org/international -investment -agreements/countries/207/thailand ; 
and Revenue Department , Double Taxation Agreements . Viewed at: 
http://www.rd.go.th/publish/766.0.html . 
 WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.1.1   Registration and documentation  
3.1.  Thailand 's customs procedures are governed mainly by the Customs Act B.E.  2560 (2017) , 
which came into force on 13 November 2017.1 The Act, which repealed the Customs Act B.E.  2469 
(1926), aims to modernize Thailand's customs law by easing c ustoms procedures and bringing more 
transparency. It reduced incentives and rewards to customs officers and whistle -blowers; clarified 
customs offences and statutory penalties; imposed deadlines for post -clearance audits, duty 
evaluation, duty refunds, and  appeals; and created an Appeal Committee, among other aspects 
(Table 3.1).   
Table 3.1 Differences between the old and new Customs Acts  
Old Act  New Act  
Reduction in incentives and rewards   
Customs was rewarding officials and third -party 
whistle -blowers for reporting instances of customs 
evasion and customs avoidance.   
The excessively generous rewards facilitated 
wrongdoings in customs procedures, and introduced 
biased audits and investigations.  The commission paid to a customs officer or a whistle -
blower is limited to THB 5 million per case, with a view to 
eliminating any possibility of bias or wrongdoing.  
Clarification of customs offences , and relaxation of penalties for evasio n offences   
Customs offences – smuggling, evasion, and non -
compliance in respect of restricted or prohibited 
goods - and the related criminal penalties were 
classified under one section of the old Act.  The new Act considers differences in the range of 
wrongdoing by an offender, and prescribes new methods for 
calculating the related penalties for different evasion 
offences.  
Time -frame for customs post -clearance audit   
No deadline imposed for customs officers to carry 
out post -clearance audits.  The new Act allows customs officers to enter a company's 
premises and carry out a post -clearance audit relating to 
imports and exports for up to 5 years from the date of 
import o r export.  
Time -limits for duty evaluation   
Customs officers evaluated import and export duties 
too far back in time.  Under the new Act, customs officers must evaluate duty 
within 3 years from the date of submission of an import or 
export entry clearance form. The 3 -year deadline may be 
extended by another 2 years in exceptional cases. If the 
Director General of the Custo ms Department believes that a 
taxpayer intends to avoid paying duty, the officer may be 
given an additional 5 years to assess the duty.  
Appeal consideration period   
No time -limit to conclude appeal cases.  The new Act stipulates the creation of the Appea l 
Committee, to complete an appellate procedure within 
180 days from the date of receipt of an appeal with all 
relevant evidence and documents. If the Appeal Committee  
does not complete the appellate procedure within that 
period, the importer or exporter may bring the case to 
court.  
Duty refund   
The importers or exporters could claim a duty refund 
within 2 years of the date of shipment.  The importers or exporters may claim a duty refund within 
3 years of the date of shipment.  
Source:  ASEAN Briefing , 27 October 2017, Thailand's New Customs Act: A Relief for Importers and 
Exporters . Viewed at: https://www.aseanbriefing.com/news/thailands -new-customs -act-relief-
importers -exporters/ ; and information from the authorities.  
3.2.  Customs procedures are administered by the Customs Department under the Ministry of 
Finance . Improving customs procedures and trade facilitation remain important objectives of the 
Government. Other major  policy objective s are transparency, simplicity, honesty, and expedited and 
secure electronic processing.  
 
1 Customs  Department , Customs Act B.E. 2560 (2017)  – Unofficial Translation . Viewed at: 
http://www.customs.go.th/data_files/a48902e107a80bbbfc83d38742957569.pdf . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.3.  Thailand ratified the WTO Agree ment on Trade Facilitation  (TFA)  on 5 October 2015. By 
4 June 2020, it had implemented 97.1% of its commitments.2 The authorities state that full 
implementation  will be achieved by 2024 . The National Committee on Trade Facilitation  (NCTF) was 
established in 2017, and is chaired by the Deputy Prime Minister; the vice chairman is the Minister 
of Commerce. The NCTF consists of 14 public and 4 private agencies, including the Ministries of 
Commerce, Finance, Foreign Affairs, Agriculture and Cooperatives, Industry, and Transport, and the 
Thai Chamber of Commerce, the Thai National Shippers' Council, the Federation of Thai Industries, 
and the Thai Bankers' Association, among others. Furthermore, to ensure the implementation of the 
TFA, Thai land established a Working Group on Trade Facilitation as a coordinating and track -keeping 
platform. The Working Group consists of 31 public agencies, including the Thai Customs Department, 
the Department of Fisheries, the Department of Livestock Developme nt, the Department of 
Agriculture, the Department of Land Transport, the Food and Drug Administration, the Department 
of Foreign Trade, the Department of Business Development, and the Department of Trade 
Negotiations. It held several meetings to discuss is sues such as: the notification of commitments 
under the TFA; the implementation of ASEAN Solutions for Investments, Services, and Trade; and 
the monitoring of the implementation progress of the National Single Window (NSW) and the ASEAN 
Single Window (ASW) .  
3.4.  In order to enhance trade facilitation, Customs developed several action plans to improve 
processes , including  the pre-arrival processing, e -Bill payment , and e-Tracking system s. Under the 
e-Customs system, customs registration, declaration, and all doc ument submissions are conducted 
electronically. Currently , e-declarations cover 100% of import declarations, and importers may 
submit e -data with digital signature standardized by the Customs Department.  The issu ance of most 
import licen ces and other suppo rting documents (e.g. invoice s, bills of lading) is paperless, and they 
can be submitted electronically with the import/export declaration.  Importers may pay tariffs via 
e-Payment  if their bank account is registered in  the Customs ' electronic system. They may also pay 
via Internet banking, mobile banking, or other payment methods.  
3.5.  Documents required to be submitted with the customs declaration include: bill of lading or air 
waybill;  commercial  invoice; packing list;  delivery order; customs declaration;  and, if applicable, 
import licence , technical standards certificate, certificate of origin , and Safety of Life at Sea (SOLAS) 
certificate.3 Traders may use the e -tracking system to track the status of customs clearance, 
including accessing import/export declaration information, product account information, and cargo 
handling information.4 To submit import declarations electronically, traders  must register with the 
Customs Department as an importer.  
3.6.  According to Customs Notification No.  61/2561 of 27 February 2018, a customs broker must 
be a juristic person registered in Thailand, or an ordinary person with Thai nationality. The same 
Notifica tion stipulated two types of customs brokers in Thailand: a general customs broker, and an 
Authorized Economic Operator (AEO).5 
3.7.  The AEO Programme , covering importers, exporters, and customs brokers, aims at facilitating 
international trade , and improving  speed, cost -saving and time -saving. As at 31 March 2020, 
196 companies were authorized as AEO operators  under the category of "importer and exporter ", 
and 186 companies were authorized under the category of "customs broker ". With a view to 
facilitating int ernational trade for Thai entrepreneurs, the Customs Department signed mutual 
recognition arrangements (MRAs) with Hong Kong, China in 2015, the Republic of Korea in 2016, 
and Singapore in 2018. It is currently negotiating MRAs with Malaysia, Australia and  Japan.  
 
2 WTO, TFA Database . Viewed at: https://www.tfadatabase.org/members/thailand . 
3 World Bank, Doing Business 2020 – Economy Profile Thailand . Viewed at: 
https://www.doingbusiness.org/content/da m/doingBusiness/country/t/thailand/THA.pdf . 
4 Customs, e-Tracking. Viewed at: http://e -
tracking.customs.go.th/ETS/index.jsp?lang=en&left_menu=nmenu_esevice_002 . 
5 WTO document G/TFA/N/THA/2, 9 May 2019.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.8.  Since October 2014, the infrastructure of the NSW has been in place to support both national 
and international data linkages. Through it, information is digitally exchanged between the 
Government and businesses.6  
3.9.  In 2018, Customs conducted its m ost recent t ime release study based on W orld Customs 
Organization  (WCO) guidelines , and reviewed  importation/exportation process at Suvarnabhumi 
Airport Cargo Clearance Customs Office (by air) and Laem Chabang Port Customs Office (by sea). 
The study also c ompared import clearance time for goods imported under the pre -arrival processing 
and the regular import clearance procedures, and found that the former led to a significant decrease 
in time. The authorities stated that, based on this study , the time taken  for the  release of goods has 
been decreasing  continuously , and bottlenecks in  customs procedures can be reduced . The next time 
release study is scheduled for October 2020 . 
3.10.   Customs has been implementing the risk management system at the border in accordance 
with the WCO Customs Risk Management Compendium. Based on the Import/Export Entry 
Declaration reports from May 2019 to February 2020, 71% of imports went through the green  line, 
24% through the red line, and 5% through the yellow line. For exports, 89% went through the green 
line, 8% through the red line, and 3% through the yellow line.  
3.11.   According to World Bank Doing Business data, in 20 20, Thailand was ranked in 62nd place 
(down from 59th in 2019 ) out of 19 0 economies in the ease of trading across borders , better than 
the East Asia and Pacific regional average.7 Importing a standard container of goods t akes 50 hours  
and cost s USD 233 for border compliance, and 4 hours and USD 43 for documentary compliance ; 
exporting the same container require s 44 hours and USD 223 for border compliance, and 11 hours 
and USD 97 for documentary compliance . 
3.1.1.2   Customs valuation procedures  
3.12.   The authorities stated that customs v aluation is  mainly  based on the price actually paid or 
payable, i.e. the transaction value of the imported goods, which is the declared value on commercial 
invoices, adjusted with the cost, insurance, and freight (c.i.f.), as well as the prescribed conditions 
under Article VII I of the GATT Valuation Agreement. If  the transaction value cannot be applied, other 
methods are used in the following sequence: transaction value of identical and similar goods; 
deductive value; computed value; and a fall -back estimated value.8 The deduc tive value method 
and the computed value method can be alternated, if such requests from importers are approved by 
the customs officers . Currently, the transaction value method account s for 99% of import 
declarations.  
3.13.   Importers may appeal valuations within 30 days  to the Customs  Appeal Committee ; the 
decision of the Appeal Committee is final unless the importer raises concerns in a tax court . The 
authorities stated that, since 2015, 116 appeals have been made.  
3.14.   The authorities stated that, i n accordance with the Customs Act B.E. 2560 (2017), provisions 
on advance rulings were revised. With the intention of better facilitating international trade, the new 
Customs Act allows anyone to apply for an advance ruling on customs value, origin of good s, or 
customs tariff; previously, only importers were allowed to do so.  
3.15.   Regarding the case brought by the Philippines in 20089 on a number of Thai fiscal and customs 
measures affecting cigarettes from the Philippines, including Thailand's customs valuati on practices, 
excise tax, health tax, TV tax, VAT regime, retail licensing requirements, and import guarantees 
 
6 Thailand NSW, The Progress Report on the Development of Thailand National Single Window: NSW  - 
As of March 2020.  Viewed at: 
http://www.thainsw.net/INSW/Ent/DisplayDocumentDetailServlet?act=SRH&docCde=992&nswLang=E . 
7 World Bank, Doing Business 2020 – Economy Profile Thailand . Viewed at: 
https://www.doingbusiness.org/content/dam/doingBusiness/country/t/thailand/THA.pdf ; and World Bank, 
Doing Business 2019 – Training for Reform . Viewed at: https://www.doingbusiness.org/content/dam 
/doingBusiness/media/Annual -Reports/English/DB2019 -report_web -version.pdf .  
8 Customs Department, The Customs Value of Imported Goods & Advance Valuation Ruling for 
Facilitated and Transparent Clearance of Importation . Viewed at: 
http://www.customs.go.th/data_files/f95c29de15a05ea2db2db03fda1bbf23.pdf . 
9 WTO, Thailand – Customs and Fiscal Measures on Cigarettes from the Philippines. Viewed  at: 
https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds371_e.htm .  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  imposed upon cigarette importers , the compliance panel report was circulated to WTO Members on 
12 July 2019.10 Thailand filed an appeal on 9 Sept ember 2019 concerning the WTO compliance panel 
report.  
3.1.1.3   Rules of origin  
3.16.   Thailand does not have legislation on non -preferential rules of origin , and notified this to the 
WTO under Article 5 of the Agreement on Rules of Origin.11  
3.17.   Preferential rules of origi n are in place for imports from  Thailand's regional trade agreement 
(RTA) trading partners. For goods to be eligible for preferential tariff treatment, they must meet the 
origin criteria specified in the relevant RTA . Imports from ASEAN countries are subje ct to the rules 
of origin contained in the ASEAN Trade in Goods Agreement (ATIGA).  
3.18.   Thailand notified to the WTO its preferential rules of origin for least developed countries 
(LDCs): according to the list specified by the Ministry of Finance, goods origin ating from LDCs are 
subject to duty -free quota -free access to Thailand's market.12 In 2018, Thailand notified its 
preferential rules of origin under the bilateral free trade agreement with Chile.13  
3.1.2   Tariffs  
3.1.2.1   Tariff structure  
3.19.   Thailand 's 2020 Tariff Schedule  applie s the ASEAN Harmonized Tariff Nomenclature  (AHTN)  
consisting of 10,813 tariff lines (9,558 in 2015) at the HS eight -digit level, in the HS17 nomenclature. 
Of all tariffs , 92%  are applied on an ad valorem  basis. Among all the ad valorem  duties, the applied 
MFN tariff rates vary between duty -free and 226%. Domestic tariff peaks affect 7.1% of all tariff 
lines, while international tariff peaks affect 26.8% of them. Overall standard deviation was 23.7% 
in 2020, the same as in 2014 (T able 3.2).  
3.20.   Thailand has a relatively complicated tariff structure. Non-ad valorem  duties account for 8% 
of all tariff lines  (860 out of 10,813) . Specific duties are applied on 37 tariff lines (mainly  petroleum 
oils; playing cards and tables designed for ga mes; and undenatured ethyl alcohols ). Alternate rates  
(the higher of an ad valorem  rate and a specific duty) apply to 823 tariff lines . It was not possible 
to calculate ad valorem equivalents  (AVEs) for a number of non -ad valorem  tariffs.14 
3.21.   For the specifi c duties where AVEs were calculated, AVEs range from zero to 270% (HS code 
2207.10.00 - undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher  
(THB 80/litre)). For the alternate duties where AVEs were calculated, their AVEs rang e from 1% to 
557.4%  (HS code 4421.99.80 – toothpicks of wood other than bamboo (20% or THB 100/kg, 
whichever is higher)).  
Table 3.2 Structure of the tariff schedule, 2014 and 2020  
  MFN applied  Bound ratea 
 2014  2020   
Bound tariff lines (% of all tariff lines)  .. 76.3 76.3 
Simple average rate (%)  13.4 14.5 31.3 
   WTO agricultural products  34.7 32.7 41.7 
   WTO non -agricultural products  10.1 11.8 29.2 
Duty-free tariff lines (% of all tariff lines)  17.6 30.4 3.3 
Simple average of dutiable lines only  16.3 20.8 32.7 
Tariff quotas (% of all tariff lines)  1.2 1.2 1.2 
Non-ad valorem  tariffs (% of all tariff lines)  7.8 8.0 17.7 
Domestic tariff "peaks " (% of all tariff lines)b 4.1 7.1 0.7 
 
10 WTO documents WT/DS3 71/30, 11 September 2019; and WT/DS371/RW2 and 
WT/DS371/RW2/Add.1, 12 July 2019.  
11 WTO document G/RO/N/1, 9 May 1995.  
12 WTO document G/RO/ LDC/N/T HA/1, 7 August 2017.  
13 WTO document G/RO/N/167, 24 May  2018.  
14 No AVEs were calculated for 86 out of the 823  alternate rates; rather, their ad valorem  parts were 
used in the tariff analysis. No AVEs were calculated for 10 of the 37 specific rates; thus, the tariff analysis was 
based on 10,803 tariff lines.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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    MFN applied  Bound ratea 
 2014  2020   
International tariff "peaks " (% of all tariff lines)c 27.4 26.8 67.0 
Standard deviation  23.7 23.7 23.2 
Nuisance applied rates (% of all tariff lines)d 9.3 0.6 0.1     
Total number of tariff lines  9,558  10,813  10,813  
    Duty-free rates  1,683  3,289  355 
    Ad valorem  rates (>0%)  7,129  6,664  5,990  
    Specific rates  39 37 7 
    Alternate rates  707 823 1,904  
    Unbound tariff lines  n.a. n.a. 2,557  
.. Not available.  
n.a. Not applicable.  
a Based on the 2020 tariff schedule. Latest certified bound tariffs  are provided in the HS02 
nomenclature. Concordance to HS17 is done to the best possible extent. Calculations on bound rates 
include  partially bound tariff lines.  
b Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
c International tariff peaks are defined as those exceeding 15%.  
d Nuisance rates are those greater than zero, but less than or equal to 2%.  
Note:  Calculations for averages are based on the national (8 -digit) tariff line level.  
The 2014 and 2020 tariffs are based on the HS12 and HS17 nomenclature s, respectively. 
Ad valorem equivalents ( AVEs) for non-ad valorem  rates are included  when  available. In 2014, out 
of 746 non -ad valorem rates, 427 AVEs were calculated based on 2013 import data; in 2020, out of 
860 non -ad valorem  rates, 764 AVEs were calculated  based on 2019 import data. For alternate rates 
where AVEs were not available , the ad valorem parts were used. In-quota rates  were excluded.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
AVE calculations were based on  import values and import quantities from the  Ministry of Commerce, 
Foreign Trade Statistics of Thailand . Viewed at:  http://tradereport.moc.go.th/TradeEng.aspx . 
3.1.2.2   Tariff bindings  
3.22.   In the WTO, Thailand  bound 76.3% of its tariff lines at the HS eight -digit level : 100% binding 
on agricultural products (WTO definition), and 73% on non -agricultural products . Seven t ariff lines 
carry specific duties, 1 ,904 carry alternate  duties, and the rest carry ad valorem  rates. The rates of 
tariff lines carrying ad valorem  rates range from zero to 226% (raw silk) for agricultural products, 
and from zero to 80% (motor vehicles) for non -agricultural products. When AVEs are included , the 
overall average bound tariff is 31.3%; the average bound tariff for agricultural products is 41.7%, 
and that for non -agricultural products  is 29.2 %. 2,557 tariff lines remain unbound.   
3.1.2.3   Applied tariff  
3.23.   The simple average applied MFN tariff rate rose from 13.4% in 2014 to 14.5% in 2020 
(including AVEs where calculable). The rise was mainly due to the nomenclature change from HS12 
to HS17. A major change during the transposition process was the split of tariff lines in the transport 
equipment section (HS sec tion 17), where the number of tariff lines at the HS eight -digit level 
increased from 565 in 2014 to 1,033 in 2020, and the number of tariff lines with a tariff rate of 80% 
increased from 106 in 2014 to 436 in 2020. The authorities stated that the ASEAN Ha rmonized Tariff 
Nomenclature Task Force (currently the Technical Sub -Working Group on Classification ) changed 
and split the se tariff lines to align  them with the standard HS2017 of the WCO . 
3.24.   As per WTO sectoral definitions, the average tariff rate on agricu ltural products (32.7%) is 
much higher than that on non -agricultural products (11.8%) (Table 3.3).  
3.25.   Overall, tariff protection is highest on fully processed products, and  lowest on semi -processed 
products.  
3.26.   In 2020, 30.4% of tariff lines are duty -free (up from 17.6% in 2014) , while 42.6% of applied 
tariff rates are below  10.0%, and 16.8% range from 10% to 30%  (Chart 3. 1). Sixty-two tariff lines 
(0.6%) carry ad valorem  tariff rate s higher than 100%. The highest ad valorem  rates apply to: 
HS 5002.00.00 – raw silk (226%); HS 1209.91.10 – onion seeds (218%); and HS 0402.10 (6 lines) 
– milk and cream not containing added sugar (216%). All these are out -of-quota rates. If WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  out-of-quota rates are excluded, the highest ad valorem  rates apply to: HS 2304.00.90 - solid 
residues resulting from the extraction of soya bean oil (119%); and HS 8703 - motor vehicles (80%).  
Table 3.3 Summary analysis of the MFN tariff, 2020  
  Number 
of lines  Average 
(%) Range 
(%) Standard 
deviation  Duty 
free (%)  
Total  10,813  14.5 0-557.4  23.7 30.4 
HS 01 -24 1,725  28.2 0-528.8  34.2 14.1 
HS 25 -97 9,088  11.9 0-557.4  20.1 33.5 
By WTO category       
WTO agricultural products  1,369  32.7 0-528.8  36.7 9.9 
   Animals and products thereof  152 28.1 0-50 13.2 11.2 
   Dairy products  45 52.4 5-216 65.0 0.0 
   Fruit, vegetables, and plants  356 38.6 0-528.8  44.0 6.5 
   Coffee and tea  43 50.2 0-90 36.4 7.0 
   Cereals and preparations  200 20.5 0-73 16.3 10.5 
   Oil seeds, fats, and oil, and their products  222 36.1 0-146 40.3 0.9 
   Sugars and confectionary  31 34.3 0-94 30.0 3.2 
   Beverages, spirits and tobacco  122 54.4 0-270 28.3 1.6 
   Cotton  5 0.0 0-0 0.0 100.0  
   Other agricultural products, n.e.s.  193 12.2 0-226 24.6 31.6 
WTO non -agricultural products  9,444  11.8 0-557.4  19.9 33.4 
   Fish and fishery products  437 10.2 0-156.1  14.8 32.5 
   Minerals and metals  1,554  5.9 0-30.1 7.0 36.1 
   Chemicals and photographic supplies  1,506  3.7 0-30 6.1 54.4 
   Wood, pulp, paper and furniture  557 6.8 0-557.4  28.3 38.6 
   Textiles  855 10.2 0-299.5  14.1 2.2 
   Clothing  351 28.8 10-60 5.1 0.0 
   Leather, rubber, footwear and travel goods  322 10.9 0-30 9.2 13.4 
   Non-electric machinery  1,329  3.6 0-30 5.4 59.1 
   Electric machinery  719 7.2 0-30 5.6 31.7 
   Transport equipment  1,019  49.8 0-80 29.2 6.2 
   Non-agricultural products, n.e.s.  751 7.7 0-30 7.9 36.2 
   Petroleum  44 4.2 0-30 5.6 13.6 
By ISIC sector       
   ISIC 1 - Agriculture, hunting and fishing  685 22.0 00-528.8  36.5 33.0 
   ISIC 2 - Mining  122 1.3 0-30 4.7 91.0 
   ISIC 3 - Manufacturing  10,005  14.1 0-557.4  22.6 29.5 
        Manufacturing excluding food processing  8,883  12.2 0-557.4  20.3 32.2 
    Electrical energy  1 0.0 0 0.0 100.0  
By stage of processing       
   First stage of processing  1,132  16.4 0-528.8  32.1 45.5 
   Semi-processed products  2,855  3.9 0-103.6  7.0 38.0 
   Fully processed products  6,826  18.6 0-557.4  25.2 24.7 
By HS section       
  01  Live animals and products  589 15.4 0-216 24.9 31.1 
  02  Vegetable products  491 33.4 0-528.8  41.0 10.0 
  03  Fats and oils  175 40.3 0-146 43.0 1.1 
  04  Prepared food, beverages and tobacco  470 34.1 0-270 27.4 1.9 
  05  Mineral products  218 2.0 0-30 4.8 71.1 
  06  Chemicals and products thereof  1,259  3.0 0-30 5.6 64.3 
  07  Plastics, rubber, and articles thereof  565 7.0 0-30 6.7 10.3 
  08  Raw hides and skins, leather, and their products  91 10.6 0-30 8.6 17.6 
  09  Wood and articles of wood  228 10.2 0-557.4  43.5 36.0 
  10  Pulp of wood, paper and paperboard  300 3.5 0-10 4.0 44.3 
  11  Textiles and textile articles  1,175  15.7 0-299.5  16.3 3.1 
  12  Footwear, headgear, etc.  84 21.1 5-30 8.8 0.0 
  13  Articles of stone, plaster, cement  250 11.4 0-30.1 10.7 20.4 
  14  Precious stones and metals, pearls  86 0.0 0-0 0.0 100.0  
  15  Base metals and articles thereof  1,035  6.1 0-30 5.7 26.4 
  16  Machinery, electrical equipment, etc.  2,133  4.7 0-30 5.6 50.5 
  17  Transport equipment  1,033  49.2 0-80 29.4 6.8 
  18  Precision equipment  326 2.9 0-10 3.9 59.8 
  19  Arms and ammunition  30 27.0 0-30 9.0 10.0 
  20  Miscellaneous manufactured articles  267 12.7 0-30 5.2 0.4 
  21  Works of art, etc.  8 8.8 0-10 3.3 12.5 
Note:  Calculations include AVEs for non -ad valorem  rates, as available. For alternate rates, where AVEs 
were not available, the ad valorem  parts were used.  
Source:  WTO Secretariat calculations, based on data provided by the authorities; and Ministry of Commerce, 
Foreign Trade  Statistics of Thailand . Viewe d at: http://tradereport.moc.go.th/TradeEng.aspx . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.27.   The difference between bound and applied rates is significant  (Chart 3.2) . Hence, potentially 
Thailand has ample scope to raise applied tariffs to their bound level.  
Chart 3.1 Distribution of MFN tariff rates, 2014 and 2020  
 
Note:  The 2014 tariff is based on HS12 nomenclature; the  2020 tariff is based on HS17. Figures above the 
bars refer to the percentage of total lines. Totals do not add up to 100%. No t AVEs were available 
for 16 and 10 specific tariff rates in 2014 and 2020, respectively.  
Source:  WTO Secretariat calculations, b ased on data provided by the authorities.  
Chart 3.2 Average applied MFN and bound tariff rates, by HS section, 2014 and 2020  
 
Note:  The 2014 tariff is based on HS12 nomenclature; the 2020 tariff and final bou nd rates are based on 
HS17.  
 Including AVEs, as available. Only HS Section 02 is fully bound.  
Source:  WTO Secretariat calculations, based on data provided by the authorities and the Ministry of 
Commerce.  
17.634.0
20.6
6.214.3
5.0
1.7
0.530.4 
22.1
20.5
5.211.6
5.0 4.6
0.6
05001,0001,5002,0002,5003,0003,500
Duty free >0%-5% >5%-10% >10%-20% >20%-30% >30%-70% >70%-100% >100%Number of tariff linesChart 3.[THA]  Distribution of MFN tariff rates, 2014 and 2020
MFN 2014
Total number of lines:  9,558
MFN 2020
Total number of lines: 10,813
Note:  The 2014 tariff is based on HS12 nomenclature; the 2020 tariff is based on HS17.  Figures above the bars refer to the percentage 
of total lines. Totals do not add up to 100%.  No AVEs were available for 16 and 10 specific tariff rates in 2014 and 2020, 
respectively. 
Source:  WTO Secretariat calculations, based on data provided by the authorities.
0%10%20%30%40%50%60%
123456789101112131415161718192021Chart 3.[THA]  Average applied MFN and bound tariff rates, by HS section, 2014 and 2020
01   Live animals & products        
02   Vegetable products
03   Fats & oils      
04   Prepared food, beverages
05   Mineral products
06   Chemicals & products07   Plastic & rubber
08   Hides & skins
09   Wood & articles
10   Pulp, paper, etc.
11   Textiles & articles
12   Footwear, headgear13   Articles of stones
14   Precious stones, etc.
15   Base metals & products
16   Machinery
17   Transport equipment
18   Precision instruments19   Arms & ammunition
20   Miscellaneous manufacturing
21   Works of art, etc.MFN 2020 Final bound
Note:  The 2014 tariff is based on HS12 nomenclature; the 2020 tariff and final bound rates are based on HS17.  
Including AVEs, as available.  Only HS Section 02 is fully bound.  
Source:  WTO Secretariat calculations, based on data provided by the authorities and the Ministry of Commerce.MFN 2014(75.9%)
Bound average: 31.3%
MFN average 2020: 14.5%
MFN average 2014: 13.4%WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.28.   According to Thailand's Tariff Schedule for 2020, provided by the authorities and also notified 
to the IDB, the applied rates on a number of tariff lines are higher than the bound rates (Table 3.4). 
The authorities indicate that this is not the case, using as evidence a 2017 notification from the 
Ministry of Finance (in Thai only).15 
Table 3.4 Tariff lines with applied rates higher than their bound rates  
HS code  Description  Applied MFN rate  AVE 
(%) Bound rate (%)  
Full breaching  
HS 29391110  Concentrates of poppy straw  30% n.a. 27 
Partial breaching  
HS 02072600  Cuts and offal of turkey, 
fresh or chilled  40% n.a. Cuts: 30  
Edible offal: 40 
Alternate rates with AVEs higher than bound  rates  
10039000  Barley other than seed  27% or THB 2.75/kg, 
whichever is higher  36.6 27 
10089000  Other cereals  27% or THB 2.75 /kg, 
whichever is higher  28 27 
44219160  Toothpicks of bamboo  20% or THB 100 /kg, 
whichever is higher  353.8  20 
44219980  Toothpicks of wood other 
than bamboo  20% or THB 100 /kg, 
whichever is higher  557.4  20 
n.a. Not applicable.  
Source:  WTO Secretariat calculations, based on data provided by the authorities; and Ministry of Commerce, 
Foreign Trade  Statistics of Thailand . Viewed at:  http://tradereport.moc.go.th/TradeEng.aspx . 
3.1.2.4   Tariff quotas  
3.29.   Tariff quotas are applied to 128 tariff lines, all of which relate to 23 agricultural product groups 
(Table  4.4). In 2020, the average out -of-quota rate is 94.6%, and the average in -quota rate is 
25.8%. The Ministry of Commerce (MoC) is responsible for regulating  import s and export s of these 
agricultural products, except tobacco leaves  which are regulated under the Ministry of Finance . 
3.1.2.5   Tariff exemption  
3.30.   Tariff reductions and exemptions for the importa tion of machinery, equipment and materials 
have been maintained, as the Government tries to support the development of local industry, 
through incentive schemes provided by the Board of Investment and the Revenue Department, 
among others (Section 3.3.1).  
3.31.   In accordance with the Customs Tariff Decree B.E. 2530 (1987), goods exempted from import 
duties include:  
• export articles being re -imported, with a re -importation certificate;  
• imported articles sent out of the country for repairs, if re -imported with a re -importation 
certificate;  
• temporarily imported articles, to be re -exported within six months;  
• parts and accessories of aircraft or vessels imported to be us ed for repair or construction; 
and 
• fuel oil, lubricating oil and lubricants used for the replenishme nt of aircraft or vessels of a 
gross tonnage of more than 500 tonnes.  
 
15 Ministry of Finance notification, provided by the aut horities, in Thai only . Viewed at:  
http://www.customs.go.th/data_files/79d38615b4cb039de3ac78810e926653.pdf . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.32.   Other imports exempted from tariffs include personal effects, those through diplomatic 
channels, for donation purposes, samples of merchandise, or for disabled persons.  
3.1.2.6   Prefe rential t ariffs 
3.33.   Thailand provides tariff - and quota -free access to  practically all  goods originating in ASEAN 
partners under the ASEAN Trade in Goods Agreement (ATIGA). In addition, Thailand applies 
preferential tariffs under the trade agreements signed by  ASEAN with Australia, China, India, Japan, 
New Zealand, the Republic of Korea, and Hong Kong, China16, and under its own bilateral trade 
agreements with Australia, Chile, India, Japan, New Zealand, and Peru. Furthermore, Thailand 
provides duty -free and qu ota-free market access for imports from LDCs (Table 3.5).  
Table 3.5 Summary analysis of preferential tariffs, 2020  
 Total  WTO agriculture  WTO non -agriculture   
Average 
(%) 
Range 
(%) 
Coverage
a (%) 
Duty -free 
ratesb 
(%) 
Average 
(%) 
Duty -free 
ratesb 
(%) 
Average 
(%) 
Duty -free 
ratesb 
(%) 
MFN 14.5 0-557.4   
30.4 32.7 9.9 11.8 33.4 
ASEAN Trade in Goods Agreement (ATIGA)  0.0 0-5 69.5 99.9 0.1 98.9 0.0 100.0  
ASEAN -Australia -New Zealand  1.1 0-226 68.3 98.8 8.7 90.4 0.0 100.0  
ASEAN -China  3.8 0-226 64.6 86.4 8.9 87.4 3.1 86.3 
ASEAN –Hong Kong, China  11.4 0-270 46.1 30.5 24.0 9.9 9.6 33.5 
ASEAN -India 7.4 0-226 49.9 71.6 13.4 58.8 6.5 73.4 
ASEAN -Japan  5.4 0-226 60.2 88.4 10.1 88.1 4.7 88.4 
ASEAN –Republic of Korea  5.3 0-226 63.0 85.7 8.9 87.8 4.7 85.4 
Thailand -Australia  0.4 0-194.4  69.4 99.5 3.4 95.9 0.0 100.0  
Thailand -Chile  0.4 0-40 68.8 98.1 1.6 94.2 0.2 98.6 
Thailand -India  14.2 0-557.4  2.1 32.5 32.2 10.4 11.6 35.7 
Thailand Japan  4.8 0-226 62.8 89.0 9.9 88.5 4.1 89.1 
Thailand -New Zealand  0.3 0-196.2  69.4 99.7 2.2 97.8 0.0 100.0  
Thailand -Peru  8.3 0-557.4  39.3 69.8 17.4 61.9 7.0 70.9 
LDCs (DFQF)  0.0 0-0 69.6 100.0  0.0 100.0  0.0 100.0  
a Percentage  of total number of lines. Tariff lines with rates lower than the corresponding MFN rate s 
are included in the analysis . 
b Duty-free lines as a percentage of total tariff lines.  
Source:  WTO Secretariat calculations, based on data provided  by the authorities . 
3.34.   Thailand also grants preferences to participants in the Global System of Trade Preferences 
among Developing Countries (GSTP).  
3.35.   Under Thailand's bilateral  and regional free-trade agreements, the degree of preference over 
MFN tariffs varies . The simple average tariff under ATIGA is 0%, with rates ranging from zero to 
5%. At the regional level, the simple average tariff under the ASE AN–Australia –New Zealand 
agreement (1.1%) is lower than those under other RTAs signed through ASEAN. At the bilateral 
level, the simple average tariff rates under the FTAs that Thailand signed with Australia, Chile, and 
New Zealand are close to zero, while  those under the FTA with India are close to the MFN level.  
3.1.3   Other charges affecting imports  
3.36.   Import surcharges are applied to fish meal with a protein content of more than 60% 
(2301.20.20); soya bean cake (2304.00.90); and maize for feedstuff (1005.90.90.0 02). Importers 
must pay the import surcharge to the Department of Foreign Trade before importing these products.  
3.37.   In addition to  import surcharges and internal taxes collected at the border (Section 3.3.1), 
fees are also collected by Customs  for cargo hand ling, customs clearance, and post -clearance 
compliance activities. Fees and charges continue to be  imposed on a cost -recovery basis rather than 
on import values, and they are at similar  levels  for imports and exports.  
 
16 The authorities stated that the ASEAN Secretary will notify the AHKFTA to WTO once all member 
States have submitted the notification of ratification of the Agreement . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.1.4   Import prohibitions, restrictions, an d licensing  
3.38.   In accordance with Section 5 of the Export and Import Act B.E.  2522 (1979) , the Minister of 
Commerce, with the approval of the Cabinet, may publish notifications in the Government Gazette 
to impose  restric tions on  imports  (and exports)  for rea sons of economic stability,  public health, 
national security, peace and order, public morals, or for any other reason in the national interest.  
3.39.   The Investment Promotion Act  allows the Board of Investment  (BOI)  to request the MoC to 
ban imports of goods competing with those produced by a domestic industry , with a view to assisting  
the industry.  The authorities stated that the BOI has not made any such request.  
3.1.4.1   Import prohibitions   
3.40.   In general, import prohibitions are used only to protect public morals, national security, 
human, animal, or plant life, health, and intellectual property rights (IPRs)  (Table 3.6) .  
Table 3.6 Products prohibited from importation, 2020  
Products  HS code (2017 ) Rationale  
Used engines, parts and accessories of 
motorcycles of a cylinder capacity not 
exceeding 50 cc and wheels with 
diameters not over 10  inches  72.04, 76.02, 8407.31.00, 
8714.10.30, 8714.10.50  Human life, and public health and 
safety  
Electrical and mechanical operating 
games, including tables for games, slot 
machines, horse racing game machines 
or racecourse models or other similar 
articles, pachinko, roulette, game 
machines operated by coins, banknotes 
(paper currency), discs, cards o r other 
similar articles, among others, with or 
without skills of players  9504.30.10, 9504.30.20, 
9504.30.90, 9504.90.32, 
9504.90.33, 9504.90.36, 
9504.90.39, 9504.90.92, 
9504.90.93  Public morals and national 
security  
Logs and sawn wood from teak trees, 
rubber trees or forbidden trees from the 
borders of the Tak and Kanchanaburi 
provinces  Various  To prevent illegal logging and 
conserve natural resources  
Household refrigerators, and combined 
refrigerator -freezers utiliz ing CFCs in the 
production process  Various  Public health, and environment  
Ceramic food containers and metal -
coated food containers with excessive 
lead and cadmium exposure  6911.10.00, 6912.00.00  Public health  
Bodies of used motor vehicles, including 
cabs and chassis thereof, and frames of 
used motorcycles excluding those of a 
cylinder capacity not exceeding 50 cc and 
forks and wheels with diameters not over 
10 inches  Various  Public health  
Re-treaded or used pneumatic tyres of 
rubber for cars, motorcycles, and 
bicycles, and waste, parings and scrap of 
rubber of cars, buses/trucks, motorcycles 
and bicycles  4012.11.00, 4012.20.10, 
4012.19.40, 4012.20.40, 
4012.19.40, 4012.20.50, 
4004.00.00  Human life, public health, and the 
environment  
Baraku/shis ha and electronic cigarettes  2403.11.00, 8543.70.90, 
9614.00.90  Public health, public morals, and 
national security  
HCFC –22-based air conditioning 
equipment with a cooling capacity of 
under 50,000 British thermal units per 
hour 8415.10.10.001  Environment protection, public 
health, human life, and to comply 
with the Montreal Protocol  
Municipal solid waste  3825.10.00  Environment protection, public 
health, and human life  
Goods by deceptive practice  Various  Intellectual property, and national 
financial security  
Copyright -infringing cassette tapes, audio 
or compact discs, video tapes, computer 
programs and books  Various  Intellectual property, and national 
financial security  
Used motor vehicles  - 8701 (excluding: used tractors,  
   e.g. used road tractors for semi - 
   trailers, used agricultural tractors  
   HS codes: 8701.30.00, 
 8701.91.10, 8701.92.10, 
 8701.93.10, 8701.94.10, and Environment protection, public 
health and safety, and human life  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Products  HS code (2017 ) Rationale  
 8701.95.10)  
-  8702 
- 8703 (excluding used ambulances)  
-  8704 
- 9706 ( used historic vehicles of 
100 years or more)  
Source:  The Export and Import Act B.E. 2522 (1979); and i nformation provided by the authorities.  
3.41.   In conformity with UN Resolution, the import and  export of all types of arms, military vehicles, 
hardware and spare parts to, and originating from, Ethiopia, the Democratic People's Republic of 
Korea, Iran, Libya,  Somalia, Sudan, the Democratic Republic of Congo, among others, are 
prohibited.17 The impo rtation and exportation of: luxury goods, coal and charcoal, iron, textile 
products, machinery, electrical equipment, food and agricultural products, and wood, among others, 
to and originating from the Democratic People's Republic of Korea, and charcoal to  Somalia, are 
prohibited to comply with UN Resolutions.   
3.42.   The importation of chemical substances which  may be  used as chemical weapon s is prohibited, 
except  by a government authority, state organization, state enterprise, the Thai Red Cross Council, 
or the Organisation for the Prohibition of Chemical Weapons .18  
3.1.4.2   Import licensing  
3.43.   Under the Export and Import Ac t B.E. 2522 (1979), Thailand applies both automatic and non -
automatic import licensing requirements on a number of products (Table 3.7). Licences are issued 
electronically or manually (depend ing on the product) by the MoC. The MoC  may issue notifications 
allowing other govern ment authorities to issue such licences.  Product coverage may change, and 
the changes are announced through MoC notifications, and through Thailand's notifications to the 
WTO under the Agreement on Import Licensing Procedures.19 The authorities stated that  all changes 
have been notified to the WTO.   
Table 3.7 Products subject to import licensing requirements, 2020  
Products  HS codes (2017)  Purpose  Measures  
16 kinds of drugs, chemical and 
pharmaceutical products  and their 
salts, and semi -finished 
pharmaceutical products  Various  Public health, national economic 
security, control and check that the 
person who wishes to import the 
drugs has adequate capability for 
doing such business.  Automatic 
licence 
Clenbuterol compounds and salts  2922.19.90  Public health and human life 
regarding  pork consumption.  Automatic 
licence 
Albuterol or salbutamol and their salts 2922.50.90  Public health and human life 
regarding  pork consumption , and to 
prevent negative effec ts on pork 
exports.  Automatic 
licence 
Used motor vehicles  - 8701 (used tractors, e.g. 
used road tractors for 
semi-trailers)  
- 8703 (used ambulance s) 
- 8705 Environment protection, public 
health and safety, and human life . Automatic 
and non -
automatic 
licence 
Used motorcycle s 8711 Public safety and environmental 
conservation . Non-
automatic 
licence 
Fish meal with a protein content of 
less than 60 %  2301.20.10  To stabilize the price of raw 
material used for animal food.  Non-
automatic 
licence 
Machinery and parts thereof which 
can be used to violate the copyright 
of cassette tape s, video tape s, and 
compact disc s Various  Intellectual property  protection . Non-
automatic 
licence 
 
17 WTO documen ts G/LIC/N/1/THA/2 , 24 Oct ober 2016; and G/MA/QR/N/THA/2, 9 November 2018. The 
authorities state that the same import and export prohibitions also apply to: the ISIL and Al -Qaida, the 
Taliban, Yemen, the Central Africa n Republic , and the Republic of South Sudan.  
18 WTO document G/MA/QR/N/THA/2, 9 November 2018.  
19 WTO document s G/LIC/N/1/THA/2, 24 Oct ober 2016; and G/LIC/N/2/THA/5, 4 June 2020.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Products  HS codes (2017)  Purpose  Measures  
Coins, sized and weighted similar to 
official coins  Various  Counterfei t medal and coin  
prevention . Non-
automatic 
licence 
Waste and scrap of plastics  3915.10.10, 3915.10.90, 
3915.20.10, 3915.20.90, 
3915.30.10, 3915.30.90, 
3915.90.00  Environment protection, and public 
health.  Non-
automatic 
licence 
Used diesel engines of 331-1,100  cc. 8408.90  Human life , and public health and 
safety . Non-
automatic 
licence 
Antique idols and parts thereof, parts 
of ancient monuments, ancient coins, 
inscriptions and ancient manuscripts , 
and prehistoric implements  Various  To prevent smuggling  of historical 
objects or antiques . Non-
automatic 
licence 
Building stone  
- marble, travertine, ecaussine and 
other calcareous monument al or 
building stone ; and 
- marble, travertine and alabaster, 
granite; other stone  25.15 (ex 2515.12.10), 
6802.21.00, 6802.23.00, 
6802.29.10, 6802.29.90  To administer the importation and 
utilization of marble and building 
stone . Non-
automatic 
licence 
Re-treaded or used pneumatic tyres 
of rubber for buses or trucks  4012.12.10, 4012.12.90, 
4012.20.21, 4012.20.29  Human life, public health , and the 
environment .  Non-
automatic 
licence 
Volatile alkyl  nitrite substance  2920.90.00  Public health, and social and 
national security .  Automatic 
licence 
Intaglio printing machines and colour 
copier mac hines 8443.19.00, 8443.32.90, 
8443.39.10, 8443.39.20, 
8443.39.30, 8443.39.90  To prevent the making of 
counterfeit money .  Automatic 
licence 
Gold Various  To protect economic security and 
stability.  Non-
automatic 
licence 
Caffeine and its salts  2939.30.00  To control narcotic drug s, and to 
protect human health and national 
security .  Automatic 
licence 
Source:  The Export and Import Act B.E. 2522 (1979); and i nformation provided by the authorities.  
3.44.   The import of munitions i s subject to a non -automatic licence, for maintaining national 
security, public order or public benefit reasons; the same requirement applies to the importation of 
narcotic drugs, and psychotropic substances, to protect human health.20  
3.45.   Some products are s ubject to other import requirements (Table 3.8).  
Table 3.8 Products subject to other import requirements, 2020  
Products  HS code 
(2017)  Rationale  Measures  
Logs, wood 
and all 
wooden 
products 
(import ed into 
Thailand 
along the 
Thai-Myanmar 
and Thai -
Cambodia 
borders)  Various  To preserve the 
environment and 
exhaustible natural 
resources. To prevent 
illegal logging  The importation of logs, wood and all wooden products 
through the customs houses specified in  the notification 
require s a certificate of origin or evidence of approval to 
export from the exporting country  
Wooden 
products from 
the border s in 
the Tak and 
Kanchanaburi 
provinces  Various  To create employment, 
create  earnings for small 
entrepreneurs of both 
Thailand and Myanmar, 
prevent the problem of 
illegal workers and 
narcotics , and prevent the 
tension on border trading 
and in the relationship 
between Thailand and 
Myanmar   
 
20 WTO document G/MA/QR/N/THA/2, 9 November 2018.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Products  HS code 
(2017)  Rationale  Measures  
Ceramic food 
containers 
and metal -
coated food 
containers  6911.10.00,  
6912.00.00  To protect public health  Importers must submit  a health certificate issued by a 
government agenc y or competent authority of the 
exporting  country to Customs for importation  
Fuel oil  2207.20.11, 
2207.20.19,  
2707.50.00 , 
2710.12, 
2710.19.71, 
2710.19.83, 
2710.20.00, 
2711.12.00, 
2711.13.00, 
2711.29.00, 
2711.14.90, 
2711.19.00, 
3826.00.10, 
3826.00.90, 
3826.00.21, 
3826.00.22, 
3826.00.29, 
3826.00.30  To sustain economic 
stability and security  Importers must submit  the certifica te issued by the 
Department of Energy Business to Customs for 
importation  
Cassava and 
cassava 
products  0714.10.11, 
0714.10.19, 
0714.10.99  To protect plant life and 
health  - Importers must be register ed as importers of cassava 
 and cassava products with the Department of Foreign 
 Trade (DFT) ; 
- Importers must declare to the DFT before importation 
 and report to the DFT after importation ; 
- Importers must show a  Phytosanitary Certificate, a 
 Certificate of Origin , and a Standard Certificate issued 
 by a government agency o r competent authority of the 
 exporting country to Customs for importation ; and 
- The cassava and cassava products must be import ed via 
 provinces and customs houses at the prescribed point 
 specified in  the notification  
Fresh oranges  0805.10.10, 
0805.21.00, 
0805.22.00, 
0805.29.00  To protect public health  - Importers must be register ed with the DFT as importers 
 of fresh oranges , and must report the import, 
 possession, export, storage, disposal and bala nce of 
 their product s to the DFT every month ; and 
- Importers must show a  Phytosanitary Certificate issued 
 by a government agency o r competent authority of the 
 exporting country to Customs for importation  
Shallots  0703.10.21, 
0703.10.29  To protect publ ic health  - Importers must be register ed with the DFT as importers 
 of shallots , and must report the import, possession, 
 export, storage, disposal and balance of their product s 
 to the DFT every month ; and   
- Importers must show a  Phytosanitary Certificate issued 
 by a government agency o r competent authority of the 
 exporting country to Customs for importation  
Swine offal  0206.30.00, 
0206.41.00, 
0206.49.00  To protect public health  - Importers must be register ed with the DFT as importers 
 of swine offal , and must report the import, possession, 
 export, storage, disposal and balance of their product s 
 to the DFT every month ; and 
- Importers must show a  Health Certificate issued by a 
 government agency o r competent authority  of the 
 exporting country to Customs for importation  
Electric fans, 
electric rice 
cookers , and 
electric lamps  8414.51.10,  
8516.60.10, 
8539.31, 
8539.39  To protect human life and 
public safety  - Importers must be register ed with the DFT as importers 
 of electric fans, electric rice cookers or electric lamps , 
 and must report the import, possession, export, storage, 
 disposal and balance of their product s to the DFT every 
 month ; and 
- Importers must show a  Standard Certificate issued by a 
 government agency o r competent authority of  the 
 exporting country to Customs for importation  
Gas water 
warmer s and 
water heater s 8419.11.10, 
8419.11.90  To protect human life and 
public safety  - Importers must be register ed with the DFT as importers 
 of gas water warmer s or water heater s, and report the 
 import, possession, export, storage, disposal and 
 balance of their product s to the DFT every month ; and  
- Importers must show a  Standard Certificate issued by a 
 government agency o r competent authority of the 
 exporting country to Customs for importation  
3D printing 
machine s, 
rapid 8477.10.39, 
8479.89.39  To prohibit the illegal use 
of product s - Importers must be register ed with the DFT as importers 
 of 3D printing machine s, and must notify the 
 importation to  the DFT, and report the import, WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Products  HS code 
(2017)  Rationale  Measures  
prototyping 
machine s, 
and a dditive 
manufacturing 
machine s  possession, disposal and balance of these  product s to 
 the DFT twice a year (end -June and end -December) ; 
 and  
- Importers must notify C ustoms of importation  
Rough 
diamonds  7102.10.00, 
7102.21.00, 
7102.31.00  To comply with UN 
Resolution 55/56 (2000) 
dated 1 December  2000 - Importers must be register ed with the DFT as importers 
 of rough diamonds and must report the importation 
 within  3 days ; and 
- Importers must submit the Kimberly Process Certificate 
 issued by the exporting country to Customs for 
 importation  
Potassium 
permanganate  2841.61.00  To protect national 
security and public morals  - Importers must be register ed with the DFT as importers 
 of potassium permanganate , and must notify the 
 importation to the DFT; and 
- Importers must notify  Customs of importation  
Source:  The Export and Import Act B.E. 2522 (1979); and i nformation provided by the authorities.  
3.46.   According to Thailand's notification to the WTO, permission is needed for the import or export 
of CITES -listed species, and other protected or reserved species, to preserve endanger ed species 
and to regulate their international trade.21 
3.1.5   Anti-dumping, countervailing, and safeguard measures  
3.1.5.1   Anti-dumping and countervailing measures  
3.47.   The legislation on anti -dumping and countervailing measures – the Anti -Dumping and 
Countervailing Act, B.E . 2542 (1999) - was amended on 22 May 2019, and the amendment came 
into effect on 18 November 2019. The authorities indicated that they will notify the WTO once the 
translation into English is completed. The authorities state that the amendment clarifies c ertain 
issues, including anti -circumvention provisions.  
3.48.   The MoC remains the government agency responsible for policy on contingency measures, 
including on safeguards. Its Department of Foreign Trade (DFT) is in charge of investigations, and 
its Committee on Dumping and Subsidies , chaired by the Minister of Commerce,  is responsible for 
making preliminary and final determinations. An investigation may be initiated by the Committee, 
or in response to a petition from the DFT, or from the domestic industry. Inv estigations are 
announced in the Royal Gazette and local newspapers, in Thai and in English. The DFT must inform 
the petitioners, as well as known exporters and importers of the product, or their representatives, 
of the initiation of an investigation.  
3.49.   Between 1995 and end -2019, Thailand initiated 84 anti -dumping cases, including 23 after 
2015.22 It notified to the WTO that, as at 30 June  2020, 43 anti-dumping measures in the form of 
duties were in force on 1 2 types of products:  10 types of steel or steel a lloys; citric acid; and inner 
tubes of rubber for motorcycles.23 Thirty of these measures were extensions of existing measures 
beyond their sunset period. Action s mostly affected products originating in China (11), Chinese 
Taipei (5), the Republic of Korea (5), and Viet Nam ( 5). During the review period, Thailand 
termi nated its anti -dumping measures on:  
• sodium tripolyphosphate  from China, in 2015;  
• unglazed/ glazed ceramic flags and paving, hearth or wall tiles; unglazed/ glazed ceramic 
mosaic cubes and the like, whether or not on backing , from China, in May 2017;  
• "H-sections" from China , on 10 October 2017 ; and  
 
21 WTO document G/MA/QR/N/THA/2, 9 November 2018.  
22 WTO, Anti-dumpi ng. Viewed at: https://www.wto.org/english/tratop_e/adp_e/adp_e.htm . 
23 WTO document G/ADP/N/ 342/THA, 22 July 2020.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  • painted hot dip, galvanized , of cold-rolled steel, and painted hot dip, plated or coated with 
aluminium zinc alloys of cold-rolled steel, from China, Chinese Taipei, and the Republic of 
Korea, in January 2019.24 
3.50.   Thailand has never had recourse to, nor has notified the WTO Committee on Subsidies and 
Countervailing Measures of , the initiation of any investigation or application of any countervailing 
duty measures.  
3.51.   As at the time of the previous Review, t he Anti -dump ing and Subsidized Import Act allows 
appeals to the Intellectual Property and International Trade Court . Since 2015,  the determinations 
of the  Committee on Dumping and Subsidies have been challenged six times , of which five appeals 
are still in court proce eding s. The authorities stated that these cases are mainly the appeals against 
the scope of products under consideration, the interpretation of the domestic industry, and the 
consideration of public interests.  
3.1.5.2   Safeguards  
3.52.   The legislation regulating safeguar d measures in Thailand remains the Safeguard Measures 
on Increased Imports Act B.E.  2550 (2007). There has been no amendment or revision to this 
legislation since 2015. The procedure to initiate safeguard investigations remains unchanged since 
the previous  Review. A domestic producer of a like or directly competitive product may file a petition 
to the DFT under the MoC. After being checked by the Department, the petition is passed to the 
Committee on Safeguard Measures for a determination. The DFT may also submit petitions to the 
Committee on its own initiative, based on evidence of increased imports and injury to the domestic 
industry. The initiation of an investigation is published in the Royal Gazette and local newspapers, 
in Thai and in English. The DFT must inform petitioners and other known interested parties.  
3.53.   The DFT is responsible for conducting investigations. The Committee, based on investigation 
results, may impose safeguard measures in the form of an additional duty, a quantitative restriction, 
or other measures  to reduce the volume of imported goods so that the domestic producer(s) of the 
like or directly competitive product can implement an adjustment plan. Safeguard measures are for 
a maximum of four years, and may be extended to a total of 10 years.  
3.54.   During the review period, Thailand notified to the WTO that definitive safeguard measures 
were:  
• imposed on structural hot -rolled H -beam with alloy (HS2017 7228.70.10.093 and 
7228.70.90.000), safeguard duties at ad valorem  rates of 31. 43% and 31.05% of the c.i.f. 
price from 28 January 2017 to 27 January 2019, respectively25;  
• extended on hot -rolled steel flat products with certain amounts of alloying elements, 
safeguard duties at ad valorem  rates of 41.67%, 40.42%, and 39.21% of the c.i .f. price 
from 27 February 2016 to 26 February 2019, respectively26; and  
• extended on non -alloy hot -rolled steel flat products, in coils and not in coils, at ad valorem  
rates of 21%, 20.87%, and 20.74% of the c.i.f. price from 7 June 2017 to 6 June 2020, 
respectively.27 
3.55.   Thailand reserved its right to take special safeguard ( SSG) action on 55 HS02 eight -digit 
agricultural items , including milk, potatoes, onions, garlic, coconuts, coffee, tea, pepper, maize, rice, 
copra, soya -bean oil, crude palm/coconut oil,  sugar, non -alcoholic beverages, tobacco, and raw silk . 
During the review period, Thailand notified to the WTO that it did not invoke the SSG provisions 
under Article 5 of the WTO Agreement on Agriculture.28 
 
24 WTO documents G/ADP/N/280/TH A, 20 January 2016; G/ADP/N/ 3000/THA, 23 August 2017;  
G/ADP/N/ 308/THA/Corr.1, 1 April 2019; and G/ADP/N/ 328/THA, 3 October 2019.  
25 WTO document s G/SG/N/8/THA/4/Suppl.1 ; G/SG/N/ 10/THA/4/Suppl.1 ; and 
G/SG/N/ 11/THA/4/Suppl.1 , 22 February 2017.  
26 WTO document s G/SG/N/ 10/THA/ 2/Suppl. 3; and G/SG/N/ 11/THA/ 2/Suppl. 5, 4 March 2016.  
27 WTO document s G/SG/N/ 8/THA/ 3/Suppl. 2; and  G/SG/N/ 10/THA/ 3/Suppl. 2, 21 June 2017.  
28 WTO document G/AG/N/TH A/86-90, 6 June 2019.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.2  Measures Directly Affecting Exports  
3.2.1   Customs proc edures and requirements  
3.56.   Customs procedures and requirements regarding exports from Thailand are similar to the 
import requirements (Section 3.1). Exporters must submit the following documents to Customs: bill 
of lading, terminal handling receipt, commercia l invoice, packing list, customs declaration, certificate 
of origin (if applicable), technical standards certificate (if applicable), and SOLAS certificate (if 
applicable).29 Export declarations are submitted via the e -Export system. Like importers, export ers 
may use the e -Tracking system to access export declaration information.  
3.57.   According to the World Bank's 20 20 Doing Business report, the time taken to export was 
11 hours for documentary compliance and 44 hours for border compliance, and t he cost was 
estimated at USD  97 for documentary compliance and USD  223 for border compliance . The 
procedure is much shorter and the cost less than East Asia and Pacific averages.30 
3.58.   The Department of Foreign Trade issues certificates of origin for exports from Thailand. 
Two private organizations may also issue non -preferential certificates of origin: the Federation of 
Thai Industries, and the Board of Trade.  
3.2.2   Taxes, charges, and levie s 
3.59.   Based on Customs Tariff Decree B.E. 2530, Thailand levies export taxes on a number of 
products (Table 3.9).  The share of export duty values to total tax revenues was 0.01% in 2019  
(Section 3.3.1.1 ). Most export taxes (statutory rates) are exempted in pra ctice (applied rates). 
However, t he persistence of relatively high statutory export taxes leaves an element of uncertainty 
in Thailand's trade regime, as export taxes could be reintroduced up to the level of the statutory 
rates without legislative approval .  
Table 3.9 Export duties, 2020  
Commodity  Applied 
rate Statutory 
rate 
Rice and glutinous rice, whether in the form of paddy, white rice, cargo rice, parboiled rice, 
broken rice or meal  Exempt  10% 
Metal scraps of any kind  Exempt  50% 
Hides of bovine animals, raw or tanned (excluding parings, waste and dust which 
cannot be used in the production or manufacture of leather)    
(a) Raw hides  Exempt  THB 5/kg  
(b) Other    
For parings, waste, and dust for use in the production of leather  THB 0.4/kg  THB 4/kg  
Tanned hides  Exempt  THB 4/kg  
Other  THB 0.4/kg  THB 4/kg  
Rubber of the genus Hevea , in the form of sheets, blocks, cuttings, slabs, latex or 
scraps from rubber trees, rubber containing soil or bark from rubber trees, including 
rubber in other forms which is usable as raw material    
(a) Rubber sheets, blocks and waste thereof, other than those specified in sub -
headings (b) and (c)  Exempt  40% 
(b) Rubber blocks according to the standard specified by t he Director General of 
Customs  Exempt  40% 
(c) Crepe rubber and waste thereof  Exempt  40% 
(d) Concentrated latex  Exempt  40% 
(e) Field latex  Exempt  40% 
(f) Other  Exempt  40% 
Wood, sawn wood and articles made of wood.    
(a) Wood and sawn wood    
For the veneer of logs imported and produced in a bonded warehouse of 
manufacturing type, established under Section 8 bis (2) of the Customs Act B.E. 
2469 (1926) amended by Section 9 of the Customs Act (No. 18), B.E. 2543 
(2000)  Exempt  40% 
 
29 World Bank, Doing Business 2020 - Economy Profile Thailand . Viewed at: 
https://www.doingbusiness.org/content/dam/doingBusiness/country/t/thailand/THA.pdf .  
30 World Bank, Doing Business in 2020 - Economy Profile Thailand . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Commodity  Applied 
rate Statutory 
rate 
For the veneer of l ogs imported and refunded of Customs duty under Section 19 
bis of the Customs Act (No.  9) B.E. 2482 (1939) as added by an announcement 
of the National Executive Council No. 329 dated 13 December B.E. 2515 (1972) 
and Section 9 of the Customs Act (No. 18), B .E. 2543 (2000), the foregoing 
provisions shall be in accordance with the regulations prescribed by the Customs 
Department  Exempt  40% 
For eucalyptus, casuarina, giant bamboo, hedge bamboo, giant thorny bamboo, 
cashew nut tree, wattle, horse tamarind, Queensland swamp oak or horsetail 
tree, almond -wood or chickrassy chittagong -wood, Caribbean pine and oocarpa 
pine Exempt  40% 
For wood and  sawn wood from rubber trees of the genus Hevea  Exempt  40% 
For phai -ruak (Thyrsostachys siamensis Gamble) and coconut wood  5% 40% 
For veneer  10% 40% 
Other  40% 40% 
(b) Articles of wood    
Unsuitable for further conversion  Exempt  10% 
Other  Exempt  20% 
Raw silk (not thrown), silk yarn and yarn spun from waste silk and noil silk  Exempt  THB 100/kg  
Fish, pulverized or only baked, unfit for human consumption  Exempt  75% 
Goods exported from the Joint Development Area under the law on the Thailand -
Malaysia Joint Authority  Exempt  10% 
Goods not elsewhere specified or included in this Export Tariff  Exempt  n.a. 
n.a. Not applicable.  
Source:  Customs Tariff Decree B.E. 2530.  
3.60.   The imposition of export taxes could constitute a form of assistance to domestic downstream 
industries and, if they are applied to products Thailand is a major supplier of, could exacerbate world 
price fluctuations . 
3.2.3   Export prohibitions, restrictions, and licensing  
3.61.   Export prohibitions and restrictions are regulated under the Export and Import Act B.E.  2522 
(1979). They may take the form of prohibitions, licensing requirements (non -automatic or 
automatic), or other restrictions.  
3.2.3.1   Export proh ibitions  
3.62.   Under the Export and Import Act, the following products are prohibited from export from 
Thailand:  
• natural sand (HS 2505.10.00, 2505.90.00), to preserve natural resources;  
• goods by deceptive practice, to protect intellectual property (IP) and natio nal financial 
security; and  
• copyright -infringing cassette tapes, audio and compact discs, video tapes, computer 
programs and books, to protect IP and national financial security.  
3.63.   To comply with UN Resolution,  as for imports, the  exports of all types of arm s, military 
vehicles, hardware and spare parts to individual state and/or target groups  referred  to in 
Section  3.1.4.1 are prohibited. Similarly, the exportation of: luxury goods, coal and charcoal, iron, 
textile products, machinery, electrical equipment, food and agricultural products, and wood, among 
others, to and originating from the Democratic People's Republic of Korea, and charcoal to Somalia, 
are prohibited to comply with UN Resolutions.  
3.64.   In addition, live snakes, including unfinished snakeskins, are  also prohibited from exportation, 
with a view to preventing or reducing environmental impact and maintaining the ecological balance.  
3.65.   During the COVID -19 pandemic, Thailand notified to the WTO its temporary export prohibition 
measures for bird eggs and sur gical masks. The exportation of bird eggs was prohibited from WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  26 March to 30 April 2020, and the exportation of surgical masks is prohibited for one year since 
5 February 2020.31 
3.2.3.2   Export licensing  
3.66.   The Minister of Commerce, with the approval of the Cabinet, may impose  non-automatic or 
automatic export licensing requirements for various reasons (Table 3.10). Licences are issued 
electronically or manually, depending on the product, by the MoC. The MoC may issue notifications 
to allow other government authoritie s to issue such licences.  
Table 3.10 Products subject to export licensing requirements, 2020  
Products  HS code (2017)  Purpose  Measures  
Sacred Buddha images and 
parts thereof, and antique idols, 
graven images  Various  To protect national treasures of 
artistic, historic or archaeological 
value  Non-automatic 
licence  
Shellfish and shell  Various  To promote the pearl cultivation 
industry, and the manufacturing 
of jewellery and home decorations  Automatic 
licence 
Cassava products/cassava 
starches  0714.10.11, 0714.10.19, 
0714.10.91, 0714.10.99, 
1106.20.10, 1108.14.00  To meet standard requirements 
for classification, grading or 
marketing of commodities in 
international trade  Automatic 
licence  
Minerals composed of natural 
sand Various  To preserve exhaustible natural 
resources  Non-automatic 
licence  
All types of coal except 
pulverized from Hongai 
anthracite coal  2701.11.00, 2701.12.10, 
2701.19.00, 2701.20.00, 
2702.10.00, 2702.20.00, 
2704.00.10, 2704.00.10, 
2704.00.20, 2704.00.30  To preserve exhaustible natural 
resources  Non-automatic 
licence  
Wood charcoal  Various  To preserve natural resources  Automatic 
licence  
Elephants, including parts, 
derivatives and products thereof  Various  To preserve endangered species  Non-automatic 
licence  
Wood and sawn wood  Various  To preserve natural resources  Automatic 
licence  
Gold Various  To protect economic security and 
stability  Non-automatic 
licence  
Caffeine and its salts  2939.30.00  To control narcotic drugs and to 
protect human health and national 
security  Automatic 
licence  
Potassium permanganate  2841.61.00  To protect national security and 
public morals  Automatic 
licence  
Source:  The Export and Import Act B.E. 2522 (1979) ; and information provided by the authorities.  
3.67.   According  to Thailand's notification to the WTO as well as information provided by the 
authorities, the following products are also subject to non -automatic export licensing:  
• rice (1006.10, 1006.20, 1006.30, 1006.40), to prevent domestic shortages;  
• coffee and its p roducts (0901.11, 0901.12, 0901.21, 0901.22, 2101.11, 2101.12), to 
comply with the requirements of the International Coffee Organization;  
• bean cake (23.05), to prevent domestic shortages;  
• sugar, to comply with the requirements of the International Sugar Or ganization;  
• products re -exported to third countries, to comply with international agreements;  
• narcotic drugs, to protect human health and narcotic drug control; and  
 
31 WTO documents G/MA/Q R/N/THA/2/Add.2, 30 March 2020; and G/MA/QR/N/THA/2/Add.3, 
2 April 2020.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  • psychotropic substances, to protect human health and psychotropic substance control.32 
3.68.   Under the Export and Import Act B.E. 2522 (1979), some other products must be registered 
with, or possess a certificate obtained  from, relevant agencies before being exported (Table 3.11).  
Table 3.11 Other produc ts subject to export requirements, 2020  
Products  HS code 
(2017)  Purpose  Measures  
Fresh durian  Various  To ensure their exports meet 
relevant TBT requirements  Exporters must be registered with 
the Department of Agriculture  
Fresh longan  Various  To ensure their exports meet 
relevant TBT requirements  Exporters must be registered with 
the Department of Agriculture  
Fresh orchids  Various  To ensure their exports meet 
relevant TBT and SPS 
requirements  Exporters must be registered with 
the Department of Ag riculture  
Living ornamental fish  Various  To improve fish protection  Exporters must show a certificate 
issued by the Department of 
Fisheries to Customs for exportation  
Canned pineapple  Various  To ensure their exports meet 
standards requirements  Exporters must be on the list of the 
Thai Industrial Standard Institute  
Tuna in airtight 
containers  1604.14.11, 
1604.14.19  To promote the export to 
correspond with the current 
trade situationa Exporters must be members of the 
Thai Food Proce ssors' Association or 
the Thai Tuna Industries Association  
Finished products made 
of shell  Various  To promote the pearl 
cultivation industry, and the 
manufacturing of jewellery 
and home decorations  Exporters must show a certificate 
issued by the Departmen t of 
Fisheries to Customs for exportation  
Rough diamonds  7102.10.00, 
7102.21.00, 
7102.31.00  To comply with UN Resolution 
55/56 (2000) dated 
1 December 2000  Exporters must show a Kimberly 
Process Certificate issued by the 
Department of Foreign Trade (DFT) 
to Customs for exportation  
Rice exported to the 
European Union under 
tariff quotas  1006.30  
1006.40  To comply with the agreement 
between Thailand and the 
European Union  Automatic licensing, with a certificate 
from the DFT , and export quota 
(European Union)  
a Ministry of Commerce Notification B.E. 2557 (2014) on Determination for Canned Tuna to be Goods 
subject to Measure Regulating Export out of the Kingdom . Viewed at: http://www.dft.go.th/en -
us/Legal -Translation/smid/6241/ArticleId/12000 . 
Source:  The Export and Import Act B.E. 2522 (1979); and information provided by the authorities.  
3.2.4   Export support and promotion  
3.69.   The Government continues to offer several schemes to promote and facilitate exports. These 
include bonded warehouses, duty drawback, other measures allowing for tax and duty refunds, and 
tax and non -tax incentives under the Customs free zones scheme and the Industrial Estate Authority 
of Thailand Act (N o. 4) B.E. 2550 (2007).33  
3.2.4.1   Bonded warehouses  
3.70.   Goods can be imported into a bonded warehouse without payment of import duties and taxes 
if they are to be used as inputs in products for export, or are themselves re -exported. These imports 
remain stored under customs control, generally for a maximum period of two years from the date 
of importation.34 In the case of the factory -type bonded warehouse, imports must be used in a 
production process for export within that two -year period.  
 
32 WTO document G/MA/QR/N/THA/2, 9 November 2018; and information provided by the authorities.  
33 Detailed information on these schemes can be obtained from the Thai Customs Service Centre, Duty 
refund under Section 29 of the Customs Act B.E. 2560.  Viewed at: http://www.customs.go.th/cont_strc_simple 
.php?ini_content=tax_incentive_160928_01&ini_menu=menu_tax_incentive&xleft_menu=menu_tax_incentive
_160928_02&lang=th&left_menu=menu_tax_incentive&lang=th&left_menu=information_service_170123_07 . 
34 The Customs Act  allows for several types of bonded warehouses, with the maximum storage period 
varying in some cases. The types of warehouses include: the bonded warehouse of general type; the factory -
type bonded warehouse; the bonded warehouse for exhibitions; the bonde d warehouse for duty -free shops and 
for the storage of duty -free goods; the bonded warehouse for customs -free zones; the bonded warehouse for WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.2.4.2   Duty drawback  
3.71.   Section 29 of the Customs Act B.E. 2560 (2017) provides for a duty drawback scheme. 
Importers/ exporters are entitled to a refund of duties paid (in cash or through a guarantee deposit) 
on imports of raw materials that are used in the production, mixing, assembling , packaging  or any 
other method of processing of goods, provided such goods are exported within o ne year. If the goods 
are transferred to a bonded warehouse or sold to a person lawfully entitled to a duty exemption , 
they are deemed to be exported for the purpose of the duty refund (Section 31 of the Act). The 
formula for calculating the amount of the refund depends on the type of product concerned. Requests 
for duty drawback must be made within six months from the date of exportation , unless the Director -
General of the Customs Department allows an extension of not more than six months.  Machinery, 
tools, moulds, and fuels for manufacturing are not eligible for duty drawback.  
3.2.4.3   Tax and duty compensation  
3.72.   Exports of goods manufactured in Thailand continue to be eligible for tax coupons, which may 
be used to pay taxes and duties. The scheme is regulated unde r the Tax and Duty Compensation of 
Exported Goods Produced in the Kingdom Act B.E. 2524 (1981).  In addition to goods exported to 
other countries, the scheme also covers goods sold in Thailand to government agencies or state 
enterprises under foreign loans or foreign aid programmes, and goods sold to international 
organizations that are entitled to tax and duty exemptions.  
3.73.   The amount of the tax and duty compensation is set as a fixed percentage of the f.o.b. value 
of the exports, and is calculated taking in to account the proportion of raw materials/inputs used for 
the production (according to established input/output tables) and their average import tariff. The 
compensation rate is regularly adjusted to reflect changes in these two variables. Products that a re 
not eligible for tax compensation include minerals, goods subject to export duties or fees, goods 
exported for non -commercial purposes (e.g. samples), and other products determined by the 
Committee for Tax and Duty Compensation of Exported Goods Produce d in the Kingdom. During the 
period under review, compensation rates ranged from 0.47%  to 0.64% of the f.o.b. value 
(Table  3.12). 
Table 3.12 Exported goods: duty compensation rate as percentage of f.o.b. value, 
2015 -19 
 f.o.b. value of exports  
(THB million)  Compensation value  
(THB million)  Compensation rate  
(% of f.o.b. value)  
2015 1,616,447  9,601  0.59 
2016 1,384,59 4 8,925  0.64 
2017 1,315,879  8,048 0.61 
2018 1,766,403  9,128 0.52 
2019 1,744,800  8,268 0.47 
Source:  Fiscal Policy Office, Ministry of Finance.  
3.2.4.4   Customs free zones  
3.74.   Customs has been administer ing a free zone s (FZ) programme since 2000, aimed at 
promoting investment into, and exports from, these zones. Under this programme, goods imported 
and moved into a n FZ by a licensee operator are exempted from: import duties, VAT, excise tax, 
export duties on re -exports, and standards and quality control requirements. In addition, they may 
be eligible for export tax refund/exemption schemes. In October 2019, Thailand launched the 
E-Commerce Customs Free Zone in the Eastern Economic Corridor (EEC) area, with the aim of 
prom oting exports of goods through electronic commerce35; the Zone was not yet operational at the 
time of drafting this report. Currently, there are 119 FZs (84 in 2014), with a total of 394 commercial 
and industrial units operating within them. The main secto rs of activity are distribution centres, 
 
vessel repair or construction (with a maximum storage period of three years); and the bonded warehouse for 
oil sto rage (maximum storage period of six months).  
35 Announcement of the Customs Department No. 204/2562 , Customs Clearance Protocol at the 
E-Commerce Duty -Free Zone within the Special Economic Zone , 28 October 2019.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  logistics, packaging , and production of auto parts.  The authorities indicated that the share of exports 
from FZs in total exports averaged 10.2% annually over the period 2015 -19.  
3.2.4.5   Free zones under the Industrial Est ate Authority of Thailand   
3.75.   The Industrial Estate Authority of Thailand (I -EA-T) is a government agency under the Ministry 
of Industry responsible for the planning, development and management of industrial estates 
throughout the country. There are two types  of industrial estates: general industrial zones (for the 
location of both light and heavy industries); and I -EA-T free zones. The latter are established to 
cater to the specific needs of export -oriented businesses, providing infrastructure facilities, cus toms 
offices and other government services, and a range of incentives.  
3.76.   Under the current I -EA-T Act, as amended by the Industrial Estate Authority of Thailand Act 
(No. 5) B.E. 2562 (2019)36, companies located in I -EA-T free zones are eligible for several tax and 
non-tax incentives. Tax benefits include exemption from import duties, VAT, and excise tax on 
factory -building materials, machinery, equipment, tools, components, and raw materials necessary 
for the production of goods or for commercial pur poses, as well as exemption from export duties 
and taxes. Under the Act, eligibility to receive such benefits is not contingent upon export 
performance requirements. Non -tax incentives for companies in the I -EA-T free zones consist of the 
right to own land  in the industrial estate, visas to bring in foreign technicians and experts and their 
dependants, and the right to remit foreign currency abroad.37 Firms in I -EA-T free zones may also 
import supplies or raw materials to produce goods intended for export, without being subject to 
import permits, standards and quality controls, or any other control except those under the customs 
law. A 2019 amendment to the I -EA-T Act extended this benefit to I -EA-T free zones carrying out 
commerce for the purpose of exporta tion, mutatis mutandis .38 Companies located in I -EA-T free 
zones are also entitled to receive additional privileges from the Board of Investment, when applying 
for investment promotion (Section 3.3.1).  
3.77.   Goods from an I -EA-T free zone that are sold to the l ocal market must be declared , and import 
duty and other applicable taxes paid at the rates in force on the date when they were imported into 
the local market.39  
3.78.   According to data provided by the authorities, between 2017 and 2019, the number of I -EA-T 
free zones remained stable, the number of companies established in these zones increased slightly 
but the number of employees decreased. In 2019, 12 I-EA-T free zones were run by the Industrial 
Estate Authority of Thailand40, with a total of 1,820 companies a nd 201,923 employees (Table 3.1 3). 
The main industries established in the I -EA-T free zones  include electronics and electrical appliances; 
automotive and transport; rubber, plastics and artificial leather; gems and jewellery; and businesses 
related to indu strial operations. The authorities indicated that there is no record of the share of 
exports of I -EA-T companies in total Thai exports.  
Table 3.13 I-EA-T free zones , 2015 -19 
Number  2015  2016  2017  2018  2019  
I-EA-T free zones  .. .. 13 12 12 
Companies  .. .. 1,631  1,602  1,820  
Employees  .. .. 240,572  189,261  201,923  
.. Not available.  
Source:  Information provided by the authorities.  
  
 
36 The Industrial Estate Authority of Thailand  Act (No. 4) B.E. 2550 (2007)  was amended by the 
Industrial Estate Authority of Thailand Act (No.  5) B.E. 2562 (2019) . 
37 I-EA-T, Investment Privileges from I -EA-T. Viewed at: https://www.ieat.go.th/en/investment 
/privileges/investment -privileges -from-i-ea-t. Repatriation of foreign capital must be in accordance with 
Section 47 of the I-EA-T Act.  
38 Section 49 of the I -EA-T Act (No. 5) B.E. 2562 (2019).  
39 Section 52 of the I -EA-T Act (No. 4) B.E. 2550 (2007).  
40 There are also over 40 industrial estates operating as joint ventures between the I -EA-T and private 
developers.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.2.4.6   Export promotion  
3.79.   The Department of International Trade Promotion (DITP), under the Ministry of Commerce, is 
the main government agency in charge of promoting Thai exports of goods and services  worldwide, 
and enhancing the competitiveness of Thai entrepreneurs, particularly small and medium -sized 
enterprises (SMEs). The DITP's responsibilities include a wide range of activities, such as formulating 
and proposing export promotion strategies, providing trade information services, creating 
opportunities through business matching and networking between Thai exporters and pote ntial 
importers, promoting the value creation of Thai products and services, and providing capacity -
building services to Thai SMEs  (Box 3.1 ). The DITP has established DITP overseas offices  in major 
cities across the world to implement such policies and act ivities, with a special focus on fostering 
business relations between Thai exporters and potential importers. The overseas offices also gather 
and analyse relevant market information,  and produce reports on emerging trends and 
developments . In 2020, the DI TP operates internationally from 58 locations in 4 3 countries  and 
territories . In addition, it has trade representatives in four other locations.41 There are also 
34 honorary trade advisors in 23 countries.   
Box 3.1 Responsibilities of the Department of International Trade Promotion (DITP)  
• Formulate suggestions for export promotion strategies and set goals and action plans for Thai exports.  
• Organize activities in the domestic and overseas markets to promote Thai land's exports of goods and 
services, such as assisting and supporting Thai businesses to participate in international trade fairs and 
organizing incoming and outgoing trade missions.  
• Produce trade data and provide trade information services. Provide support for the use of information 
technology related to exports by Thai manufacturers, exporters, service providers and importers.  
• Undertake public relations activities to promote exports of Thai goods and services  and brand -building for 
"Thai quality " export products (e.g. Thailand Trust Mark (quality certification for Thai products); Thai Select 
(Thai restaurants abroad); Prime Minister 's Export Award (outstanding exporters) ; and DEMARK award 
(Thai-designed products) ). 
• Provide capacity -buildin g services for Thai SMEs by organizing seminars and workshops and providing on -
line and off -line training in order to enhance the competitiveness of Thai exporters.  
• Support the development and value creation of Thai products in terms of design and branding  so that they 
can meet international market demand.  
• Support the advancement of trade logistics systems by organizing promotional activities such as trade 
logistic fairs and the Excellent Logistics Management Award.  
• Create and operate Thailand's e -commerce official platform (Thaitrade.com) to provide channels for quality 
Thai SME products to expand into global markets.  
Source:  DITP. Viewed at: https://www.ditp.go.th . 
3.80.   With the aim of promoting Thai products and services  that meet international quality 
standards, the DITP has implemented the Thai Select  and the Thailand Trust Mark (T-Mark) 
programmes. Thai Select is a seal of DITP approval , recognizing high -quality standards ; it is granted 
to Thai restaurants overseas and  processed Thai food products. The T -Mark is intended to be a 
symbol of excellence and trusted quality; it was created to add a distinctive value to the Thai 
products and services that are made in Thailand. Thai entrepreneurs have received the T -Mark 
recog nition in six industry groups: food and agriculture industry, industrial products, lifestyle 
industry, fashion, other industries (medical equipment, pharmaceutical products, cosmetics and spa 
products) , and service businesses (wellness and medical services, trade logistics , and animation and 
digital content).  
3.81.   Another  DITP policy is to encourage Thai exporters' participation, especially SMEs, in 
e-commerce, through the DITP official e -marketplace called T haitrade.com, which has now been 
extended to cover not only business to business trade but also business to consumer sales under 
the platform Thaitrade.com Small Order OK (SOOK).42  
3.82.   Each year , the DITP undertakes more than 300 activities , both in Thailand and overseas , to 
help boost exports, including trade fairs and exhibitions, trade missions, business -matching, in -store 
promotions , and capacity -building. The activities cover traditional markets, e.g. China, the 
United  States, ASEAN, Japan, and Europe, as  well as new frontier markets like India, the Middle 
 
41 Vladivo stok, Lima, Hiroshima  and Siem Reap.  
42 DITP, Annual Report 2016 . Viewed at: https://www.ditp.go.th/ditp_web61/article_sub_view. 
php?filename=contents_attach/242101/242101.pdf&title=242101&cate=1161&d=0 . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  East, Africa, and Latin America. Among the products and services promoted are food and agricultural 
products, fashion and lifestyle products, gems and jewellery, construction materials and services, 
auto parts, and animation and digital content.  
3.2.5   Export finance, insurance, and guarantees  
3.83.   The Export -Import Bank of Thailand (EXIM Thailand) is a state -owned specialized financial 
institution under the supervision of the Ministry of Finance.43 It offers a wide range of credit and 
insurance products to promote exports, imports and investment, with the aim of enhancing Thai 
businesses' participation in international markets, and thus furthering economic development. The 
Bank seeks to fill up financial gaps faced b y Thai exporters and entrepreneurs who have inadequate 
or no access to funding or other financial facilities, and supports companies at all stages of 
development, from start -ups to SMEs and large enterprises. As at end -2019, EXIM Thailand's 
outstanding tra de loans and export credit insurance turnover was THB 157 .1 billion or 1.86% of total 
exports.  
3.84.   EXIM Thailand offers its credit and insurance products at market rates based on risk, in order 
to cover its own costs and generate profits. Under the Export -Import Bank of Thailand Act B.E. 2536 
(1993),  any severe loss incurred by EXIM Thailand from export -credit insurance or business 
operations approved by the Government is  to be compensated by the Ministry of Finance through 
the allocation of funds from the Gove rnment's budget.44  
3.85.   The facilities offered by EXIM Thailand include export credit, working capital loans, export 
supplier's credit, buyer's credit, financing for investment projects in Thailand and abroad, export -
credit and investment insurance, buyers' ri sk assessment, letters of guarantee, and other services 
to support traders and investors.45 In July 2018, the Bank's Act was amended, through the EXIM 
Bank of Thailand Act (No. 3) B.E. 2561 (2018), in order to expand its insurance facilities; among 
the Ban k's new services are export -credit insurance for suppliers of products or services to Thai 
exporters, and investment insurance for commercial banks that lend to Thai investment projects 
abroad.  
3.86.   Export credits are provided for the short, medium and long term s, in either baht or foreign 
currency. Short-term loans usually cover a maximum of one year; the duration of medium -/long-
term loans depends on the cashflow projection of the company requesting the loan.  Export credits 
can be offered for pre -shipment, post -shipment, or both. As indicated, a new credit facility is also 
available for indirect exporters (i.e. suppliers of exporters) covering pre - and post -shipment. The 
interest rates and fees applied by EXIM  Thailand are published online at: 
https://www.exim.go.th/th/exchange_rate/interest.aspx . As at 19 March 2020, the EXIM Thailand's 
Prime Rate on loans in baht was 5.75% per annum. The Pr ime Rate is a reference rate, while the 
interest rate actually offered to clients depends on several factors (i.e. cost of funds, liquidity, and 
the client's risk rating).  
3.87.   EXIM Thailand is the only state -owned financial institution providing export -credit  insurance. 
It offers short -, medium - and long -term export -credit insurance to cover commercial and political 
risks. Depending on the type of insurance product, coverage varies between 85% and 90% of the 
loss realized. Short -term export -credit insurance sc hemes are available for exporters offering 
payment terms of up to 180 days from the date of exportation. Examples of these facilities are: the 
SMEs Easy Export Insurance scheme, which offers export -credit insurance for up to THB 2 million, 
with simplified procedures for start -up and small -scale exporters; and the EXIM 4 SMEs scheme, 
providing export -credit insurance with attractive premiums and expedited approval procedures for 
SMEs with an export value not exceeding THB 200 million per year.46 In 2018, the  Bank's short -term 
export -credit insurance turnover amounted to THB 89 .1 billion , or a 42.8% increase from the 
previous year. The products accounting for the largest share of insurance turnover were canned and 
 
43 EXIM Thailand was established in 1994 by the Export -Import Bank of Thailand Act, B.E. 2536 (1993).  
44 Sections 23 and 24 of the Export -Import Bank of Thailand Act B.E. 2536 (1993).  
45 The terms and conditions of these programmes can be viewed at the EXIM Thailand website , Products 
and Services . Viewed  at: https://www.exim.go.th/th/Products_Services . 
46 As part of its promotional strategy, the Bank offers export -credit insurance products with a 50% 
reduction in premium for the first five buyers.  The Nation, Exim Thailand offers support and incentives for rise 
in trade . Viewed at: https://www.nationthailand.com/Economy/30353725 . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  processed food (almost a third of the total), followed by petroleum, natural gas, rice and rice 
products, and jewellery and accessories.47  
3.88.   Medium - and long -term export -credit insurance facilities are provided to exporters and to 
financial institutions granting credit to exporters. They cover exports of goods and services with 
payment terms beyond 180 days but no longer than five years, and the maximum coverage is 90% 
of the loss realized. Demand for medium - and long -term export -credit insurance comes mainly from 
exporters of manufacturing products and  services. In 2018, EXIM Thailand's medium - and long -term 
export -credit insurance turnover totalled THB 50 million.48 EXIM Thailand takes part in the Portfolio 
Guarantee Scheme (PGS) of the Thai Credit Corporation, a state -owned specialized financial 
institution that provides credit guarantees to viable SMEs which do not have sufficient collateral. 
Under this arrangement, established in 2009, EXIM Thailand is in a position to expand its credits to 
exporters, utilizing the PGS to enhance the creditworthiness  of SME clients . 
3.89.   Over the past few years, EXIM Thailand has put in place new strategies in order to adapt to 
the rapid changes in global trade and investment, including intensified competition in financing, and 
the need to diversify into new frontier marke ts, and to embrace new digital technologies. Under its 
strategies for 2017 -19, the Bank focused on enhancing trade and investment in new markets, mainly 
in the Greater Mekong Subregion comprising Cambodia, Lao PDR, Myanmar and Vietnam (CLMV) 
and in Africa,  by developing projects specifically designed to cater to the needs of exporters and 
investors engaged in these regions. EXIM Thailand also worked to develop the capabilities of start -up 
exporters, especially SMEs, to participate in international trade, by  promoting online sales channels 
in partnership with global and domestic digital business platforms. The Bank is also in the process 
of developing online facilities to expedite and ease the provision of its services to the exporter 
community (e.g. the onli ne export -credit insurance system (ECI Online)).  
3.90.   Among the main new products and services developed by EXIM Thailand in accordance with 
its strategies are:  
• EXIM Loan for CLMV Buyers, a loan facility for entrepreneurs in the CLMV to purchase 
goods and serv ices from Thailand with an initial interest rate of LIBOR +4% per annum , a 
credit line of up to USD 4 million per borrower  and a maximum term of five years 
depending on the creditworthiness of the buyer; and  
• EXIM Special Zone Credit, a long -term credit fa cility combined with a revolving credit line 
for up to 15 years, to support investors in the Eastern Economic Corridor (EEC), the Special 
Economic Zones (SEZs), border provinces, industrial estates, and industrial zones, with 
attractive interest rates and special reductions for investors in the EEC and the SEZs.49 
3.91.   In 2019, EXIM Thailand posted a net profit of THB 507 million (compared to almost 
THB 1.4 billion in 2018). Its total outstanding loans amounted to THB 121.9 billion, an increase of 
12.2% over 201 8. The Bank's non -performing loans ratio stood at 4.6%. In 2019, the Bank granted 
new loans worth THB 59 billion, a decrease of 20.9% over 2018. The accumulated amount of credit 
lines approved until the end of 2019 was THB 298.6 billion; 69% of credit lines was to support 
export, capacity expansion and domestic investment projects, while the rest went to Thai investment 
abroad. It is estimated that 1.86% of Thailand's total export value in 2019 resulted from the Bank's 
support through credit lines and export -credit insurance.50 
  
 
47 EXIM Thailand, Annual Report 2018 . Viewed at: https://www.exim.go.th/th/Annual -Reports/aaa.aspx .  
48 In 2018, the aggregate amount of medium - and long -term export -credit insurance granted in both 
foreign and domestic currency was almost THB 3 b illion. EXIM Thailand, Annual Report 2018 .  
49 For additional information on these schemes, see the EXIM Thailand website , Products and Services . 
Viewed  at: https://www.exim.go.th/th/Products_Servi ces.  
50 Information provided by the authorities.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.3  Measures Affecting Production and Trade  
3.3.1   Incentives  
3.3.1.1   Taxation  
3.92.   In FY2019, tax  revenue accounted for 88% of government revenue, and was equivalent to 
16% of GDP . VAT, corporate income taxes, excise t ax, and personal income tax accounted for about 
30%, 26%, 22%, and 12%, respectively, while import tariffs accounted for about 4% of total tax 
revenue (Table 3.14).  
3.93.   According to the Revenue Code, the corporate income tax (CIT) rate is 20%.51 Companies 
incorporated in Thailand are taxed on worldwide income. A company incorporated abroad is taxed 
on its profits arising from, or in consequence to, the business carried out in Thailand. Foreign 
companies not carrying out business in Thailand are subject to a fin al withholding tax, normally at 
a rate of 15%, on some types of income, e.g. interest, dividends (at a rate of 10%), royalties, 
rentals, and service fees, paid from or in Thailand.  
Table 3.14 Central governme nt tax revenue, by source, FY2015 -FY2019  
(Year ending 30 September) (THB million)  
 2015  2016  2017  2018  2019  
Total government revenue  2,619,866  2,813,036  2,792,765  2,974,133  3,061,071  
Total tax revenue  2,279,553  2,383,075  2,455,865  2,598,739  2,700,182  
Revenue Department  1,728,815  1,757,473  1,793,001  1,915,019  2,008,861  
    Personal income taxes  302,491  319,116  314,762  319,022  336,275  
    Corporate income taxes  566,150  604,929  626,714  663,526  694,654  
    Petroleum income taxes  83,522  46,297  39,389  63,679  99,687  
    VAT 708,905  716,384  742,248  792,999  799,664  
    Specific business taxes  54,175  56,249  55,733  60,375  62,056  
    Stamp duties  13,572  14,498  14,090  15,199  16,074  
    Inheritance taxes  n.a. n.a. 65  219  451  
Excise Department  439,092  517,686  562,361  580,448  585,407  
    Oil taxes  127,786  177,697  216,885  224,884  210,025  
    Tobacco taxes  62,734  65,438  68,603  68,548  67,410  
    Liquor taxes  62,488  61,953  62,657  55,965  62,147  
    Beer taxes  80,114  86,143  87,198  76,357  79,091  
    Car taxes  80,704  100,764  102,150  121,088  133,181  
    Beverage taxes  17,599  17,899  16,858  21,994  24,232  
    Electronic appliance taxes  471  81  26  6  0  
    Motorcycle taxes  2,915  2,949  3,436  3,843  3,898  
    Battery taxes  2,190  2,392  2,437  2,971  3,009  
    Other taxes  1,323  1,468  1,310  1,578  1,609  
Customs Department  112,414  108,818  101,305  106,486  106,720  
    Import duties  112,210  108,714  101,214  106,342  106,510  
    Export duties  204 104 91 144 210 
n.a. Not applicable, as the inheritance tax was enforced on 1 February 2016.  
Source:  Department of Excise Tax 's Annual Report 2015 -19; Fiscal Policy Office, Ministry of Finance. Viewed 
at: http://www.fpo.go.th/main/getattachment/acc87e72 -5864-4e8c-b601-
8d8ad0668152/4908.aspx ; and data provided by the authorities.   
3.94.   Companies with paid -in capit al not exceeding THB 5 million, and income from the sale of 
goods and/or the provision of services not exceeding THB 30 million, are subject to lower CIT rates:  
• for net profit of THB 0 – THB 300,000, CIT rate of 0%;  
• for net profit of THB 300,000 – THB 3 mi llion, CIT rate of 15%; and  
• for net profit above THB 3 million, CIT rate of  20%.  
 
51 Revenue Department, Income Tax Rates Schedule . Viewed at: 
http://www.rd.go.th/publish/fileadmin/user_ upload/kormor/eng/Tax_rate_table2_161060.pdf .  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.95.   Lower CIT rates also apply to:  
• banks deriving profits from international banking facilities – 10% of their net profits;  
• foreign companies engaging in international transportat ion – 3% of their gross receipts;  
• foreign companies disposing profits outside of Thailand – 10% of the amount disposed; 
and  
• profitable associations and foundations – 2% or 10% of their gross receipts.52 
3.96.   In accordance with the Petroleum Income Tax Act, petroleum companies under a concession 
are taxed at a rate of 50% of their annual net profit from petroleum operations, and companies 
under production -sharing contracts are taxed at a rate of 20% of their annual net profit derived from 
their petroleum busi ness. C ompanies under a service contract are taxed under the Revenue Code 
and are subject to the 20% CIT . 
3.97.   All individuals who earn assessable income arising in Thailand are liable for personal income 
tax, whether they are residents or not, and regardless o f where the income is received. Taxable 
income includes employment income, business income, and investment income, as well as income 
from a range of activities.53 A wide range of deductions and allowances are permitted , and the 
income tax rate is applied p rogressively , with a top rate of 35% on annual incomes (net of de ductions 
and allowances) over TH B 5 million  (up from THB 4 million in 2016) .54 
3.98.   The standard statutory VAT rate is 10%, although the applied rate is 7% (until 
30 September  2020, unless further  extended by the Government). VAT is levied at the same rate 
on imported and domestically produced/provided goods and services. VAT on imports is charged on 
the c.i.f. price plus import duty , excise tax , and other taxes and fees (if any).  Persons with an a nnual 
turnover in excess of THB 1.8 million are required to register as VAT operators. VAT is exempted, or 
applied at a zero rate, on a number of business activities (Table 3.15).  
Table 3.15 VAT exemptions and zero -rate VAT  
 Business activities  
VAT exemptions  Taxpayers with total sales of less than THB 1.8 million  
 Sales of unprocessed agricultural products  
 Sales of goods or products related to agriculture, e.g. fertilizers, animal feed and 
pesticides  
 Sales of newspapers, magazines, and textbooks  
 Sales of animals, whether dead or alive  
 Educational services, including government and private schools  
 Artistic and cultural services  
 Medical, auditing, and court practice services  
 Healthcare services, including government and private hospitals and clinics  
 Research and technical services  
 Libraries, museums, zoos, and amateur sports  
 Public performers  
 Domestic transportation  
 International transportation by land  
 Rental of immovable property  
 Services of government agencies and local governments which send all revenue before 
expenses to the Government  
 Religious activities and public charities  
 Imported goods brought into a duty-free zone that are exempt from import duties  
 Goods exempt from import duties pursuant to Chapter 4 of the Customs Tariff Code  
 Imported goods processed by the Customs Department and re -exported  
 
52 Revenue Department, Corporate Income Tax . Viewed at: http://www.rd.go.th/publish/6044.0.html . 
53 Deloitte (2017), Taxation and Investment in Thailand 2017 . Viewed at: 
https://www2.deloitte.com/content/dam/Deloitte/cn/Documents/international -business -support/deloitte -cn-
ibs-thailand -tax-invest -en-2017.pdf . 
54 From 1 January 2017, for those earning between THB 4 million and THB 5 million, their personal 
income tax rate was lowered from 35% to 30%. This change was aimed at easing tax burdens and boosting 
disposable income. A SEAN Briefing, Thailand's New Personal Income Tax Structure Comes into Effect . Viewed 
at: https://www.aseanbriefing.com/news/thailands -new-personal -income -tax-structure -comes -effect/ . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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   Business activities  
Zero-rate VAT  Exports  
 International transportation by aircraft or ship  
 Sales of goods or services to government agencies or state enterprises under foreign 
aid programmes  
 Sales of goods or services to the UN or its specialized agencies, and embassies and 
consulates general  
 Sales of goods or services between bonded warehouses or between enterprises located 
in a duty -free zone or between bonded warehouses and enterprises located in a duty -
free zone  
Source:  PWC (2019), Thai Tax 2019/20 Booklet . Viewed at:  
https://www.pwc.com/th/en/tax/assets/2019/thai -tax2019 -20-booklet -en-1.pdf.  
3.99.   A specific business tax (SBT) was introduced as an alternative to VAT, reflecting difficulties in 
determining the valu e added of certain services activities. The SBT is collected on gross revenue at 
fixed rates:  
• 3% on commercial banking, financial and credit foncier business (the rate was lowered to 
0.01% for certain items of banking income);  
• 2.5% on life insurance;  
• 2.5%  on pawnshop brokerage;  
• 3% on the sale of immovable property, real estate;  
• 0.1% on the sale of securities on the stock exchange (currently exempt from SBT); and  
• 3% on business with regular transactions similar to commercial banking.  
3.100.   An additional 10% of th e SBT rate is levied as a municipality tax. The sale of agricultural 
futures contracts on the Agricultural Futures Exchange of Thailand, and the sale of derivatives on 
the Thailand Futures Exchange, are exempt from the SBT.  
3.101.   The new Excise Act B.E.  2560 (20 17) entered into force on 16 September 2017. It merged 
all relevant provisions from seven pieces of law , i.e. the Excise Tax Act B.E. 2527 (1984), the Excise 
Tariff Act B.E. 2527 (1984), the Liquor Act B.E. 2493 (1950), the Tobacco Act B.E. 2509 (1966), th e 
Playing Cards Act B.E. 2486 (1943), the Allocation of Excise Tax Act B.E. 2527 (1984), and the 
Allocation of Liquor Tax Act B.E. 2527 (1984).  
3.102.   Excise duties are levied on a number of products and services  (Table 3.16). It is calculated 
based on ad valorem  rates, plus specific rates where applicable. Excise duties are levied at the same 
rates on domestically produced/supplied goods or services and imported ones. The valuation basis 
for both domestically produced goods and imports is the suggested retail pri ce, excluding VAT, and 
for services, the revenue of service facility. Exports are exempt from excise tax under Ar ticle 103 of 
the Excise Act B.E.  2560 (2017) .  
Table 3.16 Excise tax  
Goods/services  Ad 
valorem  
rate (%)  Specific rate  
Oil and petroleum products  50 THB 20 per litre or kg  
Beverages  30 THB 20 per litre, THB 100 per litre  
Electronic appliances  30 n.a. 
Batteries  30 n.a. 
Glasses and glassware  30 n.a. 
Automobiles  40, 80  n.a. 
Motorcycles  30 n.a. 
Boats  30, 50  n.a. 
Perfumery and cosmetics  20 n.a. 
Carpets and other floor -covering textiles  30 n.a. 
Marble and granite products  30 n.a. 
Ozone -depleting substances  30 n.a. 
Liquor  30 THB 3,000 per litre, THB 1,000 per litre  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Goods/services  Ad 
valorem  
rate (%)  Specific rate  
Tobacco  90 THB 5 per piece or gram  
Playing cards  60 THB 500 per 100 cards  
Other products, excluding the above as prescribed by 
Royal Decree  50 THB 1,000 per unit  
Entertainment or recreation business  30 THB 3,000 per m2 
Gambling business  30 n.a. 
Environmental impact business, such as golf courses, and 
others as prescribed by Ministerial Regulation  50, 30  n.a. 
Business under permission or concession of the State, 
such as telecommunications, and others as prescribed by 
Ministerial Regulation  30 n.a. 
Other services excluding the above services, as prescribed 
by Royal Decree  30 n.a. 
n.a. Not applicable.  
Source:  Excise Act B.E.  2560 (2017) . 
3.103.   In addition, an interior tax is also levied by the Excise Department, at a rate of 10% of the 
excise tax payable. According to the Excise Act, this is to support local governments.  
3.104.   According to the World Bank Doing Business report, in 2020, Thailand stand s 68th out of 
190 economies (62nd in 2015)55 on the ease of paying taxes, above the regional average for East  Asia 
and Pacific. On average, firms make 21 tax payments a year (22 in 2015), spend 229 hours a year 
filing tax returns (264 hours in 2015), and t heir total tax contribution amounts to 29.5% of their 
profit (26.9% in 2015).  
3.105.   The Government has released a range of measures in response to the COVID -19 pandemic . 
These include reductions in withholding tax, higher tax deductions for SMEs, and faster VAT  refunds 
for exporters, among others, for a few months or a couple of years.56  
3.3.1.2   Tax and non -tax incentives  
3.3.1.2.1   Overview  
3.106.   Thailand maintains a myriad of investment incentives, such as tax and duty deductions and 
exemptions, grants, permits for various activities, guarantees , and protection measures, among 
others  (Table 3.17). Incentives are mainly regulated under the Investment Promotion Act, 1977 
(which was most recently amended in 2017), and the Competitive Enhancement Act, 2017. 
Obtaining incentives under both Acts simultaneously is not possible. Most incentives are approved 
and granted by the Office of the Board of Investment (BOI), a government agency under the Office 
of the Prime Minister. The authorities stated that the incentives are provided to domestic and foreign 
investors under the same conditions. The incentive system is complex, and there seems to be a lack 
of analysis on impact and effectiveness. The authorities stated that external experts evaluate the 
effectiveness of Thailand's investmen t promotion policy once every two years. According to the 
authorities, the most recent report found that the investment promotion policy contributed  positively 
to the economy: in 2015 and 2016, the incentive schemes boosted real GDP growth by 3.31%, 
privat e consumption by 1.59%, private investment by 6.03%, exports by 4.29%, and employment 
by 0.46% on average.  
  
 
55 WTO document WT/TPR/S/326/Rev.1, 10 February 2016; and World Bank, Doing Business 2020 – 
Economy Profile Thailand . Viewed at: 
https://www.doingbusiness.org/content/dam/doingBusiness/country/t/thailand/THA.pdf .  
56 KPMG, Thailand: Tax developments in response to COVID -19. Viewed at: 
https://home.kpmg/xx/en/home/insights/2020/04/thailand -tax-developments -in-response -to-covid-19.html .  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Table 3.17 Incentives  
Tax incentives  Non-tax incentives  
Exemptions from, or reductions of, import duties on 
machinery  Permit for foreign nationals to enter the country, for 
the purpose of studying investment opportunities  
A reduction of import duties on raw or essential 
materials imported for manufacturing for domestic 
sale Permit to bring into  the country skilled workers and 
experts to work in investment -promotion activities  
Exemption of import duties on materials imported for 
R&D purposes  Permit to own land  
Exemption from corporate income tax on the net 
profit and dividends derived from the promoted 
activity  Permit to take out or remit money abroad in foreign 
currency  
A 50% reduction of the corporate income tax  Guarantees against nationalization, competition from 
new state enterprises, price controls, and tax -
exempt imports by government  agencies or state 
enterprises  
Double deductions from the costs of transportation, 
electricity, and water supply  Protection measures, including the imposition of a 
surcharge on imports, import bans on competing 
products and the authority of the Chairman of the 
BOI to order any action or tax relief measures for the 
benefit of promoted projects  
Additional 25% deduction of the cost of installation 
or construction of facilities   
Exemption of import duty on raw or essential 
materials imported for us e in production for export   
Source  BOI, A Guide to the Board of Investment 2019 . Viewed at:  https://www.boi.go.th/upload 
/content/BOI -A%20Guide_EN.pdf ; and PWC (2019), Thai Tax 2019/20  Booklet . Viewed  at: 
https://www.pwc.com/th/en/tax/assets/2019/thai -tax2019 -20-booklet -en-1.pdf. 
3.107.   During the review period, Thailand made two notifications pursuant to Article XVI:1 of the 
GATT 1994 and Article 25 of the WTO Agreement on Subsidies and Countervailing Measures. Both 
notifications covered some  of the BOI investment promotion incentives, and other incentive schemes 
such as those under the I -EA-T, and at the sectoral level (Secti on 3.3.1.2.4).57  
3.108.   In 2015, the BOI revised the investment promotion policies and criteria to bring them  in line 
with Thailand's National Economic and Social Development Plan, and the Seven -Year Investment 
Promotion Strategy (2015 -21). Since 1 January 2015, the BOI has shifted from a zone -based 
investment scheme, to an activity - and merit -based scheme (see b elow) . Once approved, tax 
concessions are available to all investment projects, by foreign or local investors.  
3.109.   Criteria for the BOI to approve applications include:  
• the value added of the project must not be less than 20% of revenues (for projects in 
agriculture, agricultural products, electronic products and parts, and coil centres58, the 
value added must be at least 10% of revenue);  
• activities must use advanced technology;  
• adequate and efficient guidelines and measures to protect the environment and to reduce 
environmental impacts must be included;  
• the minimum capital requirement of each project must be THB 1 million (excluding the 
cost of land and working capital); and  
• for newly established projects, the debt -to-equity ratio must not exceed 3:1. Expansi on 
projects are considered on a case -by-case basis.59 
 
57 WTO documents G/SCM/N/315/TH A, 19 January 2018; and G/SCM/N/3 43/THA, 4 July 2019.  
58 A coil centre is the precision processing of steel sheets and coils used in electronics, electrical 
appliances, and automotive industries.  
59 BOI, A Guide to the Board of Investment 2019 . Viewed at: 
https://www.boi.go.th/upload/content/BOI -A%20Guide_EN.pdf . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.110.   As notified to the WTO , the authorities recognize that there is no specific budget earmarked 
for investment promotion incentives . Information on the subsidy per unit , statistics on tax 
exemption s and re duction s, and information on revenue forgone,  are not available.   
3.111.   Based on online statistics from the BOI, in 2019, of the 1,500 projects approved by the BOI, 
more than one third were in the services and public utilities sectors (36.0%), followed by metal 
products, machinery and transport equipment (17.1%), electronics and the electronics industry 
(17.0%), and agriculture and agricultural products (13.8%).60 In 201 9, 38.2%  (35.4% in 2014) of 
BOI-approved projects were 100% foreign -owned investments , and 20.3% (22.4% in 2014) were 
joint ventures.  
3.3.1.2.2   Activity - and merit -based incentives  
3.112.   The BOI groups incentives into a general list of activities eligible for investment promotion, 
and additional or "merit -based " incentives.  
3.113.   The general list of  activities for investment promotion contains various groups of activities:  
• knowledge -based activities (A1);  
• infrastructure activities (A2);  
• high-technology activities (A3);  
• activities with lower technology but that add value to domestic resources and stre ngthen 
the supply chain (A4)61; 
• activities supporting industry that does not use high technology, but is important to the 
value chain (B1, B2)62; 
• activities supporting the development of targeted technology; and  
• technology and innovation development.  
3.114.   These activities are granted the following incentives: tax concessions such as 
exemption/reduction of CIT, exemption of import duties on machinery, exemption of import duties 
on raw and essential materials used for exports, and special deducti on of certain expenditures.  
3.115.   The BOI grants additional incentives based on the value of a project (i.e. merit -based 
incentives):  
• merit for competitiveness enhancements : additional CIT exemption of up to three years; 
and additional investment cap of up to 3 00% of the permitted expenses;  
• merit for decentralization: additional CIT exemption of up to three years; some activities 
receive a 50% reduction in CIT for five years; double deduction for transportation, 
electricity, and water costs for ten years; and de duction of 25% from the net costs of the 
project's infrastructure installation or construction; and  
• merit for industrial area development: additional CIT exemption of up to one year.  
  
 
60 BOI, Approval of investment promotion by sector, January – December 2019 . Viewed at: 
https://ipstat.boi.go.th/pub rpt/index.php .  
61 The authorities stated that one example of A4 activities is the manufacturing of products from 
agriculture outputs , or agriculture waste (except for those with uncomplicated production processes, e.g. 
drying and dehydration) . 
62 Examples of B1 activities are crop drying and silo facilities, and an example of a B2 activity is a coil 
centre.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.3.1.2.3   Other incentives offered by the BOI: SEZs and others  
3.116.   Apart from the main scheme mentioned above, the BOI also offers other incentives, 
particularly to promote investment in SEZs, but also to:  improve production efficiency; promote 
industrial development in border provinces in Southern Thailand; promote the grassroots econo my; 
and promote investment in the rail system and related industries.63 
3.3.1.2.3.1   Measures to promote investment in SEZs  
3.117.   SEZs are border areas, located inside or outside of industrial estates, aiming at creating 
economic connectivity with neighbouring countries. Tha iland introduced its SEZ development policy 
in 2015.64 Currently, SEZs are located in certain sub -districts in the ten provinces of Tak, Mukdahan, 
Sa Kaew, Trat, Songklah, Chlang, Nongkai, Nakhon Panom, Kanjanaburi, and Narathiwas.  The 
authorities stated t hat free zones (FZs) are operated under the Customs Act, while incentives 
granted to SEZs are under the Investment Promotion Act. Incentives for FZs  are import dut y 
exemption on raw materials and machinery , and those for  SEZs are CIT exemption, import dut y 
exemption on raw materials and machinery, and non -tax incentives . 
3.118.   Tax incentives for investment in the SEZs may be granted both under the Revenue Code, 
and by the BOI. In accordance with the Revenue Code, the CIT rate is reduced by 10% for ten years 
for corporate entities with a place of business in an SEZ. Incentives allocated by the BOI are available 
for eligible targeted activities, and for eligible general activities (Table 3.18).65  
Table 3.18 Incentives granted to SEZs  
Incentives for activities on the BOI general list  Incentives for targeted activities  
3-year additional exemption of CIT, not exceeding 8 years in total  Exemption of CIT up to 8 years  
Projects with activities in groups A1 or A2, which are already granted 
an 8-year CIT exemption, receive an additional 50% CIT reduction for 
5 years  Additional 50% CIT reduction for 
5 years  
10-year double deductions from the costs of transportation, 
electricity and water supply  
 
25% deduction of the cost of installation or construction of facilities 
(apart from normal depreciation deduction)  
 
Exemption of import duties on machinery  
 
Exemption of import duties on raw materials used in production for 
export  
 
Permission to own land and permission to bring in foreign experts to 
work  Same incentives  
Source:  BOI, Investment Promotion Policy for Investment in SEZ . Viewed at:  
https://www.boi.go.th/un/SEZ_policy . 
3.119.   The Policy Committee of Special Economic Zones, under the Office of National Economic and 
Social Development Council , stipulates targeted industries for each Zone, i.e. each Zone has different 
targeted activities depending on local potential, limitations, and needs. The 13 targeted industries 
are: agriculture and fisheries, and related industries; ceramics; textile, garment, and leather 
industries; furniture manufacturing; gems and jewellery; medical equipment manufacturing; 
automotive, machinery, and parts ; electrical appliances and electronics; plastic production; medicine 
production; logistics; industrial estates/zones; and tourism -related industries.  
3.120.   In addition, there is a list of expanded industries in SEZs: manufacture of animal feed 
products and ani mal food ingredients; manufacture of construction materials and prestressed 
concrete for public utilities; manufacture of body -care products, such as soap, shampoo, toothpaste 
 
63 BOI, A Guide to the Board of Investment 2019 . Viewed at: 
https://www.boi.go.th/upload/content/BOI -A%20Guide_EN.pdf . 
64 ASEAN Briefing, Thailand's Special Economic Zones – Opportunities for Investment . Viewed at:  
https://www.aseanbriefing.com/news/thailands -special -economic -zones -opportunities -investment/ .  
65 PWC, Thai Tax 2019/20 Booklet . Viewed at: https://www.pwc.com/th/en/tax/assets/2019/thai -
tax2019 -20-booklet -en-1.pdf. WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  and cosmetics; manufacture of plastic products for consumer goods, such as plast ic packages; 
manufacture of goods from paper pulp or paper, such as cardboard boxes; and factory development 
for industrial plant and warehouses.  
3.121.   Companies in SEZs may be wholly foreign -owned, without the requirement to secure a 
foreign business licen ce.66 The authorities indicated that, during 2015 -19, the BOI approved 
70 investment projects in SEZs, mainly in the agri -business (28.6%), plastics (24.3%), apparel and 
clothing (17.1%), and power generation sectors (7.1%). Total investment value reached 
THB 12.3 billion.  
3.122.   Businesses located within SEZs also benefit from good infrastructure, low -interest loans, and 
access to one -stop services for investment and immigration.67 The authorities stated that there are 
no export performance requirements for enterprises to be located in these SEZs, nor any nationality 
requirements for employees. Goods produced in SEZs can be sold in the country with no import 
duties.  
3.3.1.2.3.2   Other incentives offered by the BOI  
3.123.   To obtain various tax incentives to  improve production efficiency, applicants must submit 
their investment plans: for machinery change or upgrade to save energy, the introduction of 
alternative energy, or the reduction of the environmental impact; for machinery repl acement or 
upgrade; for research and development or engineering designs; or to upgrade agri -industry to meet 
international standards.  
3.124.   The BOI also provides incentives to:  
• promote investment in the southern border provinces, and to boost "model cities "68;  
• promote investment and potential entrepreneurs at the community level, with a view to 
supporting community enterprises of agriculture and processed agriculture, light industry, 
and community -based tourism; and  
• stimulate investment in the manufacture of tr ains, parts, or rail system equipment in 
conformity with the Government's future plan on the rail mass transit system.  
3.3.1.2.4   Other incentives  
3.125.   In addition, incentives may be granted to businesses located in the Eastern Economic 
Corridor (EEC), the International B usiness Centres, as well as the I-EA-T and the Customs free zones  
(Section 3.2.4) ; incentives are also offered at the sectoral level, and to SMEs. They may be approved 
and granted by the BOI, the Revenue Department, the Department of Fisheries, the Bank of  
Agriculture and Agricultural Cooperatives (BAAC ), the SME Development Bank, the Committee on 
Energy Policy Administration, and the Department of Alternative Energy Development and Efficiency, 
among others . 
Eastern Economic Corridor (EEC)  
3.126.   On 15 May 2018, t he Eastern Economic Corridor Act (2018) (EEC Act) entered into force. It 
aims to promote new technology and innovation in targeted industries located in the special 
economic promotion zones in the three eastern provinces of Rayong, Chonburi, and Chachoengs ao. 
The authorities noted that tax incentives  under the EEC Act have not yet been announced.  
Nevertheless, non -tax incentives have been prescribed, aiming at removing procedural obstacles 
and facilitating business activities in the EEC, such as customs pro cedures for e -commerce, and 
 
66 ASEAN Briefing, Thailand's Special Economic Zones – Opportunities for Investment . Viewed at:  
https://www.aseanbriefing.com/news/thailands -special -economic -zones -opportunities -investment/ .  
67 ASEAN Briefing, Thailand's Special Economic Zones – Opportunities for Investme nt.  
68 Currently Thailand has four "model cities": Nong Chik district in the Pattani province, Betong district 
in the Yala province, Su -ngai Kolok district in the Narathiwat province, and the recently added Chana district in 
the Songkhla province.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  relaxing foreign ownership restrictions for aircraft, major aircraft components, and repair station 
businesses.  
3.127.   Under the Investment Promotion Act, the BOI stipulated criteria and incentive packages for 
promoted activities loca ted in the EEC. Additional i ncentive  package s, in the form of CIT exemption 
or reductions, are granted to  companies investing in:  
• human resource development programmes, by creating a collaboration with an academic 
or research institution, or centre of excellence; and  
• the eastern airport city (EEC -A), the eastern economic corridor of innovation (EECi), the 
digital park Thailand (EECd), the Thammasat  Integrated Medical Innovation Centre 
(Pattaya) (EECmd), or in the industrial estate and promoted industria l zones.  
3.128.   To attract high -skilled workers from abroad, individuals with special knowledge or abilities 
who work or operate a business in certain zones within the EEC may benefit from personal income 
tax (PIT) reductions. Qualified expatriates and Thai emplo yees are granted a flat rate of 17% PIT on 
their income derived from working for companies carrying on target activities within the EEC.  
3.129.   In January 2020, the BOI extended and revised incentives for investment in the EEC: 
incentives are extended to investme nts outside industrial estates or promoted industrial zones, and 
the list of target activities was expanded.69 Several infrastructure projects were launched  with a view  
to enhanc ing the connectivity between the EEC and the rest of the world. The y include four public 
private partnership ( PPP) flagship projects aiming to  deliver a high -speed rail line ; the upgrade of 
an international airport ; and the expansion of two deep-water seaports.  
International Business Centre (IBC)  
3.130.   On 10 October 2018, the Revenue Dep artment announced a new tax incentive scheme to 
promote Thailand as an IBC. This replaced the existing regional operating headquarters (ROH) and 
international headquarters (IHQ) regimes, and amended the international trade centre regime. 
According to the a uthorities, these steps were in response to the OECD's action plan to combat 
harmful tax practices. Existing ROHs and IHQs can apply to convert to an IBC.  
3.131.   In December 2018, the BOI issued its announcement  Sor. 6/2561 on the Promotion of 
International Busi ness Centres (IBC).70 Accordingly, t o establish and operate as an IBC, a company 
must:  
• have business plans in providing services for associated enterprises as follows:  
i. general business management, business planning, and business cooperation;  
ii. procurement o f raw materials and parts;  
iii. research and development of products;  
iv. technical support;  
v. marketing and sales promotion;  
vi. human resources management and training;  
vii. financial advisory services;  
viii. economic and investment analysis and research;  
ix. credit management and control;  
x. financial management services of the treasury centre;  
xi. international trade business; and  
xii. other supporting services stipulated by the Announcement of the Revenue 
Department.  
• have paid -up capital on the last day of each accounting peri od of at least THB 10 million;  
 
69 BOI, Investment Promotion Measure s in the EEC . Viewed at: https://www.boi.go.th/un/Policy_EEC .  
70 BOI, Announcement of the Board of Investment No. Sor. 6/2561 Promotion of International Business 
Centers . Viewed at https://www.boi.go.th/upload/content/S6_2561_EN_5c496fa941e85.pdf . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  • employ at least ten full -time knowledgeable and skilled personnel, or at least five if the 
IBC acts only as a treasury centre; and  
• if operating international trade business, at least one scope of business in ix above must 
be involved.  
3.132.   The company is not eligible for import duty exemption on raw or essential materials used in 
the production for export; and is not eligible for additional merit -based incentives.  
3.133.   An IBC obtains income from: the provision of management, technical , support, or treasury 
management services to its associated enterprises; and royalties from associated enterprises arising 
from R&D activities carried out by the IBC or other entities hired by the IBC. This income may benefit 
from the following incentives  for 15 accounting periods:  reduced CIT rate on qualifying income; 
exemption from tax on dividends; exemption from withholding tax on dividends or interest; 
exemption from specific business tax; and a lower personal income tax for full -time expatriate 
employees.  
SMEs  
3.134.   Support continues to be provided to SMEs, particularly through low -interest loans provided 
by the SME Development Bank. In 2018, SME bank loans were granted to different types of 
enterprises: 78.0% to the service sector; 10.8% to the industrial  sector; 7.3% to the commercial 
sector; 2.0% to the real estate and construction sector; and 1.7% to the agricultural sector.71 The 
Bank's minimum interest rates range from 3.875% (minimum hire -purchase rate) to 8.300% 
(minimum retail rate).72 
3.135.   The BOI also supports the development of SMEs in the form of tax and non -tax incentives. 
In December 2017, the BOI expanded its incentives for SMEs by, inter alia : enlarging the coverage 
of business activities from 40 to over 100; and increasing the ceiling of CIT exemption from 100% 
to 200% (i.e. the amount of tax exemption on capital investment was doubled) t o enhance SMEs' 
competitiveness.73 The authorities stated that these incentives were terminated on 
31 December  2019.  
3.136.   The Government is planning to launch a new support package for SMEs, which is to integrate 
incentives provided by the BOI, and soft loans provided by various banks.74 Also, the BOI has been 
working with other public agencies and private -sector representatives to prepare incentive packages 
to promote investment by SMEs. The new package aims to improve support to the agricultural, 
tourism, and services sectors.75  
Some incen tives at the sectoral level  
3.137.   In accordance with Thailand's notifications to the WTO under Article XVI:1 of the GATT 1994 
and Article 25 of the WTO Agreement on Subsidies and Countervailing Measures, incentives are also 
given to a number of sectors, in vario us forms, by various agencies (Table 3.19).76 Some of these 
incentives have already expired.  
 
71 SME Development Bank, Annual Report 2018 . Viewed at: 
https://www.smebank.co.th/en/about/annual -report . 
72 SME Development Bank, Loan Interest Rates and Discounts . Viewed at: 
https://www.smebank.co.th/en/interest -rates/loan -interest -rates-and-discounts .  
73 Cision PR Newswire, Thailand Board of Investment Offers More Attractive Incentives for SMEs and 
Identifies List of Targeted Industries in EECi and EECd. Viewed at:  https://www.prnewswire.com/news -
releases/thailand -board -of-investment -offers -more-attractive -incentives -for-smes-and-identifies -list-of-
targeted -indust ries-in-eeci-and-eecd-300574885.html . 
74 SME Magazine  (15 January 2020),  Thailand Plans New Support for SMEs . Viewed at: 
https://smemagazine.asia/thailand -plans -new-support -for-smes/.  
75 Cision PR Newswire, Thailand BOI Approves Revised Incentives to Promote Investment in the EEC 
Area. Viewed at: https://www.prnewswire.com/news -releases/thailand -boi-approves -revised -incentives -to-
promote -investment -in-the-eec-area-300977404.html . 
76 WTO documents G/SCM/N/315/TH A, 19 January 2018; and G/SCM/N/3 43/THA, 4 July 2019.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Table 3.19 Notified subsidies at sectoral levels  
Title  Duration  Objective  Form  Responsible 
authority  
Improving farming 
construction for recovering 
shrimp production  April 2016 –
September 
2019 Resolve decreasing shrimp 
production due to EMS 
shrimp disease  Soft loan  Department of 
Fisheries (DOF), 
Bank of Agriculture 
and Agricultural 
Cooperatives 
(BAAC)  
Soft loan programme for 
fishermen and fishing 
operations  September 
2015-
December 
2016 Help fishermen affected by 
the Government combating 
illegal, unreported and 
unregulated (IUU) fishing  Soft loans  DOF 
Fishing vessel -buying 
programme  April–May 
2016 Help fishermen affected by 
the Government combating 
IUU fishing  Grants  DOF 
Encouraging the 
transformation of plastic 
waste into fuel oil  August 
2015–August 
2018 Decrease dependency on oil 
imports, solve the problem of 
waste disposal  Financial 
support  Committee on 
Energy Policy 
Administration 
(CEPA)  
Energy Efficiency Revolving 
Fund (EERF)  FY 2016  Promote energy efficiency  Loan Department of 
Alternative Energy 
Development and 
Efficiency (DEDE)  
Low-interest loan/Energy 
Service Company  (ESCO) 
revolving fund  FY 2015  Fund projects with global 
potential, promote the use of 
ESCO  Loan DEDE  
Compensation programme 
for fishing -vessel owners  March –Sept 
2019 Compensate fishing -vessel 
owners affected by the 
Government's fishing vessel 
removal measure  Grants  DOF 
Livelihood improvement and 
resilience -building 
programme for artisanal 
fisheries communities  April–Sept 
2019 Increase artisanal fishers' 
income and improve their 
livelihoods  Grants  DOF 
- Capacity -building on 
marine shrimp production 
and marketing for domestic 
shrimp consumption  2019-21 Support small -scale marine 
shrimp farmers  Grants and soft 
loans DOF, BAAC  
- Microorganism production 
centres for groups of marine 
shrimp farmers  March –Sept 
2018 Establish microorganism 
centres to provide 
microorganisms for shrimp 
farmers  Grants  DOF 
Investment promotion in 
solar hot water for service, 
industry and residence  2008-15 Encouraging the use of solar 
hot water  Energy 
Conservation 
Promotion Fund 
(ENCON Fund)  DEDE  
Investment promotion in 
solar greenhouse dryers in 
agricultural products  From 2011  Promote renewable energy  ENCON Fund  DEDE  
Financial subsidy to change 
industrial boilers from steam 
burners to biomass fuel 
burners  Feb 2016 -
July 2017  Promote the use of biomass 
fuel instead of fuel oil  ENCON Fund  DEDE  
Compressed bio -methane 
gas (CBG) promotion in 
biogas plants  Oct 2016 -
June 2017  Promote CBG to replace LPG 
and NGV  ENCON Fund  DEDE  
Source:  WTO documents G/SCM/N/315/THA, 19 January 2018; and G/SCM/N/343/THA, 4 July 2019.  
Thailand -Plus 
3.138.   In September 2019, Thailand introduced "Thailand Plus ", a stimulus package aimed at 
attracting foreign businesses to relocate and to expedite large -scale investment, and at 
strengthening workforce development.77 The new measures include an enhanced incenti ve package 
for projects worth at least THB 1 billion of investment, additional incentives for companies engaged 
 
77 BOI, Press Release No.  148/2562 (O.88), 20 September 2019 , BOI approves Thailand Plus incentives 
to expedite investment relocation. New packa ge also encourages workforce development and STEM education . 
Viewed at: https://www.boi.go.th/upload/content/No.148_2562EN.pdf . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  in human resource development, and revised incentives to encourage corporations to set up science, 
technology, engineering, and mathematics (STE M) education or vocational training institutions.  
3.3.2   Standards and other technical requirements  
3.139.   Standards and other technical requirements are regulated under the National 
Standardization Act B.E. 2551 (2008), and the Industrial Products Standards Act B.E. 25 11 (1968) 
and its amendment (No. 8 ) B.E. 2562 (2019) . Amendments made by the Industrial Products 
Standards Act (No. 8) B.E. 2562 (2019)  include:  
• mandatory standards are enforced by a ministerial regulation, not by a royal decree;  
• penalties for manufacture rs and importers of products under mandatory standards without 
permission from the competent authority were changed, from imprisonment of not more 
than two years, or a fine of not more than THB 1 million, or both, to imprisonment of not 
more than two years , or a fine of not more than THB 2 million, or both; and  
• penalties for sellers of products under mandatory standards without standards mark were 
changed, from imprisonment of not more than 1 month, or a fine from THB 5,000 to 
THB 50,000, or both, to impris onment of not more than 6 months, or a fine not exceeding 
THB 500,000, or both.78 
3.140.   Since the previous Review, there have been no major changes to the institutional framework 
for standards and conformity assessment. The Thai Industrial Standards Institute (T ISI), under the 
Ministry of Industry , was established in 1969  under the Industrial Product Standards Act B .E. 2511 
(1968) . It is responsible for developing national standards  (both voluntary and compulsory) , product 
certification  and registration, and part icipating in the standardization activities both at regional and 
international levels . In addition to the TISI, other bodies responsible for different aspects of technical 
regulations and standards are:  
• the National Bureau of Agricultural Commodity and Foo d Standards (ACFS) , under the 
Ministry of Agriculture and Cooperatives , responsible for  enforcing standards along the 
food supply chain; accrediting certification and inspection bodies of agricultural 
commodities and foods; international cooperation; and f ood standards control79; 
• the MoC, responsible for policy and legislation on metrology ; 
• the National Institute of Metrology (Thailand) , under  the Ministry of Science and 
Technology , responsible for the implementation  of metrology ; and  
• the Office of the National Standardization Council (NSC)  and its network agencies, 
including  the Department of Medical Service, the Department of Science Service, and the 
ACFS, all responsible for accreditation of organizations for conformity assessment.  
3.141.   During the review period, TISI's Strategic Plan (2015 -19) set the target of developing needs -
based standards in line with international principles; overseeing products and conformit y assessment 
procedures for wide recognition; and promoting and developing Thai standardization. The procedure 
for developing standards and technical regulations remains unchanged. TISI works with other 
government agencies and private -sector organizations to develop standards. Its work programme, 
containing, inter alia , the standards it is currently preparing and those that it adopted in the 
preceding period, is published at least once every six months.80 According to the TISI annual report, 
standards devel opment is in accordance with government policy, the Ministry of Industry's strategy, 
Thailand's 20 -year national strategy, and international guidelines.81 
3.142.   For each standard in preparation, a  technical committee, made up of the responsible national 
standard s body and other interested parties, develops a draft standard . The draft standard  is then 
 
78 TISI, Annual Report 2018 . 
79 ACFS. Viewed at: http://www.acfs.go.th . 
80 TISI, List of  draft Thai Industrial Standards (TIS).  Viewed at : https://www.tisi.go.th/list -tisi. 
81 TISI, Annual Report 2018 .  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  circulated for comment , with final approval by  the Industrial Products Standards Council. Thailand 
also notifies the draft standard to the WTO Committee  on Technical  Barriers to Trade for comments.  
Voluntary standards may be made compulsory by reference to technical regulations.  
3.143.   By the end of 2019, TISI had established 3,481 Thai industrial standards, of which  
1,303  adopted international standards ( International Organ ization for Standardization 
(ISO)/International Electrotechnical Commission  (IEC)). Since 2015, TISI has established 743 new 
standards, of which 711 were not compulsory and 32 were compulsory. Another 4 were withdrawn 
during this period.  
3.144.   The main categori es of products that are subject to compulsory standards are as follows: 
civil and construction materials; consumer products; electrical/electronic engineering; fluid 
engineering; food; heat transfer engineering; medical, science; paints, colour s, and varni shes; 
mechanical engineering and vehicles; and chemicals. Products subject to compulsory standards must 
comply with the standard and show the mandatory certification mark. Their producers and importers 
must obtain a licence from TISI before production or importation. On 19 February 2018, an e -licence 
system was l aunched. Applications, together with relevant documents including the assessment 
report of quality controls, and the report of product testing, are submitted electronically. After 
evaluating the quality control system and the result of product testing, TIS I issues an e -licence 
within 15 working days.  
3.145.   Thailand's accreditation framework is operated under the Standardization Act B.E. 2551 
(2008), and includes:  
• the NSC and TISI, both of which provide accreditation to certification bodies, inspection 
bodies, a nd testing and calibration laboratories;  
• the ACFS, in charge of providing accreditation in the areas of agricultural commodities and 
foods ; 
• the Department of Science Service, in charge of providing accreditation in the areas of 
testing laboratories, profi ciency -testing providers, and reference material producers; and  
• the Department of Medical Science, in charge of providing accreditation in the areas of 
testing and medical testing laboratories, reference material producers, and national good 
laboratory pra ctice (GLP) compliance monitoring authorities.82 
3.146.   The authorities stated that, as at March 2020, there were 1,542  TISI-accredited testing 
laboratories, 987  calibration laboratories, 98 accredited inspection bodies, and 135 accredited 
certification bodies au thorized to issue certificates in line with international and national standards, 
such as the ISO 5001, ISO 9001, and ISO 17065. There were 9 companies with ISO  9001 
certification, and 7 with ISO  14001 certification, and 12  were certified to other standard s.  
3.147.   TISI is the designated foreign inspection body of the standard institutes of several countries 
with which Thailand has standards -related agreements, such as Germany (VDE for electrical 
appliances), Sri Lanka, the Philippines, and South Africa (for a su rveillance scheme).83 During the 
review period, Thailand signed two MRAs: the ASEAN BE MRA for the Bio -equivalence Study Report 
of Generic Medicinal Products in 2017; and the ASEAN Sectoral MRA for Inspection and Certification 
Systems on Food Hygiene for P repared Foodstuff Products in 2018.84  
3.148.   Also, in June 2017, Thailand signed the Pacific Accreditation Cooperation (PAC) Multilateral 
Recognition Arrangement and, in April 2018, the International Accreditation Forum (IAF) Multilateral 
 
82 TISI, Agency -in-Charge for Standardization.  Viewed at : 
https://www.tisi. go.th/data/accreditation/NSC_11_en.pdf . 
83 TISI. View ed at: https://www.tisi.go.th/tisiinbrief .  
84 Before the review period, Thailand signed some MRAs within the APEC: the APEC M RA on Conformity 
Assessment of Electrical and Electronic Equipment (APEC Electrical MRA - Part I); the APEC MRA on Conformity 
Assessment of Foods and Food products (APEC Food MRA); the APEC MRA on Conformity Assessment of 
Telecommunications Equipment (APEC Tel MRA);  and the APEC Arra ngement for the Exchange of Information 
on Toy Safety . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Recognition Arrangement , both related to energy management systems.85 Thailand is a member of 
the ISO, t he IEC, and the International Telecommunications Union  (ITU) . In the areas of 
accreditation, TISI also participates in the activities of the IAF, and the International Laborat ory 
Accreditation Cooperation (ILAC).  It is active in regional standards organizations , such as the Pacific 
Area Standards Congress, and the ASEAN Consultative Committee for Standards and Quality .86 
3.149.   At the WTO, TISI is the enquiry point for technical regul ations relating to industrial products, 
and the ACFS is the enquiry point for those relating to food and agricultural products.87 Thailand 
accepted the Code of Good Practice for the Preparation, Adoption and Application of Standards in 
Annex 3 of the TBT Agreement.   
3.150.   From 1 January 2015 to 27 July 2020, Thailand made 234 notifications to the WTO 
Committee on Technical Barriers to Trade, including 135 regular notifications, 7 corrigenda, 
71 addenda, and 21 revisions.88 The majority of the notifications w ere made under Article 2.9 of the 
TBT Agreement, mainly notified by TISI, with a comment period of 60 days.  Notifications related to 
agricultural and food products were made by the ACFS. Most of notifications w ere for human health 
and safety , some for cons umer protection through labelling, protecting the environment, or reducing 
trade barriers and facilitating trade.  
3.151.   At the WTO TBT Committee, specific trade concerns (STCs) were raised against Thailand a 
few times during the review period on:  
• new certifica tion requirements on the importation of spirits;  
• rules, procedures and conditions for labels of alcoholic beverages; and  
• controls regarding the market promotion of food for infants and young children, and other 
related products.89 
3.3.3   Sanitary and phytosanitary requirements  
3.152.   Since the previous Review, there have been no major changes to Thailand's sanitary and 
phytosanitary regime. Relevant legislation includes90:  
• Food Act B.E. 2522 (1979), which stipulates different requirements for registration an d 
labelling, and requirements for the safety and quality of some food products ; 
• Agricultural Standard Act (3rd edition) B.E. 2561 (2018), which assigns agencies to issue 
licences to manufacturers, exporters, or importers of agricultural products.  For those  
agricultural commodities subject to mandatory standards requirements, these 
requirements may be exempted, and these commodities may be imported if: in the case 
of emergencies where no international agreement exists; exporting countries demonstrate 
equival ent standards; and inspection and certification is conducted by exporting 
authorities. For those agricultural commodities subject to standards requirement, i.e. 
voluntary, they may be imported after being inspected and certified by conformity 
assessment se rvice providers approved by the ACFS;  
• Animal Epidemics Act B.E. 2558 (2015), on animal epidemic disease prevention and 
control for the import, export, and transit of animals and animal products;  
 
85 Thailand also signed the Asia Pacific Laboratory Accreditation Cooperation Multilateral Recognition 
Arrangement , the International Laboratory Accreditation Cooperation Multilateral Recognition Arrangement , 
and the Asia Pacific Legal Metrology Forum Memorandum of Understanding  (MOU).  
86 TISI. View ed at: https://www.t isi.go.th/tisiinbrief . 
87 WTO TBT Information Management System. View ed at:  
http://tbtims.wto.org/en/NationalEnquiryPoints/Search .  
88 WTO TBT Information Management System .  
89 WTO TBT Inf ormation Management System.  
90 Thailand National Trade Repository, Non-Tariff Measures.  Viewed at: 
http://www.thailandntr.com/en/goods/non -tariff-measures?page=1#tab3 -ntm. WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  • Animal Feed Quality Control Act B.E. 2558  (2015), on the  rules, procedures, and conditions 
for the import o r sale of animal feed, the requirements for licences for the import or sale 
of animal feed, the prohibition of the import or sale of contaminated or deteriorated animal 
feed, and registration for entrepreneurs ; 
• Plant Quarantine Act (No. 3) B.E. 2551 (2008) , on plant quarantine;  
• Plants Act (No. 3) B.E. 2550 (2007) , on qualifications for the licensee to collect, s ell, 
import, and export -controlled seed s, and on th e label attached to the container of 
controlled se eds;  
• Plant Quarantine Import Regulations Thailand , on the prevent ion of  the invasion of plant 
pests and diseases from outside the country ; and  
• Wildlife Preservation and Pr otection  Act, B.E. 2535 (1992) . 
3.153.   The institutional framework on SPS -related matters includes the following:  
• the ACFS, under the Ministry of Agriculture and Cooperatives, responsible for: setting 
standards for agricultural systems, commodity and food items, and accrediting certification 
bodies and inspection bodies of agricultural commodities and foods; food standard 
controls; and promoting compliance with standards on farms and in food establishments91; 
• the Department of Agriculture, under the Ministry of Agriculture and Cooperatives, 
responsible for plant health;  
• the Department of Livestock Development, and the Department of Fisheries, both under 
the Ministry of Agriculture and Cooperatives, deal with animal health and imports of some 
animal products; and  
• the Food and Drug Administration (FDA), under the Ministry of Public Health, responsible 
for food safety.  
3.154.   Thailand is a member of the World Organisation for Animal Health (OIE), and of the Codex 
Alimentarius on food safety , and is a contracting party to the International Plant Protection 
Convention (IPPC).  According to the authorities, Thailand generally follows standards set by the OIE, 
Codex Alimentarius , and the IPPC, where they exist. New SPS regulations are based on an analysis 
of the risks involved, and  draft regulations are subject to a public hearing and are notified to the 
WTO Members for comments before being approved by the responsible authority.  
3.155.   Thailand is an active participant in the WTO Committee on Sanitary and Phytosanitary 
Measures. During the review period, STCs were rais ed against SPS measures maintained by Thailand 
at the WTO SPS Committee. Thailand reported progress and cooperated with trading partners to 
resolve these STCs, which were raised by: 
• Chinese Taipei, on Thailand's import restriction on papaya seeds (Status: Resolved);  
• the United States, on Thailand's import fees related to the approval procedures for live 
animals and/or animal products.92 In response to the concern raised by the United States, 
Thailand explained how to calculate the rate of import fees and de monstrated that its 
calculation complies with Annex C(1)(f) of the SPS Agreement. Until  June 2020 , the 
United States had not raised this issue again in SPS meeting s;  
• Brazil and the European Union, on Thailand's approval procedures for imports of pork and 
other animal products.93 In response to the concern raised, Thailand updated that  it has 
 
91 Thailand Government, National Bureau of Agricultural Commodity and Food Standards (ACFS) . 
Viewed at: http://www.organic.moc.go.th/en/standard/acfs . 
92 WTO SPS Information Management System , STC Number 451 . Viewed at : http://spsims.wto.org . 
93 WTO SPS Information Management System . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  been working with trading partner s to expedite the process for allowing the importation of 
pork and other animal products according to the notified import procedure ; 
• Japan, regarding Thailand's import restrictions on fresh citrus fruits; and  
• the United States, on Thailand's draft list of hazardous substances regarding food 
containing pesticide residues.94 
3.156.   The ACFS is the SPS enquiry point and the notification authority at the WTO. From  
1 January  2015 to 27 July 2020 , Thailand submitted  148 SPS notifications, including 50 emergency 
notifications  with one  emergency addendum  and one emergency corrigendum,  as well as 54  regular 
notifications  with 37 regular addenda  and five regular corrigenda.95 Most notifications related to food 
safety , and some concerned a nimal and plant health. Emergency notifications referred to the revision 
of the import requirement on  food and animal products due to the outbreak of animal diseases such 
as African Swine Fever (ASF) and Highly Pathogenic Avian Influenza (HPAI).  
3.157.   All foods must meet , and are monitored for , specific hygiene, safety, labelling , marketing 
and advertisement requirements . Food products are classified into four groups according to the Food 
Act B.E. 2522 (1979), in descending order of risk, with different requirements for registration, 
labelling, and obligatory standards:  
• Group 1, for s pecifically controlled foods, mainly infant and child formula products, food 
for weight control, and food additives, require s product registration and must meet 
specifications set by the FDA as well as packaging and labelling requirements ; 
• Group 2, for prescrib ed foods, including coffee, honey, butter and fish sauce, must obtain 
a Food Serial Number and must abide by specific quality requirements as well as packaging 
and labelling requirements;  
• Group 3, for prescribed foods,  including bread, meat , chewing gum and candy, must abide 
by packaging and labelling requirements; and  
• Group 4, for any other general food not covered under Groups 1 to 3, product registration 
is not required, nor is the obtention of a Food Serial Number (the only exception in Group  4 
is foods derived from "Food ob tained through certain techniques of Genetic 
Modification/Genetic Engineering " which require a Food Serial Number). They must abide 
by packaging and labelling requirements.  
3.158.   Licences, renewed every three years, are issued by the FDA before the importation or 
manufacturing of food products. The F DA is responsible for the monitoring and surveillance of food 
production and imports, pre - and post -marketing control, and the establishment of food regulations. 
The FDA conducts compliance -monitoring not only throug h inspections and sampling of food 
products at food -manufacturing premises and other premises where food is stored, but also through 
sampling of food products in retail markets where samples are delivered to the Food Analysis Division 
of the Department of Medical Science in the Ministry of Public Health, for testing.  
3.159.   Fifty-seven products, including infant food, several dairy products, edible oils, tea, coffee, 
and food products of animal origin , whether imported or domestically produced, must comply with 
the Code of Good Manufacturing Practice (GMP). When importing these products, importers must 
show a certificate indicating that the production standards in the exporting country are equivalent 
to Thailand's GMP Code or one of the food quality assurances, suc h as good practice based on 
guidelines from Codex Alimentarius or ISO 9000, HACCP or ISO 22000.  
 
94 WTO online information , New STCs . Viewed at: 
https://www.wto.org/english/new s_e/news20_e/sps_26jun20_e.htm .  
95 WTO, SPS Information Management System . Viewed at: http://spsims.wto.org .  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.160.   Under notification s from the Ministry of Public Health (MOPH) (e.g. No. 26496, No. 34597, and 
No. 39198), Thailand prohibits imports of several food products on health grounds , including food 
containing several additives, such as  some sweeteners, along with puffer fish, and some types of 
genetically modified maize .  
3.161.   Also, according to information provided by the authorities, the importation of: logs, w ood 
and all wooden products; wooden products from the borders with the Tak and Kanchanaburi 
provinces; cassava and cassava products; fresh oranges; shallots; and swine offal are subject to 
various requirements for SPS -related reasons (Table 3.8).  
3.162.   Imports of meat, chilled or frozen, must have an import permit from the Department of 
Livestock Development, and a health certificate from the country of origin. Upon arrival, each 
consignment of chilled or frozen meat must be inspected by the Animal Quarantine St ation at the 
port of entry.  
3.163.   All imports of plants and plant products must be accompanied by a phytosanitary certificate 
from the competent authorities in the exporting country. Imports of prohibited or restricted articles, 
where an import permit is requir ed, must be made through the plant quarantine station for inspection 
by the plant quarantine official. A pest risk analysis is required for imports of restricted articles.  
3.164.   Maximum residue limits (MRLs) for food and agricultural products are regulated by the FDA 
under the Ministry of Public Health 's notification s (No. 387 B.E. 2560 (2017) on Food Containing 
Pesticides Residues99, and No. 393 B.E 2561 (2018) on Food Containing Pesticide Residues 
(No. 2)100). The se notification s are mandatory standard s for both domestic and import ed produce 
and products. Additionally, standards  (voluntary)  for MRLs on crops and agricultural commodities 
were also established by  the Ministry of Agriculture and Cooperatives (MOAC) :  
• the Agricultural Standard on Pesticide Residues: Maximum  Residue Limits (MRLs: TAS 
9002-2016)101, 102; and 
• the Agricultural Standard on Pesticide Residues: Extraneous Maximum Residue Limits 
(EMRLs: TAS 9003-2004) .103 
3.165.   The ACFS and the  MOAC issued voluntary standards to promote  food safety in agricu lture 
and aquaculture pr oduction, and they are used as a criterion and reference for GAP (Good 
Agricultural Practices ) and GAqP (Good Aquaculture  Practices) products . 
3.166.   Regarding genetically engineered (GE) plants for cultivation, Thailand allows the importation 
of GE soybeans, and corn grain for processed foods, feed, and industrial use.  Four government 
agencies are involved in the approval of agricultural biotechnology: the Department of Agriculture; 
the National Centr e for Genetic Engineering and Bi otechnology (BIOTEC) (Ministry of Higher 
Education, Science, Research and Innovation) ; the Ministry of Natural Resources and Environment; 
and the FDA.  Applications for open field trials and commercial cultivation of genetically modified 
(GM) products must be submitted to the MOAC. The Department of Agriculture will then conduct a 
 
96 MOPH, Notification No. 264 B.E. 2545 (2002) Re: Prescribed Prohibited Food to be Produced, 
Imported, or Sold . Viewed at:  http://food.fda.moph.go.th/law/data/announ_moph/V.English/No.2 64-
45Prescribed%20Prohibited%20Food%20to%20be%20Produced,%20Imported,%20or%20Sold.pdf . 
97 MOPH, Notification No. 345 B.E. 2555 (2012) Title: Prescribed Prohibited Foods to be Produced, 
Imported or Sold . Viewed at:  http://food.fda.moph.go.th/law/data/announ_moph/P345_E.pdf . 
98 MOPH, Notification No. 391 B.E. 2651 (2018) Issued by virtue of the Food Act B.E. 2522 Re: 
Prescribed Foods which are to be prohibited to be produced, imported or  sold. Viewed at:  
http://food.fda.moph.go.th/law/data/announ_moph/V.English/No.391.pdf . 
99 MOPH, Notification No. 387 B.E. 2560 (2017) Re: Food Containing Pesticides Residu es (Pesticide 
Residues in Food) . Viewed at: http://food.fda.moph.go.th/law/data/announ_moph/V.English/No.387.pdf . 
100 MOPH, Notification No. 3 93 B.E. 256 1 (2018) Re: Food Containing Pesticide Residues (Pesticide 
Residues in Food) (No. 2) . Viewed at: 
http://food.fda.moph.go.th/law/data/announ_moph/V.English/No.393.pdf . 
101 ACFS, Pesticide  Residues: Maximum Residue Limits, TAS 9002 -2016 (Vol.1). Viewed at: 
https://www.acfs.go.th/#/standard -commodity/general , and search "TAS 9002 -2016". 
102 ACFS, Pesticide Residues: Maxim um Residue Limits, TAS 9002 -2016 (Vol.2). Viewed at: 
https://www.acfs.go.th/#/standard -commodity/general , and search "TAS 9002 -2016". 
103 ACFS, Pesticide Residues: Extraneous Maximum Re sidues Limits, TAS 9003 -2004. Viewed at: 
https://www.acfs.go.th/#/standard -commodity/general , and search "TAS 9003 -2004". WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  biosecurity risk evaluation to consider the risk management control measures. Based on the risk 
evaluation, the MOAC conducts a public hearing before approvals are granted by the M inister. The 
authorities indicated that, so far, three applications have been approved.  
3.167.   Food products for public consumption must carry a label in Thai, providing basic information 
on the product, in accordance with the MOPH notification regarding food la belling. For food containing 
at least 5% of ingredients derived from GM or GE products, their labels must declare the statement 
of "genetically modified " (such as "Genetically Modified Corn ", "Tofu produced from Genetically 
Modified Soybean ", etc.) . Labelling such as GM -free or non -GM food is prohibited.  
3.3.4   State trading, state -owned enterprises, and privatization  
3.3.4.1   State trading  
3.168.   In 2020, Thailand notified to the WTO Working Party on State Trading Enterprises its state 
trading arrangements within the sc ope of Article XVII of the GATT 1994 .104 The notification covered 
the Public Warehouse Organization (PWO), the Liquor Distillery Organization Excise Department 
(LDO), and the Thailand Tobacco Monopoly (TTM), for the period 2014 -16. 
3.169.   The PWO, a state -owned en terprise (SOE) under the MoC, is responsible for the 
implementation of government policies regarding agricultural goods and consumer products, 
including their importation and exportation, and warehouse storage. The PWO allocates import 
quantities under an in-quota tariff system for some agricultural products.  
3.170.   The LDO is the sole producer and distributor of pure alcohol (ethyl alcohol 96% and ethyl 
alcohol 99.8%, HS 2207.10.00) within the country. According to the notification, the LDO has 
exclusive rights "but no powers or influences through purchase or sale of imports or exports of pure 
alcohol ", and the output level of pure alcohol was not enough to export.105  
3.171.   The TTM is an SOE under the supervision of the Ministry of Finance. It was authorized under 
the Tobacco Act B.E. 2509 as the sole producer of cigarettes in Thailand, with a view to reducing the 
negative consequences of cigarette consumption by controlling the product's domestic supply. 
Private traders with permission from the Excise Department may imp ort or export tobacco or 
tobacco -related products. In 2014 and 2015, all cigarettes imported into Thailand were imported 
through the TTM but in 2016 the TTM imported only a quarter of all cigarette imports. From 2014 to 
2016, all cigarettes exported from T hailand were exported through the TTM.  
3.3.4.2   SOEs  
3.172.   Thailand's 56 SOEs  remain active in the following  sectors: financial institutions, energy, 
telecommunications, transport, social issues and technology, industry and commerce, agriculture, 
natural resources, and public utilities (Table A3.1). In 2018, total assets of these SOEs reached 
THB 15.5 trillion, equivalent to 95% of GDP (up from THB 13.8 trillion in 2015). They generated 
THB 4.9 trillion revenue and THB 378 billion net profit, and the latter accounted for  about 2.3% of 
GDP (Table  3.20).  
Table 3.20 Performance of SOEs, 2015 -18 
Items  2015  2016  2017  2018  
SOE employees (number of people)  300,859  303,178  302,468  309,330  
Total employment (number of people)  38,016,170  37,692,650  37,458,250  37,864,550  
% of total  0.79%  0.8%  0.81%  0.82%  
SOE assets (THB billion)  13,849.72  14,489.90  15,082.53  15,496.49  
% per GDP  100.77%  99.56%  97.39%  94.69%  
SOE revenues (THB billion)  4,445.23  4,088.65  4,507.04  4,916.98  
% per GDP  32.34%  28.02%  29.10%  30.04%  
SOE net profit (THB billion)  196.45  312.91  383.84  377.77  
% per GDP  1.43%  2.14%  2.48%  2.31%  
GDP (THB billion)  13,743.46  14,592.59  15,486.55  16,365.57  
Source:  Information provided by the authorities: Financial Statement of SOEs and GF -MIS SOE System ; the 
National Statistical Office ; and the Office of the National Economic and Social Development Council . 
 
104 WTO document G/STR/N/1 6/THA, 17 April 2020.  
105 WTO document G/STR/N/1 6/THA, 17 April 2020.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.173.   In FY2019106, incomes from SOEs  and government -owned busines ses accounted for 
THB 169.16 billion, or 6.60% (6.59% in FY2014) of the total receipts of the central Government. 
SOEs are companies where the State has 50% or more of ownership, while government -owned 
businesses are those that the State has less than 50% of ownership. These incomes consisted of 
profits of SOEs and government -owned businesses (THB 127.24 billion), and THB 41.92 billion from 
the Government Lottery Bureau.107 Incomes from SOEs and government -owned businesses rose by 
7.72% from FY2018.  
3.174.   In FY201 9, these  state enterprises (both SOEs and government -owned businesses)  
accounted for THB 141 billion (of which THB 22.6 billion in subsidies) or 4.7% of the estimated total 
central government expenditure. Expenditure on state enterprises fell by 8.8% from FY2018. The 
top three receivers of state budget expenditures were: the Bank for Agriculture and Agricultural 
Cooperatives (56.5%), the Mass Rapid Transit Authority of Thailand (10.4%), and the State Railway 
of Thailand (6.4%). They are followed by the Tour ism Authority of Thailand (4.7%), and the 
Government Savings Bank (4.2%). As at 31 July 2018, the principal outstanding for domestic debt 
stood at THB 5,884.8 billion, of which 12% (THB 713.6 billion) was the guaranteed domestic loans 
of state enterprises.  
3.175.   On 23 May 2019 , the State -Owned Enterprise Development Act was enacted, which 
summarized the SOE development mechanisms in Thailand. Under the Act, the State Enterprise 
Policy Office (SEPO) is the agency in charge of:  
• supervising and overseeing SOEs and e nhancing systematic collaboration and efficiency, 
through its State -owned Enterprise Policy Committee;  
• providing clear and consistent direction for SOE development, through its SOE 
Development Plan;  
• setting up an evaluation system to reflect the efficiency  of the implementation of the SOE 
Development Plan, through its Performance Evaluation System;  
• selecting qualified persons to be board members, through a standardized and transparent 
process, through its Director Nomination Committee; and  
• enhancing good co rporate governance and ensuring fiduciary obligations, through its 
Governance and Transparency Mechanisms.  
3.176.   The Government has been using public private partnerships (PPPs) to further reform and 
improve the performance of SOEs, in particular to spur privat e investment in state enterprises and 
improve the infrastructure of the country. The Public Investment in State Undertakings Act (PISU 
Act), 1992, was replaced by the PISU Act, 2013, which requires the PPP Committee to publish a PPP 
Strategic Plan that is consistent with the National Economic and Social Development Plan (NESDP). 
In 2015, the first PPP Strategic Plan, covering the period 2015 -19 and based on the NESDP No. 11, 
was issued. In 2017, the second PPP Strategic Plan, covering the period 2017 -21 and  based on the 
NESDP No. 12, was published. The focus of PPP projects was expanded from roads and rail, to cover 
new sectors such as airports, education, and health.108 
3.177.   In addition, the PPP Fast Track Process was another effort by the Government to eliminate  
red tape and bottlenecks in the approval procedures of infrastructure projects. It allows the 
PPP Committee to focus their efforts on strategically important projects. In 2019, a new PPP Act, the 
Public Private Partnership Act B.E. 2562 (2019), went into effect, to emphasize infrastructure 
projects based on the partnership concept. It also provides a mechanism to solve problems 
throughout the PPP process. Furthermore, the PPP Fast Track measures used in previous PPP Law 
(PISU Act) were incorporated into th e PPP Act 2019, to streamline the PPP projects. The SEPO is  
also preparing the new PPP Delivery Plan (PPP Plan) , which is consistent with the National Strategy 
 
106 In Thailand, the fiscal year is from 1 October to 30 September.  
107 Bureau of the Budget ( 2019), Thailand's Budget in Brief Fiscal Year 2019 . 
108 PWC, Infrastructure Developments and Public Private Partnerships in Tha iland: A 2018 Update . 
Viewed at: https://www.pwc.com/th/en/deals/assets/public -private -partnerships -in-thailand -2018.pdf . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  prepared by the Office of the National Economic and Social Development Council. The authorities 
stated that t his PPP Plan is to play a significant role in setting up  a PPP policy framework.  
3.178.   Another measure showing the Government's commitment toward PPPs is the EEC Fast Track, 
which is part of the EEC project. It aims at accelerating infrastructure de velopment, and encouraging 
local and foreign investment in the three eastern provinces of Thailand (Section 3.3.1.2.4). The EEC 
Fast Track governs all PPP projects within the three provinces through the EEC Policy Committee. 
One of the targets of the Commi ttee was to attract at least 30 world -class companies to invest in 
the EEC between 2017 and 2021.  
3.179.   The authorities stated that the Government has not implemented any policy on SOE 
privatization since 2015.  
3.3.5   Government procurement  
3.3.5.1   Overview  
3.180.   The value of Thailand's government procurement reached more than THB 1.1 trillion in 
FY2019109 (Table 3.21), accounting for around 6.7% of GDP in the year.110 Compared with the 
previous review period, both the absolute amount and its share in GDP grew significantly.111 In 2019, 
the procurement value s of construction  works, goods, and services were THB 459.3 billion (or 
40.49% of the total), THB 415.2 billion (36.61%) and THB 215.5 billion (19.00%), respectively.  By 
type of procuring entity, 57.6% was procured by the centra l Government, 15.6% by local 
governments, 13.1% by state enterprises, and 13.7% by other public entities. S ix ministries 
(Interior, Transport, Education, Defence, Public Health, and Agriculture and Cooperatives)  continued 
to dominate government procurement  expenditures during the review period.  
Table 3.21 Value of government procurement by type of procuring entity, 2015 -19 
(THB million)  
Type of procuring entity  2015  2016  2017  2018  2019  
Central  Government  225,973.46  591,331.44  640,796.59  624,414.05  653,307.67  
Local government  55,798.98  146,015.77  50,321.83  181,106.13  177,266.79  
State enterprises  62,219.96  162,818.31  57,675.71  98,376.04  148,593.86  
Other  public entitiesa 9,006.30  23,576.86  28,820.18  112,683.53  155,156.15  
Total  352,998.70  923,733.38  777,614.32  1,016,579.74  1,134,324.42  
a Given the change in the entity coverage following the enactment in 2017 of the Public Procurement 
and Supplies Administration Act B.E. 2560, the statistics are not fully comparable before and after 
2017, so this Table does not show a breakdown of the procu rement values of "other public entities ". 
These include , inter alia , government agencies not under the Office of the Prime Minister, ministries 
or bureaus; universities; public organizations; administrative departments of courts; independent 
organizations;  government agencies established by specific laws; and government agencies under 
parliament.  
Source:  Information provided by the authorities.   
3.181.   According to the authorities, the public procurement administration follows the main 
principles of value for mone y, transparency, efficiency, effectiveness , and accountability. Open 
tendering is considered the most effective way to achieve these principles. Meanwhile, the 
Government considers government procurement as a significant tool to promote social and economic 
development , and certain policies have been introduced and maintained in this regard. Thailand has 
been an observer in the WTO Committee on Government Procurement since 2015. However, it is 
not yet a signatory of the WTO Agreement on Government Pr ocurement (GPA) , and the authorities 
indicate that it is not yet in a position to consider obtaining full membership in the GPA in the coming 
years.  Thailand has included  government procurement chapters in its RTAs with relevant trade 
 
109 FY2019 covers 1 October 2018  to 30 September 2019.  
110 Government procurement usually accounts for 10% -15% of a country's GDP. The authorities 
explained that the reason for Thailand's relatively lower figure might be the fact that all mega projects carried 
out in the form of PPPs in Th ailand are not considered government procurement.  
111 In FY2013, t he value of the government procurement market for goods and services was estimated 
at THB 521.5 billion or 4% of GDP , according to the TPR Report of 2016 ( WT/TPR/S/326/Rev.1 ).  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  partners. However , all these chapters are limited to cooperation and information -sharing aspects , 
and do not contain market access commitments.  
3.3.5.2   Legislation , general policies and institutional arrangements  
3.182.   During the review period, the main development in the area of government  procurement 
was the enactment of new legislation, namely, the Public Procurement and Supplies Administration 
Act B.E. 2560, in August 2017.112 The previous legislation, i.e. t he Office of the Prime Minister 
Regulations on Procurement B.E.  2535 (1992), ceased at the same time . According to the  
authorities, t he new Act is centred on preventing corruption and anti -competitive behaviour, with an 
increased level of transparency and monitoring.113 Compared with the previous Regulations, the new 
Act has the followi ng prominent features: (i) it standardized the public procurement process across 
the country by extending the scope of application from government agencies to SOEs and public 
organizations, such as universities under the supervision of the State114; (ii) it  focuses on 
transparency and fair competition , and requires that a ll steps in a procurement process be published  
on the e-procurement website ; (iii) it introduced new bid evaluation criteria that take into 
consideration not only the price but also t he performance aspect of a tender, which the authorities 
consider would help achiev e value for money in public procurement; (iv) it emphasizes procurement 
planning and performance assessment, and reduces the risk of corruption; and (v) it encourages 
public  participation in the procurement process by allowing the public to observe and criticize 
government procurement projects. The Act also introduced criminal penalties for government 
officials who violate the law. If found guilty, they are subject to one to ten years' imprisonment 
and/or a fine of up to THB 200,000; penalties are extended to those in the private sector that pay 
bribes.  
3.183.   The Ministry of Finance, specifically its Comptroller General's Department (CGD), is in charge 
of the overall execution of th e new Act, including the issuance of relevant implementing regulations, 
the budget disbursement of the central Government , and the monitoring of procurement activities. 
A number of commission s and committees, with the participation of representatives from relevant 
ministries, were established in accordance with the Act to fulfil different aspects of work related to 
government procurement. They include the Public Procurement and Supplies Administration Policy 
Commission (the Policy Commission), the Public Pr ocurement and Supplies Administration Ruling 
Committee (the Ruling Committee), the Committee in Charge of Focal Prices and Registration of 
Business Operators (the Focal Prices Committee), the Anti -Corruption Cooperation Committee , and 
the Appeals Committee .  
3.184.   Since the enactment of the new Act, the Ministry of Finance has issued regulations 
concerning different aspects of its implementation. Table 3.22 lists these regulations.   
3.185.   Government procurement is carried out in a decentralized manner. Individual depar tments 
award contracts under their own authorit y. In order to allow flexibility and achieve expediency of 
their procurements, SOEs, universities under state supervision and foreign -located state agencies 
are allowed to put in place their own rules, subject  to approval by the Policy Commission. 
Nonetheless, the procurement methods provided by these rules should be in line with the methods 
established by the Public Procurement and Supplies Administration Act B.E. 2560 (2017) and should 
be published in the Gov ernment Gazette. According to the authorities, relevant  education institutions 
have already put in place their own procurement rules for research and development, for technical 
 
112 Public Procur ement and Supplies Administration Act, Tentative Translation . Viewed at:  
http://www.gprocurement.go.th/wps/wcm/connect/cb6ae8e9 -ddb3-4640-9393-
04d9fc09b5af/PUBLIC%2BPROCUREMENT%2BAND%2BSUPPLIES%2BADMINISTRATION%2BACT%2C%2BB.E.
%2B2560%2B%28 2017%29.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE -cb6ae8e9 -ddb3-4640-9393-
04d9fc09b5af -mLvSLpp .  
113 Relevant international organizations and private watchdogs have pointed out that government 
procurement was one of the sectors in Thailand that involved corruption . See, for example , Blomberg, P. 
(2015), Integrity Risk Assessment in Public Procurement in Thailand. A Priority Framework for Public 
Procurement Integrity Reform . Study commissioned by the UNDP. Viewed at:  https://www.oecd.org 
/governance/procurement/toolbox/search/15%2005%20Integrity%20risk%20assessment%20in%20Thailand.p
df; and CIPS, Thailand drafts public procurement law following UNDP review . Viewed at:  https://www.cips.org 
/en/supply -management/news/2015/january/thailand -drafts -public -procurement -law-following -undp-review/ . 
114 The old Regulations only applied to central government agencies. SOEs, local governments and other 
independent public organizations had full autonomy f or framing their own procurement regulations.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  services of a higher education institution , and for employment of consultants. Government 
procurement in the form of PPPs is regulated by the Public Private  Partnership Act B.E. 2562 (2019).  
3.186.   Thailand does not allow direct cross -border participation of foreign suppliers in its 
government procurement contracts. The CGD maintains a mandatory registration system for 
business operators that wish to participate in Thailand's government procurement. The registration 
should be filed according to the criteria, procedures and conditions prescribed in relevant ministerial 
regulations.115 Generally speaking, a supplier eligible for registration must be a juristic  person 
registered in Thailand. S/he must have an office located in Thailand, and half of the board directors 
must hold Thai citizenship. Rega rding the registration of consultants, independent consultants must 
be Thai citizens and, in the case of juristic persons, they should be juristic persons in Thailand, with 
no less than 51% of their total shares held by Thai citizens.  
Table 3.22 Regulations issued by the Ministry of Finance on the implementation of  the 
Public  Procurement and Supplies Administration Act B.E. 2560  
Titles  Date of 
issuance  
Regulation of the Ministry of Finance on Public Procureme nt and Supplies Administration 
B.E. 2560 (2017)  23 August 2017  
Ministerial Regulation Prescribing that Other Agencies shall be State Agencies According 
to the Act on Public Procurement and Supplies Administration B.E. 2560 (2017)  23 August 2017  
Ministerial Regulation Prescribing of Criteria Concerning Persons Eligible for Registration 
of Business Operators B.E. 2560 (2017)  23 August 2017  
Ministerial Regulation Prescribing of Supplies that the State needs to Promote or 
Support and Prescribing of Procurement Method by the Selection and Specific Methods 
B.E. 2560  (2017)  23 August 2017  
Ministerial Regulation Prescribing of Budget for Procurement for the Specific Method; 
Budget that is not Settled into a Written Agreement; and Budget for Appointment of 
Supply Assessment Officer for Acceptance B.E. 2560 (2017)  23 Au gust 2017  
Ministerial Regulation Prescribing of Criteria, Procedures and Conditions for Registration 
as Consultants B.E. 2560 (2017)  23 August 2017  
Ministerial Regulation Prescribing of Fees for Design or Construction Work Supervision 
B.E. 2560 (2017)  23 August 2017  
Ministerial Regulation Prescribing of Procurement Conducted with State Agencies that 
Cannot Use the Right of Appeals B.E. 2560 (2017)  23 August 2017  
Ministerial Regulation Prescribing of Procurement Cases by the Specific Methods 
B.E. 2561 (2 018) 30 January 2018  
Ministerial Regulation Prescribing of Supplies that the State needs to Promote or 
Support and Prescribing of Procurement Procedures by the Selection Method and 
Specific Method (No. 2) B.E. 2561 (2018)  20 August 2018  
Source:  Information provided by the authorities.  
3.3.5.3   Procurement  methods   
3.187.   The 2017 Act provides  for three methods  for the procurement of supplies : (i) the general 
solicitation notification method; (ii) the selection method; and (iii) the specific method  (Table 3.23) . 
These methods apply, mutatis mutandis , to the procurement of consultancy work, and the 
procurement of design and construction supervision works. A design competition can also be used 
as a procurement method for the latter. P rocurement s of goods, services o r construction works with 
a budget of no more than THB 500,000 may use the specific method.  When the general solicitation 
notification method and the selection method are used, the tender evaluation criteria usually take 
into account the price of supply, t he life -cycle cost, the quality, after -sale services , and the work 
performance of the suppliers.  
  
 
115 Ministerial Regulation Prescribing Criteria Concerning Persons Eligible for Registration of Business 
Operators B.E. 2560 (2017); and Ministerial Regulation Prescribing Criteria, Procedures and Conditions for 
Registration as Consultants B.E. 2560 (2017) . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Table 3.23 Procurement methods for the procurement of supplies under the 2017 Act  
Procurement 
method  Main characteristic  Application conditions  
General 
solicitation 
notification 
method  The procuring entity 
allows all qualified 
suppliers to submit 
proposals.  A state agency should first use the general solicitation notification 
method.  
Selection 
method  The procuring entity 
invites no less than three 
qualified suppliers to 
submit proposals, except 
when less than three 
qualified suppliers exist.  The selection method can be used under the following circumstances:  
(i) a general solicitation notification method has been used but no one 
has tendered a proposal, or the proposals have not been selected;  
(ii) the supplies to be procured have exceptional  or complicated 
specifications, or must be produced, distributed, constructed or 
serviced by a business operator possessing specific workmanship or 
exceptional expertise or high skills, and such business operators are 
limited;  
(iii) there arises an urgent need for the use of such supplies following 
an unexpected event which makes the use of a general solicitation 
notification method untimely for the demand of the supplies;  
(iv) the supplies, by reason of the nature of their use or technical 
restrictions, ma ke it necessary to specify a particular brand;  
(v) it is necessary for the supplies to be purchased directly from abroad 
or procured through an international organization;  
(vi) the supplies are to be used for official intelligence or affairs which 
involve confidentiality of the state agency or which are related to 
national security;  
(vii) for repairs work, the object to be repaired must first be 
disassembled for inspection in order to know the defects before 
estimating the cost of repair; for instance, work  for the repair of a 
machine, a mechanical instrument, an engine, an electrical device, or 
an electronic device; and  
(viii) in any other case prescribed in the relevant ministerial regulation.  
Specific 
method  The procuring entity 
invites only one specific 
qualified supplier to 
submit a proposal or to 
participate in price -
bargaining negotiations.  The specific method can be used under the following circumstances: 
(i) both a general solicitation notification method and a selection 
method have been use d but no one has tendered a proposal, or the 
proposals have not been selected;  
(ii) the procurement of supplies to be generally produced, distributed, 
constructed or serviced and the cost estimate for each procurement do 
not exceed that prescribed in the r elevant ministerial regulation;  
(iii) the procurement of supplies in respect of which only one business 
operator directly possesses the qualifications, or the procurement of 
supplies from a business operator who is the only legally authorized 
sales distrib utor or service distributor in Thailand, and no other supplies 
may be used in lieu thereof;  
(iv) the need for the use of such supplies in an emergency following a 
disaster or a natural disaster or a dangerous communicable disease 
under the law on communica ble diseases, and procurement by the 
general solicitation notification method or the selection method may 
cause a delay and result in serious loss;  
(v) the supplies to be procured are associated with those previously 
procured, and additional procurement th ereof is needed for the sake of 
completion or continuity of their use, provided that the value of the 
supplies to be additionally procured is not higher than that of the 
supplies previously procured;  
(vi) the supplies are those to be sold in auction by a s tate agency, an 
international organization, or a foreign agency;  
(vii) the supply is the land, or a structure specifically needed to be 
purchased; and  
(viii) in any other case prescribed in the relevant ministerial regulation.  
Source:  WTO Secretariat, based on the Public Procurement and Supplies Administration Act B.E. 2560 
(2017). 
3.188.   The procuring entit ies are obliged to  give preference to domestic suppliers to which the State 
intends to promot e or support. In accordance with the Minister ial Regulation on Determining Supplies 
and Procurement Methods that the Government Wants to Promote or Support B.E. 2563 (2020), 
relevant suppliers or industries that receive promotion or support include those in agricultural 
production, those in village d evelopment, farmers ' cooperatives, SMEs , underprivileged people, 
educational institutions, certain industrial and energy sectors, innovations, the public health sector, 
and those in energy security and natural resources, food security , and agricultural sec urity. The y 
are promot ed or support ed by applying the specific procurement method. The authorities confirm 
that there is no price preference under the 2017 Act.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.189.   In 2019, procurement using competitive methods (electronic market and electronic bidding) 
accounted for 51.9% of the total value of procurement, followed by procurement using the specific 
method, which accounted for 37.2% of the total (Table 3. 24).  
Table 3.24 Value of annual procurement by method of p rocurement , 2018 and 2019  
(THB million) 
Procurement method  2018  2019  
General solicitation method    
    Electronic market (e -market)  360.14  291.22  
    Electronic bidding (e -bidding)  495,109.55  588,125.15  
Price comparisona 10,316.39  n.a. 
Selection method  91,275.87  111,41.31  
Specific method  403,801.85  421,399.16  
Consultancy work by general solicitation notification method  589.81  502.03  
Consultancy work by selection method  11,514.81  9,534.95  
Consultancy work by specific method  3611.32  3,030,60  
Total  1,016,579.74  1,134,324.42  
a Price comparison is no longer a procurement method under the new Act.  
Source:  Information provided by the authorities.   
3.3.5.4   Electronic  government procurement  
3.190.   Thailand introduced an electronic government procurement system (e -GP system) in 
April 2010. The Comptroller General's Department is responsible for the development and promotion 
of the system.116 The system started with pilot projects covering a limited number of procurement 
entities and p rocurement methods, and was gradually extended to other procurement entities, with 
the aim of including all government procurement contracts. During the review period, the 
e-GP system concluded its Phase 3 projects and entered Phase 4 projects on 24 August  2017. 
Phase  4 projects are aimed at bringing the system in line with the new Act and, in particular, enabling 
the selection method and the specific method in the system. According to the authorities, the 
e-GP system helped to save 8.26% of the budget for the completed procurements.117 
3.3.5.5   Remedies  
3.191.   A bidder may submit an appeal within seven working days from the date on which the result 
of the procurement is announced. The appeal is first considered and decided by the procuring entity. 
A decision is m ade by that entity within seven working days. If the procuring entity does not agree 
with the appeal, it turns to the Appeals Committee for consideration.118 If the Appeals Committee 
considers the appeal justified and has material effects on the procurement , it orders the procuring 
entity to recommence the procurement. The decision of the Appeals Committee is final. If the bidder 
is not satisfied with the decision of the Appeals Committee and holds the opinion that the procuring 
entity should be liable to pa y damages, it has the right to file a claim with the Court for compensation.  
3.3.5.6   Other policy considerations  
3.192.   To achieve sustainable procurement, Thailand has implemented green public procurement 
policies since 2005.119 The Pollution Control Department, within the Ministry of Natural Resources 
 
116 Thai Government Procurement. CoST Thailand. Viewed at : 
http://www.gprocurement.go.th/new_index.html .  
117 The savings margin is estimated by comparin g the real contract value to the budget value. 
Government Procurement Results, Budget Year 2019 (October 2018 -September 2019)  (available only in Thai). 
Viewed at: http://www.gprocurement.go.th/wps/wcm/connect/bb604b41 -ac12-4fae-b2fd-
21cb649e32e0/01+report_6209.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE -bb604b41 -ac12-4fae-b2fd-
21cb649e32e0 -mVvulUs . 
118 According to the authorities, t he Appeal Committee is fully independent from government . The 
Committee  consists of five to seven private members from the Council of Engineers, the Architects ' Council of 
Thailand, the Board of Trade of Thailand and the Federation of the Thai Industries . They are  persons with 
knowledge, expertise or experience in engineering, architecture, fiscal matters and finance, administration, 
science and technology or other related areas.  
119 UNEP, Comparative Analysis of Green Public Procurement and Ecolabelling Programmes i n China, 
Japan, Thailand and the Republic of Korea: Lessons Learned and Common Success Factors . Viewed at: WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  and Environment, has developed plans to build awareness and support the implementation of green 
public procurement. Procuring entities are encouraged to give favourable considerati on to products 
that are certified to be environmentally friendly according to the criteria established by the 
authorities.  Products and services certified by the Green Label  Scheme120 are automatically  
recognized as compliant with the criteria.  
3.193.   In the inte rests of transparency and integrity, Thailand joined the Construction Sector 
Transparency Initiative (CoST), established by the British Department for International Development 
and the World Bank in 2014.121 The Initiative requires disclosure to the public of information 
regarding ongoing infrastructure projects, and verification of information. It encourages stakeholder 
participation in the monitoring of projects under the Initiative. A Multi -Stakeholder Group, composed 
of representatives from the Governmen t, civil society, and the private sector, was established to 
oversee the implementation of relevant infrastructure projects. Since 2015, 254 construction 
projects, with a total budget value of THB 97.9 billion, were selected to participate in CoST, coverin g 
the sectors of airport, piers, roads and bridges, irrigation, buildings and museums, basic utilities, 
hospital, facilities and attractions, etc.122 The authorities believe that participation in CoST has 
helped to enhance transparency and integrity in the government procurement system.  
3.3.5.7   Bilateral initiatives  and international cooperation   
3.194.   During the review period, Thailand concluded a free trade agreement (FTA) with Chile 
(Thailand -Chile Free Trade Agreement), effective on 5 November 2015, which included  government 
procurement provisions, bringing the total number of Thailand's FTAs with such provisions to four.123 
Similar to the provisions in the other three FTAs, the government procurement provisions in 
Thailand -Chile FT A encourage cooperation and information exchange between the two parties. The 
Agreement has best -endeavour provisions on promoting transparency, open and effective 
competition, fair dealing, accountability and due process, and non -discrimination in their 
government procurement procedures; however, it has no market access commitments.124 
3.3.6   Competition policy and price regulation  
3.3.6.1   Legal  and institutional framework s 
3.195.   During the review period,  Thailand renewed its competition -related legal and institutional 
framewor ks in order to enhance its effectiveness in tackling anti -competition practices by addressing 
a number of shortcomings. Some of these were identified in previous Reviews , and included: poor 
transparency in administration and enforcement of the law; the bro ad discretionary authority of the 
competition agency; political influence and lack of independence; and ineffective structure and 
composition.125 
3.196.   The new Trade Competition Act B.E. 2560 (2017) was enacted in October 2017.126 It 
repealed the previous version of the Trade Competition Act B.E. 2542 (1999). The new Act addresses 
 
https://www.greengrowthknowledge.org/sites/default/files/downloads/resource/UNEP_green_public_procurem
ent_ecolabelling_China_Japan_Korea_Thailand_report.pdf .  
120 The Green Label Scheme was launched  by the Thailand Environment Institu te in association with the 
Ministry of Industry. It is an environmental certification scheme, on a voluntary basis, to promote the concept 
of resource conservation, pollution reduction, and waste management. It promotes environmentally friendly 
products an d services among all consumers, including government procuring entities.  
121 CoST. Viewed at: http://process3.gprocurement.go.th/eGPCostWeb/home . 
122 CoST, Assurance Report 2019 . Viewed at: https://www.cgd.go.th/cs/Satellite?blobcol= urldata& 
blobheadername1=Content -Type&blobheadername2=Content -Disposition&blobheadername3=filename& 
blobheadervalue2=inline;+filename=%22871/830/Assurance+Report+Construction+Sector+Transparency+Ini
tiative+(CoST)+Thailand+In+Fiscal+Year+2018+Public+Edition .pdf%22&blobheadervalue3=871/830/Assuran
ce+Report+Construction+Sector+Transparency+Initiative+(CoST)+Thailand+In+Fiscal+Year+2018+Public+E
dition.pdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1438175232228&ssbinary=true .  
123 The other three FTAs with governm ent procurement provisions are the Thailand -Australia Free Trade 
Agreement, the Thailand -New Zealand Closer Economic Partnership Agreement , and the Japan –Thailand 
Economic Partnership Agreement . 
124 Article 11.8, Thailand -Chile Free Trade Agreement.  
125 WTO documents WT/TPR/S/191/Rev.1, 6 February 2008 ; WT/TPR/S/255/Rev.1, 8 February 2012 ; 
and WT/TPR/S/ 326/Rev.1, 10 February 201 6. 
126 Trade Competition Act B.E. 2560 , unofficial translation. Viewed at: https://otcc.or.th/wp -
content/uploads/2020/02/TRADE -COMPETITION -ACT-B.E.-2560-EN-article_20190221100346.pdf .  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  competition issues, such as cartels, the abuse of dominant position, anti -competitive mergers, unfair 
business practices, exemptions, and penalties. It regulates commercial activities, in cluding 
agricultural businesses, manufacturing, commerce, financial services, insurance , and other service 
industries. However, sectors with specific competition provisions in their laws are excluded from the 
scope of the new Act (e.g. telecommunications a nd energy). Other exclusions are central, provincial 
and local government administrations, farmer and other cooperatives, and non -profit organizations . 
3.197.   A notable change is that SOEs, public organizations, and other state agencies are included 
in the scope of application of the new Act for the first time. These groups were not regulated in the 
previous Act. A World Bank report indicated that this exclusion had enabled major players in key 
sectors to abuse their market power and engage in collusive behaviour.127 Under the new Act, SOEs 
are exempt only if their activities are considered, by laws or resolutions o f the Cabinet, necessary 
for the benefit of maintaining national security, public interest, the interest of society, or the 
provision of public utilities . While this is considered a positive development, it has been suggested 
that the partial retention of this carve -out has the potential to be a broad exemption in practice, 
depending on how widely it is construed.128 Hence, transparent criteria and the rest rictive 
interpretation of exemptions are important in achieving the Act's objectives and effective 
implementation. In addition, the new Act expands the definition of a business operator to include 
affiliates and group companies; it also broadens the liabil ity of top management and directors, who 
may be subject to administrative and criminal sanctions if their actions or omissions give rise to 
violations of the Act.  
3.198.   Significant changes were also made to the competition authority. The Trade Competition 
Commi ssion (TCC), a seven -member board supported by the Office of the Trade Competition 
Commission (OTCC), is the decision -maker in competition policy enforcement.129 Its responsibilities 
include, among others: (i) providing recommendations to the Government on regulatory issues 
related to competition polices;  (ii) publishing guidelines and implementation rules on the 
enforcement of the Act; (iii) receiving complaints from business operators about instances of possible 
anti-competitive conduct, and carrying out investigations and making decisions on the cases; and 
(iv) initiating relevant criminal cases or imposing administrative fines according to the Act.   
3.199.   Despite the fact that the names of the authorities remain unchanged,  the structure, 
composition and status of the TCC and the OTCC were changed substantially to enhance their 
independence and impartiality. Under the previous Act, the TCC was subordinate to the Department 
of Internal Trade  of the  Ministry of Commerce,  and d id not have independent status from the 
Government, both in terms of administration and budget. The new TCC is a separate entity, 
independent of the Government. The seven commissioners of the TCC are appointed by the Prime 
Minister. They are selected from experienced professionals with expertise in different business 
sectors. They are individuals without political or business ties, and do not hold positions in the 
Government. In decision -making, the TCC decides by majority vote with a quorum of half the tot al 
number of commissioners.  
3.200.   The OTCC was established as a government agency  but is not part of the civil service or an 
SOE. It undertakes the administrative work of the TCC. It is headed by a Secretary -General who 
reports directly to the Chairperson of th e TCC. The Secretary -General should have neither political 
nor business ties with the Government, nor hold a position in the Government. The budget of the 
TCC and the OTCC is independent from the budget of any other government agenc y. It may comprise 
the initial capital received from the Government, its income from service charges and operations, 
and donations from foreign countries or international organizations. If the budget falls short of the 
operational costs, the Government subsidize s the TCC and the OTCC. No official assessment of the 
performance of the TCC and the OTC C has yet been made. However, according to the authorities, 
their performance has improved due to enhanced independence . The OTCC is a member of the 
International Competition Network.   
3.201.   The TCC is responsible for issuing implementing rules and regulations for the new Act. The 
new Act also provides that it is obligatory for the TCC to hear stakeholders' opinions when  drafting 
 
127 World Bank Group (201 8), Thailand Economic Monitor , April. Viewed at: 
http://documents.worldbank.org/curated/en/991791530850604659/Thailand -economic-monitor -beyond -the-
innovation -paradox .  
128 World Bank Group (2018),  Thailand Economic Monitor , April.  
129 OTCC, Activities . Viewed  at https://otcc.or.th/?lang=en .  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  the implementing rules and regulations. Major rules and regulati ons that were introduced by the 
TCC and remain in force include:  
• Classifications of Business Operators Related to Each Other due to Policies or Commanding 
Power, 2018;  
• Guidelines on the Determination of Market Definition and Market Shares, 2018;  
• Guidelines  for Consideration of the Prohibition of Business Operators with Dominant 
Position in the Market, 2018;  
• Guidelines for Consideration of Joint Actions by Business Operators to Act as a Monopoly, 
or to Reduce or Limit Competition in the Market, 2018;  
• Guideli nes for Consideration of Actions that Cause Damage to Other Business Operators , 
2018;  
• Criteria for Acquisition of Assets or Shares to Control Policies, Business Administration, 
Directorate, or Management which is Considered a Merger, 2018;  
• Criteria, Proced ures and Conditions of Notification of Mergers, 2018;  
• Criteria, Procedures and Conditions in Requesting for the Permission for Business Merging, 
2018;  
• Criteria of Business Operator with a Dominant Market Position, 2018;  
• Rules and Procedures for Filing a Re quest to the TCC to Make an Advance Ruling, 2018;  
• Criteria for Collecting or Taking Products as Samples, 2018;  
• Guidelines for Determining Unfair Trade Practices between Wholesalers/Retailers and 
Manufacturers or Distributors, 2019;  
• Guidelines for Determini ng Unfair Trade Practices in Franchise Business, 2019 ( being  
translat ed); 
• Criteria, Procedures and Conditions for Imposing the Settlement Fine, 2019;  
• Regulation on Complaints, Investigation and Procedures for Criminal or Administrative 
Prosecution, 2019; a nd 
• Regulation on Criteria, Procedures, Conditions and Period of the Issuance of the Order to  
Business Operator to Suspend, Cease or Rectify its Action.  
3.202.   The new Act maintained the competition -related powers of sectoral regulators. For example, 
the National Broadcasting and Telecommunications Commission (NBTC) is the authority for 
competition issues related to the broadcasting and telecommunications sectors, while the Energy 
Regulatory Commission (ERC) is responsible for competition issues in the energy and g as industry. 
In 2009, the ERC published the Regulation of the Energy Regulatory Commission on Establishment 
of Criteria to Prevent Mergers, Competition Lessening or Restriction in Energy Services; and, in 
2018, the NBTC published the Notification of the NB TC on Merger Regulatory Measures for 
Broadcasting and Telecommunications Business. The Trade Competition Act only applies to these 
sectors when relevant competition issues are not addressed by the sectoral regulations.  
3.203.   Several other Acts continue to influe nce competition by seeking to protect the consumer and 
by affecting how businesses behave and interact, such as the Unfair Contract Terms Act B.E. 2540 
(1997), the Prices of Goods and Services Act B.E.  2542 (1999), the Direct Sales and Direct Marketing WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Act B.E. 2545 (2002), and the Liability for Damages Arising from Unsafe Products Act B.E. 2551 
(2008).130  
3.3.6.2   Prohibitions and permissions under the  Trade Competition Act B.E. 2560 (2017)  
3.3.6.2.1   Anti-competitive agreements  
3.204.   Hardcore cartels are illegal, per se , under the  Trade Competition Act B.E. 2560 (2017).  They 
include anti -competitive agreements between business operators on matters such as price -fixing, 
output control, market allocation, and bid -rigging. Other non -hardcore cartels are subject to case -
by-case review,  and R&D and licensing agreements that do not result in restrictions exceeding what 
is necessary to achieve such benefits are excluded from prohibition.   
3.3.6.2.2   Abuse of dominant market position  
3.205.   The new Act prohibits a business operator with a dominant market pos ition from abusing its 
dominance, such as by fixing purchase or selling prices, imposing unfair conditions on trading 
partners, restricting the supply of goods or services, or intervening in the business operations of 
other persons.  
3.3.6.2.3   Mergers  
3.206.   The 2017 Act requires pre -merger permission and a post -merger notification system. Any 
business merger which may result in a monopoly or dominant market position must get permission 
from the TCC before proceeding. Mergers which may substantially reduce com petition must be 
notified to the TCC within seven days of the merger date.  
3.207.   Dominant market position is defined in the TCC Regulations. They provide that, in the case 
of one business operator, it should have a market share of more than 50% in the previous year, and 
it should have sales of no less than THB 1 billion. In the case of a group, the top three business 
operators' combined market share should be no less than 75%, and the sales amount should be no 
less than THB 1 billion.  
3.208.   Business operators are ent itled to request advance official adjudication from the TCC and 
receive advice from the OTCC on whether their practice is suspected to be illegal.  
3.3.6.3   Enforcement  
3.209.   During previous Reviews, enforcement of the old Act was considered weak due to legislative 
and institutional shortcomings. In order to enhance effectiveness in restraining violations, the new 
Act empowers the TCC to issue administrative penalties in response to violations (Table 3.2 5). 
However, only the Intellectual Property and International Trade C ourt is authorized to order criminal 
penalties. The TCC has the power to settle cases with the alleged business operators. It may also 
order remedies to redress market conditions affected by a merger or competition violation. The new 
Act does not prescribe  a leniency programme  as such. However, under Article 79 paragraph 3, it does 
authorize the TCC to impose a lower fine for a whistleblower, provided that s /he follows the criteria, 
methods, and conditions prescribed by the Commission; these are yet to be a pproved.  
  
 
130 More information about these Acts is availa ble in WTO document WT/TPR/S/255/Rev.1, 
8 February  2012.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Table 3.25 Penalties for different types of anti -competitive conduct  
Violations  Criminal penalties  Administrative penalties  
Abuse of dominant market 
position  1. A term of imprisonment of not 
more than two years; or  
2. A fine of not more than 10% of 
the turnover in the year of the 
offence; or  
3. Both.  - 
Hardcore cartels  1. A term of imprisonment of not 
more than two years; or  
2. A fine of not more than 10% of 
the turnover in the year of the 
offence; or  
3. Both.  - 
Non-hardcore cartels  - -  An administrative fine of not more 
 than 10% of turnover in the year of 
 the offence  
- An administrative fine of no more than 
 THB 1 million for an offence 
 committed in the first year of the 
 business operation  
Merger: failure to notify the 
TCC of the outcome of a 
merger which may 
substantially reduce 
competition in a market, 
within 7 days of the date of 
merging  - An administrative fine of not more than 
THB 200,000 and a further fine of not 
more than THB 10,000 per day for the 
duration or the period the violation 
occurred  
Merger: failure to seek 
permission from the TCC for 
a merger which may cause a 
monopoly or result in a 
dominant position in a 
market  - An administrative fine of not more than 
0.5% of the transaction value of the 
merger  
Unfair trade practices   - An administrative fine of not more 
than 10% of turnover in the year of the 
offence  
- An administrative fine of no more than 
 THB 1 million for an offence 
 committed in the first year of the 
 business operation  
Unreasonable agreements 
with foreign firms   - An administrative fine of not more 
 than 10% of turnover in the year of 
 the offence  
- An administrative fine of no more than 
 THB 1 million for an offence 
 committed in the first year of the 
 business operation  
Source:  WTO Secretariat, based on the Trade Competition Act B.E. 2560 (2017) ; and information provided 
by the authorities.  
3.210.   The 2017 Act also incorporates the possibility of private enforcement. Specifically, a person 
who suffers damages from relevant violations of the Act has the right to file a lawsuit and make a 
damage claim. The Consumer Protection Commission , or any associati on or foundation recognized 
by the Commission under the law on consumer protection,  has the power to initiate damages claims 
on behalf of consumers.  
3.211.   The new TCC is now more active in competition enforcement. By end -May 2020, 44 claims 
had been filed with t he TCC. Among them, 34 claims were related to unfair trade practices, 3 to 
restrictive agreements, 7 to abuse of dominant position, and 1 was in the area of mergers. The TCC 
concluded 27 cases and found violation in 1 case. Fines were imposed in 2 cases. T he first case 
concerned the abuse of dominant market position and the restriction of competition by the 
manufacturer of an energy drink.131 It was filed by distributors who were prohibited by the relevant 
 
131 This case was filed under the old Trade Competition Act B.E. 2542 (1999) and , therefore , is not 
included in the above -mentioned 44 claims.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  manufacturer from selling the energy drinks  of its c ompetitors. The TCC concluded that the operator 
was abusing its dominant market position to restrict competition and the business activities of other 
operators. The TCC arrived at a settlement with the relevant operator and imposed a fine of 
THB 6 million on the latter and an additional THB 6 million on the director of the company. This is 
considered a landmark case, as it marks the first time that the TCC exercised its settlement power. 
The second case took place in 2018 and concerned unfair trade practice s in the agricultural sector; 
the TCC originally imposed a fine of THB 50,000 but subsequently lowered it to THB 25,000 as  the 
offender pleaded guilty.  
3.212.   To raise awareness of the new Act, different advocacy activities have been  organized since 
2017, for the  business community, educational institutes, law firms, sector regulators, and the 
public. Notably, during July -September 2019, the OTCC, together with 76 Provincial Commercial 
Offices, organized a series of workshops concerning unfair trade practices and relevant legal 
procedures in each province of Thailand. In February -March 2020, the OTCC organized another 
series of seminars concerning unfair trade practices in wholesale/retail and franchise businesses with 
the view to disseminating information on relev ant guidelines. Activities were also held around World 
Competition Day in 2019 , with the objective of heightening  public awareness of competition law and 
exchanging knowledge and experience regarding competition law enforcement in developed 
countries.  
3.213.   There are competition chapters/provisions in some FTAs to which Thailand is a party (ASEAN -
Australia -New Zealand FTA, ASEAN -Japan FTA, Thailand -Japan FTA, Thailand -Australia FTA, and 
Thailand -New Zealand FTA). However, they are generally limited to transparen cy and cooperation 
aspects.  
3.3.6.4   Price regulation and control  
3.214.   The legal and institutional framework for price regulation has not changed since the previous 
Review. The Price  of Goods and Services Act B.E. 2542 (1999) is the main piece of legislation in this 
regard .132 The purpose of the Act is to ensure the fair price of goods and services, and their adequate 
supply . The Central Commission on Prices of Goods and Services (CCP), established in accordance 
with the Act and located in the Department of Internal Trade at the Ministry of Commerce, is the 
competent authority for implementing relevant policies under the Act. The main responsibilities of 
the CCP include : (i) to designate controlled goods or services; (ii) to prescribe price controls and/or 
other control measures for such goods or services; (iii) to enforce the measures and monitor 
implementation ; and (iv) to review complaints and make appropriate decisions thereon. In addition 
to the CPP, provincial commiss ions were established under the Act to monitor  prices locally.  
3.215.   Once the CPP, with the approval of the Cabinet, issue s a notification designating controlled 
goods or services, it has the power to fix or maintain the price of such goods or services or to fix  
the distributor's maximum per unit profit rate. It also has the power to prescribe rules, procedures 
and conditions with regard to the production, import, export, purchase, distribution or storage of 
the controlled goods or services, and to prescribe meas ures to prevent hoarding of such goods or 
services.133 In addition, the CPP may require business operators to display the prices of their goods 
or services.134  
3.216.   The CCP maintains two types of lists: one list contains goods and services under  price 
monitoring  (Table 3.26), and the other contains goods and services subject to price control  
(Table  3.27). Both lists are updated regularly.  
Table 3.26 Goods and services subject to price monitoring, March 2020  
List Products  
Goods  
Sensitive 
list 1. sugar, 2. vegetable oil, 3. diesel, 4. medical masks  
Priority 
watch list  1. pesticides and fungicides, 2. products that contain ethyl alcohol as a component for hand hygiene, 
3. scrap paper and recycled paper  
 
132 Price of Goods and Services Act, B.E. 2542 (1999) (English translation). Viewed at: 
https://www.dit.go.th/en/backoffice/uploadfile/255609171740127152262.pdf .  
133 Sectio n 25, Price of Goods and Services Act, B.E. 2542 (1999).  
134 Section 28 , Price of Goods and Services Act, B.E. 2542 (1999).  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  List Products  
Watch list  1. fresh chicken meat, 2. eggs, 3. duck eggs, 4. beef, 5. pork, 6. tiger prawns and vannamei (white 
shrimp), 7. mackerel, 8. catfish, 9. tilapia, 10. steamed mackerel, 11. morning gl ory, 12. Chinese kale, 
13. coriander, 14. spring onions, 15. chili, 16. limes, 17. freshly -made noodles, 18. Chinese cabbages, 
19. cabbages, 20. Bok choy, 21. cockles and mussels, 22. ready -to-eat meals, 23. packed rice, 
24. powdered milk, 25. fresh milk, 26. yoghurt, 27. soy milk, 28. sweetened condensed milk, 
29. condensed imitation cream, 30. instant powdered coffee, 31. creamers, 32. ice, 33. carbonated 
drinks, 34. drinking water in sealed containers, 35. ready -to-drink juice in sealed containers, 36. r eady-
to-drink instant tea in sealed containers, 37. ready -to-drink instant coffee in sealed containers, 38. fruit 
in sealed containers, 39. vegetables in sealed containers, 40. Chocolate -flavoured drinks (liquid and 
powdered), 41. salt, 42. fish sauce, 43.  dark soy sauce, 44. vinegar, 45. soy sauce, 46. oyster sauce, 
47. ketchup, 48. chili sauce, 49. sweet chili sauce, 50. monosodium glutamate (MSG), 51. wheat flour, 
52. cassava flour, 53. dried rice vermicelli, 54. vermicelli, 55. half -instant food in seal ed containers, 56. 
instant food seasonings, 57. food in sealed containers, 58. ground pepper in sealed containers, 59. 
soybean paste in sealed containers, 60. coconut milk in sealed containers, 61. body lotions, 62. facial 
foam, 63. soap/liquid soap, 64. s hampoo, 65. hair conditioner, 66. styling or hair dye gel, 67. cream or 
hair dye solution, 68. odour eliminators and air fresheners, 69. talcum powder, 70. detergent, 71. liquid 
detergent, 72. stain remover products for clothes, 73. diapers, 74. fabric sof tener, 75. ironing liquid, 
76 dishwashing products, 77. disinfectant toilet cleaner, 78. floor cleaner, 79. furniture polish, 80. shoe 
polish solution or cream, 81. toothpaste, 82. toothbrushes, 83. sanitary napkins, 84. diapers, 85. cotton 
buds, 86. dry b atteries, 87. razor blades, 88. mosquito and insect repellents, 89. deodorant products, 
90. paper pulp, 91. Kraft paper, 92. corrugated paper, 93. printing and writing paper, 94. proof paper, 
95. toilet paper and facial tissue, 96. school notebooks 97. lig ht bulbs, 98. electric hair dryers, 
99. electric fans, 100. electric rice cookers, 101. refrigerators, 102. televisions, 103. electric kettles, 
104. food grinders and mixer machines, 105. irons, 106. air conditioners, 107. washing machines, 
108. vacuum mac hines, 109. water heaters, 110. air purifiers, 111. microwaves, 112. electric water 
pumps, 113. cars, 114. small trucks, 115. motorcycles, 116. bicycles, 117. engine oil filters, 118. air 
filters, 119. brake pads, 120. car tyres, 121. motorcycle tyres, 122 . bicycle tyres, 123. batteries, 
124. tint films, 125. helmets, 126. floor tiles, wall tiles, 127. roof tiles, 128. gypsum sheets, 
129 insulation sheets, 130. pavers, 131. mirrors, 132. cement, 133. cement pipes, 134. PVC pipes, 
135. aluminium pipes, 136. zinc sheets, 137. rebar, 138. steel plates (including galvanized), 
139. structural steel, 140. aluminium faces, 141. plywood, 142. nails, 143. electrical wires, 144. paints, 
145. stones, 146. sand, 147. red bricks, 148. lightweight concrete, 149. cement bl ocks, 150. ready -
mixed concrete, 151. ready -mixed concrete floors, 152. tanks, 153. grease trap containers, 
154. cement grout, 155. gasoline, 156. lubricants, 157. bunker oils, 158. gasohol, 159. liquefied 
petroleum gas, 160. LPG for cars, 161. plastic pel lets, 162. plastic bags, 163. plastic carrier bags, 
164. plastic garbage bags, 165. plastic wraps, 166. natural gas vehicles (NGV) 167. polypropylene 
(spunbond) for producing medical masks, 168. painkiller medicine, 169. cold medicine, 170. muscle 
relaxant s, 171. wound dressings, 172. bandages, 173. cotton wool, 174. walking tractors, 175. tractors, 
176. lawn mowers, 177. rice combine harvesters and threshers, 178. gasoline water pumps, 179. light 
protection nets, 180. hoes, 181. spades, 182. grass shears, 183. fertilizers, 184. agricultural chemical 
sprayers, 185. animal feed/ maize/ wheat, 186. fish meal, 187. tin plate steel, 188. chromium plate 
steel, 189. school bags, 190. school uniforms, 191. school socks, 192. school shoes, 193. water filters, 
194. g old ornament, bullion, 195. closed circuit television cameras, 196. car cameras, 197. power 
banks, 198. flash drives, 199. hens, 200. chicks  
Services  
Sensitive 
list 1. treatment services, medical services, and other services of medical institutions relat ing to treatments  
Priority 
watch list  None 
Watch list  1. repair of electrical devices, watches or shoes, 2. air -conditioner installation and maintenance, 3. car 
parking, 4. rental residences, hotels or accommodation, 5. sports and movie tickets, 6. sports/ exercise 
facilities, 7. hairdressers or barbers, 8. laundry, 9. beauty salons, 10. tailoring services, 
11. photocopying, 12. veterinary, 13. locksmith/ spare keys, 14. residential rental fees, e.g. plumbing, 
electricity and other service fees, 15. auto repair, 16. engine oil changing or replacing, 17. delivery 
(goods, documents, and packages), 18. installation of electrical devices, plumbing, or telephones, 
19. tutoring, 20. payment at a service point, 21. termite, insect, rat and pest control  
Source:  Information provided by the authorities.  
Table  3.27 List of goods and services under price control, March 2020  
 
      
Category of paper and 
product   Category of construction 
materials   Category of food 
1 Corrugated cardboard, Kraft 
paper  19 PVC pipes  38 Garlic  
2 Printing and writing paper  20 Cement  39 Eggs 
3 Scrap paper and recycled 
paper  21 Electrical wires  40 Durians  
 
Category of transportation 
hardware  22 Structural steel, flat steel, 
rebar  41 Powder milk, ready -to-
consume milk products in 
liquid form, not including 
yoghurt  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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4 Motorcycle tyres, automobile 
tyres  Category of important 
agricultural goods  42 Oils and fats obtained from 
plants and animals (edible or 
inedible)  
5 Motorcycles, passenger cars, 
small trucks  23 Paddy, milled rice  43 Wheat flour   
 
Category of agriculture 
materials  24 Wheat, barley  44 Mangosteens  
6 Water pumps  25 Maize  45 Longans  
7 Fertilizers  26 Cassava branches and boughs 
for propagating and producing 
products  46 Pigs, pork  
8 Pesticides or fungicides  27 Oil palm fruits  47 Onions  
9 Rice combine -harvesters  28 Ripe coconuts and products  48 Pre-cooked food packaged in 
sealed containers   
10 Tractors  29 Rubber, i.e. fresh latex, rubber 
cubes, rubber scraps, thick 
latex, rubber sheets, rubber 
bars, rubber crepes  49 Food packaged in hermetically 
sealed containers   
11 Animal feed and concentrated 
feed  Category consumer goods   Others  
 
Category of petroleum 
products  30 Toilet paper, facial tissue  50 Student uniforms   
12 Liquefied petroleum gas  31 Shampoo   Category of services  
13 Fuel oil  32 Fabric softener  51 Rights granted for publicizing 
copyrighted works of songs for 
commercial purposes    
Category of medicine and 
medical supplies  33 Detergent, liquid detergent  52 Services of product delivery for 
online business   
14 Medicine  34 Dishwashing products  53 Agricultural services   
15 Medical supplies for medical 
treatments  35 Sanitary napkins  54 Treatment services, medical 
services and other services of 
medical institutions relating to 
treatments   
16 Medical mask  36 Diapers for babies and adults  55 Services of receiving payments 
at a service point   
17 Polypropylene (spunbond) for 
producing medical mask  37 Soap, liquid soap  56 Warehouse rental services  
18 Products that contain ethyl 
alcohol as a component for 
hand hygiene      
Source:  Information provided by the authorities.  
3.217.   The 229 goods and services on the price monitoring list are watched over by the Department 
of Internal Trade. The list is further subdivided into three categories: (i) the sensitive list; (ii) the 
priority watch list; and (iii) the watch list. Products on the sensitive list are subject to daily 
monitoring; those on the priority watch list are subject to monitoring twice a week; and those on 
the watch list, every 15 days or every month . For the 56 goods and services currently on the price 
control list, the m anufacturers or services suppliers must get approval from the CPP before raising 
prices , or give advance notice of a change in price. The price control list covers essential items for 
daily use , such as food and consumer products, farm -related products (fe rtilizers, pesticides, animal 
feed, tractors, rice harvesters), construction materials, transport equipment, paper, petroleum , and 
medicines. Delivery services for online shopping were added to the control list in 2017, and medical 
services in 2019. In Mar ch 2020, face masks and hand sanitizers were declared controlled goods , 
due to the COVID -19 pandemic.   
3.218.   Since May 2019, private hospitals have been required to report to the Department of Internal 
Trade the prices at which they purchase and sell medicines, and to notify the Department 15 days 
in advance of any price adjustment.135 They are also required to show the QR code136 on medicines 
in a visible area so that patients can compare price information.  
3.219.   The Ministry of Commerce may also, through administrativ e measures, ask for the 
cooperation of business operators to sell essential goods and services at  affordable  prices, while 
reflecting changes in production costs. According to the authorities, the purpose is to ensure fair 
 
135 The Economist Intelligence Unit, Thailand – Price controls.  Viewed at: 
http://country.eiu.com/article.aspx?articleid=1348871918&Country=Thailand&topic=Regulation&subtopic=Co
mpetition+policy&subsubtopic=Pri ce+controls&oid=1258871909&aid=1 .  
136 A QR is a matrix barcode that can be read quickly by a cell phone . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  trade for both consumers and busi ness operators, and this is done in accordance with market 
mechanisms.  
3.220.   The Department of Internal Trade may take legal or administrative action against those who 
do not comply  with the provisions of the Price of Goods and Services Act . Violations are punishable 
by imprisonment ranging from one month to seven years and/or a fine ranging from THB 2,000 to 
THB 140,000, depending on the type of offence committed.137  
3.3.7   Intellectual pr operty rights  (IPRs)  
3.3.7.1   Overview  
3.221.   During the review period , Thailand  adopted various reforms in its intellectual property (IP) 
system with a view to improving it and boost ing performance in the areas of science, technology , 
and innovation.  Following the publication of a 20-year IP Roadmap  by the Department of Intellectual 
Property (DIP)  at the MoC  in 2017, Thailand implemented a number of improvements regarding 
administrative resources and the legislative IP framework.  
3.222.   Domestic  improvements during the review period include d the establish ment of  a 
subcommittee on enforcement against IP infringement (led by a Deputy Prime Minister ), the 
amend ment of  the Trademark Act  to provide for the registration of sound marks , and the  amend ment 
of the Copyright and Computer Crime Act s to better address  online IP infringement . Thailand made 
considerable efforts towards streamlining  its trademark and patent examination processes, which 
led to a reduction in patent pendency during the review period.  
3.223.   At the international level, Thailand joined  the Protocol Relating to the Madrid Agreement 
Concerning the International Registration of Marks (Madrid Protocol ), which facilitates foreign filing; 
acceded to the Marrakesh Treaty  to Facilitate Access to Published Works for Persons Who Are Blind, 
Visually Impaired  or Otherwise Print Disabled (Marrakesh Treaty) ; and began the implementation of 
the ASEAN IPR Action Plan 2 016-25.138  
3.3.7.2   Economic policy context  
3.224.   Thailand's rankings in global indices of innovation and competitiveness reflect  its status as 
a well-performing middle -income  economy  within  the ASEAN. Although its overall competitiveness 
ranking fell  (in the Global Comp etitiveness Index139) from 34th place in 2016 to 40th in 2019, Thailand 
remains one of  the few non -high-income economies in the top 40  of that Index . Thailand continues 
to pay increasing attention to the more complex areas  of its policy framework  and institutional 
development , ICT adoption , and complex skills training for its workforce , which are vital for its 
growing creativity and innovation capital .140  
3.225.   Thailand , like most middle -income countries, is a net IP -importing count ry (Chart 3.3). Since 
2016, the  negative trade balance on IP licence fees has continued its long -term trend, reaching  
USD 5 billion in 2018.  
  
 
137 Chapter V, Price of Goods and Services Act, B.E. 2542 (1999).   
138 ASEAN IP Portal, ASEAN Framework Agreement on Intellectual Property Cooperation . Viewed at: 
https://www.aseanip.org/About . 
139 World Economic Forum (WEF), Global Competitiveness Report Rankings . Viewed at: 
www.weforum.org/reports .  
140 WEF, Global Competitiveness Report Rankings 2017 . Viewed at: http://www3.weforum.org 
/docs/GCR2016 -2017/05FullReport/TheGlobalCompetitivenessReport2016 -2017_FINAL.pdf . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Chart 3.3 Charges for the use of IP n.i.e., 2005 -18 
(USD million)  
 
Source:  Bank of Thailand. Viewed at: 
https://www.bot.or.th/English/Statistics/EconomicAndFinancial/Pages/StatBalanceofPayments.aspx . 
3.226.   In 2017, t he DIP published a 20 -year IP Roadmap that sets out the reform of the country's 
IP system, focusing on six IP -related areas, including IP creation, protection, and enforcement.141 
The objectives of this Roadmap are consistent with the 20-year National Strat egy (2018 -37), the 
12th National Social and Economic Development Plan (2017 -21), and the MoC's policy on  creating a 
more innovative economy by boosting the technical and creative sectors .142  
3.227.   The National Committee on Intellectual Property Policy, established in 2011 and led by the 
Prime Minister, is the driving body for these policies. This Committee, and its Subcommittee on IPR 
Enforcement, established in 2016 and led by a Deputy Prime Minister, improved communication and 
coordination on IP protec tion and enforcement among the competent authorities.   
3.3.7.3   Structure and use of the IP system  
3.228.   Thailand's institutional framework for IP has  remain ed unchanged  since the previous Review . 
The MoC is responsible for IP policy,  and governmental initiatives of IP l egislation . The DIP is 
responsible for administering and implementing laws and initiating reforms on a wide range of IPRs, 
covering copyright, trademarks, patents, utility models, integrated circuit topographies, 
geographical indications, trade secrets, op tical disc production, and other  relevant  subjects.  
3.229.   The DIP continues to rank among the top IP offices in middle -income economies regarding 
the number of trademark and patent applications.143 The numbers of patent applications, patents 
granted, and trademark and industrial design applications have witnessed a general increase since 
2014 (Table 3.28) . The relative share of filings by residents vis-à-vis foreign applicants remains  at 
between 50 % and 60% for trademarks and at around 12% for patents. Similarly, applications for 
industrial design protection in Thailand, both by residents and by foreign applicants , show continuous  
growth,  and around  65% of all applications com e from Thai resident s.144 
  
 
141 Information provided by the authorities.  
142 DIP, Annual Report 2018. Viewed at: http ://www .ipthailand .go.th/images /2284 /ARDIP2018 .pdf. 
143 WIPO,  WIPO IP Facts and Figures 2018 . Viewed at: 
https://www.wipo.int/edocs/pubdocs/en/wipo_pub_943_2018.pdf . 
144 WIPO , Statistical Country Profile - Thailand . Viewed at:  
https://www.wipo.int/ipstats/en/statistics/country_profile/profile.jsp?code=TH . 
-5,500-5,000-4,500-4,000-3,500-3,000-2,500-2,000-1,500-1,000-5000500
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Receipts
Payments
Trade balanceChart 3.[THA] Trade in charges for the use of intellectual property, 2005 -18
USD m illion
Source: Bank of Thailand.  Viewed at:  https://www.bot.or.th/English/Statistics/EconomicAndFinancial/Pages/StatBalanceofPayments.aspx .WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Table 3.28 Applications for trademarks, industrial designs, and patents, and patents 
granted,  2014 -19 
 2014  2015  2016  2017  2018  2019  
Trademark applications   
Resident  27,517  33,347  35,720  31,183  32,826  26,653  
Non-resident  18,144  18,997  20,415  22,819  45,455  21,402  
Total  45,661  52,344  56,153 54,002  78,281  48,055  
Abroad  10,963  9,520  11,204  11,949  13,260  21,357  
Industrial design applications   
Resident  2,806  3,162  3,566  3,698  4,043  3,599  
Non-resident  1,271  1,299  1,357  1,424  1,426  1,701  
Total  4,077  4,461  4,923  5,122  5,469  5,300  
Abroad  2,315  1,383  1,535  2,119  1,019  .. 
Patent applications   
Resident  1,006  1,029  1,098  979 904 850 
Non-resident  6,947  7,138  6,722  6,886  7,245  7,367  
Total   7,953  8,167  7,820  7,865  8,145  8,217  
Abroad  399 366 503 632 781 .. 
Patents granted   
Resident  73 62 61 88 128 171 
Non-resident  1,219  1,302  1,777  2,992  3,690  2,951  
Total  1,292  1,364  1,838  3,080  3,818  3,122  
Abroad  126 157 164 161 220 .. 
.. Not available.  
Source:  WTO Secretariat, based on WIPO statistical data, and i nformation provided by the authorities . 
3.230.   A significant shift is observed in the number of patents granted by the DIP per year. While 
the number of patent applications remained stable, the ratio of grants to application s improved from 
around 15% in 2014 to over 45% in 2018, reflect ing successful efforts to modernize the office 
procedure, improve capacity , and redu ce the pendency rate and examination time .145 The authorities 
reported that the rate of patent registration  increased by 25.59%  from FY2017 to FY2018 .146 
3.231.   A new electronic filing system for patent and trademark applications (e -Filing) through the 
DIP's website , and an e-Payment system for accepting electronic payments , were launched in 2018,  
and were used in the applications of  6,850 trademarks and 1,207 patents within the first year of 
their launch .147 While online filing has been available for trademarks in Thailand since 2005, the DIP 
upgraded the online communication platform for the filing of office communications. The DIP also 
joined WIPO's global system for centralized access to search and examination (CASE) as an 
"accessing office " (2015), although not as a "providing office ".148 The authorities indicated that an 
online filing system for copyright notification has also been available since February 2020.  
3.232.   Thailand continues  to experience a surge in applications for utility models (referred to as 
"petty patents ") under Section 65bis of the Patent Act (No. 3 as amended in 1999). While Thai IP 
law has a novelty requirement for utility models , it does not impos e substantive examination , which 
is only triggered upon a request by either the applicant or any interested third party within one year 
of publication of the registration . The authorities stated that most utility model applications by Thai 
residents were f or food and cosmetics.  
 
145 Based on WIPO statistical data (last updated in March 2018 ), and information prov ided by the  
authorities . 
146 DIP, Annual Report 201 8. Viewed at: http ://www .ipthailand .go.th/images /2284 /ARDIP2018 .pdf. 
147 DIP, Annual Report 201 8. 
148 Many patent applications are filed in multiple offices , and patent examiners can increase the 
efficiency and quality of their work by sharing their examination results. The WIPO CASE system enables 
patent offices to securely share search and examination documentation related to patent applicat ions, in order 
to facilitate work -sharing program mes. Examiners at an "accessing office " have access to the WIPO CASE web 
portal , and can use the system to search for patent applications at other participating offices and to retrieve 
the documents that are made available by those offices . The "providing office " makes available the search and 
examination documentation for patent appl ications filed at that office. Technically, this may be done by 
uploading the documents into the WIPO CASE system hosted by WIPO, or by making the documents available 
to the WIPO CASE system via secure web services . WIPO, WIPO CASE – Centralized Access to Search and 
Examination . Viewed at: https://www.wipo.int/case/en/ . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.3.7.4   International context and WTO participation  
3.233.   Since the previous TPR, Thailand has signed and ratified WIPO's Marrakesh VIP Treaty, which 
entered into force on 28 April  2019, and joined the Madrid Protocol in 2017. Thailand is a member 
of WIPO and party to a number  of its treaties, such as the Patent Cooperation Treaty , the Paris 
Convention for the Protection of Industrial Property,  and the Berne Convention for the Protection of 
Literary and Artistic Works .149 It has yet to accede to the WIPO Copyright Treaty (WCT) or the WIPO 
Performances and Phonograms Treaty (WPPT) . According to the authorities , preparations for these  
are underway.  
3.234.   As a member of the ASEAN, Thailand cooperates with other ASEAN members on IP pol icy 
formulation in the ASEAN Working Group on IP Cooperation (AWGIPC ).150 The ASEAN IPR Action 
Plan 2016 -25151, adopted by the AWGIPC, formulates a number of strategic regional goals152 and 
provides the backdrop for the DIP's 20 -year Roadmap (Sections 3.3.7.1  and 3.3.7.2).  
3.235.   Thailand is party to several FTAs, either individually or in the context of its ASEAN 
membership; some of them contain IP provisions ( ASEAN -Australia -New Zealand  FTA, Thailand -
Australia FTA, Thailand -New Zealand Closer Economic Partnership, and Japan -Thailand FTA).  The 
FTAs that entered into force during the reporting period, namely the Thailand -Chile FTA153 and the 
ASEAN –Hong Kong, China FTA154, contain few or no commitments with respect to IP protection.   
3.236.   With respect to the TRIP S Agreement, Thailand d eposited the instrument of acceptance on 
the 2005 Protocol Amending the TRIPS Agreement in 2016 and is in the process of amending the 
Patent Act to reflect the amendment. In the context of the TRIPS Council, Thailand is a co -sponsor 
of the Modalities Proposal155 in the negotiations of the TRIPS Special Session, which advocates a 
multilateral register for wine and spirit geographical indications (GIs), as well as GI extension and a 
requirement to disclose the origin of genetic resources  and associated traditional knowledge in 
patent applications. Under the provisions of Article 63.2 of the TRIPS Agreement, Thailand submitted 
responses to the Checklist of Issues on Enforcement on 14  January 2015. In May 2020, the 
authorities notified main  legislative changes to the WTO:  
• Trade Secrets Act B.E. 2545 (2002) (as amended by Trade Secrets Act (No.  2) B.E. 2558 
(2015))156;  
• Copyright Act B.E. 2537 (1994) (as amended by Copyright Act (No.  2) B.E. 2558 (2015), 
Copyright Act (No.  3) B.E. 2558 (2015) , and Copyright Act (No.  4) B.E. 2561 (2018))157; 
and 
• Trademark Act B.E. 2534 (1991) (as amended by Trademark Act (No.  2) B.E. 2543 (2000) 
and Trademark Act (No.  3) B.E. 2559 (2016)) .158 
3.237.   Parallel imports are allowed for goods protected by registered or unregistered trademarks. 
Under the Patent Act, the patentee has an exclusive right to import patented products or products 
 
149 For a detailed list of IP -related treaty membership, see  WIPO IP Portal, Thailand . Viewed at : 
https://wipolex.wipo.int/en/legislation/profile/TH . 
150 ASEAN Intellectual Pro perty Portal. Viewed at : https://www.aseanip.org/About . 
151 ASEAN Intellectual Pro perty Portal. ASEAN IP Rights Action Plan 2016 -2025. Viewed at: 
https://www.aseanip.org/Statistics -Resources/ASEAN -IPR-Action -Plan-2016.  
152 The four strategic goals  of the ASEAN IPR Action Plan 2016 -25 are : (i) Strategic Goal 1: a more 
robust ASEAN IP system is developed by strengthening IP offices and building IP infrastructures in the region; 
(ii) Strategic Goal 2: regional IP platforms and infrastructures are develope d to contribute to enhancing the 
ASEAN Economic Community; ( iii) Strategic Goal 3: an expanded and inclusive ASEAN IP ecosystem is 
developed; and ( iv) Strategic Goal 4: regional mechanisms to promote asset creation and commercialization , 
particularly GIs and traditional knowledge , are enhanced.  
153 Signed on 4 October 2013, the Agreement entered into force on 5 November 2015. It contains no 
specific rules on IP protection.  
154 Signed on 12 November 2017, the Agreement entered into force for Thailand on 11 June  2019. It 
contains a re -affirmation of the parties' rights and obligations under the TRIPS Agreement, and a commitment 
to enhance cooperation (Chapter 10).  
155 WTO documents TN/C /W/52/Add.3, 29 July 2008; and TN/C/W/60, 19 April 2011.  
156 WTO document s IP/N/1/THA/3/R ev.1; and IP/N/1/THA/U/2/Rev.1, 27 May 2020.  
157 WTO document s IP/N/1/THA/ 4; and IP/N/1/THA/C/3, 27 May 2020.  
158 WTO document s IP/N/1/THA/ 5; and IP/N/1/THA/T/2, 27 May 2020.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  produced by the patented process. However, after a patented product  has been produced or sold by 
a third party with the authorization or consent of the patentee, the patentee's rights over these 
products are deemed exhausted, including the right to prevent parallel imports. For layout designs, 
although the right holders h ave an exclusive right to import their protected layout design, another 
person may import the protected layout design without constituting an infringement if : 
• that person did not know or had no reasonable ground to know, at the time of acquiring 
such integ rated circuit or product, that the layout -design infringing the right holder 's rights 
was incorporated; or  
• the layout -design was lawfully acquired from the commercial exploitation of the right 
holder.  
3.3.7.5   Patents  
3.238.   There has been virtually no change to Thailand' s patent legislation since its previous Review. 
The Patent Act B.E. 2522 covers full patents for inventions that are new, industrially applicable, and 
represent an inventive step; and petty patents which do not require an inventive step. Terms of 
protectio n, from the date of filing, are 20 years for inventions, 10 years for designs, and 6 years for 
petty patents (renewable for another 2 years twice).  
3.239.   Thai residents filed most patent applications in the area of optics, accounting for 13.7%  of 
the overall gl obal applications in that area in the period 2015 -17.159 Thailand's patent protection 
system witnessed steady growth during the review period , especially in the areas of human 
necessities, transport ation,  and chemistry and metallurgy .  
3.240.   Over the review perio d, the DIP made significant efforts to improve efficiency and timely 
service by improving the allocation of existing resources . It more than tripled the number of patent 
examiners during the review period  (from 30  in 2014 to 99 in 2018), and intensified th e training 
provided to  examiners in order to allow them to handle more complex applications, with the 
particular aim of reducing the lengthy pendency and examination time.  Additional examiners helped 
decrease the patent application backlog by 20% in 2018.160 Since then , the examination of patent 
applications has been shortened from an average of 10 years, to  an average of 6-8 years.161  
3.241.   Long examination times constitute a factor impacting the average age of patents in a 
country.162 In 2018, the  age of patents in Thailand averag ed 13.4 years , improved from the 
14.9 years average in 2013.163 Furthermore, Thailand ha s among the highest shares of withdrawn 
or abandoned applications , reaching 59.3% in 2018 , after India (66.2% ) and Argentina (60.8%).164  
3.242.   Test data for marketing approval of pharmaceutical products  is protected under Article 15 of 
the Trade Secret Act B .E. 2545. While Thailand, which  provide s patent protection of pharmaceutical 
products since the first amendment of its Patent Act in 1992, accepted the TRIPS Amendment in 
2016, it has yet to implement this flexibility into its national patent legislation .165 The generic 
 
159 WIPO , World Intellectual Property Indicators 2019 . Viewed at: 
https://www.wipo.int/edocs/pubdocs/en/wipo_pub_941_2019.pdf . 
160 In 2016 , Thailand had the highest ratio of patent applications to examiners of any ASEAN country . 
(Schultz , M. and Madigan , K. The Long Wait for Innovation: The Global Patent Pendency Problem . Center for 
the Protection of Intellectual Property (CPIP), 2016, p.  22). 
161 US Department of State, 2019 Investment Climate Statements: Thailand . Viewed at: 
https://www.state.gov/reports/2019 -investment -climate -statements/thailand/ . (According to a study, in 2016, 
it took on average 10 years for a patent to be granted, and  almost 12 years for a life science patent . Schultz , 
M. (No.32), pp. 2 and 17.) 
162 The patent age is the number of years a patent remains in force after the filing date. While patents 
can last up to 20 years, only about 20% of all patents are maintained thr oughout the entire period and just 
under 50% are maintained for six to nine years after filing. The average patent age in the U nited Kingdom  and 
in China was 7.7 and 7.4 years, respectively , in 2018 . 
163 WIPO , World Intellectual Property Indicators  2019. Viewed at: 
https://www.wipo.int/edocs/pubdocs/en/wipo_pub_941_2019.pdf . 
164 WIPO , World Intellectual Property Indicators  2019.  
165 Information provided by the authorities.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  pharmaceutical industry, which seems well -positioned to engag e in manufacturing and exporting  
generic drugs , could benefit from such implementation to open business opportunities .  
3.243.   The situation regarding compulsory licences remained unchanged during the review period. 
Of the compulsory licences for government use granted for seven medicines in 2006 -08 by t he 
Ministry of Public Health166, only one remains in use: the licence on a combined formulation  of 
Lopinavir  and Ritonavir , which  covers up to 250,000 patients entitled to essential medicines under 
three national health security schemes, and is due to expire in 2021, after an extension in 2010 .167 
The other licences have either expired, or are effective only where an essential need for these 
medicines exist.168  
3.3.7.6   Trademarks  
3.244.   In recent years, t he DIP has taken measures to improve efficiency in the trademark 
applicatio n and registration process. These include  ongoing efforts to  enhance the online  trademark 
database , in order to  provide accurate and up -to-date information . In 2017, the DIP introduced 
trademark forms designed for the electronic filing process . It also inc reased the number of trademark 
examiners (from 20 in 2014 to 36 in 2018)  and improved their training to streamline the examination  
process . In 2019, t he average time taken to register a trademark was around 16 -18 months  (without 
opposition or appeal ).  
3.245.   The Trademark Act  B.E. 2534 amendment in 2016 that enabl ed sound marks  to be filed for 
trademark registration and protect ion in Thailand  came into force on 28 July 2016.169 On 
1 September 2017, the corresponding Ministerial R egulation came into force which, among others, 
provides (in Clause 11bis) a clarification on the sound mark application process. The amendment 
also implemented Thailand's 2017 accession  to the WIPO Madrid Protocol, which has since facilitated  
businesses ' access to international trademark registration .170 Owners of registered trademarks are 
granted protection for ten years;  registration may be renewed every ten  years. Trademarks that are 
identical or similar to well -known marks may not be registered , and those already registered may 
be revoked.  
3.246.   Under the  Tobacco Products Control Act of 2017 (TPCA B.E. 2561) , which revised the primary 
piece of legislation governing tobacco control , the Ministry of Public Health issued  Regulation 
concerning Criteria, Me thods and Conditions of Tobacco Product and Cigarette Packaging B.E. 2561. 
The Regulation entered into force in September 2019, and impos ed tobacco plain packaging and 
health warning requirements from 8 December 2019. Thailand is thus the first country in Asia to 
require compulsory standardized packaging for tobacco products, including cigarettes . Tobacco 
packaging  must bear the manufacturer 's name in a standardized font , in either English or Thai, 
display packaging in  the standard colour p antone cool grey 2 C, and include health warning photos 
on both sides of the cigarette box, which must extend to 85% of the packet 's area. The Regulation 
sets an administrative fine of THB 40,00 0 (around USD 1,300).171  
3.3.7.7   Geographical indications (GIs)  
3.247.   Arrangement s for the pr otection of GIs remained unchanged during the review period. Under 
the Geographical Indication Protection Act B .E. 2546, terms that, when used on or in connection 
with the goods  in question , identif y the territory, region or locality to which a given quality, 
 
166 The compu lsory licences were granted under  Article 51 of the Patent  Act B.E.  2522 ( Compulsory 
License and Government Use). For details, see the previous TPR Report WT/TPR/S/326 , para. 3.171.  
167 Lee, J.Y., A Human Rights Framework for Intellectual Property , Routledge , 30 June 2017 , Chapter 3.  
168 In the cases of some covered medicines, such as the license for imatinib , the patent owner agreed to 
supply the product for patients under the Universal Health Care Coverage Scheme at no cost, and thus no 
further esse ntial need for this medicine was considered to exist, as long as this offer lasts. ( Lee, J.Y. A Human 
Rights Framework for Intellectual Property , Routledge , 30 June 2017 .) 
169 WTO document s IP/N/1/THA/5 ; and  IP/N/1/THA/T/2, 27 May  2020.  
170 European Commission , 2020 Report on the Protection and Enforcement of IP Rights in Third 
Countries , p. 43.  
171 Tobacco Control Laws,  Legislation by Country: Thailand , 19 December 2019. Viewed at: 
https://www.tobaccocontrollaws.org/legislation/country/thailand/summary ; and Intellectual Property 
Magazine, Thai businesses must comply with plain packaging rules . Viewed at:  
https://www.intellectualpropertymagazine.com/trademark/thai -businesses -must-comply -with-plain-packaging -
rules-138629.htm . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  reputation or other characteristic of the good is attributable, are registerable as  GIs, and use of 
these with other goods that could be designated as originating from the place to which such giv en 
quality, reputation or other characteristic are attributable is prohibited .172 A higher standard of 
protection is available for wine, spirit s, rice, silk, and others as may be designated by the Minister  
of Commerce .173 Registration is valid until it is ca ncelled.  
3.248.   In late 2018, in line with the 20 -Year National Strategy, the 12th National Social and 
Economic Development Plan, and the 20 -Year IP Roadmap, the DIP revised its mission statement to 
"upgrade the national intellectual property system toward 4.0 by  2022", and accentuated the 
importance of developing and adding value for agricultural products through the utilization of GI s in 
order to maintain existing revenue and generate new bases to sustainably increase the income s of 
farmers and  agricultural  comm unities .174 
3.249.   As at March 2020,  Thailand had a total of 137 registered GIs, consisting of 17 foreign GIs 
from eight different countries, and 120 local GIs from 76 provinces. The Thai GI products comprised 
13 rice products, 23 food products, 57 fruit and veget able products, 11 textile products, 
14 handicraft and industrial products, and 2 wine -liquor products. Authorities report that 6 Thai GI 
products are already protected in four economie s, namely the European Union, India, Indonesia, 
and Vietnam. Moreover, 7  Thai GI products are in the process of gaining GI protection in four 
countries, namely Cambodia, China, Japan, and Vietnam.  
3.3.7.8   Copyright and related rights  
3.250.   On 11 November 2018, the Copyright Act (No.  4) B.E. 2561 (2018) was adopted . It entered 
into force on 11 March 2019.175 It allows the authorized or recognized entities to reproduce or adapt 
and communicate to the public the copyright works for the benefit of persons with disabilities, 
making the current Copyright Act conforms to the M arrakesh VIP Treaty. The Copyright Act gives 
protect ion for  the life time of the author  plus 50 years, except : 
• for photographic works, audiovisual works, cinematographic works, sound recordings and 
broadcasting works, copyright protection is for 50 years fr om the date of creation or the 
first publication; and  
• for works of applied art, protection is for 25 years from the date of creation or the first 
publication.  
3.251.   Registration is not required, but the DIP issues certificates for notified copyrighted works.  
3.252.   Several legislative changes relating to the copyright regime took effect during the review 
period . The amendments to the Copyright Act (No s. 2 and 3) B.E. 2558  were both published in the 
Government Gazette in February 2015 . Foreshadowing Thailand's intention to accede to the WIPO 
Copyright Treaty (WCT)176, the amendments include the introduction of a temporary reproduction 
exception  necessary for the operation of a computer program177, the protection of rights 
management information178, and the protection of tech nological protection measures against 
circumvention, where the perpetrator is aware that such act  may induce or cause  copyright 
infringemen t.179 In addition, the concept of exhaustion of rights was introduced, to ensure that the 
distribution right over the copyright work is exhausted after lawful distribution.180 In Thailand, t he 
first-sale doctrine is applicable to parallel importation of copyrighted works: lawful distribution of an 
original copyright work or its copies by a person who has lawfully obtained the ownership of such 
 
172 Geographical  Indication  Protection  Act B.E. 2546 (2003) . 
173 Chapter 5 of the Act prohibits uses of such GIs even where the true origin of the goods is indicated 
or the GI is used in translation or accompanied by expressions such as "kind", "type", "style", "imitation ", or 
the like .  
174 DIP, Annual Report 201 8. Viewed at: http ://www .ipthailand .go.th/images /2284 /ARDIP2018 .pdf. 
175 WIPO, Thailand Copyright Act (No. 4) B.E. 2561 (2018) . Viewed at: https://wipolex.wipo.int/en 
/legislation/details/18436 . WTO documents IP/N/1/THA/4; and IP/N/1/THA/C/3, 27  May 2020.  
176 Information provided by the authorities.  
177 Copyright Act B.E. 2558, Section 32/2.  
178 Copyright Act B.E. 2558, Sections 53/1 to 53/3.  
179 Copyright Act B.E. 2558, Sections 53/4, 53/5 and 70/1.  
180 Copyright Act B.E. 2558, Section 32/1.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  work or copies is exempted from copyright infringement . Parallel imports of copyright works are  
thus allowed in Thailand.  
3.253.   The amendments further establis h a separate cause of action against  the illegal  recording  of 
films in movie theatres ( "camcording ")181, and introduce liability exemption s for Internet service 
providers (ISPs)  when prelimina ry injunction motions are filed for the removal of copyright -infringing 
content from the Internet .182 While the adoption of the takedown mechanism was well received, IP 
owners continue to raise concerns over excessive requirements and limited effectiveness vis-à-vis 
foreign ISPs183, since Section 32/3 does not explicitly provide for website blocking. Further concerns 
relate to the functioning of collective rights management and the widespread use of unlicensed 
software.184 The authorities reported that Thailan d is in the process of addressing these concerns, 
by replacing Section 32/3 with a notice on the takedown process.   
3.254.   Copyright owner s may opt for takedown under the new Computer Crime Act (No. 2) 
B.E. 2560 (2017), which  provides for a permanent injunction to block websites that have online 
IP-infringing content. Under the Act, where there is an offensive dissemination of computer data, an 
officer may, with approval from the Minister of Digital Economy and Society (MDES), file a motion 
with eviden ce to the court requesting the cessation of dissemination or deletion of such computer 
data from the computer system. Copyright owners cannot file the application directly to the MDES 
officers; they must notify through the DIP or the police, who will then gather evidence before 
submitting to the MDES for further action.   
3.3.7.9   Enforcement  
3.255.   Since its inception on 1 December 1997, Thailand's Central Intellectual Property and 
International Trade Court (CIPITC) exercises specialized IP jurisdiction in civil and crimin al cases at 
trial level (Table 3.29). Its judgements may be appealed at the Court of Appeal for Specialized Cases. 
Following the amendment of the Civil Procedure Code in 2015, judgements of the Courts of Appeal 
in civil lawsuits, including civil IP cases, are final unless the Supreme Court grants permission to 
appeal further. In 2019, the CIPITC employed 22 judges with IP and trade law expertise, and 
182 associate judges with subject matter specialization (e.g. engineering, pharmacy, and computer 
programmin g) to hear cases in panels of three judges, with the possibility of hearing expert 
witnesses.185 
3.256.   In 2019, more than one third of civil cases (207 out of 582 cases) related to IP disputes. In 
contrast, virtually all the criminal cases relate to IP offences s uch as dealing in counterfeit goods 
(60% -70%), trademark counterfeiting, and violating the Copyright Act. While civil cases are settled 
or withdrawn in about 50% of the cases, criminal cases are almost universally decided for the 
plaintiff. Cases from the CIPITC account for only 2% -3% of the cases submitted to the Court of 
Appeal and the Supreme Court.186 
Table 3.29 Cases brought to the CIPITC, 2014 -19 
 2014  2015  2016  2017  2018  2019  
Civil cases  874 551 602 569 603 582 
Criminal cases  5,823 4,626 3,720 3,697 3,262 2,631  
Total number of new cases  6,697 5,177 4,322 4,266 3,865 3,213  
Source:  Annual Judicial Statistics Thailand ( B.E. 2557-2561).  
 
181 Copyright Act B.E. 255 8, new Section 28/1. Under Section 69/1, violators may now be subject to 
penalties ranging from THB 100,000 to THB 800,000 (US D 3,210 to US D 25,680 ) or six months to four years ' 
imprisonment, or both.  
182 Copyright Act B.E. 2558, Section 32/3.  
183 Bloomberg Law , Thailand's New Law for Combating Online IP Infringement . Viewed at: 
https://news.bloomberglaw.com/ip -law/thail ands-new-law-for-combating -online -ip-
infringement?context=search&index=8 . 
184 USTR , 2018 Special 301 Report , p. 65; and European Commission, 2020 Report on the Protection 
and Enforcement of IP Rights in Third Countries , p. 43.  
185 Information from a presentati on at the WTO IP Judges' Symposium 2017.  
186 Annual Judicial Statistics Thailand 201 4-18 (B.E. 2557 -2661).  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  3.257.   The 20 -year IP Roadmap includes the reform of IP enforcement as one of six focus areas, 
and led to a number of improvement  efforts,  along with increased engagement and communication 
at the international level .187 Recognizing that sanctions  and penalties imposed for IP infringements 
were, at times , too low to have a deterrent effect, the Customs Act B .E. 2560 was revised in 2017 
to introduce  higher penalties for the importation, transit and transhipment of counterfeit and pirated 
goods , to a maximum of ten years' imprisonment and /or a fine of up to THB 500,000 ( USD 16,200), 
and extended the liability to acts committed by "wilful intent " or "negligence ".  
3.258.   Enforcement actions by the Royal Thai Police, the Department of Special Investigation, and 
the Customs Department have , in genera l, declined, from a total of 8,733 in 2015, to 4,880 in 2019. 
Raids conducted by the Customs Department during said period remained stable, at around 
1,000  per year, while those conducted by the Royal Thai Police and the Department of Special 
Investigation  declined . The decline reflected overall changes of IPR -infringing cases from physical to 
digital ones.  
3.259.   Overall, the number of items seized declined from over 10.8 million items (9 million of which 
were counterfeit cigarettes seized by the Customs Departme nt in April) in 2018 to 1.6 million in 
2019.188 All items seized by enforcement authorities were destroyed . In September 2019, the DIP , 
in collaboration with the enforcement authorities , destroyed more than 10 million infringing goods.  
3.260.   Despite the considerable efforts made to tackle enforcement issues, use of unlicensed 
software in both the public and private sectors189, extensive cable and satellite signal theft, and 
counterfeit goods (th at find their way to other countries in Asia, South America and the Middle East, 
which serve as transit channels),  remain significant. These have a chilling effect o n the ecosystem  
for creative content in Thailand , making  it a difficult  marketplace for the  content industry, consumers 
and other pertinent actors . 
3.261.   The percentage of  pirated  software in Thailand continued to decline during the reporting 
period but is estimated to remain significantly above the regional average for the Asia Pacific region. 
The ra te fell from 71% in 2013  (compare d with a  62% average for the Asia Pacific region ) to 69% 
in 2015 and to 66% in 2017 ( compared with a 57% average for the Asia Pacific region ).190  
3.262.   It was suggested that a comprehensive IP reform programme might include: furt her 
streamlining and automating procedures and processes at the DIP, the FDA, and other institutions 
to support innovation; enhancing the institutional capacity of all IP -related agencies, and in particular 
the DIP; and improving IP teaching and training, as well as raising the awareness of IP protection in 
the country.191 
 
187 These improvements are also reflected in the downgrading of Thailand's status , in 2017 , from the 
USTR's  Special 301 "Priority Watch List " to its "Watch List ". 
188 DIP, IPR Enforcement Statistics . Viewed at: www.ipthailand .go.th . 
189 USTR , 2018 Special 301 Report , p. 65; and European Commission, 2020 Report on the Protection 
and Enforcement of IP Right s in Third Countries , p. 43.  
190 The Software Alliance, Software Management: Security Imperative, Business Opportunity . BSA 
Global Software Survey, June 2018 . Viewed at: https://gss.bsa.org/wp -
content/uploads/2018/05/2018_BSA_GSS_Report_en.pdf . 
191 World Bank, Thailand Economic Monitor – Productivity for Prosperity , January 2020 . Viewed at: 
http://documents.worldbank.org/curated/en/394501579357102381/pdf/Thailand -Economic -Monitor -
Productivity -for-Prosperity.pdf . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture  
4.1.1   Features  
4.1.  In 201 9, agriculture, forestry and fisheries contributed 8.0% to GDP , down from  10.5% 
in 2014. One third of total employment is in the agricultural sector (31.4% of employment in 2019, 
slightly down from 3 2.3% in 201 5) (Table 1. 3), reflecting lower labour product ivity as compared 
with other sectors. Growth rates of the agriculture, forestry and fisheries sector ha ve been volatile , 
ranging from -6.5% in 2015 to 5.5% in 2018, and falling to 0.1% in 2019 (Table 1. 3).  
4.2.  Agriculture continues to play a vital role in the  economy. It is the main source of food supply 
domestically, and an important foreign exchange earner. Thailand is a net exporter of agricultural 
commodities, and is either the number one or number two producer of several agricultural products  
in the world . According to FAO online information, in 2018 (the latest year for which data is 
available), it was the world's biggest producer of natural rubber, and the second biggest producer 
of cassava. It is also a major producer of mangoes and mangosteens, guavas (3rd place in the world); 
palm oil (3rd); palm oil fruits (3rd); dry chillies and peppers (4th); pineapples (4th); sugar cane (4th); 
paddy rice (6th); coconuts (9th); and shallots (10th).1  
4.3.  Since 2015, the output levels of garlic, peppers, natural rubber,  sugar cane, palm oil, and palm 
oil fruits, as well as chicken meat and pig meat, have been generally increasing, while those of 
cassava, mangoes, and soya beans have been on a declining trend (Table 4.1).  The authorities 
stated that Thailand is self -sufficient in rice , cassava , tropical fruits , sugar cane , and chicken meat.  
Table 4.1 Production of selected agricultural products, 2015 -19 
('000 tonnes)  
  2015  2016  2017  2018  2019a 
Crops           
Cassava      32,357.7      31,161.1      30,495.2      29,368.2  31,080.0  
Peppers  1.4 1.4 2.5 2.0 2.2 
Coconuts  774.0  731.4         761.9  858.2  806.0  
Garlic             73.6           67.6       69.2            91.0  84.0 
Maize        4,029.2  4,390.2      4,821.0  5,069.4  4,309.5  
Mangosteens  221.9  186.0  115.5  185.6  351.7  
Mangoes  2,582.5  2,560.0  2,877.1  1,390.8  1,276.5  
Onions             35.5             40.4             31.1          36.8  34.2 
Shallots       129.7       88.2      128.9         166.7  118.1  
Pineapples    1,825.2     2,013.6     2,328.4   2,350.9  1,679.7  
Paddy rice     27,421.0     31,857.2  32,898.9   32,348.1  28,356.9  
Natural rubber        4,413.7        4,342.9       4,503.0   4,813.5  4,840.0  
Soya beans            42.4          37.8         42.8  41.2 39.2 
Sugar cane   105,959.1     94,047.0   92,950.8  134,929.3  130,970.0  
Palm oil  2,068.5  1,804.5  2,626.0  2,778.1  3,033.7  
Palm oil fruits  12,396.7  11,662.6  14,452.3  15,535.0  16,772.4  
Livestock           
Cattle meat           171.4           157.6           179.2  162.2  186.0  
Chicken meat        2,267.4        2,424.0       2,527.4  2,840.7  2,908.9  
Pig meat        1,204.6       1,330.0        1,521.6  1,652.2  1,632.7  
a 2019 data are forecast data except for cassava.  
Source:  Office  of Agricultural Economics (for crops);  and Department of Livestock Development (for 
livestock ). 
4.4.  Almost half of all land in Thailand is used  for agriculture ( 46%), and about half of the 
agricul tural land is under  rice paddies  (Chart 4.1), with 22% of agricultural land irrigated. In 2017 , 
there were 6.35 million  farm-holdings, with an average farm size of 4 ha (up from an average of 
3.1 ha in 2013) .  
 
1 FAO STAT, Countries by Commodity , Rankings . Viewed at: 
http://www.fao.org/faostat/en/#rankings/countries_by_commodity . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Chart 4.1 Agricultural land use, 2019  
 
Note:  Data is given in rai, this has been converted into hectares (6.25 rai = 1 hectare).  
Source:  Data provided by the authorities.  
4.1.2   Trade  
4.5.  Thailand remains a net exporter of agricultural products (Chart 4.2) . In 2019, exports of 
agricultural products reached USD 30.7 billion, or 13% of total exports from the country; imports of 
same reached USD 12.0 billion, or 5% of total imports.   
Chart 4.2 Trade in agriculture, 2015 -19 
 
Source:  WTO Secretariat calculations, based on data taken from UNSD Comtrade database.  
4.6.  In value terms, Thailand's key agricultural  exports  are rice, cane  or beet sugar , and prepared  
or preserved  meat (Table 4. 2). The main ex port destinations for these products are  China, Japan, 
the United States, Viet Nam, and Indonesia .  
4.7.  In value terms, major agricultural imports are  soya bean oil cakes, soya beans, and wheat and 
meslin  (Table 4. 3). The main sources of these products are the  United States, China, Brazil, 
Australia, and Indonesia .  
Chart 4.[THA] Agriculture land use, 2019
Total:
23.8 million haUpland field crop
20.6%
Orchard and
perennial
24.8%
Paddy land
46.0%Other 
7.7%Vegetable and 
ornamental plant
0.9%
Note:  Data is given in rai, this has been converted into hectares (6.25 rai = 1 hectare).
Source:  Data provided by the authorities.
0%2%4%6%8%10%12%14%
05101520253035
2015 2016 2017 2018 2019Exports of agricultural products
(USD billion)
Imports of agricultural products
(USD billion)
Exports of agricultural products as
% of total exports
Imports of agricultural products as
% of total importsChart 4.[THA]  Trade in agriculture (WTO definition), 2015 -19
USD billion 
Source:  WTO Secretariat calculations , based on data taken from UNSD Comtrade database .WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Table 4.2 Exports of selected agricultural products, 2015 -19 
HS code    2015  2016  2017  2018  2019  
1006 Rice  USD million  4,612.9  4,409.7  5,186.6  5,675.6  4,206.1  
'000 tonnes  9,795.8  9,907.9  11,674.3  11,232.2  7,580.5  
1701 Cane or beet sugar in solid 
form USD million  2,670.8  2,427.3  2,742.4  3,056.2  3,041.8  
'000 tonnes  7,591.3  6,360.3  5,888.5  9,523.0  9,722.2  
1602 Other prepared or 
preserved meat  USD million  2,221.7  2,270.6  2,506.5  2,682.1  2,848.1  
'000 tonnes  490.1  519.5  576.7  601.3  629.7  
2309 Animal feed preparations  USD million  1,225.3  1,252.1  1,400.8  1,606.6  1,673 .8  
'000 tonnes  701.1   702.9  714.7  737.6  754.6  
0810 Fresh fruits, n.e.s. in HS 
Chapter 8  USD million  759.7  915.5  1,363.5  1,591.0  2,253.0  
'000 tonnes  866.8  902.4  1,304.0  1,149.3  1,418.9  
2202 Water and other non -
alcoholic beveragesa USD million  998.2  1,142.7  1,296.4  1,461.3  1,590.7  
'000 tonnes  1,087.4  1,260.5   ..  1,581.1  1,844.5  
1108 Starches, inulin  USD million  1,219.5  1,134.2  1,030.8  1,366.4  1,236.7  
'000 tonnes  2,900.2  3,232.4  3,082.8  2,867.1  2,801.3  
2106 Food preparations, n.e.s.  USD million  1,071.3  1,128.3  1,262.8  1,284.0  1,425.1  
'000 tonnes   ..   ..  650.0   ..  799.9  
0714 Manioc, arrowroot, etc.  USD million  1,567.1  1,121.8  1,091.6  902.6  531.1  
'000 tonnes  7,305.0  6,441.1  6,487.5  4,005.9  2,426.3  
2008 Fruits and nuts, prepared or 
preserved  USD million  1,013.2  1,037.7  1,000.1  898.6  902.9  
'000 tonnes  692.3  709.9  732.8  679.5  597.7  
.. Not available.  
a Excluding fruit or vegetable juices of HS heading 2009.  
Source:  Ministry of Commerce; and the Customs Department . 
Table 4.3 Imports of selected agricultural products, 2015 -19 
HS code    2015  2016  2017  2018  2019  
2304 Soya bean oil cakes  USD million  1,240.9  1,036.2  1,159.4  1,251.7  1,233.0  
'000 tonnes  2,696.2  2,579.2  2,950.5  2,955.3  3,211.5  
1201 Soya beans  USD million  1,122.2  1,215.1  1,158.4  1,150.3  1,256.4  
'000 tonnes  2,557.4  2,957.7  2,745.7  2,723.0  3,209.2  
1001 Wheat and meslin  USD million  1,135.2  967.4  600.9  710.8  786.3  
'000 tonnes  4,556.1  4,576.5  2,732.2  2,852.1  3,024.4  
2106 Food preparations, n.e.s.  USD million  519.2  567.8  588.6  611.5  677.8  
'000 tonnes   ..   ..  119.1  118.4  118.7  
5201 Cotton, not carded or combed  USD million  534.1  430.7  484.2  521.0  387.7  
'000 tonnes  503.9  256.8  254.7  258.9  205.1  
2309 Animal feed preparations  USD million  359.8  363.9  419.6  416.4  415.7  
'000 tonnes  273.6  284.6  311.1  299.4  304.3  
0402 Milk and cream, concentrated 
or sweetened  USD million  340.0  235.1  320.0  339.1  348.6  
'000 tonnes  130.7  108.6  121.2  137.5  138.2  
1901 Malt extracts; flour and dairy 
preparations, etc.  USD million  355.2  277.3  317.7  305.4  286.9  
'000 tonnes    67.2    56.7    58.1    58.1  60.2 
0714 Manioc, arrowroot, etc.  USD million  223.4  326.9  380.8  286.1  280.8  
'000 tonnes  1,726.4  2,559.0  2,912.2  2,139.5  2,176.6  
2402 Cigars, cigarillos and cigarettes  USD million  153.9  186.3  216.7  267.4  309.7  
'000 tonnes    17.0    19.0    18.2    20.4  23.9  
.. Not available.  
Source:  Ministry of Commerce; and the Customs Department . 
4.1.3   Agricultural policies  
4.1.3.1   Legal, institutional, and policy framework  
4.8.  The Ministry of Agriculture and Cooperatives (MOAC) is the authority responsible for 
formulating and implementing agricultural policies. It oversees agriculture, water sourcing and 
irrigation development, agriculture tourism promotion and development, and the cooperatives 
system, among others.  
4.9.  The MOAC follows its 5 -year Agricultural Plan (2018 -22) and the Organization Plan, both of 
which are in compliance with Thailand's 20 -Year National Strategy (2018 -37). The MOAC's plans aim 
to achiev e "secured farmers, prosperous agriculture, and sustainable agricultural resources ", where WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  farmers' income is to be increased by more than USD  3,134 by 2022. To reach the target, the MOAC 
adopts five strategies:  
• improving farmers' and farmer institutions' capacities  to become smart farmers and smart 
groups with smart enterprises, by, inter alia, applying innovation and technology to farm 
labour management, farmland, financing opportunities, and risk management;  
• increasing agriculture productivity and improving agricu ltural commodities' quality, 
developing sustainable agriculture, and applying the bio -circular -green economy (BCG) 
model;  
• building Agriculture 4.0 under the Thailand 4.0 economic model, through developing 
technology and innovation in agriculture, managing agricultural information technology, 
and developing agricultural research work;  
• achieving balanced and sustainable management of agricultural resources and the 
environment, including water resource management, conservation and recovery of 
agricultural reso urces, agricultural area management, adaptation to climate change, and 
international cooperation; and  
• developing the public administration system, and enhancing the skills and capacities of 
government personnel.  
4.10.   In 2020, the MOAC started implementing the following  agricultural policies:  
• increasing the irrigation area and improving water management;  
• promoting alternative agriculture and integrated agriculture, encouraging organic farming, 
and replacing chemicals by organic substances to promote food safety;  
• expanding markets and encouraging smart farmers to become entrepreneurs, 
strengthening communi ty enterprises and cooperatives, and developing agricultural 
processing;  
• reducing production costs and promoting technology and the use of agricultural machines, 
improving efficiency in agriculture logistics, and building agri -technology and innovation 
centres;  
• encouraging rain -making during drought seasons, providing land right titles for farmers, 
promoting livestock that conforms to market demand, controlling and preventing the 
outbreak of animal or plant diseases, and simulating substitute plants to re duce water 
usage;  
• building a National Agricultural Big Data Centre; and  
• developing an Agricultural Learning Centre where farmers can learn local production 
programmes.  
4.11.   Regarding foreign investment in agriculture, in accordance with the Land Code B.E. 2497 
(1954) , foreigners are prohibited from purchasing and owning land; they may lease land and 
buildings for a period up to 30 years (Section 2) . Under the Foreign Business Act B.E. 2542 (1999) , 
foreigners  are prohibited from rice farming, plantation or cro p growing, and livestock farming. 
Foreigners must obtain approval from the Ministry of Commerce if they wish to engage in the 
production of sugar from sugar cane ; rice milling and the production  of flour from rice and economic 
plants; the cultivation, prop agation or development of plant varieti es; and internal trade related to 
traditional agricultural products or produce not prohibited by law.   
4.12.   Thailand has been using a number of policy tools, both at the border and domestically, to 
facilitate the developme nt of the agricultural sector (see below). However, these measures may not 
always give the desired results. According to a World Bank study, subsidies for rice production may WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  have slowed the need to transform Thai agriculture.2 While Thailand is currently  the world's second 
largest exporter of rice, its rice exports face higher production costs compared to competitors from 
neighbouring countries. This is compounded by volatile foreign exchange rates.3 The authorities 
disagree, and stated that Thailand has  been developing new rice varieties according to the needs of 
the world market  by dividing rice products into five major groups, namely Thai Hom Mali Rice, Thai 
fragrant rice, white rice (hard and soft texture s), glutinous rice, and niche market rice ( such as 
organic rice, and h igh-nutrition rice) . 
4.13.   The World Bank suggested that raising labour productivity and deepening capital in agriculture 
could facilitate structural transformation. Accordingly, it recommended: developing a better -
functioning land rental market; increasing the efficiency and sustainability of irrigation investments; 
more and better funding of agricultural research and extension programmes; and moving away from 
commodity support programmes towards a broad -based agricultural and food policy.4 
4.1.3.2   Border measures  
4.14.   The agriculture sector receives more trade protection than the rest of the economy. Various 
trade policy tools have been used at the border, including tariffs, surcharges, tariff quotas, import 
and export licensing requirements on SPS gr ounds, and export taxes (Section 3) . 
4.15.   In 20 20, the simple average applied MFN tariff rate on agricultural products (WTO definition , 
AVEs included ) is 32.7%, much higher than that on non -agricultural products (11.8%) (Table 3.2). 
Among the 1,369 agricultural tariff lines  at the HS eight -digit level , 9.9% (135 lines) are duty free, 
much less than the duty -free percentage of non -agricultural tariff lines (33.4% ). The other lines 
carry a rather large variety of tariff rates: 8.8 % of tariff lines carry a duty rate of 5%, 16.1 % a rate 
of 30%, 6.6% a rate of 40%, and 5.1% a rate of 60%  (Chart 4. 3).  
Chart 4.3 Distributi on of MFN applied WTO agriculture tariff rates, 2020  
 
Note:  Figures beside the bars refer to the percentage of total lines under WTO agriculture. "Other " include 
one tariff line each at  1%, 7%, 36%, 53%, 73%, 119%, 218%, and 226%; two tariff lines at 80%;  
and three tariff lines each at 57%, 125%, 142% and 146%.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
 
2 World Bank (2020), Thailand Economic Monitor – Productivity for prosperity . Viewed at: 
http://documents.worldbank.org/curated/en/394501579357102381/pdf/Thailand -Economic -Monitor -
Productivity -for-Prosperity.pdf . 
3 Bangkok Post, Thailand risks slipping to third place in rice shipments . Viewed at: 
https://www.bangkokpost.com/business/1856424/thailand -risks-slipping -to-third-place-in-rice-shipments . 
4 World Bank (2020), Thailand Economi c Monitor – Productivity for prosperity .  
9.93.18.81.62.60.45.70.916.16.60.70.41.00.40.91.05.10.90.41.30.41.60.41.627.8
0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400Duty free3%5%9%10%18%20%27%30%40%41%49%50%51%52%54%60%72%84%90%94%143%216%OtherNon-ad valorem rates
Number of tariff linesChart 4.[THA]  Distribution of MFN applied WTO agriculture tariff rates, 2020
Total WTO agriculture tariff lines: 1,369
Note:  Figures beside the bars refer to the percentage of total lines under WTO agriculture.  "Other" include one tariff line each at
1%, 7%, 36%, 53%, 73%, 119%, 218%, and 226%; two tariff lines at 80%; and three tariff lines each at 57%, 125%, 
142% and 146%. 
Source:  WTO Secretariat calculations, based on data provided by the authorities.WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  4.16.   A total of 381 lines (27.8%) carry non -ad valorem  duties. They are:  
• seven specific lines (one tariff line on popcorn  (HS 1005.90.10); two on mineral waters 
(HS 2201.10); and four on undenatured ethyl alcohol (HS 2207)); and  
• 374 alternative lines: e.g. shallots, leeks; fruits and nuts; certain spices (fruit of the genus 
capsicum or the genus pimento, ginger, saffron, and  turmeric); certain cereals (rye, 
barley, oats, grain sorghum, and buckwheat); products of the milling industry, and 
starches; animal and vegetable fats and oils; and preparations of vegetables, fruits, and 
nuts. 
4.17.   Tariff rates range from zero to 226% when AVEs are excluded. The highest  ad valorem rates 
apply to raw silk, onion seeds, and milk and cream not containing added sugar (Section 3.1. 2). 
When AVEs are included, the highest rates apply to papayas (HS 0807.20.00 , AVE=528.8%), 
bananas excluding plantains and lady finger bananas (HS 0803.90.90 , AVE=360.1%), and 
undenatured ethyl alcohol of an alcoholic strength by volume of 80% or higher (HS 2207.10.00 , 
AVE=270.0% ). 
4.18.   Thailand maintains 23 tariff quotas  (TQs)  covering 1 28 tariff lines  at the HS eight -digit level; 
all are agricultural  products (Section  3.1.2.4). All quotas are global quotas. To import 21 out of 
23 agricultural products (other than cane or sugar, or unmanufactured tobacco and tobacco leaves) 
subject to TQ arrangements, import ers must obtain certificates from the Department of Foreign 
Trade under the Ministry of Commerce. To import cane or sugar, a certificate from the Office of Cane 
and Sugar Board under the Ministry of Industry is required; and to import unmanufactured tobacc o 
and tobacco leaves, a certificate from the Excise Department under the Ministry of Finance is 
required.5 
4.19.   Quota fill rates vary significantly . In cases where in -quota imports exceed the scheduled TQ 
quantities, fill rates are capped at 100% (Table 4.4). The fill rates for garlic, dried longans, maize 
for feedstuff, copra, soya bean oil, palm oil, and raw  silk were zero, while those for coconuts, rice, 
coconut oil, sugar and sucrose, and unmanufactured tobacco and tobacco leaves were less than 5%. 
For coff ee, tea, dried peppers, and instant coffee, the TQ fill rates were less than 65%. Quotas may 
be allocated (i) on a demand basis, first -come and first -served; (ii) to manufacturing companies 
using the imports under quota as inputs for their production; or ( iii) to specific organizations or 
associations.  
Table 4.4 Tariff quotas fill rates, 2019  
Product  
Number of 
tariff lines  
Tariff quota 
quantity as 
scheduled 
(tonnes)  
In-quota 
imports during 
period  (tonnes)  
Fill rate (%) 
Import arrangementa 
Milk and cream, not 
concentrated, nor containing 
added sugar or other matter 
(including flavoured milk)  15 2,400  2,290.42  95.43  Allocated on demand basis. No 
restriction for importers.  
Skim milk powder  6 55,000b  41,878.64  76.14  Any manufacturing company (for 
use as input in production)  
Potatoes 3 302c 12,719.3  100 Allocated on demand basis. No 
restriction for importers.  
Onions 3 365d 685.35  100 Allocated on demand basis. No 
restriction for importers.  
Garlic  3 65 0 0 Public Warehouse Organization  
Coconuts  4 2,427  91.38  3.77 Any manufacturing company (for 
use as input in production)  
Dried longans  1 8 0 0 Allocated on demand basis. No 
restriction for importers.  
Coffee  10 5.25 2.42 46.16  Allocated on demand basis. No 
restriction for importers  
 
5 WTO document G/AG/N/TH A/103, 26 June 2019.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Product  
Number of 
tariff lines  
Tariff quota 
quantity as 
scheduled 
(tonnes)  
In-quota 
imports during 
period  (tonnes)  
Fill rate (%) 
Import arrangementa 
Tea 8 625 237.01  37.92  Allocated on demand basis. No 
restriction for importers  
Peppers (dried)  6 45 13.35  29.67  Allocated on demand basis. No 
restriction for importers  
Maize, for feedstuff  1 54,700  0 0 Public Warehouse Organization  
Rice 10 249,757  4,522.42  1.81 First-come first -served basis  
Soya beans 2 10,922e 2,515,007.84  100 Listed associations  
Copra  1 1,157  0 0 Any manufacturing company (for 
use as input in production)  
Onion seeds  1 3.15 3.15 100 Allocated on demand basis. No 
restriction for importers.  
Soya bean oil  3 2,281  0 0 Thai Food Processors' Association, 
and Thai Tuna Industry Association  
Palm oil  22 4,860  0 0 Public Warehouse Organization  
Coconut oil  3 401 9.03 2.25 Any manufacturing company (for 
use as input in production)  
Sugar and sucrose  6 13,760  174.02  1.26 Any juristic person on a first -come 
first-served basis  
Instant coffee and coffee 
extracts  6 134 59.36  44.30  Allocated on demand basis. No 
restriction for importers  
Soya bean cake  1 230,559  2,583,195.78  100 Fit for animal feed: listed domestic 
companies/ associations  
  230,559  1,517.75  0.66 Human consumption: any 
manufacturing company (for use as 
input in production)  
Unmanufactured tobacco; 
tobacco leaves  1 6,435  228 3.5 No restriction for importers  
Raw silk  1 483 0 0 Allocated on demand basis. No 
restriction for importers.  
a Information on the importation arrangement is for 2019, based on Thailand's notification to the WTO 
(WTO document G/AG/N/THA/ 103, 26 June 2019). 
b Tariff quota quantity was expan ded to: 77,172.88 tonnes in 2015 ; 60,795.82 tonnes in 2018 ; and 
57,993.02 tonnes in 2019.  
c Tariff quota quantity was expan ded to: 36,000 tonnes for potatoes and unlimited quantities for 
potato seed s from 2012 to 2014 ; and 52,000 tonnes for potatoes and unlimited quantities for potato 
seeds from 2015 to 2019.  
d Tariff quota quantity was expan ded to 764 tonnes from 2015 to 2019.  
e Tariff quota quantity has been expanded to unlimited quantities since 1997.  
Source:  WTO document G/AG/N/THA/ 106, 27 August  2019; and information provided by the authorities.  
4.20.   Members raised a number of questions in the WTO Committee on Agriculture on , inter alia , 
Thailand's TQ administration, and the reasons for low fill rates for certain products.6 Thailand 
responded to the low  or zero -fill rates by explaining that imports of maize, palm oil, and garlic took 
place under FTAs and imports come mainly from other ASEAN countries. Moreover, Thailand is a 
major grower and exporter of some TQ products, such as rice, dried longans, and soya bean oil.7  
4.21.   In addition to tariffs, some agricultural commodities are subject to import surcharges  
(Section  3.1.3) . 
4.22.   The importation of fish meal with a protein content of less than 60% is subject to  a non-
automatic import licensing requirement  (Table 3.7) . Import licensing requirements apply for SPS 
reasons to cassava and cassava products; fresh oranges; shallots; and swine offal (Table 3.8 ). At 
the WTO Committee on SPS Measures, specific trade concern s (STC s) were raised against some of 
 
6 Response by Thailand to questions posed by: the United States on 30 October 2019 (AG -IMS 
ID 92021) and on 7 June 2017 (AG -IMS ID 84102), the Russian Federation on 30 O ctober 2019 (AG -IMS 
ID 92106, AG -IMS ID 92110), Ukraine on 30 October 2019 (AG -IMS ID 92111), Australia on 30 October 2019 
(AG-IMS ID 92112, AG -IMS ID 92113), Indonesia on 25 June 2019 (AG -IMS ID 91128), and Switzerland on 
9 November 2016 (AG -IMS ID 82063) . WTO, Agriculture Information Management System . Viewed at: 
https://agims.wto.org/ . 
7 WTO, Agriculture Information Management System .  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  the SPS measures maintained by Thailand: its import restriction on papaya seeds (by Chinese Taipei)  
– resolved ; the control, inspection, and approval procedures for live animals and/or animal products 
(by the United Sta tes); its approval procedures for imports of pork and other animal products (by 
Brazil and the E uropean Union); its import restrictions on fresh citrus fruits (by Japan); and its draft 
list of hazardous substances regarding food containing pesticide residu es (by the United States)  
(Section 3.3.3).8 
4.23.   Thailand reserved its right to take special safeguard ( SSG) action on 55 HS02 eight-digit 
agricultural items , such as  milk, potatoes, onions, garlic, coconuts, coffee, tea, pepper s, maize, rice, 
copra, soya  bean oil, crude palm/coconut oil, sugar, non -alcoholic beverages, tobacco, and raw silk  
(Section 3.1.5.2). Thailand notified to the WTO that it did not invoke SSG provisions under Article 5 
of the WTO Agreement on Agriculture during the review period.9 
4.24.   Export  taxes are levied on a number of agricultural products, but are exempted in most cases; 
currently, exports of hides of bovine animals are subject to applied export taxes ( Section  3.2.2). 
Cassava products and cassava starches are subject to automatic export  licensing, while rice, coffee, 
bean cake, and sugar are subject to non -automatic export licensing (Section 3.2.3). Exports of fresh 
durian, fresh longan, fresh orchids, and canned pineapples, among others, must be registered with 
the relevant government a gencies before exportation (Table 3.11).  
4.25.   On 6 June 2019, Thailand notified t o the WTO that it did not provide any export subsidies to 
agricultural products from 2015 to 2018.10 
4.26.   In March 2020, Thailand notified to the WTO that, during the global outbreak o f COVID -19, 
exports of b ird eggs of fowls of the species Gallus  Domesticus  (HS 04072100, 04072990 ) were 
prohibited for seven days, from 26 March 2020 to  1 April 2020. The authorities stated that the aim 
was to prevent a critical shortage in the domestic market.11  
4.1.3.3   Domestic support  
4.27.   A number of investment incentives have been provided for various agricultural activities,  
agriculture -related services , and for the production of a wide variety of goods derived from 
agriculture ( such as  fertilizers, oi ls, rubber and leather products, and food and beverages).  These 
incentives mainly take the form of corporate income tax holidays and import duty exemptions 
(Section 3.3.1).  
4.28.   Many agricultural and food products are subject to price  monitoring  (Section 3. 3.6). Since 
2018, the production quota on sugar has been removed, and sugar is no longer listed in the price 
monitoring list.  
4.29.   The Bank for Agriculture and Agricultural Cooperatives (BAAC), a specialized financial 
institution under the Ministry of Finance, is r esponsible for providing financial assistance and 
occupational training to: farmers, farmer associations, agricultural and non -agricultural 
cooperatives, individuals, entrepreneurs, community enterprises, informal farmer groups, social 
enterprises, village  funds, and urban communities.12 Farmers with Thai nationality may obtain loans 
from the BAAC.13 The BAAC has also been providing input subsidies to farmers (see below).14 
4.30.   Thailand has domestic support commitments from the Uruguay Round for a maximum Curre nt 
Total Aggregate Measurement of  Support (AMS ) of THB  19 billion.  Its most recent notification to the 
WTO on agriculture subsidies was in 201 7, covering the period 20 14-16.15 According to the 
 
8 WTO, SPS Information Management System . Viewed at: http://spsims.wto.org ; and WTO, New STCs.  
Viewed at:  https://www.wto.org/english/news_e/news20_e/sps_26jun20_e.htm .  
9 WTO document s G/AG/N/TH A/86-90, 6 June 2019.  
10 WTO document s G/AG/N/TH A/92–95, 6 June 2019.  
11 WTO document G/AG/N/TH A/107, 30 March 2020.  
12 BAAC, Annual Report 2018 – Fiscal Year 2018 (1 April 2018 – 31 March 2019) . Viewed at: 
https://www.baac.or.th/file -upload/000196 -1-BAAC%20Annual%20Report%202561%20Eng.pdf . 
13 BAAC, Credit Services . Viewed at: https://www.baac.or.th/baac_en/content -
product.php?content_group_sub=2 . 
14 WTO document G/AG/N/THA/85, 6 October 2017.  
15 WTO document G/AG/N/THA/85, 6 October 2017.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  notification, more than half of all support to agriculture was in the Green Box category (Chart 4.4). 
The Green Box support level increased steadily, averaging about  THB 80 billion from 2014 to 2016. 
Over 60% of all Green Box support was f or infrastructural services, and 20% was for national 
extension and advisory services. From 2014 to 2016, the share of marketing and promotion of 
farmers' organization programmes went down from 3.0% to 0.2%, while the share of payments for 
relief from natu ral disasters went up from 0.2% to 2.0%. The shares of other support measures in 
total Green Box subsidies remained rather stable and, in 2016, they were:  
• 7% on the Agricultural Research and Development Plan;  
• 4% on pest and disease control;  
• 3% on inspectio n services; and  
• 1% on agricultural training services.  
Chart 4.4 Agricultural support, 2014 -16 
 
Source:  WTO document G/AG/N/THA/85, 6 October 2017.  
4.31.   In addition to Green Box support, Thailand also provides input subsidies in the form of loans 
from the BAAC:  
• THB 39.6 billion in 2014 to low -income farmers;  
• THB 0.4 million in 2015 to producers to facilitate their purchase of agricultural machinery; 
and 
• THB 64.7 billion in 2016 to farmers to help them obtain input s. 
4.32.   Product -specific AMS was given to rice, cassava, sugarcane, and cereals and, in 2015, it was 
also given to garlic. The support level fell from THB 10 billion in 2014 to THB 4.6 billion in 2016, 
mainly reflecting changes in support given to cereals. Supp ort measures took the form of loans for 
production and stockholding, interest subsidies, government subsidies, and compensation for 
stockholding expenditure.  
020406080100120140160
2014 2015 2016Total AMS
Input subsidies
Green Box totalTHB billionChart 4.[THA]  Domestic support
Source:  WTO document G/AG/N/THA/85, 6 October 2017 .WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  4.2  Fisheries  
4.2.1   Features  
4.33.   In 2019, t he fisheries industry contributed 0.68% to GDP ( 0.8% in 2013)  and 2.13% to total 
exports (2.9% in 2014). According to Department of Fisheries (DOF) online information, in 2018 , 
the fisheries sector was composed of:  
• a marine fisheries subsector, made up of 11,069 commercial fishing vessels with 
155,757  workers (64,935 Tha i, 90,822 foreign), and 21,460 artisanal vessels with 
32,190  workers; and  
• an aquaculture subsector with 571,355 workers.16 
4.34.   The total marine catch fell from 2 million tonnes in 2007 to 1.4 million tonnes in 2019, 
probably reflecting the problem of over -fishing and the measures adopted by the Government to 
control illegal, unreported, and unregulated (IUU) fishing. Based on data from the authorities, the 
percentage of marine catch taken inside Thailand's Exclusive Economic Zone increased  significantly, 
from 58% in 2007 to almost 100% in 2019, while fishing outside Thailand shrank (Chart 4.5).  
Chart 4.5 Catch of marine fisheries, 2007 -19 
 
Source:  Chart prepared by the WTO Secretariat, based on data provided by the authorities.  
4.35.   The Government has been adopting measures to conserve and rebuild fish stocks by, 
inter alia: imposing restrictions on mesh sizes in parts of the Gulf of Thailand ; prohibiting  commercial 
fishing within 3 km of the shore ; and issuing fishing licences annually to  existing licence  holders 
eligible for new licences. In addition to fisheries management measures, the Government also closes 
fishing areas during aquatic animals' ovulation, egg -spawning and larvae -rearing periods. In 
addition, in 2015, the Government started to control the number of fishing vessels operating in Thai 
waters, to manage fisheries resources and to address IUU fishing, by maintaining fish stocks at the 
levels to produce the maximum sustainable yield.17 For tho se fishermen and fishing operators who 
were affected by these control measures, the DOF and the BAAC provid ed support to  compensate 
for their losses (Section 4.2.3.3 and Table 3.19 ). 
4.36.   Marine fisheries production in volume terms has been declining over the years, although its 
value has increased. However, although in volume terms the annual output level in the marine 
fisheries subsector is much greater than that of the aquaculture subsec tor, the latter has a higher 
value (Charts 4.6 and 4.7), as  prices of aquaculture products are higher than those of marine 
fisheries products, especially freshwater prawns. Coastal and freshwater aquaculture has been 
declining in volume terms, reflecting t he declined output level of freshwater prawns due to 
 
16 DOF, Thailand Fisheries Overview . Viewed at: 
https://www4.fisheries.go.th/index.php/dof_en/view_message/215 . 
17 WTO document G/SCM/N/343/TH A, 4 July 2019.  
02004006008001,0001,2001,4001,6001,8002,0002,200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Thousands
Source:  Chart prepared by the WTO Secretariat, based on data provided by the authorities.('000 tonnes)Chart 4.[THA]  Catch of marine fisheries, 2007 -19
Inside
OutsideWT/TPR/S/ 400/Rev.1  • Thailand  
 
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  crustacean diseases (shrimp and prawn production has the highest share in Thailand's aquaculture 
production).  
Chart 4.6 Marine capture fisheries: national landings in domestic ports, 2009 -18 
 
Source:  Data provided by the authorities.  
Chart 4.7 Main aquaculture production, 2009 -18 
 
Source:  Data provided by the authorities.  
4.2.2   Trade  
4.37.   Thailand is a net fish exporter:  export  value  reached USD 5.8 billion in 201 9, much higher 
than the import value at USD 3.9 billion  (Table 4.5).   
4.38.   In 201 9, main export products (at the HS four -digit level) were: prepared or preserved fish 
(51%); crustaceans, live, fresh, chilled, frozen, salted or in brine (17.2%); and prepared or 
preserved crustaceans, molluscs, etc. (14.2%). The main destinations for exports were Japan, the 
United States, EU -28, China, and Australia.  
4.39.   In the same year, close to half of all fisheries imports were frozen fi sh (48.9%). Other main 
fish imports were: molluscs, live, fresh, chilled, frozen, dried, salted, or in brine (14.6%); and fish 
fillets and other fish meat, fresh, chilled or frozen (7%). Thailand imports fish and fish products 
mainly from China, India, Vie t Nam, Chinese Taipei, and the United States.  
010203040506070
02004006008001,0001,2001,4001,6001,800
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Chart 4.[THA] Marine capture fisheries: national landings in domestic ports, 2009 -18
Source: Data provided by the authorities.THBbillion '000 tonnes
Fish for reductionShellfish and molluscsCrustaceansFish
Other marine animals
Total marine captureValue:Volume:
020406080100120
02004006008001,0001,2001,4001,600
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Chart 4.[THA] Main aquaculture production, 2009 -18
Source: Data provided by the authorities.THBbillion '000 tonnes
Other fishCarpCatfishSeabass
Tilapia
Total aquaculture productionValue:Volume:
Shrimp and prawn
Oysters, edibleMusselCocklesWT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Table 4.5 Main exports and imports of fish and fish products, 2015 -19 
(USD million)  
  2015  2016  2017  2018  2019  
Exports   5,735.9   5,864.3   6,020.6     6,058.0   5,795.7  
HS 1604 - fish, prepared or preserved  2,661.7  2,581.2  2,687.0  2,976.1  2,943.2  
HS 0306 - crustaceans, live, fresh, chilled, 
frozen, salted or in brine  782.5  1,085.0  1,162.6  1,062. 6 995.2  
HS 1605 - crustaceans, molluscs, etc., 
prepared or preserved  1,054.6  1,012.8  1,059.4  909.3 826.1  
Imports  2,572.6  3,128.6  3,568.6   4,179.6  3,950.1  
HS 0303 - fish, frozen  1,522.1  1,811.7  2,082.0  2,216.3  1,933.7  
HS 0307 - molluscs, live, fresh, chilled, 
frozen, dried, salted or in brine 341.5  395.4  449.2  543.2  578.6  
HS 0304 - fish fillets and other fish meat, 
fresh, chilled or frozen  197.7  193.4  222.5  299.1  278.8  
Source:  Data provided by the authorities.  
4.2.3   Fisheries policies  
4.2.3.1   Legal, institutional, and policy framework  
4.40.   The Department of Fisheries (DOF), under the Ministry of Agriculture and Cooperatives 
(MOAC), is responsible for managing and developing fisheries and aquaculture in Thailand.   
4.41.   The Fisheries Act 2015 , amended in 2017,  is the main law governing the sector . The Act 
stipulates provisions on fisheries monitoring, surveillance and control , as well as aquaculture and 
sanitary standards.  It aims to adjust fisheries resources management measures to be more 
compatible with international fisheries law and standards.   
4.42.   Since 2015, the Government has taken steps to tackle IUU fishing, and the yellow card was 
lifted on 8 January 2019. Measures adopted by the Government include:  
• amending the Fisheries Act 2015 in 2017, which allows for strict penalties to deter illegal 
fishing behaviour. Thailand became a party to the Port State Measures Agreement (PSMA), 
and the UN Fish Stock Agreement (UNFSA), and formulated its National Action Plan to 
Prevent, Deter and Eliminate IUU Fishing, which is in line with the International Plan of  
Action to Prevent, Deter and Eliminate IUU Fishing (IPOA -IUU) of the FAO;  
• managing and controlling fishing gear, fishing days, and fishing licences. The Government 
also established a Thai fishing vessel registration system to control and monitor the entir e 
fishing fleet and to link data among relevant departments for efficient fleet management;  
• developing a monitoring, controlling, and surveillance system to monitor illegal fishing. 
This includes: a Vessel Monitoring System installed in all Thai commercial  vessels; Port 
In–Port Out Control Centres to control the entry/exit of Thai -flagged vessels before and 
after fishing; and ex -vessel inspections for species and weights of those aquatic animals 
that Thai fishing vessels bring to the fishing port. For vesse ls flying the Thai flag in 
international waters, DOF observers on  board monitor the fishing and transhipment of 
carrier vessels. A Fishing Info Network, which is a real -time database of fishing vessels, 
enables effective and accurate monitoring and control ; and  
• developing a traceability system to prevent the importation of aquatic animals derived 
from IUU fishing into Thailand.  
4.43.   The D OF set out the following strategies for fisheries management, following along similar 
lines as the strateg ies over the period 2013-1618 (Table 4. 6). 
 
18 WTO document WT/TPR/S/326/ Rev.1, 10 February 2016.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Table 4.6 Strategies for fisheries management  
Strategy  Components  
Improve fish production and 
the capability of fish farmers  - Promote an environmentally friendly production system  
- Promote  an integrated production management system with a market -
driven approach  
- Develop clusters to strengthen the negotiatin g power of fish farmers  
- Develop and transfer knowledge of production to relieve effects of climate 
 change  
- Undertake r esearch and develop technology to improve  efficiency  
Improve competitiveness  - Promote and improve fish production according to standards and safety  
 requir ements  
- Develop  a fish inspection and quality control system in compliance with 
 international standards  
- Ensure fish product ion meets organic standard s 
- Cooperate with other countries to expand  market opportunities  
- Diversify products to increase their valu e added  
Manage aquatic resources to 
ensure sustainability and 
biodiversity  - Rehabilitate and conserve fisheries resources  
- Promote community -based aquatic resource management  
- Monitor and survey fisheries activi ties to combat IUU fishing  
- Enhance efficiency of aquatic resource management through  research and 
 development and innovations  
Organiz e and develop 
human resource s  - Manage human resource s efficiently  
- Develop human resources accordi ng to knowledge, skill and competenc e  
- Develop information technology systems  
- Improve budget management  
- Promote organization integration  
- Establish cooperation between public  and private sectors  
- Strengthen law enforcement and awareness  
- Enhance  international academic cooperation to develop or address 
 fisheries problems  
Source:  Information provided by the authorities.  
4.44.   Foreigners are prohibited from engaging in fisheries in respect of the catching of aquatic 
animals in Thai waters and its specific  economic zone s, in accordance with  the Foreign Business Act 
B.E. 2542 (1999) and the Act Governing the Right to Fish in Thai Fishery Waters B.E. 2482 (1939) . 
However, foreigners may work on the crew of a fishing vessel , provided they are registered under 
the Working of Aliens Act B.E. 2551 (2008).19 In 2018, more than half of workers working on 
commercial vessels in the marine capture subsector were foreigners (58%).20 
4.2.3.2   Border measures  
4.45.   The simple average MFN tariff rate on fish and fishery products is 10.2% in 2020, lower than 
both the average tariff on non -agricultural tariff lines (11.8%), and that on agricultural tariff lines 
(32.7%). 32.5% of the 437 tariff lines (at the HS eight -digit level) for fish and fishery products are 
duty free . They cover mainly  fish, fresh, chilled or frozen (HS 0302 and 0303); crustaceans , live, 
fresh or  chilled (HS 0306); and molluscs , live, fresh, chilled or frozen (HS 0307 – excluding abalone).  
4.46.   Among all the fishery tariff lines , 35 have alternate rate s (the higher of an ad valorem  rate 
and a specific duty) , and apply to :  
• 1 line on shark fins (HS 030571);  
• 4 lines on fats and oils of fish (HS 150410 and HS 150420); and  
• 30 lines on prepared or preserved fish, caviar (HS 1604).  
4.47.   Tariff rates range from zero to 30% when AVEs are excluded. The highest ad valorem  rate 
(30%) applies to all live fish ( HS 0301 ); extracts and juices of fish, crustaceans,  and molluscs 
 
19 WTO document WT/TPR/S/326/Rev.1, 10 February 2016.  
20 DOF, Thailand Fisheries Overview . Viewed at: 
https://www4.fisheries.go.th/index.php/dof_en/view_m essage/215 . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  (HS1603 ); and abalone , fresh, chilled, frozen, dried, salted or in brine  (HS 03078110, 03078120, 
03078300, 03078710) .  
4.48.   When AVEs are included, the highest rates apply to : mackerel , prepared  or preserved in 
airtight containers for retail sale  (HS 1604.15.10 , AVE=156.1%);  sardines , prepared  or preserved 
in airtight containers for retail sale  (HS 1604.13.11 , AVE=137.2%); and fish balls (HS 1604.20.30 , 
AVE=64.8%).  
4.49.   Fish and fish products are subject to relevant SPS requirements (Section 3.3.3). Exports of 
shellf ish and shell are subject to export licensing requirements to promote the pearl cultivation 
industry (Table 3.10). Exporters of living ornamental fish, and finished products made of shell, must 
show a certificate issued by the DOF to Customs for exportatio n, for various reasons (Table 3.11) . 
An export tax on fish, pulverized or only baked, unfit for human consumption, is currently not being 
applied (Table 3.9).  
4.2.3.3   Domestic support  
4.50.   Several fisheries products, such as mackerel, catfish, tilapia, tiger prawns, co ckles and 
mussels, are subject to price monitoring (Table 3.2 6). 
4.51.   Incentives are offered by the Board of Investment (BOI) to certain fishery activities 
(Section  3.3.1). In addition, Thailand notified to the WTO, under Article XVI:1 of the GATT 1994 and 
Article 25 of the WTO Agreement on Subsidies and Countervailing Measures, a number of support 
measures to the fisheries sector, in the form of soft loans or grants (Table 3.19).21 These include 
mainly programmes to help fishermen and fishing vessel owners affe cted by the Government's 
measures to combat IUU fishing (Section 4.2.1):  
• soft loans to fishermen on fishing operations:  from 2015 to 2016, the BAAC provided these 
soft loans to help improve fishing vessels and/or change fishing gear to ensure that fishing  
equipment is in compliance with the Fisheries Act 2015;  
• the fishing vessel -buying programme: from April to May 2016, the DOF paid half of the 
price and bought 51 push net vessels from fishing vessel owners or fishing operators. 
These vessels were sunk to  create artificial reefs and to reduce the number of fishing 
vessels; and  
• the compensation programme: from March to September 2019, the DOF provided grants 
to the owners of 252 wooden fishing vessels of less than 90 GT, all of which were removed 
from fishing activities permanently. This programme was aimed at compensating fishing -
vessel owners for their losses as a consequence of the Government's fishing -vessel 
removal measure introduced in 2015.  
4.52.   Other notified programmes which were, or are being, impl emented include:  
• the livelihood -improvement and resilience -building programme for artisanal fisheries 
communities: from April to September 2019, the DOF provided grants to 65 artisanal 
fishing communities in the three southern coastal provinces, to help t hem manage, 
maintain, conserve, restore and sustain the utilization of fisheries resources, and to 
improve their livelihoods and quality of life;  
• the capacity -building programme on marine shrimp production and marketing for domestic 
shrimp consumption: fr om 2019 to 2021, the DOF provides grants to marine shrimp 
farmers (not more than THB 40,000 per farmer per year) so that they can buy specific 
pathogen -free and quality shrimp seeds at 90% of the price. The BAAC provides soft loans 
for marine shrimp farmer s to buy farming inputs, and the interest on these loans is paid 
by the DOF. The BAAC also provides soft loans for marine shrimp farmer institutes and 
community enterprises to increase their managing, marketing, and product distribution 
abilities, and the interest on these loans is paid by the DOF;  
 
21 WTO documents G/SCM/N/315/TH A, 19 January 2018; and G/SCM/N/3 43/THA, 4 July 2019.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  • the microorganisms production centre programme: t he DOF sought to promote the use of 
microorganisms (liquid and powder) for shrimp far mers, with a view to alleviating damage 
and loss from environmental degradati on and disease problems, and to reducing the use 
of antibiotics in shrimp farming. From March to September 2018, the DOF provided grants 
for groups of shrimp farmers with the potential to establish 20 microorganism production 
centres in 19 shrimp -producing  provinces; and  
• the programme to improve farming construction to facilitate the recovery of shrimp 
production: from 2016 to 2019, the BAAC provided soft loans to marine shrimp farmers, 
and the interest was paid by the DOF, with a view to resolving the decr ease of domestic 
marine shrimp production due to Early Mortality Syndrome (EMS) shrimp disease. The 
loans were used to improve marine farming construction such as fishponds, sedimentation 
ponds, and wastewater treatment ponds.  
4.3  Energy  
4.3.1   Introduction  
4.53.   Thailand is a producer of a number of energy products, including crude oil, natural gas, coal, 
and hydroelectricity; the gap between production and consumption is filled by importation 
(Table  4.7). Thailand  is thus a net importer of energy  products:  in 201 9, energy imports amounted 
to THB 34.5 billion , four times the value of energy exports (THB 8.5 billion ) (Chart 4.8) .  
Table 4.7 Energy production and consumption, 2015 -19 
 2015  2016  2017  2018  2019 
Crude oil  (barrel (bbl)/day)  
Total production  152,387  163,080  141,248  129,200  125,889  
Total consumption  1,107,476  1,055,674  1,093,385  1,130,748  1,025,195  
Natural gas  (million cubic feet per day)  
Total production  3,850  3,767  3,620  3,527  3,623  
Total consumption  4,764  4,714  4,682  4,676  4,762  
Coal ('000 tonnes of oil equivalent)  
Total production   3,859  4,305  4,106  3,756  3,532  
Total consumption  17,547  17,887  17,958  19,146  17,053  
Hydroelectricity  ('000 tonnes  of oil equivalent)  
Total production  320 302 399 647 538 
Total consumption  320 302 399 647 538 
Source:  Information provided  by the authorities.  
Chart 4.8 Imports and exports of energy products, 2015 -19 
 
Source:  UNSD Comtrade  database.  
4.54.   Thailand has a relatively energy -intensive economy, as measured by primary energy 
consumption per US dollar of GDP at 2015 purchasing power parities. The 2017 level, at 4,58 0 British 
thermal units  (BTU) per US dollar, although an improvement from the 2013 level (4,730 BTU per 
2015 2016 2017 2018 2019051015202530354045
Imports ExportsChart 4.[THA]  Imports and exports of energy products, 2015 -19
Source:  UNSD Comtrade database.USD billionWT/TPR/S/ 400/Rev.1  • Thailand  
 
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  US dollar), still indicated that the  economy was more energy -intensive  than the average of ASEAN 
members.22  
4.55.   The Ministry of Energy is in charge of sett ing government policy for the exploration and 
extraction of hydrocarbons , and for the production, transmission, and sale of electricity. The Energy 
Policy and Planning Office (EPPO), in the Ministry of Energy, is responsible for  ensuring national 
energy se curity by devising energy policies and plans; defining measures for easing and preventing 
energy shortages; monitoring and evaluating compliance  of measures  with energy policies; and 
managing energy data and funds.23 The EPPO took several policy m easure s during the review period, 
including the revision and development of the Power Development Plan (PD P) 2018-37 (see below).  
4.56.   Other relevant institutions include:  
• the National Energy Policy Council (NEPC), chaired by the Prime Minister, responsible for 
submitti ng policy plans to the Council of Ministers, establishing rules for setting prices, 
and monitoring private and public energy entities to ensure their operations comply with 
the national energy policy ;  
• the Committee on Energy Policy Administration (CEPA), chaired by the Minister of Energy, 
responsible for ensuring the efficient operation of the NEPC, and making recommendations 
on the formulation of energy policies;  
• the Energy Conservation Promotion Fund  (ENCON Fund) Committee, chaired by a deputy 
prime minister assigned by the Prime Minister, aimed at promoting energy conservation; 
and  
• the Energy Regulatory Commission (ERC), in charge of regulating the electricity , natural 
gas, and energy -network sector s.24 
4.57.   The main laws regulating the energy sector include: t he Petroleum Act (1971 , amended most 
recently in 2017) ; the Petroleum Income Tax Act (1971); the Fuel Trade Act (2000 , amended in 
2007); the Fuel Oils Control Act (1999, amended in 2007); the Energy  Conservation and Promotion 
Act (1992, amended in 2007); and the Energy Industry Act  (2007).  The 2017 amendment to the 
Petroleum Act added two regimes to the concession system for the rights to explore for, and produce, 
petroleum, i.e. production -sharing c ontracts, and service contracts.25  
4.58.   The Oil Fuel Fund Act B.E. 2562 (2019) came into effect in 2019, and is aimed at stabilizing 
fuel prices in Thailand in the event of a fuel crisis. According to the Act, an Oil Fuel Fund Office, and 
an Oil Fuel Fund Admi nistration Committee, were set up. Oil fuel fund money comes from levies on 
domestic petroleum product consumption except jet fuel.  
4.59.   The EPPO revised and amended the PDP 2018 -37, to align it with the prevailing power demand 
and the potential for power gene ration, and with the 20 -year National Strategy (2018 -37) 
(Section  2) and the National Energy Reform Plan 2018. The latter, issued in January 2018, intends 
to reform Thailand's energy production and consumption structures by promoting renewable energy 
and g ood governance in the energy sector. It complements the Alternative Energy Development 
Plan (AEDP 2015), and the Energy Efficiency Development Plan (EEDP 2011 -30).26 
4.60.   The PDP 2018 -37 was endorsed by both the NEPC and the CEPA in 2018. It focuses on:  
 
22 US Energy Information Administration , Energy consumption per capita GDP 2017 . Viewed at:  
https://www.eia.gov/ .  
23 EPPO,  Annual Report 2018 . English version viewed at: 
https://en.calameo.com/read/0049262933ad3bdbb4199 .  
24 ERC, Establishment of t he Energy Regulatory Commission . Viewed at: 
https://www.erc.or.th/ERCWeb2/EN/Front/StaticPage/StaticPageEN.aspx?p=1&Tag=History&muid=12&prid= 2. 
25 Ministry of Energy, Annual Report 2017 . Viewed at: 
https://dmf.go.th/public/list_upload/backend/list_11432/files_21118_1.pdf . 
26 The AEDP ( 2015-36) aims to  promote the use of renewable energy for power generation by 2036. The 
EEDP (2015 -36) has a target of reducing energy intensity (i.e. the ratio of energy  consumption to GDP) by 
30% by 2036, compared to 2010, through energy -saving and efficiency programmes.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  • ensuri ng reliable power -generation capacity, via strengthening the provision of 
conventional power plants27, securing purchasing from abroad, and increasing renewable 
power plants and energy conservation;  
• allocating reliable capacities to meet the power demand  up to 2037 , by building fossil fuel 
conventional power plants in seven regions, setting up public policy -promoted power 
plants based on renewable energies from community waste and biomass, building 
renewable power plants under the AEDP, and promoting power conservation under the 
EEDP.    
4.61.   The Government has been implementing a number of policies, mainly domestic measures 
such as subsidies and various incentive programmes, to reach these targets. These subsidies, 
however , have been generating significant costs to the economy.28 In add ition, prices of energy 
products are monitored or controlled (Section 3.3.6.4). For certain products, such as natural gas for 
vehicles (NGV), diesel, and liquefied petroleum gas (LPG), retail prices were set below the cost of 
production, resulting in gover nment subsidies to cover price discrepancies. In recent years, Thailand 
has been focusing on promoting the use of renewable energy, not only through incentives in the 
form of corporate income tax and import tariff exemption or reductions offered by the BOI  
(Section  3.3.1), but also through o ther incentive programmes (Table  4.8). 
Table 4.8 Renewable energy incentives, 2019  
Programme  Description  
FIT for Renewable 
Energy  (RE) 
programme  Very small power producers (VSPP s) of renewable energy  are provided with per -kWh 
payments ( "feed-in tariffs ") above those paid to standard wholesale producers by the 
state-owned utilities companies (the Metropolitan Electricity Authority (MEA), the 
Provincial Electri city Authority (PEA), and the Electric Generating Authority of Thailand 
(EGAT) ). Rates vary according to the technology used: solar, biomass, wind, garbage, 
and hydro.  The programme was introduced in 2006 , and the rates of feed-in tariffs  
have been revised  several times . Rate changes must be approved by t he NEPC.  
Community power 
plant programme  Approved by the NEPC on 11 September 2019 , it aims to  improv e community 
sustainability by building power plant s to generate  electricity from loc al renewable 
feedst ocks such as biomass and biogas .  
Solar power 
projects for 
households  
programme  Approved by the NEPC on 19 March 2020, its main purpose is to encourage power 
generation from solar rooftop s for self -consumption and sale of the excess electricity  to 
the gri d. The AEDP 2018 plan set the target of the programme for 50 MW with a feed -
in tariff for 10 years.  
ENCON Fund  Established  in 1992 under the ENCON Act B.E. 2535 , the ENCON Fund aims to support 
projects  to improve  energy efficiency,  promote  renewable energy , and increase  energy 
conservation. The Fund is managed by the ENCON Fund Committee. To apply for 
subsidies  under the Fund,  companies ' business es must be directly related to energy 
conservation or the correction of environmental problems a rising from energy 
conservation, and may not have political or profit -orientated objectives. Money in the 
ENCON Fund is collected from fuel users ( THB 0.10/litr e). On 8 March 2018 , the NEPC 
approved THB 10 billion  per year to be used as ENCON Fund's expens es for the budget 
years 2017-21.  
Source:  Information provided by the authorities.  
4.62.   In addition, Thailand notified a number of support measures to the WTO under Article XVI:1 
of the GATT 1994 and Article 25 of the WTO Agreement on Subsidies and Countervailing Measures, 
including those related to the energy sector (Table 3.19)29:  
• the programme encouraging the transformation of plastic waste into fuel oil: from 
4 August 2015 to 3 August 2018, refineries that purchased fuel oil from plastic waste c ould 
submit requests for subsidies to the Excise Department, which forwarded them to the 
 
27 To improve the performance of conventional power plants, the Government is considering: exploiting 
the potential of fuel and infrastructure in each re gion to minimize additional investment, and adding 
conventional plants in metropolitan areas to minimize dependence on other regions' capacities; minimizing 
redundant investment; and reducing coal -generated power to reduce carbon dioxide emissions. EPPO, Annual 
Report 2018 . 
28 WTO document WT/TPR/S/326/Rev.1, 10 February 2016.  
29 WTO documents G/SCM/N/315/TH A, 19 January 2018; and G/SCM/N/3 43/THA, 4 July 2019.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Energy Fund Administration Institute (EFAI). The EFAI provided subsidies from the Oil 
Fund to the Excise Department, which then distributed them to the refineries;   
• the low -interest loan and the Energy Efficiency Revolving Fund (EERF) programme in 
FY2016: the EERF coordinated with some commercial banks so that factories and buildings 
could obtain low -interest (3.5%) loans from participating banks. The loan applications 
were examined by both the bank, and the Department of Alternative Energy Development 
and Efficiency (DEDE) under the Ministry of Energy. The payback period of the loan could 
not be more than seven years, and the maximum amount of loan per project was 
THB 50 million. In FY 2016, 82 projects obtained a total of THB 1.22 billion in loans, 
resulting in an estimated energy saving of 7.3 kilotonnes of oil equivalent  (ktoe);  
• the low -interest loan and the Energy Service Company (ESCO) Revolving Fund programme 
in FY2016: the ESCO provides consultation services and advice on energy saving, and it 
may help factories design and implement energy -saving projects. Under the supervision 
of the DEDE, factories and buildings obtaining suggestions from the ESCO may obtain 
loans to lease equipment, for a maximum of THB 20 million per project, with a payback 
period of no more than seven years. In FY2016, 23 projects obtained loans worth 
THB 123 million via the programme, resulting in an estimated energy saving of 1.84 ktoe ;  
• the investment promotion in solar -heated water programme: from 2008 to 2015, support 
was provided to encourage the use of solar -heated water, instead of water heated by 
electricity, with a view to promoting renewable energy to meet the target of the AEDP. 
The subsidy was provided by the ENCON Fund, which paid 20% of the initial investment 
for the preparation, installation and operation of solar panels to heat water;  
• the investment promotion in solar greenhouse dryers in agriculture programme: the 
ENCON Fund , together with the DEDE, offered 40% -50% of the initial investment for the 
preparation, construction, and operation of solar greenhouse dryers for small -scale dried -
food producers, so that the moisture content from the fruit, herbs, and vegetable products  
could be removed. This programme is still in force;  
• the financial subsidy to change industrial boilers from steam burners to biomass fuel 
burners programme: from 1 February 2016 to 31 July 2017, institutional and non -profit 
organizations obtained subsidi es from the ENCON Fund, to cooperate with factory owners 
to change their boilers from steam burners to biomass fuel burners. For each factory, if 
its investment was lower than THB 2 million, 30% of this investment was paid by the 
ENCON Fund; and  
• the compre ssed bio -methane gas (CBG) promotion in biogas plants programme: from 
1 October 2016 to 30 June 2017, the ENCON Fund provided support to biogas factory 
owners to produce at least 3 tonnes of CBG per day. The target was to improve gas quality 
by substitutin g LPG and NGV with CBG. Total support for the whole scheme amounted to 
THB 75 million.  
4.63.   In 2018, the EPPO proposed guidelines to promote the use of B20 high -speed diesel, with a 
view to meeting the AEDP target of increasing the share of alternative energy i n total energy 
consumption to 30% by 2037: in 2019, this share was 16.49%.30 B20 is a type of biofuel blend 
consisting of up to 20% biodiesel and 80% petroleum diesel. The Ministry of Energy commenced a 
project in 2018 to distribute B20 to specific groups of vehicles, with a view to providing greater 
access to biodiesel and to reducing the oversupply of crude palm oil (CPO) by increasing absorption 
of CPO -based biodiesel.31 The CEPA also determined that the excise duty rate for B20 would be 
adjusted; the hi gher the proportion of biodiesel blended, the lower the excise duty.  
4.64.   The State continues to play a significant role in the energy sector, and SOEs such as PTT 
Public Company Limited, and the EGAT, play a major role in the hydrocarbon and electricity 
subsec tors (see below).  
 
30 Ministry of Energy, Percentage of Alternative Energy Consumption . Viewed at: 
https://www.dede.go.th/download/stat63/Percentage_of_Alternative_Energy_Consumption_March_2563.pdf . 
31 EPPO, Annual Report 2018.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  4.3.2   Hydrocarbons  
4.65.   In 2018, Thailand held 136.9 million barrels of proven crude oil reserves, down from 
178.3  million barrels in 2016. Its natural gas reserves have generally declined and, in 2018, it held 
6.83 trillion cubic feet of proven na tural gas reserves.  
4.66.   In 2019, 60% of Thailand's energy imports were petroleum oils and oils obtained from 
bituminous minerals, crude (HS 2709). These were followed by petroleum oils and oils from 
bituminous minerals, not crude (HS 2710), accounting for 15. 5% of total energy imports; and 
petroleum gases and other gaseous hydrocarbons  (HS 2711), 14.7% (Table 4.9).  
Table 4.9 Imports and exports of main energy products (2018 -19), and MFN tariff  
(USD million)  
HS  Description  2018  2019  Simplified 
average 
applied 
MFN tariff 
(%) Exports  Imports  Exports  Imports  
27 Mineral fuels, mineral oils, and products 
of their distillation; bituminous 
substances; mineral waxes  10,659.6  42,044.0  8,491.7  34,553.7   
2701 Coal, briquettes, ovoids and similar solid 
fuels manufactured from coal  15.6 1,639.1  9.8 1,323.2  0 
2702 Lignite, whether or not agglomerated, 
excluding jet  0.0 7.1 0.0 9.9 0 
2703 Peat, (including peat litter), whether or 
not agglomerated  0.1 4.5 0.0 3.8 0 
2704 Coke and semi -coke, of coal, lignite or 
peat, whether or not agglomerated; 
retort carbon  0.0 10.3 0.0 9.6 0 
2705 Coal gas, water gas, producer gas and 
similar gases, other than petroleum 
gases and other gaseous hydrocarbons  0.0 0.0 0.1 0.0 0 
2706 Tar distilled from coal, lignite, peat and 
other mineral tars, whether or not 
dehydrated or partially distilled, 
including reconstituted tars  0.0 0.6 0.0 0.4 0 
2707 Oils and other products of the 
distillation of high -temperature coal tar; 
similar products in which the weight of 
the aromatic constituents exceeds that 
of the non -aromatic constituents  905.8  538.3  636.9  458.2  0 
2708 Pitch and pitch coke, obtained from coal 
tar or from other mineral tars  0.2 5.3 0.0 3.9 0 
2709 Petroleum oils and oils obtained from 
bituminous minerals, crude  825.6  27,799.1  663.9  20,851.3  0 
2710 Petroleum oils and oils from bituminous 
minerals, not crude  8,252.8  5,364.9  6,552.7  5,372.3  4.60 
2711 Petroleum gases and other gaseous 
hydrocarbons  316.2  5,057.7  182.8  5,083.3  0 
2712 Petroleum jelly, paraffin wax, etc.  78.2 49.1 63.4 39.9 4.80 
2713 Petroleum coke, petroleum bitumen, 
other residues of petroleum oils or oils 
obtained from bituminous minerals  157.0  152.9  155.5  137.2  0 
2714 Bitumen and asphalt, natural; 
bituminous or oil shale and tar sands; 
asphaltites and asphaltic rocks  1.2 2.8 0.8 1.9 0 
2715 Bituminous mixtures based on natural 
asphalt, on natural bitumen, on 
petroleum bitumen, on mineral tar or on 
mineral tar pitch (e.g. bituminous 
mastics, cut -backs)  22.0 2.4 18.5 1.9 10 
2716 Electrical energy  84.8 1,409.6  207.4  1,256.9  0 
Source:  UNSD Comtrade database; and Thailand Tariff Schedule 2020.  
4.67.   Tariffs on energy products are low, with many at zero -rate (Table 4.9). Border measures 
mainly take the form of import or export restrictions. Importers of fuel oil must obtain a certificate 
issued by the Department of Energy Business, and submit it to Cus toms for approval (Table 3.8). 
Exports of all types of coal, except pulverized from Hongai Anthracite Coal, are subject to WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  non-automatic export licensing requirements; according to the authorities, this is to preserve 
exhaustible natural resources (Table 3 .10). 
4.68.   According to the EPPO Annual Report, from 2017 to September 2019, exporters of locally 
produced LPG had to pay a contribution fee to the Oil Fuel Fund of THB 0.70 per kg. The EPPO stated 
that this was intended to discourage the exportation of locally  produced LPG, to avoid domestic 
shortages.  However, LPG exports persisted so, in the second half of 2018, the PTT Public Company 
Limited, which is the SOE that accounts for the largest share in the oil market in Thailand, suspended 
commercial exports of L PG at the request of the CEPA.32 The authorities stated  that the exportation 
of LPG is not prohibited anymore.   
4.69.   Thailand's refining industry provides for most of the country's oil product demand. With eight 
refineries, Thailand has the second largest refin ing capacity in Southeast Asia (behind Singapore).33 
As a result of its refining capacity, Thailand is a net exporter of petroleum products: refined 
petroleum products accounted for a lmost  80% of total energy exports ( Table 4.9).  
4.70.   Thailand relies increasin gly on natural gas imports, which take the form of LNG, primarily 
from Qatar, and pipeline gas from neighbouring offshore fields in Myanmar. In 2015, Thailand signed 
its first long -term contract with Qatar to secure gas supplies. Thailand has an extensive natural gas 
transmission infrastructure, and the national gas pipeline system connects onshore and offshore gas 
fields to gas separation plants, power plants, and industrial users.  Consumption of natural gas is 
primarily driven by electric -power generation , followed by t he industrial sector , and natural gas 
processing plants.34 
4.71.   The State continues to maintain a significant presence . The PTT Company Limited (51% 
owned by the State and formerly known as the Petroleum Authority of Thailand) is the main operato r 
in the transmission and distribution of natural gas, and in the importation of LNG. Prices of natural 
gas are controlled by the ERC. The PTT is also involved in electricity generation, petrochemical 
production, oil and gas exploration, and gasoline retai ling businesses. Its subsidiary, the PTT 
Exploration and Production (PTTEP) Company, also a state -owned company, operates several of 
Thailand's largest producing crude oil fields.  The PTT holds about 65% of the shares of the PTTEP.35 
4.72.   In accordance with the Foreign Business Act B.E. 2542 (1999) and the Petroleum Act 
B.E. 2514 (1971) , foreign investors must obtain licences, issued by the Ministry of Commerce, if 
they wish to engage in: petroleum exploration; or the production and/or distrib ution of petroleum 
products. Oil and gas exploration and production rights are granted by the Ministry of Energy with 
the approval of the Cabinet. Royalty rates range from 5% to 15%  in 2020,  and the compulsory 
exploration period is six years. The concessio n is for 20 years, and the total exploration area of any 
single concessionaire may not exceed five blocks of 20,000 km2. Concessionaires are allowed to sell 
or otherwise dispose of the petroleum produced , insofar as they me et their royalty and tax 
obligati ons. 
4.73.   The hydrocarbon sector is fully open to foreign investment at the exploration and production 
levels.36 Foreign companies such as Chevron operate some of Thailand's largest crude oil fields. 
Chevron's Erawan and PTT's Bongkot oil and natural gas fields  produce most of the condensate 
production.37 Chevron, Mitrui Oil Exploration Company, Total, Shell, and PTT hold sizeable shares in 
Thailand's natural gas fields.  
 
32 EPPO,  Annual Report 2018 .  
33 US EIA, Energy consumption per capita GDP 2017 . Viewed at:  https://www.eia.gov/ . 
34 US EIA, Energy consumption per capita GDP 2017 .  
35 PTTEP, Major Shareholders . Viewed at: 
https://www.pttep.com/en/Investorrelations/Shareholderinformation/Top10shareholders.aspx . 
36 WTO document WT/TPR/S/326/Rev.1, 10 February 2016.  
37 US EIA, Energy consumption pe r capita GDP 2017 . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  4.3.3   Electricity  
4.74.   Thailand ranks 6th out of 19 0 economies under the category of Getting Electrici ty in the World 
Bank's 20 20 Doing Business Report , up from the 12th place in 2015 .38 It ranks second (after Malaysia)  
within the ASEAN member countries.  
4.75.   In December 2019, Thailand had an installed generating capacity of 50,302 MW, up from 
34,690 MW  in 2015.  Slightly more power was generated  by the state-owned EGAT  (30.1%) than by 
independent power producers (IPPs, 29.7%). Small power producers (SPPs), imported electricity , 
and VSPPs accounted for 18.9%, 11.4%, and 9.9%, respectively (Chart 4.9). Natural gas accounted 
for more than half of the fuel source for electricity generation  (57.8% in 2019, down from 69.9% in 
2015), while the share of renewable energy went up from 2. 6% in 2015 to 10.4% in 2019.  
Chart 4.9 Electricity generation and installed generating capacity, as at 
31 December  2019  
 
Source:  Data provided  by the authorities . 
4.76.   The State and SOEs play an important role in  the electricity sector. The EGAT, established in 
accordance with the Electricity Generating Authority of Thailand Act B.E. 2511  (1968) , is Thailand's 
dominant electricity supplier, and is the sole buyer of electricity according to the "enhanced single 
buyer model ". According to the NEPC's resolution in 2015, the large amount of electricity supply via 
high voltage transmission line to neighbouring countries is the responsibility of the EGAT, while the 
Provincial Electricity Authority (PEA) is in charge of e lectricity supply via low voltage transmission 
line to neighbouring countries. The EGAT sells wholesale electricity to two distributing authorities - 
the Metropolitan Electricity Authority (MEA) and the PEA  - in addition to a small number of direct 
industr ial customers. Both the MEA and the PEA are SOEs with exclusive rights to undertake 
distribution and retailing activities within their respective geographical areas of jurisdiction. The MEA 
is responsible for distributing electricity in the Bangkok metropo litan area, while the PEA distributes 
electricity outside that area.  
4.77.   The electricity sector, the natural gas sector, and the related interconnection network are 
regulated by the ERC, established under the Energy Industry Act B.E. 2550 (2007). The ERC issue s 
electricity generation, transmission, distribution, and retail licences to public power utilities and 
privately -owned power suppliers.39 It also settles disputes between consumers and operators, and 
makes disbursements under the Power Development Fund (the Fund).  
 
38 World Bank,  Doing Business 2020 – Economy Profile Thailand . Viewed at: 
https://www.doingbusiness.org/content/dam/doingBusiness/country/t /thailand/THA.pdf . 
39 ERC (2018), Annual Report 2018 . Viewed at: https://www.erc.or.th/ERCWeb2/Upload/Document 
/annual%20report/Annual%20Report -%20ERC2018 -190919%20FINAL.pdf . 
Chart 4.[THA] Electricity generation and installed generating capacity, as of 31 December 2019
Total:
209,382 GWh
Source: Data provided by the authorities.Renewable energy
10.4%Imports
12.2%Imported coal/lignite
16.2%Natural gas
57.8%
Hydropower
2.9%Oil 0.5%Electricity generation by type of fuel: Installed generating capacity:
VSPPs
9.9%
Imports 
11.4%SPPs
18.9%IPPs
29.7%EGAT
30.1%
Total:
50,302 MWWT/TPR/S/ 400/Rev.1  • Thailand  
 
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  4.78.   The Fund was set up under the Energy Industry Act B.E. 2550 (2007), with the following 
objectives: to enhance extensive electri fication in rural areas; to subsidize services for 
underprivileged energy users; to develop and rehabilitate communities surrounded by power plants; 
and to promote the use of renewable energy and  technolog ies with low impact on the environment 
in electrici ty generation . The sources of the Fund come mainly from contributions from electricity 
industry licensees: during plant construction, licensees must pay at least THB 50,000 per MW per 
year; during the plant commission, they must pay at a rate determined by  the fuel type used for the 
power generation, ranging from 1 -2 satang/kWh (100 satang = THB 1).40 
4.79.   The ERC is responsible for regulating electricity tariffs that licensees impose on end -users, 
through rate -making regulations and a tariff -approval process. A regulated electricity base tariff 
borne by EGAT no longer exists, as wholesale prices are adjuste d to reflect actual variable costs 
through the automatic tariff adjustment mechanism every four months. Cross -subsidization  remains , 
where power suppliers are obliged to provide, free of charge, electricity to under -privileged 
residential customers at life line level . The Fund compensates their cost.41 The authorities indicated 
that the value of the cross -subsidy reached THB 2.1 billion in 2019, equivalent of 0.0125% of GDP.  
4.4  Manufacturing  
4.80.   Manufacturing accounted for 25.3% of GDP in 2019, down from 27.4% in 2015 (Table 1. 3). 
The sector's share in total employment went down slightly, from 17 .0% in 2015 to 16.3% in 2019 . 
The main subsectors, in terms of their contribution to GDP at current market prices, include: food 
products; coke and refined petroleum produc ts; computer, electronic and optical products; 
chemicals and chemical products (including pharmaceuticals); motor vehicles, trailers and 
semi-trailers; and rubber and plastic products (Chart 4.10). Thailand's manufacturing sector had 
been growing steadily since 2015, but contracted in 2019 (Table 1.3); this apparently reflecting a 
slowdown in exports.42 
Chart 4.10 Main manufacturing subsectors, 2018  
 
Source:  Data provided by the authorities.  
4.81.   The authorities st ated that major challenges facing the manufacturing sector include the 
appreciation of the Thai currency, and a slowdown in global trade in 2019 caused by international 
 
40 ERC (2016), Fact Sheet - Power Development Fund . Viewed at: https://www.erc.or.th/ERCWeb2 
/Upload/Document/FactSheet%E0%B8%A0%E0%B8%B2%E0%B8%9E%E0%B8%A3%E0%B8%A7%E0%B8%
A1%E0%B8%81%E0%B8%AD%E0%B8%87%E0%B8%97%E0%B8%B8%E0%B8%99@30Sep2016En.pdf . 
41 Thailand has a free -electricity policy for all residential customers who  consume electricity at less than 
50 units/month, in order to support low -income households.  
42 World Bank (2020), Thailand Economic Monitor – Productivity for Prosperity . Viewed at: 
http://documents.worldbank.org/curated/en/394501579357102381/pdf/Thailand -Economic -Monitor -
Productivity -for-Prosperity. pdf. 
Chart 4. [THA] Main manufacturing subsectors, 2018        
Source:  Data provided by the authorities.Food products
14.3%
Computer, electronic & 
optical products
9.1%
Chemicals & chemical products 
9.0%
Motor vehicles, trailers 
& semi -trailers
8.7%Coke & refined 
petroleum products
11.4%
Rubber & plastic 
products
7.1%Beverages
6.3%Electrical equipment
4.5%Other 
manufacturing
3.7%
Machinery equipment, n.e.s.
4.2%Non-metallic mineral products
3.4%Other
15.2%
Fabricated metal products, except 
machinery & equipment  3.1%WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  trade tensions. The authorities also indicated that the latter may play a positive role  in the longer 
term for the development of the manufacturing sector in Thailand, as trade tensions may divert 
investment to other countries including Thailand.  
4.82.   In 2019, close to half of Thailand's manufacturing exports, which accounted for 73% of total 
merchandise exports, were machinery and transport equipment (43%), of which office machines 
and telecommunication equipment, and automotive products, were the two biggest subsectors. 
Other main manufacturing exports were chemicals (9.8% of total merchandise exports), and other 
semi-manufactures (9.6%) (Table A1.1).  
4.83.   In the same year, one third of the merchandise imports were machinery and transport 
equipment (35.6%), of which office machines and telecommunication equipment, other 
non-electrical machinery, oth er electrical machines, and automotive products, were the largest 
sub-sectors. Chemicals and other semi -manufactures accounted for 10.7% and 7.2% of total 
merchandise exports, respectively (Table A1.2).   
4.84.   The main export destinations for Thailand's manufact uring products are China, the 
United  States, the EU -28, and Japan, while its imports mainly originate  from China, Japan, and the 
EU-28.  
4.85.   In 2019, t he Office of Industrial Economics , under the Ministry of Industry,  launched  an Action 
Plan on Industrial Development  (2019 -37), aimed at "moving towards  a wisdom -driven industry that 
connects with global economy ". The main objectives include: enhancing Thailand's industrial 
competitiveness in the world; generating more income and cr eating more jobs, and ensuring the 
continuity and stability of economic growth; and using industrial development as a key engine to 
transform Thailand into a high -income, developed country. The authorities stated that the Plan sets 
specific targets in term s of minimum annual growth rates from 2019 to 2037, for the following 
indicators: industrial sector's GDP no less than 4.5%; rate of investment in the  industrial  sector no 
less than 10%; export value no less than 8%; and total factor productivity no less t han 2%.  
4.86.   To reach these targets, the Plan identified five subsectors, and mapped out three guidelines 
focusing on their development.  
4.87.   The five subsectors are: (i) the agricultural and bio -technology subsector, such as the food 
and beverage industry, the ag ricultural processing industry, and bio -industry; (ii) the health, 
wellness and bio -med subsector, such as the pharmaceutical and herb industry, medical devices, 
and the medical service industry; (iii) the smart device, robotics, and mechatronics subsector , such 
as the robotics, aerospace, automotive and auto parts industries; (iv) the digital industry subsector, 
such as data centre cloud computing and system integration (SI) services; and (v) the creative 
industry, culture and high value services subsector . 
4.88.   The three guidelines are:  
• enhancing productivity and competitiveness of targeted industries by, inter alia , increasing 
the use of digital technology in SMEs and increasing the amount of innovative -driven 
enterprises;  
• reforming the industrial ecosystem towards a wisdom -driven one by improving 
government structures to facilitate the development of targeted industries, increasing 
foreign investment in those industries that are located in targeted areas, increasing 
investment in R&D, and increasing the numb er of researchers, patents, and skilled 
workers; and  
• better connecting Thailand's industry with the global economy, so that its industry 
responds to global demand and moves up in the global value chain, and both Thai 
investment abroad and foreign investme nt into Thailand in targeted industries are 
increased.  
4.89.   The Ministry of Industry has been implementing the Action Plan through: capacity -building 
projects in various sectors, such as automotive parts, processed agriculture, community products 
and local econ omy; the "food warrior " programme, by developing food entrepreneurs through WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  enabling innovation in healthy food, biotechnology food, and novel food; and increasing 
manufacturing productivity via recycling technologies and reusing industrial waste.  
4.90.   The Gov ernment applies both border and domestic measures to support the development of 
the manufacturing sector. At the border, the average applied MFN tariff on WTO non -agriculture 
products is 11.8% in 2020, up slightly from 10.1% in 2014 (Table 3.2). For manufa ctured products 
(ISIC definition) , average applied tariff protection went up from 12.6% in 2014  to 14.1 % in 20 20 
(Table 3.3) . The rise was mainly caused by the nomenclature change (from HS12 to HS17). Notably, 
during the transposition process, tariff lines  in the transport equipment section were split, and the 
number of tariff lines at the HS eight -digit level increased from 565 in 2014 to 1,033 in 2020. Among 
these lines, those carrying a tariff rate of 80% increased from 106 in 2014 to 436 in 2020.  
4.91.   In 202 0, 29.5% of all manufacturing tariff lines (ISIC definition) are duty free. The highest 
ad valor em rate, at 80%,  applies to motor vehicles ( HS 8703). The highest AVE , at 557.4%, applies 
to toothpicks of wood (20% or 100 baht/kg, whichever is higher, HS cod es 4421.99.80 
and 4421.91.60).  
4.92.   Import prohibitions on a number of manufactured products are maintained for protect ing 
public morals, national security,  public  health,  public safety, national resources, the environment, 
or IPRs (Table 3.6). Some other manuf actured products, such as used motor vehicles and motor 
cycles, used diesel engines, wood products, electric fans, electric rice cookers, and electric lamps, 
gas water warmers and heaters, 3D printing machines, and rapid prototyping machines, are subject 
to licensing and other import restrictions for reasons of protecting public health, national security, 
the environment, and IPR protection, among others (Section 3.1.4). Export prohibition and licensing 
requirements  are also applied on some manufacturing products  (Section 3.2). During the review 
period, anti -dumping and safeguard measures were implemented on a number of manufactured 
products (Section 3.1.5).  
4.93.   The Government launched Thailand 4.0 , which is an economic model aim ed at driving 
economic growth through innovation. To promote industrial restructuring in accordance with 
Thailand 4.0, the BOI has been promoting investment in targeted sectors and targeted technologies, 
including those relat ed to the BCG model. Against this background, a range of incentives are 
provided to the manufacturing sector in the form of , inter alia , corporate income tax holidays and 
import tariff exemptions under the BOI's investment promotion policy. Several tax and  non-tax 
incentives are also provided to businesses located in the EEC, the customs free zones, and the free 
zones under the Industrial Estate Authority of Thailand. In addition, several incentives to attract FDI 
are offered under the Thailand -Plus package  (Section 3.3.1).  In September 2019, the BOI launched 
a wide range of investment promotion measures, such as additional tax incentives to education and 
vocational training institutes specializing in science, technology, engineering, and mathematics, with 
a view to enhancing human resource development. The authorities stated that f oreign and Thai 
investors are granted the same incentives for eligible activities.  
4.5  Services  
4.5.1   Financial services  
4.94.   During the period under review, Thailand's financial sector remained  sound and stable, despite 
challenging external and internal conditions , including the COVID -19 outbreak.43 The authorities 
continued to implement measures to improve the regulatory and supervisory frameworks of financial 
institutions and strengthen the se ctor's stability. In 2019, financial intermediation services 
contributed 7.6% to GDP (the same as in 2015) and 1.4%  to total employment (1.5% in 2015).  
4.95.   Thai financial institutions are classified into two types: (i) depositary corporations (commercial 
banks, state -owned specialized financial institutions (SFIs), and saving cooperatives and credit 
unions); and (ii) non -depositary corporations (e.g. mutual funds, insurance companies, and 
 
43 At the time of writing this report (March 2020), Thailand's financial markets were experiencing 
heightened  volatility due to the shock caused by the COVID -19 outbreak in global financial markets. According 
to the Bank of Thailand, the Thai financial  system remained sound overall, although vulnerabilities had 
increased, particularly in relation to the debt -servicing capability of households and SMEs . Bank of Thailand, 
BOT Press Release No. 16/2020, 25 March 2020.  Viewed at: https://www.bot.or.th/Engli sh/PressandSpeeches 
/Press/2020/Pages/n1663.aspx . See also Section 1 of this report.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  securities companies)  (Table 4.10 ). At end -2019, the financial instituti ons' total assets were worth 
THB 46.6 trillion, or about 276% of GDP. While commercial banks continue to hold the largest share 
of the financial sector's assets (45.3%), followed by SFIs (15.2%), other segments of the financial 
sector (credit cooperatives,  mutual funds, and insurance) have grown considerably over the past 
few years.  
Table 4.10 Number and assets of financial institutions, December 2019  
 Number  % of total 
assets  
Depository corporations   67.8 
Commercial banksa 30 45.3 
Specialized financial institutions  (SFIs)a 6 15.2 
Saving cooperatives and credit unions  1,418  6.7 
Finance companies  2 0.1 
Money market mutual funds  47 0.5 
Non-depository corporations   32.2 
Mutual funds  (excluding money market mutual funds)  1,552  10.7 
Insurance companies  81 10.0 
Leasing companies  771 2.0 
Credit card and personal loan companies  (including nano finance)a 39 2.5 
Provident funds  376 2.5 
Government pension fund  1 2.0 
Asset management companiesa 60 0.7 
Securities companies  48 0.8 
Agricultural cooperatives  3,327  0.6 
Pawn shops  689 0.2 
Non-depository SFIs  2 0.2 
Total asset s (THB million)  46,580,756  
a Under BOT regulation and supervision.  
Source:  BOT.  
4.96.   During the review period, Thailand was engaged in the implementation of the third phase of 
the Financial Sector Master Plan (FSMP III), covering the years 2016 -20. The FSMP III promotes a 
more "competitive, inclusive, connected and sustainable " financial s ector in Thailand. To this end, it 
focuses on the following strategic objectives: (i) to promote electronic financial and payment 
services, and the efficiency of the financial system; (ii) to promote greater financial services access 
for individuals and bu sinesses of all sizes; (iii) to enhance the capacity of the financial system to 
support economic and financial integration under the ASEAN Economic Community and with other 
countries in the region; and (iv)  to develop the financial infrastructure (includin g the legal 
infrastructure to enhance risk management, and to support financial innovation) so that the financial 
system remains robust, in compliance with international standards, and able to support the country's 
economic growth.44  
4.97.   Under the FSMP III, t he Bank of Thailand has implemented a number of measures and policy 
initiatives, leveraging new technologies and adapting the regulatory framework in order to build an 
enabling and more inclusive FinTech banking system. Some of the main measures include: a mending 
IT regulations and guidelines to enhance the security of mobile banking services; formulating the 
Payment Systems Roadmap Phase 4 (2019 -2021) to promote digital payments; adopting regulations 
on person -to-person lending platforms to increase access  to funding for individuals and businesses; 
expanding the scope of the Consumer Debt Relief Program to include defaults on credit card debts, 
revolving loans and unsecured personal loans; revising the regulation on supervised personal loans , 
to allow the use of alternative information in assessing repayment capability to enhance the financial 
access of low -income individuals at a reasonable price; promoting the use of basic banking accounts; 
adopting a standardized QR code for domestic and cr oss-border e -payments; developing the 
electronic authentication infrastructure through the National Digital Identity platform; and setting 
up a regulatory framework on identification and authentication systems.45 In addition, progress has 
been made towards ASEAN financial integration (Section 4.5.1.1.2) . 
 
44 Bank of Thailand, The Financial Sector Master Plan Phase III . Viewed at: 
https://www.bot.or.th/English/FinancialInstitutions/Highlights/Pages/FSMP.aspx . 
45 Information provided by the authorities.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  4.5.1.1   Banking  
4.5.1.1.1   Market structure and overview  
4.98.   Commercial banks continue to dominate Thailand's banking sector. There are 30 commercial 
banks, including 15 locally incorpo rated banks (either domestically or foreign -owned), 11 foreign 
bank branches and 4 foreign bank subsidiaries ( Table 4.11 ). As at end -2019, the five largest 
commercial banks held almost 70% of the banking sector assets.46 Overall, commercial banks 
account f or 71% of corporate loans and 43% of consumer loans, and their loan portfolio is quite 
diversified.  
Table 4.11 Structure of the banking system: number of institutions and their respective 
market  share,  2015 -19 
 2015  2016  2017  2018  2019  
 
No. 
Sharea 
No. 
Sharea 
No. 
Sharea 
No. 
Sharea 
No. 
Sharea 
Thai commercial banks  15 89.8 15 90.0 15 90.7 15 90.7 15 90.4 
Locally incorporated and controlled 
by Thai nationals  10 73.9 10 73.6 10 73.6 10 73.4 10 72.8 
Locally incorporated, with more 
than 49% foreign ownership  5 15.9 5 16.4 5 17.1 5 17.3 5 17.6 
Foreign bank subsidiaries  4 0.7 4 0.7 4 0.8 4 1.0 4 1.1 
Foreign bank branches  12 9.5 11 9.3 11 8.5 11 8.3 11 8.5 
Total  31 100.0  30 100.0  30 100.0  30 100.0  30 100.0  
a Percentage of market share in terms of assets.  
Source:  Information provided by the authorities.  
4.99.   As reported in Thailand's previous Reviews, state participation  in the banking system remains 
significant. The Ministry of Finance (through the Financial Institutions Development Fund) owns a 
majority stake of 55% in the Krung Thai Bank, the country's third largest bank.47 Additionally, the 
Crown Property Bureau and the Ministry of Finance (via the Vayupak Mutual Fund) have a combined  
stake of 23.12% (11.56% each) in the Siam Commercial Bank, the second largest bank.48 Moreover, 
the Ministry of Finance holds minority shares in other commercial banks.  
4.100.   There are also eight Specialized Financial Institutions, all of which are state -owned . SFIs are 
mandated to provide financing to those who are not adequately served by commercial banks, such 
as low -income households and specific economic sectors (e.g. agriculture, small businesses, and 
housing). Their assets have increased over the past ye ars, with some SFIs featuring among the 
largest financial firms in Thailand. They play a crucial role in providing financial services to 
households and, together with the savings and credit cooperatives and credit unions, now account 
for around a third of household credit.49 There are six deposit -taking SFIs: the Government Savings 
Bank, the Bank of Agriculture and Agricultural Cooperatives, the Government Housing Bank, the 
Islamic Bank of Thailand, the Export -Import Bank of Thailand, and the Small and Medi um Enterprise 
Development Bank of Thailand.50 
4.101.   Thai commercial banks' fundamentals have remained strong during the review period. They 
have capital adequacy ratios  that are well above the statutory domestic requirement of 8.5% and 
the Basel III requirements . At end -2019, banks had a capital adequacy ratio of 19.6%, a common 
equity Tier 1 ratio of 16.6%, and a liquidity coverage ratio (LCR) of 186.3% ( Table 4.12 ). The 
 
46 Bank of Thailand, Financial Stability Report 2018 . Viewed at: 
https://www.bot.or.th/English/FinancialInstitutions/Publications/Pages/Financial -Stability -Report.aspx . 
47 Krung T hai Bank. Viewed at: https://www.ktb.co.th/en/investor -relations/shareholders -
information/shareholders -list. 
48 The Securities and Exchange Commission. Viewed at: 
https://market.sec.or.th/public/idisc/en/CompanyProfile/Listed/SCB . 
49 IMF (2019), Thailand. Financial System Stability Assessment , October 2019. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2019/10/07/Thailand -Financial -System -Stability -Assessment -
48723 . 
50 The non -depositary SFIs are: the Thai Credit Guarantee Corporation and the Secondary Mortgage 
Corporation.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  authorities indicated that such high levels are necessary to ensure that banks' capital base and 
liquidity are strong enough for their risk -weighted assets during periods of market volatility. While 
maintaining high levels of liquidity is a positive sign from a prudential point of view, a higher degree 
of financial intermediation may be desirable, considering especially that investment has been 
sluggish in recent years.  The banks' ratio of non -performing loans (NPLs) to total loans remains low 
(2.9% at end -2019), but it increased over the review period, mainly due to a rise in NPLs in the SME 
sector. The banking system has continued to accumulate loan loss provisions to cushion for loan 
quality deterioration and also to prepare for the International Financial Reporting Standard 9 
(IFRS9), scheduled to be implemented in 2020; the actual to regulatory loan loss provision stood at 
205.9% at end -2019. Meanwhile, the performance of SFIs has been less robust: their capital 
adequacy ratio stood at 13.9%  at end -2019, below that of commercial banks although still above 
the statutory requirement, and their average NPL ratio was 4.4%.  
Table 4.12 Thai banks' key financial indicators, 2015 -19 
(%) 
 2015  2016  2017  2018  2019  
Capital adequacy       
 Total capital adequacy ratio  17.4 18.0 18.2 18.3 19.6 
 Common equity Tier 1 ratio (CET1 ratio)  14.5 15.1 15.6 15.8 16.6 
Asset quality       
 Gross Non-performing (NPLs) to total loans ratio 2.55 2.83 2.91 2.93 2.98 
    NPLs to SME loans  3.50 4.35 4.51 4.56 4.63 
Provisioning       
 Actual/regulatory loan loss provision ratio  156.3  159.6  171.9  193.3  205.9  
Profitability       
 Return on assets  (ROA)  1.11 1.13 1.05 1.11 1.39 
Liquidity       
 Loan-deposit ratioa 97.0 96.9 96.3 98.3 96.3 
 Liquidity coverage ratio (LCR)b n.a. 175.2  180.0  184.2  186.3  
a This ratio excludes interbank data, and covers all commercial banks (commercial banks registered in 
Thailand and foreign bank branches) . 
b LCR: is a requirement that banks  hold an amount of high -quality  liquid  assets , enough to fund ca sh 
outflows for 30 days ; data is available from 1 January 2016.  
Source:  BOT, Performance of the Thai Banking System, 2015, 2016, 2017, 2018 and 2019. Viewed at: 
https://www.bot.or.th/English/PressandSpeeches/Press/_layouts/application/BOTNews/News.aspx . 
4.102.   Credit growth experienced a slow -down in 2015 and 2016; it then picked up in 2017 (4.4%) 
and in 2018 (6%), mainly driven by increases in consumer and corporate loans (particularly from 
large corporations and some SMEs).51 However, reflecting subdued economic conditions and loan 
repayments, credit growth decelerated in 2019 to 2.0% year -on-year, with large  corporate and SME 
loans (excluding financial business) contracting by 1.9% and 2.1%, respectively. On the other hand, 
consumer loans expanded by 7.5% year -on-year, with personal loans and credit card loans 
expanding the most.52 Commercial  banks' profitability remains low, in part as a result of increasing 
provisioning expenses over the past few years; the return on assets was 1.39% at end -2019.53  
4.103.   According to the 2019 IMF Financial System Stability Assessment, Thailand's commercial 
bankin g sector appears to be sound and stable ; it is resilient to severe shocks , and systemic risks 
seem to be contained. Nonetheless, the IMF identified financial vulnerabilities related to high levels 
of household indebtedness (equivalent to nearly 80% of GDP)  and asset quality problems in some 
corporations and SMEs .54  
4.104.   It should be noted that, in recent years, commercial banks made significant strides in 
developing and adopting new digital banking platforms to reduce operating costs, improve access to 
 
51 Bank of Thailand, Press Release No. 13/2019, 15 February 2019 . Viewed at: 
https://www.bot.or.th/English/PressandSpeeches/Press/2019/Pages/n1362.aspx . 
52 Bank of Thailand, Press Release No. 8/2020, 17 February 2020 . Viewed at: 
https://www.bot.or.th/English/PressandSpeeches/Press/2020/Pages/n0863.aspx .  
53 Bank of Thailand , Press Release No. 8/2020,  17 February 2020 .  
54 IMF (2019), Thailand. Financial System Stability Assessment , October 2019. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2019/10/07/Thailand -Financial -System -Stability -Assessment -
48723 . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  a wider range of financial products, and contribute to promoting financial inclusion.55 Thai banks 
have also started to undertake new initiatives to expand in the region as ASEAN Economic 
Community (AEC) integration and regional competition increase, and AEC membe r countries prepare 
for ASEAN -wide liberalization of the banking sector in 2020. For example, one of the top five Thai 
banks, Kasikornbank, opened locally incorporated banks in Cambodia, China and Lao PDR, and 
maintains representative offices in Indonesia,  Myanmar, Vietnam and Japan.56  
4.5.1.1.2   Legal framework  
4.105.   The Financial Institutions Business Act (FIBA) B.E. 2551 (2008) remains the main law 
governing the banking sector, together with the Bank of Thailand Act (BOT Act). In 2015, the FIBA 
was amended to address ce rtain prudential issues, such as the granting of credits to banks' directors, 
managers, deputy managers and other related persons with managerial power. Further amendments 
to the FIBA were announced in 2018 and implemented in February 2019, with the aim of  enhancing 
the effectiveness of SFI supervision. In addition, the BOT Act was amended through the BOT  Act 
(No. 7) B.E. 2561  (2018) in order to implement a bank resolution framework for dealing with 
distressed banks whose failure may pose a threat to the st ability of the financial system. Thailand 
has implemented the Basel III capital requirements since 1 January 2013, and the liquidity 
requirement since 1 January 2016.  
4.106.   Under the FIBA, the Bank of Thailand is responsible for the supervision and regulation of  
commercial banks and other financial institutions.57 The BOT is empowered, inter alia , to approve 
the establishment of commercial banks and their subsidiaries, to approve their directors and senior 
management, to supervise and examine their performance an d soundness and take corrective action 
as appropriate, and to require them to submit data and reports. It also has supervisory powers to 
conduct consolidated supervision of financial conglomerates. The Minister of Finance retains the 
authority to grant or revoke banking licences upon the BOT's recommendation.  
4.107.   In 2015, the SFIs were brought under the supervision of the BOT. However, as noted by the 
IMF, SFIs are still not subject to the same supervision regime and disclosure obligations as 
commercial banks, and the BOT needs the approval of the Ministry of Finance to issue regulations 
and take corrective action in relation to SFIs. Hence, the IMF recommends bringing the regulatory 
and supervisory regime of the largest deposit -taking SFIs in line with that of commercial banks.58  
4.108.   Under current legislation, foreign ownership of commercial banks is capped at 25% of the 
bank's shares , and the number of foreign directors may not exceed one quarter of the total. 
Nevertheless, the BOT can, on a case -by-case basis, in crease the statutory cap on foreign ownership 
to 49% and the limit on foreign directors to one  half of the total. Furthermore, the Minister of 
Finance, upon recommendation of the BOT, has the power to authorize foreign ownership of more 
than 49% in a comme rcial bank, where this is deemed necessary to improve the financial 
performance or strengthen the security of any financial institution, or the financial system in its 
entirety. The last time the Minister of Finance granted such authorization was in 2013.  
4.109.   A foreign commercial bank may be established in Thailand under either of two forms: as a 
foreign bank branch or as a subsidiary. Representative offices of foreign banks may not provide 
commercial banking services. Foreign bank branches may operate a maximu m of three service 
points. However, as part of the Government's measures to liberalize the banking sector, in 2012, 
existing foreign bank branches were given the option to apply for a subsidiary licence and thus 
establish up to 40 service points, provided they met the relevant requirements, including a minimum 
paid-up capital of THB 10 billion. Foreign bank branches are eligible to apply for a subsidiary licence 
if their country of origin meets any of these conditions: it has signed a free trade agreement w ith 
Thailand; it offers reciprocal market access to Thai banks; or it has "significant business relations 
with Thailand ". In 2013, the Thai bank market was opened again for applications to establish new 
 
55 Oxford Business Group (2016), The Report: Thailand 2016 . London.  
56 The Economist Intelligence Unit (2019), Industry Report. Financial services. Thailand . London.  
57 Other financial institutions under BOT supervision are: finance companies, credit  foncier companies, 
representative offices of foreign financial institutions, asset management companies, non -banks (credit card 
companies, personal loan companies, and e -payment businesses), service providers under the Payment 
System Act, and foreign mean s of payment businesses.  
58 IMF (2019), Thailand: Financial System Stability Assessment , October 2019. Viewed at: 
https://www.imf. org/en/Publications/CR/Issues/2019/10/07/Thailand -Financial -System -Stability -Assessment -
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  foreign bank subsidiaries, with similar eligibility c onditions as in 2012, and a minimum paid -up 
capital of THB 20 billion; as a result, licences were granted to two banks, whose subsidiaries have 
been in operation since 2015.59 Once foreign banks obtain a subsidiary licence, they are subject to 
the same reg ulations and supervision standards as domestic commercial banks, and are able to 
provide the same range of services as local banks.  
4.110.   In February 2016, the Ministry of Commerce issued regulations to remove commercial 
banking, representative offices of foreign banks, and life and non -life insurance businesses from the 
list of restricted activities under the Foreign Business Act; and, in 2017, other activities governed by 
the legislation on financial institutions were also removed from said list (Section 2.4). As a result, 
foreign investors in commercial banking and other financial businesses are now exempted from 
obtaining a foreign business licence to operate, although they are still subject to the licensing 
requirements and foreign ownership limits pres cribed under the FIBA.  
4.111.   It is government policy to encourage consolidation of the banking sector in order to boost 
operational efficiency. To this end, tax incentives and deductions for banks that engage in mergers  
were approved in April 2018 . These includ e provisions exempting commercial banks that merge or 
transfer into another bank from corporate income tax, specific business tax and stamp dut ies on 
income and gross receipts. Incentives are also provided based on the size of the asset base: merged 
banks holding more tha n THB 4 trillion in assets are eligible for a double deduction on the costs 
associated with the merger or transfer.60 Under the consolidation policy , a merger proposal 
submitted by TMB Bank (TMB) and Thanachart Bank (TBank)  was approved in September 2019. The 
merger deal, worth approximately THB 150 billion, will create the sixth largest bank in Thailand, and 
is expected to be completed by 2021.  
4.112.   Incentives are also intended to encourage Thai banks to merge so they are in a better 
position t o compete regionally. In the context of the AEC process, ASEAN member countries are 
working towards the liberalization of the banking sector in the region for "Qualified ASEAN Banks " 
(QABs). QABs are to be given market access and operational flexibility in  the host country on a 
reciprocal basis through the conclusion of bilateral arrangements. Thailand completed negotiations 
with Malaysia, and is currently negotiating with Indonesia, Myanmar and the Philippines. The QABs 
commitments between Malaysia and Tha iland were inscribed in the 8th package of commitments 
under the ASEAN Framework Agreement on Services (AFAS) and were ratified. In addition, ASEAN 
members agreed to  a 5-year Roadmap for Regulatory Coherence (2020 -2025) to enhance 
convergence of banking re gulations and supervision across ASEAN towards international 
standards .61 Moreover, members have been negotiating the 9th package of commitments on financial 
services under the AFAS, which will be superseded by, and its results incorporated into, the ASEAN 
Trade in Services Agreement (ATISA), signed in April 2019.  
4.113.   Under the Deposit Protection Agency  Act B.E. 2551  (2008), in vestor deposits in local 
currency with banks and other financial institutions are protected against loss in the event of 
bankruptcy by a financial institution. Both individual and juridical depositors are eligible for 
protection (non -resident baht accounts  are not covered). Since the scheme's inception in 2008, the 
limit on the cover ed amount has been gradually reduced . On 11 August 201 9, the maximum amount 
protected was set at THB  5 million per account per financial institution but, on 11 August  2021, it 
will be reduced to THB  1 million . The Deposit Protection Agency is responsible for administering this 
scheme.  
4.5.1.2   Insurance  
4.5.1.2.1   Market structure  
4.114.   Thailand's insurance industry continued to expand during most of the review period but 
showed a slight decrease in 2019 as the economy slowed down. In 2019, total insurance premiums 
amounted to THB 854.5 billion, compared to THB 704.0 billion reported in 2014. In 2019, the 
 
59 The licences were granted to ANZ Bank (Thai) Plc and Sumitomo Mitsui Trust Bank (Thai) Plc.  
60 Oxford Business Group (published on 24 April 2019). Viewed at: 
https://oxfordbusinessgroup.com/new/how -mergerers -are-changing -thailand's -banking -sector .  
61 Bank of Thailand, Annual Report 201 9. Viewed at: 
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  insurance industry accounted for 10.2% of the financial sector's assets.62 Thailand's insurance 
penetration ratio (gross premium/GDP) was 5.1% in 2019, higher than in regional peers such as 
Malaysia, Indonesia and Viet Nam. The life insurance segment dominates the insurance landscape, 
with over 70% of total premium income. Withi n the non -life insurance sector, motor vehicle coverage 
is the main product line, accounting for 58% of general insurance premiums, although the segments 
of personal accident and health have shown a growing trend during recent years.63  
4.115.   At end -2019, there were 81 licensed insurance companies operating in Thailand, comprising 
22 life insurance firms, 57 non -life insurance companies, and 2 reinsurers. The number of insurance 
firms decreased from the 95 reported in the 2015 TPR, partly as a result of the gover nment policy 
to promote industry consolidation. Of the 81 authorized insurers, only 6 are branches of foreign 
insurance companies (1 life insurer and 5 non -life insurers). Nevertheless, foreign participation in 
the industry is important, as many locally in corporated insurance companies have foreign equity 
participation and belong to international insurance groups. At end -2019, 21 life insurance companies 
and 46 non -life insurance companies  had foreign participation. Foreign shares accounted for 39.2% 
of the  total shares of insurance companies in Thailand in 2019.64 
4.116.   In respect of market share, in 2019, the top three life insurers held 51. 7% of the market in 
terms of gross premium income, with the largest accounting for 2 3%. In the non -life insurance 
sector, i n the same year, the top three insurers held 32.2% of the market, with the largest 
accounting for 15.3%.65 There was some degree of industry consolidation over the last six years, as 
shown by the following examples: i n 2014, the Swiss -based company AEC and  a local firm bought 
60.9% of Siam Commercial Samaggi Insurance, a non -life insurance company66; in 2015, Thai Life 
Insurance acquired 50% of Thai Cardiff Life Assurance from BNP Paribas Cardiff ; in 2016, there was 
a partial business transfer between Chubb  Samaggi Insurance and Ace Ina Overseas ; in 2018, there 
was an entire business transfer from Allianz General Insurance to Sri Ayudhya General Insurance67; 
and, in 2019, the merger between Tokio  Marine Insurance (Thailand) and Safety Insurance was 
approved, and the new company  was established as Tokio Marine Safety Insurance (Thailand) in 
February 2020.  
4.117.   The insurance sector is currently facing some challenges. First, the global and economic 
downt urn has affected the sector's performance: insurance premiums fell by 6% year -on-year during 
the first half of 2019, the first such occurrence in a decade and a half.68 Second, as reported by the 
IMF, the continued downtrend in interest rates makes endowme nt insurance policies more prone to 
risks, as life insurers may struggle to match their long -duration liabilities with their assets, thereby 
affecting earnings, capital requirements and capital reserves. Third, amid intense competition, 
non-life insurers, particularly the smaller ones, could feel compelled to resort to price -cutting, rather 
than compete on quality of service grounds, potentially compromising the underwriting discipline 
and leading to solvency difficulties.69 On the positive side, fierce com petition has led many insurers 
to develop technologies to offer their insurance products online, helping reduce their operating costs 
and brokerage fees; some innovations in this area, particularly in the non -life insurance segment, 
have been reported in r ecent years. Meanwhile, insurance companies are now required to comply 
with new regulations, including the introduction of the second phase of risk -based capital 
requirements, and accounting standards (IFRS 9).  
4.5.1.2.2   Legal framework  
4.118.   During the period under revie w, changes were introduced to the insurance industry's legal 
regime in order to modernize it and bring it in line with the rules governing banks and with 
 
62 Bank of Thailand, Financial Stability Report 201 9. Viewed at:  
https://www.bot.or.th/English/FinancialInstitutions/Publications/FSR_Doc/FSR2019e.pdf . 
63 2017 OIC data quoted in Oxford Business Group (2018), The Report: Thailand 201 8. London.  
64 Information provided by the authoritie s. 
65 Information provided by the authorities.  
66 Oxford Business Group (2016), The Report: Thailand 2016 . London.  
67 Allianz General Insurance returned its licen ce in A pril 2019 . 
68 Bangkok Post, Insurance premiums shrank for the first time in 15 years in H1, 1 August 2019. Viewed 
at: https://www.bangkokpost.com/business/1722223/insurance -premiums -shrank -for-the-first-time-in-15-
years -in-h1. 
69 IMF (2019), Thailand. Financial System Stability Assessment , October 2019. Viewed at: 
https://www.imf.org/en/Publications /CR/Issues/2019/10/07/Thailand -Financial -System -Stability -Assessment -
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  international standards. The changes included provisions to strengthen the supervisory framework 
and e nhance consumer protection in all aspects of the insurance business. Also, as in the case of 
banking, there has been a progressive relaxation of restrictions on foreign participation in insurance 
firms for the purpose of promoting stability of the industry .  
4.119.   The Office of the Insurance Commission (OIC) is responsible for supervising and regulating 
the insurance industry, including approving premium rates.70 The power to approve licensing 
decisions continues to rest with the Minister of Finance.71 During the  period under review, the 
activities of the OIC were guided by the Third Insurance Development Plan (2016 -20), whose main 
objectives are to strengthen the stability and efficiency of the insurance business, enhance people's 
knowledge and accessibility to t he insurance system, and create an environment conducive to 
competition in the sector. Under the Plan, industry standards and corporate governance are to be 
improved, transparency increased, and innovation encouraged.   
4.120.   The insurance business is primarily r egulated by the Life Insurance Act B.E. 2535 (1992) 
and the Non -Life Insurance Act B.E. 2535 (1992). During the review period, these Acts were 
amended in 2015 and 2019. The 2015 amendments focused on changes to the definition of Thai 
shareholders in both l ife and non -life insurance companies in order to allow greater participation of 
foreign ownership in local insurance companies. There were also changes to the provisions regarding 
the Life Insurance Fund, aimed at better protecting policy holders in the ev ent an insurance company 
becomes insolvent or has its licence revoked.72 The 2019 amendments focused on new provisions 
governing electronic transactions in the insurance business, improving the supervision of insurance 
intermediaries (agents and brokers), and introducing penalties on insurance fraud activities.73  
4.121.   In addition, over the review period, the OIC issued regulations (Notifications) pertaining to 
different aspects of insurance companies' activities, including procedures for computing capital funds  
(risk-based capital 2 framework); insurance companies' investment in financial products; rules for 
issuing insurance policies through digital channels; procedures regarding reinsurance activities; and 
disclosure of financial and business operating results . A set of regulations came into effect in 2019, 
pertaining to: standards of fair treatment of customers; permitted insurance distribution channels74; 
enterprise risk management; fraud risk; corporate governance; and guidelines for approval of 
dividend pay ments to shareholders.  
4.122.   Under current law, life and non -life insurance businesses can only be undertaken by a public 
limited company or a branch of a foreign insurance company (no additional branches are allowed). 
In both cases, a licence is required. An a pplication for a licence to open an insurance business must 
be lodged with the Minister of Finance; if it is approved, the interested investor must incorporate a 
public limited company, place a security deposit with the OIC, and maintain an adequate capita l 
fund75, within six months of incorporation. Once these conditions are satisfied, a licence is issued. A 
licensed life insurance company may not engage in non -life insurance business, and vice versa. As 
the local insurance market is overcrowded, the Gover nment has not issued any new licences since 
1997; rather, it is encouraging insurance companies to merge and to increase foreign equity 
participation. At present, the authorities are holding discussions regarding the structure of the 
insurance market, incl uding with regard to the participation of virtual players from other countries. 
A non -life insurance company had its licence revoked in 2018 due to financial weaknesses.  
 
70 Insurance companies must request approval for premium rates for each type of insurance policy. 
Policy wording is also subject to approval by the OIC.  
71 In addition, t he Minister of Finance has the power of general supervision over the affairs of the O IC 
(Section 45 of the I nsurance Commission Act, B.E. 2550 (2007) ). 
72 The Life Insurance Act (No. 3) B.E. 2558 (2015) and the Non -Life Insurance Act (No. 3) B.E. 2558 
(2015).  
73 Brokers can be either individuals or a legal entity in Thailand; while only individuals can be insurance 
agents.  The provisions amended in 2019 referred to, inter alia , duties and liabilities of corporate brokers (e.g. 
duty to only app oint licensed individual brokers, and joint liability for corporate brokers with their appointed 
individual brokers); qualifications of insurance agents and brokers; grounds for revocation of their licences; 
and new offences and penalties. The Life Insuran ce Act (No. 4) B.E. 2562 (2019) and the Non -Life Insurance 
Act (No. 4) B.E. 2562 (2019).  
74 Permitted distribution channels include offering insurance for sale through: employees or staff; 
telephone (telesales); bancassurance; post; electronic means; and ot her means.  
75 The minimum registered capital is THB  500 million for a life insurer, and THB  300 million for a non -life 
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  4.123.   Foreign shareholding in an insurance company is generally capped at 25%, and the limi t on 
foreign directors in the company's board is one quarter of the total. However, in recent years, the 
authorities have gradually relaxed these limits. Amendments to the life and non -life insurance laws 
in 2015 empowered the OIC to raise the foreign equi ty limit to 49% and the number of directors to 
more than one quarter (but no more than one half), subject to certain conditions. S ince 2015 , foreign 
shareholding of up to 49% has been approved for eight companies (six n on-life insurance  and two life 
insura nce). Moreover, in 2016, the Ministry of Finance issued regulations that further relaxed the 
foreign ownership restriction, allowing an insurance company to increase foreign equity beyond 49% 
(and up to 100%), and the number of foreign directors to exceed one half of the total, in the event 
that a non -life insurance company is facing financial difficulty to the point that it risks damaging the 
insured or the public at large, or for the purpose of strengthening the stability of any company or 
the life insura nce business as a whole . Since 2016, there was one case in which an insurance 
company was allowed to increase foreign equity beyond 49% (and up to 100%) , and to have foreign 
directors exceed one  half of the total , in order to encourage market consolidation . 
4.124.   An insurance company wishing to exceed the 49% foreign ownership restriction must apply 
to the Ministry of Finance for approval and meet relevant criteria. These include: demonstrating a 
sufficient capital adequacy ratio; having a business plan for promo ting the stability of the insurance 
company or the insurance industry, and a technology transfer plan; and establishing minimum 
credentials of the proposed foreign shareholder (including at least ten years of industry experience, 
and financial stability wi th a minimum "A" credit rating issued by a recognized international agency). 
Once approval is given, the company must maintain prescribed minimum capital requirements 
(THB 1 billion for non -life insurance companies and THB  4 billion for life insurers). Currently, 
six insurance companies have foreign equity of up to 100%.  
4.125.   Under regulations issued by the Ministry of Commerce in February 2016, foreign investors 
in life and non -life insurance businesses are now exempted from obtaining a foreign business licence 
to operate unde r the Foreign Business Act B.E. 2542 (Section 2.4), although they must still comply 
with licensing requirements and foreign ownership limits under the insurance laws.  
4.126.   A risk -based capital (RBC) framework for the solvency regime is in place since 
September  2011. The second version of the framework (RBC 2), introduced by the OIC, became 
effective on 31 December 2019. It requires insurance companies to meet a minimum capital 
adequacy ratio (CAR) of 100%. The supervisory CAR level, which allows regulatory inte rvention, is 
set at 120% until 31 December 2021, and at 140% from 1 January 2022 onwards. Under RBC 2, 
insurance companies must implement Enterprise Risk Management (ERM) and Own Risk and 
Solvency Assessment (ORSA). There are also changes on how insurance companies calculate capital 
funds, including total capital available, capital deductions, minimum capital requirements, and types 
of risks requiring capital charges. The capital reserves are assessed on six main risks: insurance, 
market, credit, concentrat ion, surrender (only applicable to life insurance), and operational.  
4.127.   Thai insurance companies, corporations and consumers may willingly obtain insurance 
coverage and services from foreign insurance firms. However, foreign insurance firms are still 
subject  to insurance licensing requirements under Thai insurance law for providing insurance 
coverage and services or performing any sale activities in Thailand. Cross -border trade in maritime, 
aviation and land transportation insurance is allowed, without requir ing the foreign insurance firms 
to establish in Thailand, if Thai locals seek such insurance coverage on their own. Foreign reinsurers 
may offer coverage and services from abroad directly to Thai insurance companies or through 
licensed local reinsurance br okers. Thai insurance companies may cover risk that happens abroad if 
the relevant insurance policy wording so specifies.  
4.128.   The Life Insurance Fund and the Non -Life Insurance Fund, established in 2008, protect policy 
holders in the event an insurance company goes bankrupt or has its licence revoked. The Funds are 
financed by a 0.1% levy on the gross written premium of each insurance company. Neither Fund is 
guaranteed by the State.76 Payments are limited to THB  1 million per claimant. The Nat ional 
Catastrophe Insurance Fund, established in 2012 to reinsure against losses from floods, earthquakes 
 
76 IMF (2019), Thailand. Financial System Stability Assessment , October 2019. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2019/10/07/Thailand -Financial -System -Stability -Assessment -
48723 . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  and storms, was wound up in November 2015, as the insurance industry recovered and gained 
capacity to provide disaster coverage.  
4.129.   The insurance industr y benefits from tax incentives. Life insurance premiums are tax 
deductible for up to THB 100,000 a year for holders of polices issued by insurance companies 
authorized to operate in Thailand, including branches of foreign firms. Only insurance policies wit h 
maturities over ten years are tax deductible.  In addition, in order to motivate people to buy health 
insurance coverage and to lessen the Government's public health care costs, holders of health 
insurance policies are entitled to a personal tax deduction  equal to the health insurance premium 
but not more than THB 15,000. The total amount of tax deductible when combining with all other 
life insurance premiums must not exceed THB 100,000. Premiums paid into pension life plans are 
also deductible, subject to  certain conditions.  
4.5.2   Communications  
4.5.2.1   Telecommunications  
4.130.   During the period under review, Thailand's telecom munications  sector grew significantly ; 
however,  the penetration  (subscriptions per 100 inhabitants)  of fixed telephony halved over the past 
five years (from 7. 9% in 2015 to 3.8% in 201 9). A major reason for this was the dominance of the 
mobile segment and the growth of the mobile broadband segment. Mobile phone p enetration  
increased from 1 53.1% in 2015 to 1 90.6% in 201 9, and wireless  broadband penetratio n increased 
and reached 88.8% in 201 9. Fixed broadband penetration also grew, by almost 50% during the 
review period (Table 4. 13). As at end-2018, two  thirds of households had Internet access at home77, 
and slightly more than half of the population used In ternet.  
Table 4.13 Selected telecommunications indicators, 2015 –19 
 
2015  2016  2017  2018  2019  
Fixed telephone subscriptions (million)  5.31 4.71 3.47 2.93 2.61 
Fixed telephone subscriptions per 100 inhabitants  7.90 6.98 5.12 4.32 3.84 
Mobile -cellular telephone subscriptions (million)  102.94  119.67  121.53  124.99  129.61  
Mobile -cellular telephone subscriptions per 100 inhabitants  153.10  177.43  179.64  184.27  190.64  
Internet users (%)  39.47  43.87  45.19  47.56  50.10  
Fixed broadband subscriptions (million)  6.22 7.22 8.21 9.19 10.11  
Fixed broadband subscriptions per 100 inhabitants  9.26 10.70  12.13  13.55  14.87  
Wireless broadband subscriptions (million)  46.03  52.60  55.18  58.05  60.35  
Wireless broadband subscriptions per 100 inhabitants  68.48  77.99  81.56  85.58  88.76  
Source:  ITU, Statistics . Viewed at: www.itu.int/en/ITU -D/Statistics/Pages/stat/default.aspx ; and infor mation 
provided by the authorities.  
4.131.   The National Broadcasting and Telecommunications Commission (NBTC) remains the 
sectoral regulator.78 Its regulatory powers cover telecommunications , broadcasting , and 
television/radio communication businesses .79 During t he review period, t he Act on the Organization 
to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications Services was 
amended twice, in 2017 and 2019. According to the authorities, both amendments served to improve 
the structure of t he NBTC for better governance in response to the latest developments in 
telecommunications technology. The 2019 amendment granted the NBTC power to also regulate 
satellite communication business in Thailand .  
4.132.   Aside from the above amendments, the main legis lation governing the telecommunications 
sector remained largely unchanged during the review period. It includes the Telecommunications 
Business Act, the Broadcasting and Television Business  Act, and the Radiocommunications Act.  
4.133.   In September 2016, the Mini stry of Information and Communication Technology, as the 
policy making body of the telecom sector, was dissolved and replaced with the Ministry of Digital 
Economy and Society (MDES). The MDES is responsible for planning, promoting, developing and 
 
77 ITU, ICT Country Pr ofile: Thailand . Viewed at: https://www.itu.int/itu -
d/apis/clients/res/pdf/country_profile/report_THA.pdf . 
78 The NBTC was created in 2011 under the Act on the Org anization to Assign Radio Frequency and to 
Regulate the Broadcasting and Telecommunications Services B.E. 2553.  
79 Online content services are regulated by the Ministry of Digital Economy and Society.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  implement ing activities related to a digital society and economy; it also houses the National Digital 
Economy Committee which is chaired by the Prime Minister.  
4.134.   Thailand has been aiming to transform itself into a digital economy; the Government has a 
vision to maxim ize digital technologies in all areas of society and the economy. In this context, it 
began  implement ing the Thailand 4.0 policy  in 2016 . Since  February 2020, foreign investment in 
digital services and digital parks no longer require s prior approval from the MDES .80 
4.135.   Thailand's telecommunication infrastructure has been significantly improved since the last 
Review. The national construction of the backbone network, under the name of the Village Broadband 
Internet project (Net Pracharat), was completed, and it became ope rational. The project, which 
aimed to provide affordable Internet for 44,325  villages , was implemented by  the MDES together 
with the NBTC81; according to the authorities, accessing Internet is now possible in every village in 
Thailand. With regard to inter national connectivity, i n addition to upgrading the capacity of the 
existing eight submarine cables, Thailand is constructing a new submarine cable to connect 
Southeast Asian countries, China , Japan and the Republic of Korea  under the Southeast Asia -Japan 
2 (SJC2) Project; the SJC2 project is expected to be completed  in 2022.   
4.136.   The majority  of the telecommunications infrastructure , such as the national broadband 
network and most submarine cable landing stations, is owned by the Government through SOEs. 
Some licensed private operators may also have their own networks (see below).  
4.137.   In Thailand 's laws and regulations, a  "telecommunication service " is defined as a "service 
which provides the emission, transmission or reception of signs, signals, writing, digits, images, 
sounds, codes, or intelligence of any nature by means of Hertzian, wire, optical, electromagnetic, or 
any other system, or a combination thereof, and shall include satellite communication services or 
other business prescribed as telecommuni cations services by the NBTC, but not including sound 
broadcasting, television broadcasting, and radio communication services ".82 A person is considered 
as operating a telecommunications business if the nature of the business is to supply 
telecommunication s services to other persons. If a particular business is determined to be a 
telecommunications business by the regulator, then a licen ce is required for the business to operate.  
4.138.   Pursuant to the Telecommunications Business Act, three types of telecommunicat ions 
licences are issued to operators: Type I, Type II, and Type III. Each licen ce has different 
requirements, rules, and obligations that reflect the status of the operator :  
• Type I licen ces are for telecommunications operators that do not own a 
telecommu nications network and whose business does not have an impact on fair 
competition. A Type I licen ce is issued after the operator files an application. No foreign 
ownership restrictions are applied to Type I licensed operators83; 
• Type II licen ces are granted  to operators that, either with or without a telecommunications 
network, provide services (or who lease out their network to operators who provide 
services) to a limited group of people, or services that cause no significant impact on fair 
competition, the  public interest, or consumers.84 Type II licensed operators must be Thai 
or a company in which more than 50% of the total issued shares are held by Thai 
shareholders ; and  
• Type III licen ces are granted to operators that possess a telecommunications network  and 
provide services (or who lease out their network to other operators who provide services) 
to the general public, or services that cause a significant impact on fair competition, the 
 
80 BOI announcement No. Sor 1/2563 . 
81 Telephone of Thail and (TOT) Public Company Limited (2018), Net Pracharat . Viewed at: 
https://npcr.netpracharat.com/Netpracharat_EN/one -page/ .  
82 Act on the Organization to Assign Radio Frequency and to Regulate Broadcasting and 
Telecommunications Services BE 2553 (2010).  
83 Foreign nationals or companies with a majority of foreign shareholders are subject to general law on 
foreign business, and are required to obtain a Foreign Business Licence from the Mi nistry of Commerce in order 
to operate their business in Thailand.  
84 This type of licence is typically issued to operators who provide services exclusively to large 
organizations whose business operations are spread across a wide geographic area. A call -back/call 
re-origination service is one example of a Type II licensed business.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  public interest, or require special consumer protection.85 Type III l icensed operators must 
be Thai or a company in which more than 50% of the total issued shares are held by Thai 
shareholders.  
4.139.   In March 2020, the NBTC published a new Notification on the Criteria and Procedures for 
Telecommunications Business Licensing B.E. 2563 (2020) . This Notification set forth the licensing 
conditions, and defined types of services that licensed operators may provide. It also streamlined 
the types of licences – there are no longer separate licences for Internet services. Since 
19 March  2020, ISPs are required to operate under telecommunications services licen ces, instead of 
under I nternet services licences , as before.86 
4.140.   On 19 February 2020, Thailand opened its satellite telecommunications services to foreign -
owned satellites. Anyone who wa nts provide satellite telecommunications services must apply to the 
NBTC for a telecommunication services licence (see above). The licensee must have its own satellite 
gateway or uplink station in Thailand , regardless of the type of licence obtained. The right of each 
licensee to use foreign satellite transponder s is exclusive to one satellite for each satellite operator. 
Each licensee can represent more than one satellites/satellite operators.87  
4.141.   As at end -July 2020, there were 307 Type I licensees, 4 9 Type II (28 without networks, and 
21 with networks), and 75 Type III operating in Thailand.88  
4.142.   The major players in the Thai telecommunications market include  SOEs and private 
operators  (Table 4.14). Telephone of Thailand (TOT) Public Company Limited, an d CAT Telecom 
Company Limited (CAT) are SOEs, owning the telecom infrastructure on behalf of the Government. 
Private operators initially acquired concession agreements with SOEs. Nearly all concessions are 
build-operate -transfer (BO T) contracts, with a val idity ranging from 1 to 27 years. The last 
concession agreements expired in 2018.  The leading private -owned operators in the market (e.g. 
True, and DTAC) have foreign capital  equity.  
Table 4.14 Leading teleco mmunications service providers, June 2020  
 Ownership  Fixed 
telephone  Mobile 
telephone  Fixed 
broadband  Wireless 
broadband  
TOT Public Company Limited  SOE √ √ √ √ 
True Internet Corporation Company 
Limited  Private  √  √  
CAT Telecom Company Limited  SOE √ √  √ 
Advance Wireless Network Company 
Limited   √ √ √ √ 
Triple Three Broadband Company Limited  Private  √  √  
DTAC Trinet Company Limited  Private   √  √ 
True Move H Universal Communication 
Co., Ltd  Private   √  √ 
Source:  Information provided by the authorities . 
4.143.   The concentration of Thailand's telecommunication market is considered high, with  the latest 
available Herfindahl -Hirschman Index (HHI)89 number s greater than 2,500 (Table 4.15). According 
to the authorities, there are eight service providers in the fixed telephony market in 2020. In the 
first quarter of 2020, TOT Public Company Limited  accounted for nearly 80% of the market share , 
followed by TRUE Internet Corporation Company Limited with 17%; the rest occupied some 4%.  
 
85 Telecommunications services that fall under a Type III licence include public switched 
telecommunications services, integrated services digital networks, public cellular mobile  telephone networks, 
and public mobile data services.  
86 As at end -July 2020, there were 240 operators operating under Internet services licences 
(233 Type I, and 7 Type II without network ). 
87 Clause 9, the NBTC Notification on C riteria and Procedures to License Foreign Satellite to Provide 
Domestic Services . In case of NGSO satellite s, the right for each licensee to use foreign satellite transponder s 
is exclusive to one entire system.  
88 NBTC d atabase, List of licensed telecommunications business . Viewed (in Thai) at: 
http://apps.nbtc.go.th/license/ . 
89 The HHI index indicates the degree of market concentration . It can range from close to zero to 
10,000. Usually, a  market with a HHI of less than 1,500 is considered to be a competitive marketplace, a HHI 
of 1,500 to 2,500 to be a moderately concentrated marketplace, and a HHI of 2,500 or more to be a highly 
concentrated marketplace.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Table 4.15 HHI of the telecommunications sector, 2013 -19 
 2013  2014  2015  2016  2017  2018  2019  
Fixed telephone services  4,603  4,677  4,751  4,939  8,238  .. .. 
Mobile telephone services  3,444  3,508  3,457  3,420  3,399  3,407  3,472  
Fixed broadband Internet services  2,991  2,935  3,059  2,962  2,927  2,847  2,793  
Wireless broadband Internet services  .. .. .. 3,482  3,530  3,393  3,417  
.. Not available . 
Source:  Information provided  by the authorities.  
4.144.   Each Type III  operator must treat all licensed operators connecting to its network on a fair, 
reasonable, and non -discriminatory basis . The operator is required to submit its reference 
intercon nection offer (RIO) to the NBTC for approval. Subsequently, the NBTC publishes its guidance 
reference interconnection rates, for RIO's guidance and dispute settlement; the latest guidance rates 
were published in 2019.  
4.145.   With regard to connecting to the natio nal backbone network, Thailand adopts a policy of 
"open access network ". Conditional on the service providers offering a fair and affordable last -mile 
price, any licensed operator may connect to the network free of charge, upon a request made to the 
MDES. If a licensed operator owning its network denies an access request from another operator, 
this operator's connection to the backbone network will be charged.  
4.146.   Regarding radio frequency allocation for telecommunications services, the NBTC holds 
auctions of s pectrum bands for Type III operators.  After the expiry of concession agreements, the 
spectrum under the concession was reallocated through auction. Former concessionaires  did not 
possess the right to continuously use  the spectrum , and had to compete with o ther private operators 
in the auction . In 2019, the NBTC published the NBTC Spectrum Management Masterplan 
No. 4 B.E. 2562 (2019) . In December 2019, t he Government held spectrum  auction s for mobile 
telecommunications services licences, including spectrum for 5G service s. These licences are valid 
for 15-20 years.   
4.147.   Telecommunications numbers are considered a public resource.90 Numbers are portable 
across operators. The NBTC's regulatory re gime determines that end -users have the right to keep 
their mobile phone number if they wish to change services providers, location, and/or type of 
services.  
4.148.   As per the Trade Competition Act, maintaining competition in the broadcasting and 
telecommunicatio ns sectors falls within the purview of the NBTC, the sectoral regulator.91 According 
to the authorities, no significant market power was identified in the mobile phone service market 
segment at the time of writing this report.  
4.149.   With regard to consumer protection, the Telecommunications Consumer Protection Bureau 
(TCP) of the NBTC is responsible for consumer protection. Standard contracts for products are 
subject to TCP approval before the products are introduced to the market; th ere are maximum prices 
for each type of service that licensed operators may charge to their customers.  Prices of telephone 
installation are subject to monitoring, and are listed as sensitive (Section 3.3 .6). 
4.150.   Pursuant to the Telecommunications Business Act,  universal services include telephony 
service s (both fixed and mobile cellular), broadband services, telecentres, and services for school s, 
health centres, and impaired or elderly people. Providers of u niversal services are selected through 
tendering/biddi ng among  licensed operators ; the universal service providers are not required to offer 
below -cost prices for their products. Universal services are financed through the Broadcasting and 
Telecommunications Research and Development Fund for the Public Interest (BTFP), managed by 
 
90 See the NBTC Notification on Telecommunication Numbering Plan  B.E. 2563 , and the NBTC  
Notification on the Criteria for Allocation and Management of Telecommunications Numbers  B.E. 2563.  
91 The regulatory regime includes: the NBTC Notification on Measures to Prevent Monopol y or Unfair 
Actions in the Telecommunications Business B.E 2549, the NBTC Notification on Criteria and Procedures to 
Identify the Significant Market Power in the Telecommunications Business B.E. 2557, the NBTC Notification on 
Definitions and Scopes of Rele vant Telecommunications Market (Vol. 2) B.E. 2561, and the NBTC Notification 
on Merger and Acquisitions Regulation in Broadcasting and Television Business B.E. 2561.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  the NBTC; all license d telecommunications operators are required to contribute to the Fund at a rate 
of 2.5% of their gross annual revenue.  
4.151.   The NBTC implemented several universal service projects in rural and remote areas to 
develop digital infrastructure. The projects are ex pected to install free public W i-Fi services in  
18,565  villages, and free high -speed Internet in  4,289 schools and in  193 hospitals; establish  
981 universal service Net Centres; and expand mobile signal coverage to about 4,900 areas. These 
universal servic e projects were expected to be fully operational  by mid-2020.  
4.152.   In order to embrace the country's transition toward a digital economy, in 2019 , Thailand 
passed several  new laws and amended existing ones,  to foster a supportive  environment. The 
Cybersecurity  Act established new authorities responsible for cracking down on cybercrimes and 
protecting the national critical information infrastructure; the Personal Data Protection Act provides 
rules and mechanisms for personal data protection. In addition, the Ele ctronic Transaction Act was 
amended twice to respond to the latest technology developments.   
4.153.   The authorities noted that l aws in Thailand do not have provisions  concerning data 
localization92, or international data traffic restriction s.  
4.5.2.2   Postal and courier services  
4.154.   Thailand Post Company Ltd., a n SOE, is the sole provider of universal postal services in 
Thailand. It is also engaged in the delivery service of goods and packages nationwide.  It has a 
statutory monopoly on  letters and postcards up to 2 kg. 
4.155.   Courier services in Thailand were first developed from an on -board courier service, carrying 
documents and small parcels on commercial flights and operating at the airport. Gradually, the 
services expanded the types of shipments to include industrial packag es and freight. As e -commerce 
in Thailand rapidly developed over the past years, the courier services developed  further.93 
4.156.   Currently there are 31 licensed courier services operators for the delivery of express 
consignments, 27 of which are local operators94; the other 4 are large courier operators with an 
international presence (DHL, FedEx, TNT and UPS). There is no single regulatory entity for courier 
services. R estrictions remain in place for  foreign  companies  to participat e in courier services : foreign 
equity is capped at 60% (up to 75% in some cases), and at least two  fifths of the board of directors 
must be Thai nationals ; and foreign investors must obtain prior approval from the Cabinet and a 
licence from the Minister of Commerce . 
4.157.   Under the Act on Pric es of Goods and Services B.E. 2542 (1999), prices of "product delivery 
for online business " are control led (Section 3.3. 6). Also, prices of delivery services (of goods, 
documents, and packages) are listed as "sensitive ", and subject to monitoring (Section 3.3.6). The 
authorities are of the view that delivery is a necessity service whose prices must be closely monitored 
for consumer protection purposes; they further state that the price control measures for delivery 
services have never been applied.  
4.5.3   Transpor t 
4.5.3.1   Civil a viation  
4.158.   During the period under review, the legal and institutional framework for aviation transport 
was modernized. The main legislation concerning the sector is the Air Navigation Act, which was 
amended in 2019 . According to the authorities, the  amendment is expected to match Thailand 's civil 
 
92 Thailand is a contracting party to the ASEAN Agreement on Electronic Commerce, in which the 
provisions related to location and computing facilities stipulate no requirement for data localization.  
93 According to the Electronic Transactions Development Agency , the sector of wholesale and retail 
business accounted for 32% of total revenue derive d from e -commerce in 2016 , with B2B (business -to-
business) and B2C (business -to-consumer) contributing to half that revenue. It is expected that e -commerce 
revenues in the wholesale and retail sector will grow by 25% in the coming years.  
94 Thai Express Courier Association (TEXCA), Member . Viewed at: http://www.texca.org/member.php . WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  aviation to modern international standards; the amendment contain s provisions related to civil 
aviation safety, security, facilitation , and economy.   
4.159.   In response to the International Civil Aviation Organization (ICAO)'s downgrading of 
Thailand's aviation safety, in 2015 , the Department of Civil Aviation was split into four entities : the 
Civil Aviation Authority  of Thailand (CAAT) , the Department of Airports (DOA) , the Search and 
Rescue Group, and the Aircraft Accident Investigation Group .95 The CAAT became an independent 
sectoral regulator, responsible for developing an international -standard -consistent regulatory 
system, performing regulatory oversight functions, and providing policy recommendation s on 
aviation matters to the Government .96 The DOA is in charge of the operation of government -owned 
airports.97 The institutional framework for aviation also includes the Aeronautical Radio of Thailand 
Limited (AEROTHAI), a n SOE, which provides air navigati on services98; and the Civil Aviation Board 
(CAB), which is the advisory body to the Minister of Transport on civil aviation matters.99 
4.160.   During the review period, the aviation industry experienced buoyant growth due to a strong 
domestic economy and a thrivi ng tourism sector. This was evident by increases in passenger flows 
and aircraft movements, both for international and domestic flights  (Table 4.1 6). Facing the 
COVID -19 pandemic, the CAAT imposed a temporary ban on all international flights in and out of 
Thailand from 1 April to 30 June 2020. Consequently, the air passenger numbers dropped by almost 
100%, compared to the same period in the previous year.  
Table 4.16 Selected indicators of aviation transport, 2015 -19 
 2015  2016  2017  2018  2019  
International schedule d flights  
Aircraft movements  375,988  410,792   450,065   478,599   496,562  
Passengers  ('000)  61,921  65,328   75,331  79,629   86,198  
 Pax in  .. 32,652  37,650  40,152  43,404  
 Pax out  .. 32,676  37,681  39,477  42,794  
Transit  1,042,936  1,713,263   1,612,189   1,318,386   577,832  
Freight ( '000 kg) 1,230,440  1,318,856   1,456,872   1,515, 098  1,363,023  
Transfer  ('000 kg)  95,797  93,833  95,224  89,938  38,772  
Mail ( '000 kg) 618  948  2,806   4,528   7,166 
Domestic schedule d flights 
Aircraft movements  464,400  516,676   560,032   565,686  541,317  
Passengers  ('000)  61,384  69,48 7  76,393   77,83 5  75,793  
Transit  16,583  41,563   77,990  25,491   16,437  
Freight ( '000 kg) 114,297  119,5 22  112,741  96,10 8  75,076  
Transfer s ('000 kg)  44,065  37  2,086   26  479 
Mail ( '000 kg) 723  2,531   1,928   158  78 
.. Not available.  
Source:  Information provided by the authorities.  
4.161.   An important development in Thailand's aviation sector in recent years has been the rapid 
expansion of low -cost carriers/airlines (LCCs). There are currently six LCCs in Thailand, four of which 
 
95 The Search and Rescue Group is responsible for rendering search and rescue procedures for the 
survivors from ai rcraft and vessel s in distress. The Aircraft Accident Investigation Group is responsible for 
investigating air accidents, incidents, and safety hazards.  Both groups report to the Permanent Secretary of 
the Ministry of Transport.  
96 Emergency Decree on Civil  Aviation Authority of Thailand B.E. 2558 (2015) . Viewed (in Thai) at: 
http://web.krisdika.go.th/data/law/law2/%a1155/%a1155 -20-2558-a0001.pdf . 
97 Ministerial Regulation s on Structuring of Department of Airport, Ministry of Transport, B.E. 2558 
(2015) . Viewed (in Thai) at: http://web.krisdika.go.th/data/law/law2/%c338/%c338 -2b-2558-a0024 .pdf. 
98 AEROTHAI is an SOE under the Ministry of Transport, which holds 91% of its shares. The remaining 
9% are held by member airlines that have scheduled flights to Thailand. AEROTHAI 's investments are approved 
by the Ministry of Transport and the Cabine t, and all budgets are approved by the Board of Directors, which 
mostly consists of representatives from the Ministry of Finance, the Ministry of Transport, and the Royal Thai 
Air Force. The Government appoints 9 of the 11 board members, and 2 members are representatives from 
airline shareholders. Air navigation service charges are regulated by the Government through the CAB.  
99 The C AB is housed in the CAAT, and is chaired by the Minister of Transport. The Board approves, with 
the consent of the Minister, t he rates of fare s and freight , and the rates of air navigation facilities service 
charges.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  began operations in the last five years. Consequently, the siz e of the LCC fleet grew from 42 in 2013 
to more than 150 in 201 9. In terms of market share  among Thai national carriers , LCCs dominate 
the domestic market, and they are gradually increas ing their share in the international market. 
Regarding  capacity on dom estic routes, LCCs transported  55 million passengers  in 201 9 (up from 
approximately 35 million in 201 6), accounting for 7 3% of the market. On international routes, the 
LCC market share remained stable in recent years; LCCs  transported  18 million passengers  in 201 9, 
accounting for 48%. T he majority of LCC international routes  are medium -haul, for destinations in  
the Asian region. In 201 9, LCCs accounted for nearly 65% of national carrier  traffic in Thailand.  
4.162.   Thailand has continued its policy of gr adual liberalization in international air transport , at a 
pace and in a manner appropriate to the needs and circumstances, according to the authorities. It 
maintains 105 air services agreements (ASAs) with its trading partners100, most of which cover up 
to fourth freedom of rights , with various restrictions in destination, designation, and capacity, with 
due regard to the interests of all stakeholders, the changing business environment, and 
infrastructure requirements.  As part of the ASEAN Multilateral Agree ment on Air Services, Thailand 
offers and enjoys up to the fifth freedom of unlimited traffic of passengers and freight between any 
cities with international airports in the ASEAN region; multiple designated carriers are allowed, as 
long as they satisfied the criteria on either substantial ownership and effective control or on principal 
place of business and effective control.101  
4.163.   In Thailand, c abotage is not allowed .  
4.164.   Anyone wishing to provide air transport services as a "domestic airline " (i.e. a Thai nati onal 
carrier) must obtain two separate authorizations from the CAAT: a n Air Operating Licence (AOL)  for 
business authorization102 and an Air Operator Certificate (AOC)103 for safety authorization . To apply 
for an AOL  (i.e. to be considered  a Thai national carrier) , the carrier's foreign equity may not exceed 
49%, and at least 51% of the board of directors must be Thai citizens . As at June 2020, there were 
42 AOL licensee s, approximately 10 of which have foreign capital participation.  
4.165.   The authorities note d that there are no policies requir ing government -financed transport of 
passengers and freight by national carriers.  
4.166.   Slots of aircrafts' arrival and departure at congested airports are managed by the slot 
coordinator  at the CAAT. The CAAT r ule for s lot management entered into force on 1 January 2020, 
and is based on the International Air Transport Association (IATA)  Worldwide Slot Guideline .104 Under 
the rule, s lot allocation must be conducted in a neutral and non -discriminatory manner. Histo ric 
precedence is taken into account when allocating slots, though priorit y (i.e. 50% of the slot pool) is 
reserved for airlines with new -entrant status.105 Slots, except those allocated to a new entrant, may 
be transferred within the same airline (or betwe en the parent and subsidiaries companies), and be 
swapped and shared between airlines. The unused slots must be return ed to the slot pool.106 The 
busiest airports (i.e. Level 3 airports) are subject to mandatory slot allocation; that is, carriers must 
 
100 CAAT (2018), Bilateral Air Services Agreement . Viewed at: 
https://www.caat.or.th/en/archives/30471 . 
101 CAAT (2017), ASEAN Air Services Agreement . Viewed at: https://www.caat.or.th/en/archives/30473 ; 
and Table 4.20 , WTO document WT/TPR/S/326/Rev.1, 10 February 2016.  
102 Regulation of Civil Aviation Board No. 97 on Granting Licence to Civil Aviation Business: Commercial 
Air Transport and Aerial Work . Viewed at:  https://www.caat.or.th/wp -content/uploads/2019/08/CAOL.pdf .  
103 Regulation of Civil Aviation Board Number 85 on the Air Operator Certificate . Viewed at: 
https://www.caat.or.th/wp -content/uploads/2016/11/3.4RCAB85.pdf . 
104 Rules of the Civil Aviation Authority of Thailand on Criteria for Slot Allocation for Airport Arrival and 
Departure of Aircraft, B.E. 2562 (2019) . Viewed at: https://www.caat.or.th/wp -
content/uploads/2019/12/CAAT -Rules -on-Slot-allocation -2019-1.pdf.  
105 "New entrant" means an airline requesting a series of slots at an airport on any d ay where, if the 
airline's request were accepted, it would hold fewer than five slots in total at that airport on that day.  
106 Slots which are used less than 80% during the previous allocating period are considered unused. The 
authorities are of the view th at airport arrival slots are national resources, which no carrier may permanently 
own, and that the slot's non -transferability between airlines enhances the efficiency of slot usage and slot 
allocation.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  acquire a slot prior to their operation at such airports. Currently, five airports are categorized as 
Level-3 airports, all of which are international airports.107 
4.167.   According to the authorities, Thailand does not have any restrictions, conditions, or 
require ments on CRS and online booking services.  
4.168.   As at end-2019, there were 38 airports for public use throughout the country , including  
11 international airports. The Airports of Thailand (AOT)  manages six major international airports 
with scheduled internationa l traffic108, and the DOA operates three other international airports and 
25 provincial airports. U -Tapao -Rayong -Pattaya International Airport is under the sole responsibility 
of the Royal Thai Navy. Three airports serving scheduled flights are privately -owned and -operated 
by Bangkok Airways, a privately  owned national airline.109 
4.169.   Foreign participation in airport operation and management  is restricted.  An airport operator 
must not have more than 49% foreign equity,  and the business management must be control led by 
Thai nationals. Currently, there is no foreign participation in airport operation and management.  
4.170.   No foreign equity limits are applied to ground -handling services as long as all legal and 
regulatory requirements are met.  Foreign companies wanting to  provide ground -handling services 
are required to obtain approval from the Foreign Business Committee , and a business permit from 
the Department of Business Development under the Ministry of Commerce , then they will need the 
CAAT to certify their operation .  
4.171.   Airport charges are regulated by the Government.110 As part of the government assistance 
package to respond to the COVID -19 pandemic, the CAAT offers carriers (international and/or 
domestic, depending on the situation)  temporary exemptions  or reduction s of fees and charges , 
such as international arrival an d departure fees, and charges for landing, parking, and air  navigation . 
4.172.   Improving infrastructure and connectivity is a core objective  of EEC plan, aimed at 
transforming  the eastern provinces into a leading ASEAN economic hub. To improve connectivity by 
air, Thailand is expanding the U -Tapao international airport in the Rayong province. The objective is 
to construct a new passenger terminal and a second runway to increase the airport's passenger 
capacity to 3 million people.111  
4.173.   Civil a viation and aerospace are also feature d among the target industries under the EEC 
plan. Accordingly, the Aerospace Industrial Estate Development Plan (2016 –45) for the U -Tapao 
International Airport aims to develop the domestic aviation and aerospace industries, with special 
priority given to  the further development of maintenance repair and overhaul (MRO) services ; tax 
and non -tax incentives  are granted to eligible activities .112 Thailand also relaxed the cap on foreign 
ownership for entities operating in the EEC Investment Promot ed Zones ; the 49% foreign capital 
ceiling may be waived when applying  for CAAT certificates for aircraft  production , major aircraft 
component  production , or repair station s, if the conditions set by the EEC Secretary -General  are 
met, and if the CAAT Direct or-General  approves .  
4.174.   Infrastructure and basic facilities are in place for aircraft repair and engine overhaul services, 
as the major airlines in the country (e.g. Thai Airways, Bangkok Airways, and Thai Lion Air) have 
established MRO facilities, providing services for their own fleets and for aircraft of other airlines 
that service Thailand. THAI Technical, the MRO division of Thai Airways, lead s the Government's 
 
107 Notification of the Civil Aviation Authority of Th ailand Re: Determination of Level of Airport 
Congestion of Level 2 Airport and Level 3 Airport B.E. 2562 (2019) . Viewed at: https://www.caat.or.th/wp -
content/uploads/2019/12/CAAT -Notification -Determination -of-Level-of-Airport -2019-1.pdf. 
108 These international airports include: Suvarnabhumi Airport, Don Mueang International Airport , 
Phuket International Airport , Chiang Mai Internat ional Airport , Mae Fah Luang -Chiang Rai International Airport , 
and Hat Yai International Airport . 
109 The private -owned airports are: Samui International Airport, Sukhothai Airport, and Trat Airport.  
110 CAAT, Aviation Fees and Charges . Viewed at: https://www.caat.or.t h/en/archives/category/aviation -
en/airport -charge -en.  
111 ASEAN Briefing,  Thailand 's Eastern Economic Corridor – What You Need to Know . Viewed at: 
https://www.aseanbriefi ng.com/news/thailand -eastern -economic -corridor/ .  
112 The activities under MRO services eligible for investment promotion include : i) repair of aircraft or 
aircraft parts ; and ii) repair of onboard devices or equipment (except disposable and reusable aircraf t utilities 
and supplies).  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  MRO Centre development project at U -Tapao International Airport. Airbus s igned a Memorandum of 
Understanding with Thai Airways to evaluate the development of a new regional MRO facility , which 
is expected to provide MRO services for LCC fleets in the ASEAN region .113  
4.175.   There are no regulations requiring national airlines to have their aircraft repaired and 
maintained in domestic facilities , as long as this is done with any CAAT -certified station .114 Effective 
from 19 May 2019, the amended Air Navigation Act  provides  applicants for a Repair Station Type I 
Certificate (maintenance of  aircraft s) for aircraft of a maximum take -off-mass exceeding 5,700  kg 
with exemptions  to the foreign participation restriction that no less than 51% of total capital owned 
by Thai nationals and their business management power must be controlled by Thai na tionals115; 
the restriction remains for applicants for repair station certificates for small aircraft. No foreign 
restrictions  apply to applications for Repair Station Type II Certificates (maintenance of major 
aircraft appliances) and Type III certificates  (maintenance of technical standard order articles and 
aircraft parts).116 
4.5.3.2   Terrestrial transport  
4.5.3.2.1   Road transport  
4.176.   Road is the dominant mode of transport within the country, for freight and passengers. 
Heavy investment in road assets over the past 30 years has  resulted in a strong primary and 
secondary highway network. The highways are owned and maintained by the Department of 
Highways, or the Department of Rural Roads. The expressways serve the Greater Bangkok region, 
and are different from the national motorw ay system . All motorways and expressways are tolled . 
The Expressway Authority of Thailand owns most of the expressways , and is responsible for their 
maintenance. Private -sector participation in the road infrastructure is allowed in the form of 
concessions under public  private  partnerships.  
4.177.   The Department of Land Transport (DLT), under the Ministry of Transport, is the regulator 
for the sector. It is also responsible for formulating policies for the sector's development, and for 
maintaining standards for road safety.  
4.178.   Bus services (with fixed routes) must obtain a licence from the DLT. Each route is licensed 
as a franchise , to maintain the monopoly rent as an economic incentive. The application for a licence 
must be submitted to the DLT, and is scored according to the criteria set out in Ministerial Regulation 
No. 4 (B.E. 2524). A licence is valid for seven  years , renewable. The licence d franchisee is allowed 
to sub -contract a part of the licensed services to other operators without competitive tendering.117  
4.179.   Under the franchise system , a bus service provider operating city, inter -city, and regional 
routes  may have  100% private equity .118 Foreign capital may not exceed 49% of the equity of a 
private carrier providing passenger transport in Thailand . While the inter -city services between 
Bangkok and provincial cities remained exclusively reserved for the Transport Company Ltd. , the 
Bangkok Mass Transit Authority (BMTA) lost its exclusive rights of operating intra -Bangkok bus 
routes in 2016. Both the BMTA and the Transport Company Ltd. are SOEs with 51% of government 
shares; both are allowed to subcontract their franchised services to private operators , the majority 
 
113 Airbus, Airbus and THAI sign agreement to proceed with joint venture MRO . Viewed at: 
https://www.airbus.com/newsroom/press -releases/en/2018/06/airbus -and-thai-sign-agreement -to-proceed -
with-joint-venture -mro.html .  
114 As at end-2019, the  CAAT certified 254 repair stations worldwide , 29 of which  are located in Thailand 
and 225 located outside it . 
115 Air Navigation Act (No. 13) B.E. 2562 (2019), Section 3 . Viewed at: https://www.caat.or.th/wp -
content/upload s/2019/06/Translation -of-the-Act.pdf .  
116 CAAT, Announcement of the Department of Civil Aviation on Repair Station Approval . Viewed at: 
https://www.caat.or.th/wp -content/uploads/2020/01/CAAT_Doc_ADCA_145RepairStationApproval.pdf . 
117 APEC, The Impacts and Ben efits of Structural Reforms in Transport, Energy and Telecommunications 
Sectors . Viewed at: http://publications.apec.org/Publications/2011/01/The -Impacts -and-Benefits -of-Structural -
Reforms -in-Transport -Energy -and-Telecommunications -Sectors .  
118 Pomlaktong, Jongwilaiwan, Theerawattanakul, and Pholpanich (2011), Characteristics of the 
passenger transport industry . See Table 12.5, Road Transport in Thailand , part of APEC (2011), The Impacts 
and Benefits of Structural Reforms in Transport, Energy and Telecommuni cations Sectors .  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  of which  are small and family -owned firms.  As at end -May 2020, 1,504 operators (and 
2,951 vehicles) were licensed to provide fixed -route bus services in Thailand.  
4.180.   Bus fares are regulated, and are subject to approval by the central or provincial authorities, 
depend ing on the jurisdiction.  
4.181.   Licences for non -fixed-route passenger services (e.g.  van services, tourist buses, and taxi s) 
are valid for five years, renewable.119 As at end -May 2020, 41,871 non -fixed-route bus service 
providers (and 41,781 vehicles) were licensed.  The authorities noted that there is no regulatory 
framework pertaining to ride-hailing services.   
4.182.   Freight transporters must obtain a licence from the DLT ; the licensing conditions are simple 
requirements for vehicle safety standards. A licence of freight transporter  is valid for five years, 
renewable. A new domestic entrant must submit a contract of carriage to the DLT when applying for 
a licence.  Freight transport licences are not route -specific.  
4.183.   Hundred per cent p rivate ownership is allowed regarding  providing freight transport , but 
foreign participation may not exceed 49% of the equity . The freight transport market is dominated 
by private operators. The top five carriers in terms of revenue are private companies. The price of 
freight transport is not regulated.  
4.184.   International road transport services are allowed for licensed operators under several 
conditions set out in the corresponding  international land  transport agreements . Cross -border 
transport between Thailand and neighbouring economies is allowed on designated routes under the 
agreements . Cross -border transport must be operated under a bilateral or plurilateral agreement. 
Under such agreements, an i nternational road transport operator must be a Thai national and reside 
in Thai land. Foreign participation may not exceed 49% of the equity. Currently, agreements are in 
force with countries in the Greater Mekong Subregion120, and with Malaysia.  
4.185.   Cabotage of road transport is not allowed . 
4.5.3.2.2   Rail transport  
4.186.   The rail transport system developed at a slower pace , compared to other modes of transport 
in the country, in terms of infrastructure, operation al efficiency, and governance structure.121 In 
April 2019, the Dep artment of Rail Transport, under the Ministry of Transport, was created as the 
sectoral regulator; it is also responsible for formulating policies , and infrastructure development 
plans related to the rail sector.122  
4.187.   The State Railway of Thailand (SRT), an agency under the Ministry of Transport, owns the 
national network, and acts as the sole carrier for inter -city/inter -regional traffic, and as the network 
infrastructure manager. The SRT's main business is passenger transport. Under the Public Service 
Obligation, an agreement with the Government, 90% of passenger loads are price -capped (i.e. 
transported in third -class carriages), which occupy 70% of track capacity.123 Freight is not 
considered a priority for the SRT; it operates , on average , 62 freight trains per day , carrying fuel, 
 
119 A licence for a taxi is valid for three years, as opposed to five years for other non -fixed-route 
passenger services.  
120 The countries in the Greater Mekong Subregion are Cambodia, the People's Republic of China 
(specifically , Yunnan Pro vince and the Guangxi Zhuang Autonomous Region), Lao PDR, Myanmar, Thailand, 
and Viet Nam.  Asian Development Bank, Greater Mekong Subregion (GMS) . Viewed at: 
https://www.adb.org/countries/gms/main .  
121 Asian Development Bank, Thailand: Supporting Railway Sector Reform . Viewed at: 
https://www.adb.org/sites/default/files/project -document/75722/46246 -001-tha-tacr-01.pdf . 
122 Bangkok Post, Rail Department established after royal endorsement . Viewed at: 
https://www.bangkokpost.com/thailand/general/1661960/rail -department -established -after-royal-
endorsement .  
123 Asian Development Bank, Thailand: Supporting Railway Sector Reform . Viewed at: 
https://www.adb.org/sites/default/files/project -document/75722/46246 -001-tha-tacr-01.pdf .  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  construction materials, containers , and general goods. In 2015, rail freight accounted for 1.4% of 
total freight transport.124  
4.188.   The national rail network comprises 4, 044 km of metre -gauge tracks, most of which are 
single tracks. The network is connected to the meter -gauge tracks of neighbouring countries: 
Cambodia, Lao  PDR, and Malaysia.  
4.189.   Thailand also formulated a high-speed rail  (HSR)  project plan , which comprises two projects. 
The first is the High -Speed Rail Linking T hree Airports Project . As part of the EEC, the Government 
is focusing on the creation of faster and more comprehensive routes connecting airports, ports, 
industrial clusters and cities, aiming to accommodate 110 million passengers annually. It has 
committe d THB 224.5 billion for construction , and will be operated by  the Eastern High -Speed Rail 
Linking Three Airports Company Limited, a special -purpose vehicle by the consortium of Charoen 
Pokphand Holding and partners , under a concession agreement for 50 year s. The other HSR project 
is the North -eastern HSR , connecting Bangkok and Nakhon Ratchasima . For this project, Thailand 
and China signed an MOU in late -2014 on joint railway construction , furthering Thailand's eight-year 
strategy on the development of tran sportation from 2015 -22. Both  project s are expected to be 
completed by 2023.  
4.190.   The mass rapid rail transit system for the Bangkok Metropolitan Region125 consists of the 
BTS Skytrain (elevated trains), the Airport Rail Link (ARL), and the Metropolitan Rapid Tr ansit (the 
underground, MRT). These  are heavy rails and standard -gauged tracks. The BTS is operated by the 
Bangkok Mass Transit System Public Company Limited, a private company  under concession of the 
Bangkok Metropolitan Administration . The ARL is owned b y the SRT, and is operated by the SRT 
Electrified Train Company Limited.  The MRT126 is owned by the Mass Rapid Transit Authority of 
Thailand (MRTA), a n SOE  under the Ministry of Transport; a private company, the Bangkok 
Expressway and Metro Public Company Limited , operates the MRT under a 30-year concession 
granted by the MRTA. Foreign participation in urban mass transport is restricted, with a 49% cap on 
foreign ownership. The authorities noted that, considering the cost for most mass transport  projects 
exceeds  THB 1  billion, provisions under the Public -Private Partnership Act B.E. 2562 (2019)  must be 
observed.  
4.5.3.3   Maritime transport  
4.191.   During the period under review, the legal and institutional framework for maritime transport 
remain ed unchanged. The main legislation concerning the sector includes the Navigation in Thai 
Waters Act, the Thai Vessels Act, and the Mercantile Marine Promotio n Act.127 The Marine 
Department, under the Ministry of Transport, continues to be the sectoral regulator . It is in charge 
of law enforcement, navigation safety, ship registration and inspection, maintenance of navigation 
channels, providing pilot services f or seagoing vessels , and minimizing the environmental impact 
caused by navigation and port activity . It is also responsible for the promotion and development of 
maritime transport , including infrastructure development . 
4.192.   As at end-2019, Thailand's merchant f leet comprised 5 08 vessels (with a capacity of over 
500 gross tonnes), with a total carrying capacity of just over 6.6 million deadweight tonnes (DWT), 
an increase of 2 1% compared to the capacity in 2015. According to the authorities, around 10 %-
12% of Tha iland's merchandise trade is transported on national -flagged vessels. The Government 
maintains a 30% equity stake in the TMN Co., Ltd., a joint venture between the Ministry of Finance 
and 16 other private maritime companies . The TMN Co., Ltd.  runs two ocea n-going vessels.  
 
124 Kikkei Asian Review, Thailand's expanding state 'threatens future g rowth' . Viewed at: 
https://asia.nikkei.com/Politics -Economy/Economy/Thailand -s-expanding -state-threatens -future -growth .  
125 In 2016, t he Mass Rapid Transit plan in Bangkok (M -Map) was approved by the Cabinet. The plan 
includes 14 lines, with a total distance of 553.41 km . Currently, 5 lines (149.80 km ) are fully operational.  
126 Currently, t he MRT consists of two lines, the blue line (Chaloem Rat chamongkhon Line) and the 
purple line (Chalong Ratchadham Line) . 
127 According to the authorities, all three Acts are currently being amended. The amendments aim to 
modernize the legislation and align the provisions with international standards. The draft amendment to the 
Mercantile Marine Promotion Act  was completed and is awaiting approval from the Cabinet.  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  4.193.   A cargo reservation policy remains in place, requiring that goods directly or indirectly 
imported into Thailand by government agencies or public enterprises must be transported by 
Thai-flagged vessels on designated shipping routes , where s uch vessels are available.  
4.194.   Restrictions on foreign ownership remain in place. In order to be registered as a Thai -flagged 
vessel providing international shipping services, an operator must be at least 51% Thai-owned, and 
at least 50% of the crew must be T hai nationals. If the vessel is to operate on domestic routes, the 
Thai-ownership requirement increases to 70%, and all crew members must be Thai nationals. Hence, 
cabotage is not permitted. However, i nternational relay is allowed for foreign ships calling  at Thai 
ports.  
4.195.   On a case -by-case basis and subject to the authorization of the Minister of Transport, foreign 
vessels may be permitted to provide specific services (i.e. the laying down of pipes) in Thai waters 
for one year, if domestic vessels are not av ailable.  
4.196.   In 2020, t here are 195 international  ports throughout the country, most of which are small - 
or medium -sized privately -owned and -operated ports. Thailand's main ports are Laem Chabang 
Port, Bangkok Port, Map Taput Port, Songkhla Port, Ranong Port, Chiang Saen Commercial Port, and 
Chiang Khong Port. All these (except Map Taput Port and Songk hla Port)128 are owned  by the Port 
Authority of Thailand (PA T), an SOE  under the supervision of the Ministry of Transport.  Operators 
from the private sector are allowed to operate port terminals under concessions. Private sector 
participation in port operation may take the form of either a l easehold agreement  or a BOT 
agreement. Private terminal operators are usually granted 25 -30 years concessions to manage 
terminals and other port facilities.  A terminal  operator must be either a Thai person  or a legal person  
with at least 51% Thai equity . 
4.197.   Ships calling at Thailand 's ports, regardless of their nationalit y, receive MFN treatment , and 
port access on a first -come -first-served basis.  All port tariff and service fees are subject to 7% VAT.  
VAT on maritime services is zero -rated . In g eneral, port fees on export cargo are collected at lower 
rates than on imported cargo , due to the fact that export cargo generally involves less use of port 
facilities and services. According to the authorities, t his is a measure to enhance the competitiveness 
of export cargo by lowering certa in logistics costs.  
4.198.   To implement the Government's policy on shifting modes of transport from road to rail and 
waterway, and to strengthen the role of primary seaports in Thailand, the PAT launched two projects 
at Laem Chabang Port: the Coastal Berth Projec t at Bangkok Port, and the Single Rail Transfer 
Operator (SRTO) and Coastal Terminal A Project. The coastal terminal berth began official operation s 
in April 2018, the SRTO in October 2019, and the coastal terminal A in March 2020. The Laem 
Chabang Port 's rail transport mode is expected to increase  from the current 7% to 30% in the near 
future, and more coastal vessels are expected to berth at the new designated location , thereby  
reduc ing waiting time for coastal vessels and eas ing congestion within the Port. The Marine 
Department is also planning to develop a second Songkhla Deep Sea Port, as well as a new cruise 
terminal in Southern Thailand.  
4.5.4   Tourism  
4.199.   Tourism plays an important role in Th ailand's economy. Hotels and restaurants alone 
accounted  for 5.9% of GDP and 7.6% of employment in 201 9 (Table 1. 3). Tourism is the country's 
main foreign exchange earner . In 2019, travel services generated USD 60.5 billion, or 73.8% of 
total services expo rts (Table 1.6 ). 
4.200.   More than 38 million i nternational tourist s arrived in Thailand  in 201 8, an increase of 53.9% 
compared to  the 24.8  million in 201 4. Two thirds of them were from East Asia (particularly China, 
accounting for 27.8% of the total, and Malaysia  10.6%), followed by Europe , with 17.3 % (in 
particular , the Russian Federation , with  3.8%, and the United Kingdom, with 2.5% ), and the 
Americas, with 4% .  
 
128 Map Taput Port, mainly serving the petrochemical industry, is owned by the Industrial Estate 
Authority of Thailand , and is managed by private -sector operators. Songk hla Port is managed by private port 
operators.   WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  4.201.   Thailand launched an e-visa system on 15 February 2019 to facilitate foreign visitors 
requir ing entry visas. The system was introduced to visa applicants in China, France, and the United 
Kingdom. The authorities noted that the Government plans to extend the e-visa service globally to 
all its diplomatic missions ; it aims  to provide an effective and co nvenient channel for foreign  
nationals  to apply for visa s to enter Thailand.  
4.202.   As with the aviation industry, the COVID -19 pandemic struck the tourism sector. From 
January to May 2020, 6.69 million international tourists arrived in Thailand (an almost 60% decrease  
from the same period last year ); and tourism receipt s were USD  11.1 billion , compared to 
USD 27.4 billion in the same period last year.  The authorities noted that the subsectors having the 
most adverse impact were hotels, and recreation activities i ndustries.  
4.203.   To mitigate the adverse impact on the tourism sector by the COVID -19 pandemic, the 
Government adopted various measures. Firstly, it provided relief to support the liquidity of tourism 
operators, in particular the micro, small  and medium -sized o perators. This type of support include s 
the Soft Loan Program for Tour Operators from COVID –19 and the Small Loans for Extra Cash 
programme.  Moreover, the authorities give 70% of the company registration deposit back to tour 
companies that were registered with the Department of Tourism . 
4.204.   Secondly, the authorities took steps to boost the sector's readiness, including the launch of 
a safety -and-health administration certification scheme. The certification aims to enhance service 
standards, bringing them in lin e with the latest international sanitary guidelines concerning 
COVID -19. Furthermore, in June 2020, the Cabinet approved the concept of three tourism packages 
to boost domestic tourism ; these packages will provide financial support for domestic tourists 
spending in the domestic market.  
4.205.   The legal and institutional framework for the tourism sector remained largely unchanged 
during the period under review. The Department of Tourism, under the Ministry of Tourism and 
Sport, is responsible for implementing secto ral policies, including those to develop tourism sites, to 
enhanc e tourism services, and to facilitat e tourism professionals in the country  to work in ASEAN 
countries according to the ASEAN Mutual Recognition Arrangement on Tourism Professionals . In 
addition, the Department is the sectoral regulator, responsible for licensing tourism businesses 
(travel agencies and tour operators), and tourist guides.  The Tourism Authority of Thailand, a 
tourism promotion agency under the Ministry of  Tourism and Sports, continues to be responsible for 
the tourism marketing, and creating tourism products. The main law governing this sector is the 
Tourism Business and Guide Act B.E. 2551 (2008) , which was amended in 2016. According to the 
authorities, t he amendment aimed to improve service quality assurance, and hence to enhance the 
tourism sector's competitiveness.  
4.206.   Any person who intends to operate a tourism business must obtain a Tourism Busines s 
Licence from the Department of Tourism . Foreign investm ent restrictions remain in place. Foreign 
capital participation in hotels, travel agencies, and travel operators, may not be more than 49% of 
a company's total equity, unless prior  approval is granted. According to the authorities, there is no 
regulatory r egime for virtual travel agencies; they must operate under the Tourism Business and 
Guide Act.  
4.207.   Incentives are provided to a number of economic activities in the tourism sector, such as 
hotels, convention halls, tour boating, cruise terminals, amusement pa rks, Thai cultural centres, and 
Thai art and craft centres.129 Some of these activities (e.g. hotels, and amusement parks) must meet 
the relevant requirement of minimum investment threshold to be eligible for incentives 
(Section  3.3.1).  
4.208.   Prices of hotels and  other types of accommodation are subject to monitoring (Section 3.3.6). 
According to the authorities, price surveillance/monitoring is a customer protection measure, with 
the aim of avoiding predating pricing by operators.  
 
129 BOI, A Guide to the Board of Investment 2019 . Viewed at: 
https://www.boi.go.th/upload/content/BOI -A%20Guide_EN.pdf .  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  4.209.   According to the authorities, there are no restrictions on foreign investment in the culinary 
subsector , including  in indigenous culinary.  
4.210.   According to the authorities, e -commerce in the tourism sector developed at a rapid pace 
during the period under review. In 2016, about 30% of the na tional e -commerce value was attributed 
to the tourism sector, including the hospitality business (26%) and the recreation business (4%).130  
 
130 Electronic Transactions Development Agency , The Value of e -Commerce Survey in Thailand 2017 . 
Viewed at: https://www.etda.or.th/download -publishing/83/ .  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by group of products, 2015 -19 
  2015  2016  2017  2018  2019  
Total exports (USD billion)  214.3  215.4  236.6  253.0  246.2  
  (% of total) 
Total primary products  21.9 20.9 23.5 23.5 22.6 
  Agriculture  16.8 16.8 18.5 17.7 17.5 
    Food 13.1 12.9 13.6 13.6 13.8 
0423 - Rice, semi -milled or wholly milled  2.1 2.0 2.2 2.2 1.7 
 0371 - Fish, prepared or preserved, n.e.s.; caviar and caviar 
substitutes  1.2 1.2 1.1 1.2 1.2 
0174 - Meat and offal (other than liver) of poultry  1.0 1.0 1.0 1.0 1.1 
0579 - Fruit, fresh or dried, n.e.s.  0.5 0.6 0.9 0.9 1.3 
0989 - Food preparations, n.e.s.  0.8 0.8 0.8 0.8 0.9 
    Agricultural raw material s 3.7 3.8 4.9 4.0 3.7 
2312 - Natural rubber (other than latex)  1.8 1.5 1.9 1.3 1.2 
2321 - Synthetic rubber and factice derived from oils (. ..) 0.3 0.6 1.1 1.0 0.9 
  Mining  5.1 4.1 5.0 5.8 5.1 
    Ores and other minerals  0.5 0.5 0.5 0.6 0.5 
    Non-ferrous metals  0.6 0.7 0.9 1.0 1.1 
    Fuels 3.9 2.9 3.5 4.2 3.4 
Manufactures  75.2 74.5 74.1 74.7 73.3 
  Iron and steel  0.6 0.6 0.8 0.9 0.7 
  Chemicals  9.3 8.8 9.3 10.5 9.8 
5711 – Polyethylene  1.3 1.1 0.9 1.1 0.9 
5112 - Cyclic hydrocarbons  0.5 0.5 0.5 0.8 0.5 
  Other semi -manufactures  9.5 9.2 9.1 9.3 9.6 
 6251 - Tyres, pneumatic, new, of a kind used on motor cars  0.9 1.0 1.1 1.1 1.3 
  Machinery and transport equipment  44.7 45.1 44.7 44.1 42.9 
    Power -generating machines  0.9 0.9 0.8 0.7 0.6 
    Other non -electrical machinery  6.4 6.6 6.4 6.6 6.5 
7415 - Air-conditioning machines (. ..) 2.1 2.3 2.0 2.1 2.2 
      Agricultural machinery and tractors  0.2 0.2 0.3 0.3 0.3 
    Office machines and telecommunication equipment  16.9 16.1 16.3 15.7 15.1 
 7527 - Storage units, whether or not presented with the rest 
of a system  5.2 4.6 4.8 4.9 4.5 
 7643 - Transmission apparatus for radio -telephony, radio -
telegraphy, radio -broadcasting or television  0.7 0.7 1.4 1.4 1.2 
 7599 - Parts and accessories suitable for use solely or 
principally with the machines of subgroups 751.1, 751.2, 
751.9 and group 752  1.7 1.7 1.4 1.2 1.1 
    Other electrical machines  5.4 5.6 5.8 5.7 5.7 
    Automotive products  12.6 13.0 12.2 12.2 11.8 
7812 - Motor vehicles for the transport of persons, n.e.s.  4.5 5.5 4.6 4.4 4.2 
7821 - Motor vehicles for the transport of goods  3.9 3.1 3.1 3.1 3.1 
 7843 - Other parts and accessories of the motor vehicles of 
groups 722, 781, 782 and 783  2.9 2.9 2.8 2.9 2.8 
    Other transport equipment  2.4 3.0 3.3 3.2 3.2 
  Textiles  1.6 1.6 1.5 1.5 1.5 
  Clothing  1.8 1.6 1.5 1.5 1.6 
  Other consumer goods  7.6 7.5 7.2 7.0 7.2 
 8973 - Jewellery of the gold, silver or platinum group metals 
(except watches and watch -cases) and goldsmiths' or 
silversmiths' wares  1.7 1.7 1.6 1.6 1.5 
Other  1.8 3.4 2.5 1.8 4.2 
 9710 - Gold, non -monetary (excluding gold ores and 
concentrates)  1.8 3.4 2.5 1.8 3.4 
Source:  Ministry of Commerce ; Customs Department ; and UNSD (SITC Rev.3).  
 
 WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Table A1. 2 Merchandise imports by group of products, 2015 -19 
  2015  2016  2017  2018  2019  
Total imports (USD billion)  202.7  194.2  221.5  248.2  236.6   
(% of total)  
Total primary products  26.3 24.3 25.7 28.2 27.3 
  Agriculture  7.7 8.2 7.9 7.5 7.9 
    Food 6.2 6.7 6.3 6.0 6.4 
0342 - Fish, frozen (excluding fillets and minced fish)  0.7 0.9 0.9 0.9 0.8 
    Agricultural raw material  1.5 1.5 1.7 1.5 1.5 
  Mining  18.6 16.1 17.7 20.7 19.4 
    Ores and other minerals  0.5 0.5 0.6 0.6 0.6 
    Non-ferrous metals  3.1 3.2 3.5 3.5 3.4 
6821 - Copper; copper anodes for electrolytic refining; copper 
alloys, unwrought  0.8 0.9 1.1 1.0 1.1 
    Fuels 14.9 12.4 13.6 16.6 15.5 
3330 - Petroleum oils and oils obtained from bituminous 
minerals, crude  9.6 7.6 8.5 10.8 9.1 
334 - Petroleum oils, other than crude  1.5 1.8 1.9 2.1 2.6 
3432 - Natural gas, in the gaseous state  1.6 1.0 0.8 0.9 1.0 
3431 - Natural gas, liquefied  0.7 0.5 0.7 0.9 1.1 
Manufactures  69.0 71.5 69.1 66.9 68.4 
  Iron and steel  5.3 5.4 5.0 5.4 5.4 
6732 - Flat-rolled products of iron or non -alloy steel (...)  0.8 0.8 0.7 0.8 0.7 
  Chemicals  10.3 10.6 10.8 10.8 10.7 
  Other semi -manufactures  7.2 7.4 7.8 7.1 7.2 
6996 - Articles of iron or steel, n.e.s.  1.7 1.8 1.7 1.4 1.3 
6672 - Diamonds (other than sorted industrial diamonds)  0.4 0.4 0.8 0.9 0.8 
  Machinery and transport equipment  37.6 38.9 36.9 34.9 35.6 
    Power -generating machines  1.9 2.1 1.6 1.6 1.5 
    Other non -electrical machinery  7.7 7.8 7.0 6.7 7.4 
      Agricultural machinery and tractors  0.1 0.1 0.2 0.2 0.2 
    Office machines and telecommunication equipment  13.8 13.9 14.0 13.3 13.2 
7643 - Transmission apparatus for radio -telephony, radio -
telegraphy, radio -broadcasting or television  2.7 2.9 2.8 2.5 2.5 
7768 - Piezoelectric crystals, mounted; parts, n.e.s., of the 
electronic components of group 776  1.6 1.7 1.7 1.6 1.5 
7599 - Parts and accessories suitable for use solely or 
principally with the machines of subgroups 751.1, 751.2, 
751.9 and group 752  1.7 1.5 1.3 1.3 1.2 
7527 - Storage units, whether or not presented with the rest 
of a system  0.7 0.6 0.7 0.8 0.6 
    Other electrical machines  6.3 6.6 6.0 6.0 6.0 
7725 - Electrical apparatus for switching or protecting 
electrical circuits, (...) for a voltage not exceeding 1,000  0.9 0.9 0.9 0.8 0.9 
7787 - Electrical machines and apparatus, having individual 
functions, n.e.s.; parts thereof  0.7 1.0 0.9 0.8 0.8 
7726 - Boards, panels, consoles, etc. (...) for electrical control 
or the distribution of electricity  0.8 0.8 0.7 0.8 0.7 
7731 - Insulated electric conductors; optical fibre cables (...)  0.8 0.8 0.7 0.8 0.8 
    Automotive products  4.1 4.7 4.2 4.3 4.7 
7843 - Other parts and accessories of the motor vehicles of 
groups 722, 781, 782 and 783  1.6 1.8 1.7 1.8 1.8 
    Other transport equipment  3.8 3.8 4.1 3.0 2.9 
7924 - Aeroplanes and other aircraft, mechanically propelled 
(other than helicopters), of an unladen weight exceeding 
15,000 kg  1.4 0.8 1.1 0.7 0.5 
  Textiles  1.4 1.5 1.4 1.4 1.4 
  Clothing  0.5 0.6 0.5 0.6 0.6 
  Other consumer goods  6.8 7.2 6.7 6.8 7.4 
Other  3.7 3.3 5.2 4.8 4.3 
9710 - Gold, non -monetary (excluding gold ores and 
concentrates)  3.6 3.1 5.0 4.6 3.2 
Source:  Ministry of Commerce ; Customs Department ; and UNSD (SITC Rev.3).  
  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Table A1. 3 Merchandise exports by destination, 2015 -19 
  2015  2016  2017  2018  2019  
Total exports (USD billion)  214.3  215.4  236.6  253.0  246.2   
(% of total)  
Americas  15.5 15.7 15.2 15.0 16.5 
  United States  11.2 11.4 11.2 11.1 12.7 
  Other America  4.3 4.3 4.0 3.9 3.8 
       Mexico  1.3 1.3 1.3 1.1 1.2 
Europe  11.5 12.7 12.1 11.0 11.9 
  EU-28 10.2 10.2 10.1 9.9 9.6 
Netherlands  2.0 2.0 2.0 2.1 1.9 
Germany  2.0 2.1 2.1 2.0 1.8 
United Kingdom  1.8 1.8 1.7 1.6 1.6 
  EFTA 1.3 2.4 2.0 1.1 2.3 
Switzerland  1.1 2.3 1.7 1.0 2.2 
  Other Europe  0.01 0.004  0.002 0.01 0.01 
Commonwealth of independent states (CIS)  0.4 0.4 0.5 0.6 0.5 
Africa  3.2 2.9 2.9 3.0 2.8 
South Africa  0.9 1.0 1.0 1.1 1.1 
Middle East  4.8 4.2 3.8 3.3 3.4 
United Arab Emirates  1.4 1.3 1.2 1.0 1.0 
Asia 63.4 63.2 64.5 66.0 64.0 
  China  11.1 11.0 12.5 12.0 11.8 
  Japan  9.4 9.5 9.3 9.9 10.0 
  Other Asia  43.0 42.6 42.7 44.2 42.1 
Viet Nam  4.2 4.4 4.9 5.1 4.9 
Hong Kong, China  5.5 5.3 5.2 5.0 4.8 
Malaysia  4.8 4.5 4.4 4.6 4.2 
Australia  4.6 4.8 4.4 4.3 4.2 
Indonesia  3.7 3.8 3.7 4.1 3.7 
Singapore  4.1 3.8 3.5 3.7 3.6 
Philippines  2.8 3.0 2.9 3.1 2.8 
Cambodia  2.3 2.2 2.2 3.0 2.9 
India 2.5 2.4 2.7 3.0 3.0 
Korea, Republic of  1.9 1.9 2.0 2.0 1.9 
Myanmar  1.9 1.9 1.8 1.8 1.8 
Lao PDR 2.0 1.9 1.7 1.6 1.6 
Chinese Taipei  1.6 1.6 1.7 1.6 1.6 
Other  1.1 1.0 1.1 1.1 1.0 
Memorandum:       
    ASEAN  25.7 25.4 25.2 27.1 25.5 
    APEC 68.2 68.3 69.3 69.7 69.6 
Source:  Ministry of Commerce ; Customs Department ; and UNSD  (SITC Rev.3).  
  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  Table A1. 4 Merchandise imports by origin, 2015 -19 
  2015  2016  2017  2018  2019  
Total imports (USD billion)  202.7  194.2  221.5  248.2  236.6   
(% of total)  
Americas  9.3 8.8 9.0 8.2 9.7 
  United States  6.8 6.2 6.7 6.0 7.3 
  Other America  2.4 2.6 2.3 2.2 2.4 
Europe  11.4 12.3 13.6 12.8 11.5 
  EU-28 8.9 9.3 9.3 9.0 8.8 
Germany  2.7 3.0 2.7 2.7 2.7 
France  1.3 1.4 1.6 1.5 1.3 
United Kingdom  1.3 1.0 1.3 1.2 1.0 
  EFTA 2.4 2.3 3.4 2.9 1.7 
Switzerland  2.3 2.1 3.2 2.7 1.5 
  Other Europe  0.01 0.7 0.9 0.9 0.9 
Commonwealth of independent states (CIS)  1.2 1.2 1.2 1.2 1.3 
Africa  1.0 1.0 1.3 1.7 1.5 
Middle East  9.1 7.6 8.2 9.7 8.3 
United Arab Emirates  4.0 3.1 3.3 4.2 3.1 
Saudi Arabia, Kingdom of  2.4 2.5 2.7 2.9 2.4 
Qatar  1.5 1.3 1.1 1.4 1.4 
Asia 66.1 67.7 65.5 65.3 66.6 
  China  20.3 21.6 20.0 20.1 21.3 
  Japan  15.4 15.8 14.5 14.2 14.0 
  Other Asia  30.4 30.3 31.1 31.0 31.3 
Malaysia  5.9 5.6 5.2 5.3 5.4 
Korea, Republic of  3.5 3.8 3.6 3.6 3.7 
Chinese Taipei  3.7 3.7 3.7 3.5 3.4 
Indonesia  3.2 3.3 3.3 3.2 3.1 
Singapore  3.5 3.4 3.6 3.1 3.2 
Australia  2.1 1.8 2.0 2.4 1.7 
Viet Nam  2.0 2.3 2.2 2.3 2.3 
India 1.3 1.3 1.8 2.0 2.0 
Philippines  1.2 1.4 1.5 1.4 1.4 
Thailand  1.3 1.5 1.5 1.3 1.6 
Myanmar  1.8 1.2 1.1 1.2 1.4 
Hong Kong, China  0.8 0.8 1.3 1.2 1.3 
Lao PDR 0.7 1.0 1.0 1.1 1.1 
Memorandum:            
ASEAN  19.0 18.8 18.6 18.2 19.0 
APEC 70.9 71.9 69.9 68.8 70.5 
Source:  Ministry of Commerce; Customs Department; and UNSD (SITC Rev.3).  
 
  
  WT/TPR/S/400/Rev.1 • Thailand  
 
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Table A2. 1 Thailand 's preferential tariff utilization rate under RTAs, 2015 -19 
(USD million)  
Partners  2015  2016  2017  2018  2019  Exports of 
eligible 
goods  
Exports 
under RTAs  
Utilization 
rate (%)  
Exports of 
eligible 
goods  
Exports 
under RTAs  
Utilization 
rate (%)  
Exports of 
eligible 
goods  
Exports 
under RTAs  
Utilization  
rate (%)  
Exports of 
eligible 
goods  
Exports 
under RTAs  
Utilization 
rate (%)  
Exports of 
eligible 
goods  
Exports 
under RTAs  
Utilization 
rate (%)  
ASEAN  30,911.6  19,460.8  62.96  35,906.5  21,498.9  59.87  37,763.8  23,804.7  63.04  38,259.1  26,890.3  70.28  38,403.9  24,553.4  63.93  
China  14,381.0  11,370.6  79.07  15,111.3  11,148.3  73.77  18,643.6  14,136.9  75.83  19,910.6  17,633.9  88.57  20,015.4  18,021.3  90.04  
Indiaa 5,185.4  3,027.2  58.38  5,154.2  3,012.3  58.44  6,341.0  3,680.7  58.05  7,452.5  4,466.4  59.93  5,879.4  4,270.9  72.64  
Australiab 8,384.8  8,164.9  97.38  8,578.8  7,717.5  89.96  9,072.7  8,510.7  93.81  9,266.4  9,121.2  98.43  8,025.6  7,745.9  96.51  
Japanc 7,556.0  6,501.0  86.04  7,547.1  6,354.7  84.20  7,715.4  6,939.6  89.94  8,205.4  7,565.8  92.20  8,114.0  7,456.3  91.90  
Korea, Rep. of  2,400.4  1,913.7  79.72  2,794.6  2,102.2  75.22  3,134.6  2,537.6  80.95  3,492.4  3,045.1  87.19  3,468.3  2,841.3  81.92  
New Zealandd 1,049.2  73.4 6.99  1,168.3  84.7  7.25  1,324.5  132.7  10.01  1,333.5  120.9  9.07  1,242.4  121.7  9.80 
Peru 18.6 15.1 81.51  12.7 7.6  59.62  13.6 10.2 74.67  16.3  14.0 85.97  20.1 18.4 91.65  
Chilee 93.5 8.4 8.97  540.9  539.6  99.77  733.7  688.6  93.85  753.3  744.6  98.85  524.6  530.7  101.15f  
a Includes the Thailand -India Free Trade Agreement (TIFTA) and the ASEAN -India Free Trade Agreement (AIFTA) . 
b Includes the Thailand -Australia Free Trade Agreement (TAFTA) and the ASEAN -Australia -New Zealand Free Trade Agreement (AANZFTA) . 
c Includes the Japan -Thailand Economic Partnership Agreement (JTEPA) and the ASEAN -Japan Comprehensive Economic Partnership (AJCEP) . 
d Includes only th e AANZFTA , as the Thailand -New Zealand Closer Economic Partnership (TNZCEP) uses  self-declaration.  
e The Thailand -Chile Free Trade Agreement (TCFTA) entered into force on 5 November 2015.  
f The utilization rate of over 100% could be due to : (i) a retroactive certificate of origin; or (ii) the application of certificate s of origin by exporters in the month 
prior to the actual exportation.  
Note:  This information does not include preference utilization under the ASEAN -Hong Kong, China F TA, as it entered into force on 11 June 2019 . 
Source:  Information provided by the authorities.  
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  Table A3. 1 State involvement in the economy, 2019  
SOE*  Function  
Financial institutions   
Krung Thai Bank Public 
Company Ltd . Provide universal banking and  financial services  as a normal commercial 
bank 
Government Saving s Bank Promote  savings , and provide various banking services  
Government Housing Bank  Provide housing loans,  especially  for low- and medium -income borrowers  
Bank for Agriculture and 
Agricultural Cooperati ves Provide financial assistance for farmers and their institutions  to increase 
productivity and incomes , and offer deposit services to farmers throughout 
the country  
Export -Import Bank of 
Thailand  Provide financial support to Thai businesses, particularly SMEs, involved in 
international trade , to improve their access to financial resources , and to 
Thai investors , to enhance  competitiveness  
Small and Medium Enterprise 
Development Bank of Thailand  Support government policy for helping and promot ing SMEs by financi ng 
and providing  other services according to SME  needs , and encourage and 
develop Thai SMEs ' capacity enhancement  
Secondary Mortgage 
Corporation  Develop the secondary market for housing mortgage loan s by using  asset 
securitization for fund -raising to expand  housing mortgage financing  
Thai Credit Guarantee 
Corporation  Assist SMEs to access financial institutions , and strengthen confidence of 
financial institutions in providing credit to SMEs  
Islamic Bank of Thailand  Provide financial services complying with  Shariah banking codes  
Office  of the Government 
Pawnshop  Provide  access to financial resources  for low -income people  with relatively 
low interest rate s 
Islamic Bank Asset 
Management Company Ltd.  Manage non –performing loans, particularly for the Islamic Bank of 
Thailand  
Energy   
Electricity Generating 
Authority of Thailand  Own and operate power plant s and the transmission network, and be the 
single buyer for electricity in Thailand  
Metropolitan Electricity 
Authority  Conduct business in the power distribution system in Bangkok, Nonthaburi 
and Samutprakarn  
Provincial Electricity Authority  Conduct business in the power distribution system in provincial areas 
besides  Bangkok, Nonthaburi and Samutprakarn  
PTT Public Company Ltd.  Conduct integrated energy and petrochemical business es as the nation's 
energy company  
Telecommunications   
MCOT Public Company Ltd.  Mass communication businesses , including TV, radio broadcasting, news 
service s, and other joint operation s with private parties  
TOT Public Company Ltd.  Provide telecommunications and other  related services  to ensure public 
access to information and commun ication services  
CAT Telecom Public Company 
Ltd. Operate and deliver telecommunications and other related services to 
customers , domestically and overseas  
Thailand Post Co mpany  Ltd. Provide delivery of goods and packages  nationwide , with exclusive rights 
for postal services (letters and postcards ) 
Transport   
Airports of Thailand Public 
Company Ltd.  Manage and operate international airports , and provide related services  
Port Authority of Thailand  Manage and supervise both central and regional ports  
State Railway of Thailand  Manage and operate railway s throughout Thailand  
Bangkok Mass Transit 
Authority  Bus service operator in Bangkok and metropolitan areas  
Aeronautical Radio of Thailand 
Limited  Provide air traffic control and aeronautical communication services to 
airline operators  
Thai Airways International 
Public Company Ltd . Air carrier and related service s 
Transport C ompany  Ltd. Intercity bus operator  
Civil Aviation Training Center  Responsible for training -related aviation services  
Mass Rapid Transit Authority 
of Thailand  Operate mass rapid transit systems in metropolitan area s 
Expressway Authority of 
Thailand  Provide expressway s (toll roads)  
Social and technology   
Tourism Authority of Thailand  Promote tourism and the tourist industry  
Sports Authority of Thailand  Supervise and promote sport , and act as the centre for sports 
coordination , domestically and internationally  
Thailand Institute of Scientific 
and Technological Research  Conduct science and technology R&D, and promote knowledge in science 
and technology  WT/TPR/S/ 400/Rev.1  • Thailand  
 
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  SOE*  Function  
National Science Museum  Provide museum s for promoting knowledge in science and technology to 
the public  
Government Pharmaceutical 
Organization  Medical drug and supply, manufacturing and procurement organization  
Industry and commerce   
Government Lottery Office  Sole l ottery operator in Thailand  
Marketing Organization  Manage d istribution cent res for agricultural products , to promote 
marketing network s among producers and buyers  
Tobacco Authority of Thailand  Produce cigarettes  
Playing Card Factory  Produce playing cards  
Liquor Distillery Organization  Produce alcohol  for commercial use  
Police Printing  Bureau  Responsible for security printing , especially for the Royal Thai Police  
Bangkok Dock Co mpany  Ltd. Build and repair  ships, especially for the Royal Thai Navy 
Syndicate of Thai Hotels and 
Tourists Enterprises Ltd.  Operate hotel s with private operators  
Agriculture   
Dairy Farming Promotion 
Organization of Thailand  Produce dairy products under the Thai –Denmark brand  
Rubber Authority of Thailand  Encourage a sustainable  rubber  planting method, and develop rubber 
product processing to meet high quality with value added  
Marketing Organization for 
Farmers  Market  agricultural products  
Fish Marketing Organization  Operate f ish market s 
Public Warehouse  Organization  Provide warehouse space and storage for rice and agricultural products  
Natural resources   
Forest Industry Organization  Responsible for lumber  plantation , and produce lumber products  
Botanical Garden Organization  Responsible for state botanical cent res and museums , and for plant 
conservation  
Zoological Park Organization  Operate zoos, c ater for endangered species , participate in animal breeding 
programmes , facilitate visitors and community education and wildlife 
conservation  
Public utility   
National Housing Authority  Provide housing for people with low to medium income , in order to provide  
better quality of life  
Metropolitan Waterworks 
Authority  Provide a good quality supply of water in Bangkok, Nonthaburi and 
Samutprakarn  
Provincial Waterworks 
Authority  Provide a good quality supply of water outside  Bangkok, Nonthaburi and 
Samutprakarn  
Waste water Management 
Authority  Manage wastewater management system s 
Dhanarak  Asset Development 
Company  Ltd. Develop government project ( The Government  Complex ) 
Industrial Estate Authority of 
Thailand  Develop industrial estates, and p rovide service s necessary in them 
Source:  Information provided by the authorities.  
__________