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II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
(1) OVERVIEW  
1. Despite constitutional and legislative changes due to the 2006 political developments, the 
structure of trade policy formulation in Thailand has not changed substantially since 2003.  The 
"Sufficient Economy" thinking is being used as a guiding philosophy for development strategies and 
policies.  Regulatory reform has progressed but regional decentralization has not advanced as 
scheduled.  
2. Thailand has maintained its support for and commit ment to multilateral trade liberalization.  It 
also remains committed to "open regionalism" and believes regional FTAs can be an effective catalyst 
for free trade and complementary to multilateralism.  The focus of foreign policy now appears to be 
the strengthening of regional links with immediate neighbours and deepening ties through FTAs in the wider Asian region.
1  In addition to expanding ASEAN FTA undertakings, Thaila nd has concluded a 
network of bilateral preferential trading arrangements with several trading partners (e.g. Australia, 
Bahrain, India, Japan, Peru, New Zealand). 
3. Thailand continues to operate a generally liberal foreign invest ment regime.  Negative lists 
restricting levels of foreign direct investment  in some activities have remained unchanged.  
Amendment of certain legal provisions is under wa y to prevent foreign investors from using nominee 
shareholders or preferential voting rights to take contro l of Thai companies in restricted sectors.  U.S. 
investors receive preferential treatment, being exempt from most FDI restrictions under a 1966 
Treaty.  
(2) GENERAL CONSTITUTIONAL AND INSTITUTIONAL FRAMEWORK  
4. Following political developments in Septem ber 2006, the 1997 Constituton was abrogated 
and replaced by an Interim Constitution on 1 October 2006.2  The Interim Constitution provided for 
the appointment of a Prime Minister, a legisl ature, and a 100-member Constitutional Drafting 
Assembly (CDA) for a Permanent Constitution.  (A referendum approved the new Constitution in 
August 2007.) 
5. The 2006 Interim Constitution (39 articles), inter alia :  prescribed for the constitutional 
monarchy and the Kingdom of Thailand as the unitary  state (Article 1);  guaranteed basic rights, 
human dignity, and equality under the law, in acco rdance with the democratic rule under the King as 
head of state and international obligations (Article  3);  and outlined the formation and duties of the 
National Legislative Assembly, which would comprise not more than 250 members appointed from 
professional groups, geographical areas, and various sectors of society (Article 5).3  In addition, the 
King appointed a Prime Minister and not more than  35 other ministers on the recommendation of the 
Prime Minister to constitute the Council of Minister s, having the duties to carry out the administration 
of State affairs (Article 14). 
6. As a result of the 2006 developments, an inte rim 242-member National Legislative Assembly 
was appointed in October 2006,  consisting of the House of Representatives, the Senate, and the 
                                                      
1 EIU (2006c). 
2 EIU (2007b);  and Wikipedia online informati on.  Viewed at: http://en.wikipedia.org/wiki/ 
Constitution_of_Thailand [10 May 2007]. 
3 Ministry of Foreign Affairs (2006a);  and Wikipedia online information.  Viewed at:  
http://en.wikipedia.org/wiki/Constitution_of_Thailand [10 May 2007]. Thailand WT/TPR/S/191/Rev.1 
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National Assembly.4  The last valid general elections for the House of Representatives and the Senate 
were held on 6 February 2005 and 19 April 2006, re spectively;  the next National Assembly elections 
are expected to be held in December 2007.  
7. The preamble of the 2006 Interim Constitution sets out several objectives including:  "the 
need to restore national unity, the economy and publ ic order, the strengthening of a vigorous system 
of checks against corruption and an ethical code of  conduct, the promotion and protection of the rights 
and civil liberties of the people, adherence to th e United Nations Charter as well as obligations under 
treaties or international agreements, the promotion of friendly relations with other countries and the 
philosophy of "Sufficiency Economy" as a way of life."5  Unlike the previous (1997) Constitution, the 
2006 Interim Constitution does not contain any clauses on economic principles and freedom6 due to 
its temporary nature;  nevertheless, its Section 3 guarantees the protection of rights, liberties and 
equality in accordance with the customary practi ce of democratic government as well as Thailand’s 
existing international obligations.  The draft of the new Constitution contains provisions on a broad 
range of rights and freedom, including economic.   
8. The Thai judicial system consists of a Supreme Court with judges appointed by the King, an 
independent Constitutional Court, several trial courts, and a Court of Appeals.7  There is also the 
IPCIT Court for intellectual property and interna tional trade (Chapter III).  Because courts are 
independent, no court is under the Thai Ministry of Justice. 
9. The 1997 Constitution provided for increased govern ment decentralization, which made slow 
progress during the period under re view (Box II.1).  The authorities indicate that they had given 
priority to the devolution of power to the Local Administration Organization  (LAO), allowing it 
autonomy in setting up policy on administration, pe rsonnel, financial, and fiscal management.  The 
central government provides substan tial budget expenditures for devel opment in education and health 
care, which made it impossible for it to meet the ta rget of allocating 35% of its net revenue to the 
LAO during the FY2007 under the Determining Plan s and Process of Decentralization to Local 
Administrative Organization Act B.E. 2542 (A.D. 1999).  
(3) STRUCTURE OF TRADE POLICY FORMULATION  
(i) Executive branches of government 
10. As a result of the 2002 reforms aimed at correcting weaknesses in the centralized 
bureaucracy, 11 ministries were given new missions, th ree were renamed, and six were established;  
there are currently 20 ministries (previously 14) and 162 Departments.   No major changes seem to 
have occurred since 2003 in the structure of key ag encies involved in the formulation, coordination, 
and implementation of trade and re lated policies, for example, government ministries, the central 
bank, and the Board of Investment (now under the Ministry of Industry).  Final responsibility for 
formulating trade and other economic policies rema ins largely with the Prime Minister and his 
Cabinet.  The Ministries of Commerce and Finan ce have main responsibility for issues relating to 
trade and investment, although authority for certain  policies extend to the ministries of Agriculture 
                                                      
4 CIA (2007). 
5 Ministry of Foreign Affairs (2006a). 
6 The 1997 Constitution provided for the freedom to "fairly engage" in free competition, subject to 
limits set by legislation to benefit consumer protectio n, urban planning, natural resources or environmental 
preservation, public safety, anti-monopoly or to eradicat e unfairness in competition.  State enterprises were 
limited to where necessary to protect national security or  the public interest, or to provide a public utility.   
7 Wikipedia online information.  Viewed at:  http://en.wikipedia.org/wiki/Politics_of_Thailand 
[11 May 2007]. WT/TPR/S/191/Rev.1 Trade Policy Review 
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and Co-operatives, Industry, Public Health, Ener gy, Information Technology and Communications, 
and Transport, and the Bank of Thailand (the centr al bank).  The Department  of Trade Negotiations, 
within the Ministry of Commer ce, is mainly responsible for bilateral and multilateral trade 
negotiations.  It consults widely with ot her government and non-government agencies. 
Box II.1:  Regional decentralization, 2007 
Thailand is a unitary state with a centralized economy.  While there are 76 provinces (excluding the 
Bangkok Metropolitan Administration), each administered by an appointed governor and divided into 
districts and villages, local governments have little administrative and legal autonomy.  Most public 
spending is by the national government.  The previous (1997) Constitution provided for increased 
government decentralization, as a way of reducing regional inequalities.  Under the recently amended 
National Decentralization Act (Deter mining Plans and Process of Decentr alization to Local Administrative 
Organization Act) B.E. 2542 (1999), the National D ecentralization Committee, was formed to implement 
and monitor the decentralization process, to be fully implemented by FY2010.  The local administration is 
to become self reliant and capable  of providing efficient public services according to its duty and 
responsibility. 
The 1999 Act specified that at least 20% of total gove rnment revenue would accrue to local governments in 
FY2001, and that this would rise to  a minimum of 35% by FY 2006.  Th e Decentralization Act No. 2 (2006) 
(announced in the Royal Gazette , 28 January 2007) postponed the timeframe for achieving the target of 35% 
by 2006, but did not specify a new target year for this.  According to the authorities, the target share of local 
authority revenue to government revenue increased from 12.63% in FY2000 to 20.68% in FY2001;  from 
FY2002 to 2007 it rose annually as follows 21.88%, 22.19%, 22.75%, 23.50%, 24.05%, and 25.17%.  The 
new law states, however, that the sh are of local government revenue to central government revenue shall 
not be less than the FY2007 target of 25% and that the amount of funds transferred shall correspond to the 
activities transferred to the local gove rnments.  In FY2006, only 24.1% of  central government revenue was 
allocated to local administrations.    
An overall Master Plan was set in 1999 to decentr alize administrative powers  to local governments.   
Functions to be transferred to local  governments within four years included infrastructure and planning, 
education, health, social welfare, social order, promotion of investment, commerce, tourism, environment 
and local culture; in practice, up to six years was allowed to enable local governments to improve their 
administrative capacities.  No information on progress in the transfer of functions since 2003 was available 
from the authorities.  Since 2003, only 0.4% of government officials have been transferred to local 
government, due partly to limited capacities of local au thority to carry out new responsibilities.  The Local 
Administration Law drafted in January 2006, identifie d responsibilities of all local administrations and 
specified financial management and budgetary procedures;  no information on the progress in passing the 
Law was available from the authorities.  Meanwhile, the Government provides support to local 
administrations on capacity building regarding how to handle new responsibilities in the future. 
Few expenditure functions have been transferred to local governments, and central government grants 
remain heavily tied to specific purposes;  no more than 30% are general purpose grants based on local 
governments' expenditure needs and revenue-raising capacities.  Local government revenue sources are 
mainly building, land, and signboard taxes;  some 90% of revenue comes from the central government, 
either as grants or as their share of certain natio nal taxes (VAT, liquor, excise, gambling, mineral and 
petroleum, and motor vehicle taxes).  To enhance the fiscal capability of local governments, the 
Government is considering introducing new taxes such as property tax, environment tax, inheritance tax, 
etc. to help increase local revenue in the long run.  Lo cal financing and local fiscal discipline are also to be 
reviewed as they are considered as measures to stre ngthen and build the capacity of local governments. 
Source:  IMF (2002), Thailand: Selected Issues and Statistical Appendix,  Country Report No. 02/195;  
World Bank (2007), Thailand Economic Monitor .  Viewed at:  http://siteresources.worldbank.org/
INTTHAILAND/Resources/E conomic-Monitor/2007april_tem_report.pdf [23 April 2007];  and 
APEC (2007), Individual Economy Report of Thailand .  Viewed at: http://www.apec.org/content/
apec/member_economies/economy_reports.html [11 May 2007].  
 Thailand WT/TPR/S/191/Rev.1 
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11. The Committee on International Economic Relati ons Policy, chaired by the Deputy Prime 
Minister, and its sub-committees, retains its main  role of coordinating Thailand's international 
economic policies. 
(ii) Advisory, planning, and other bodies 
12. Various institutions within the Government, su ch as the Office of the National Economic and 
Social Development Board (NESDB) in the Office of the Prime Minister, review and assess of public policies;  no independent body is directly responsib le for publicly evaluating or advising government 
on trade and sectoral assistance policies.
8  The NESDB is also responsible for preparing Thailand's 
five-year national economic and social developm ent plans and monitoring their implementation 
(section (4)).  Independent research institutes or  research units of universities in Thailand may be 
entrusted to assess and analyse the impact of public  policies. The results and findings are normally 
made public or are available upon request. 
13. The private sector interacts with the Government  formally and informally.  On international 
trade matters, the Government regularly consults  the Thai Chamber of Commerce, which is also 
responsible for issuing certificates of origin.  The Federation of Thai Industries and the Thai Bankers' 
Association also provide advice.  These bodies ar e represented in the Joint Standing Committee on 
Commerce, Industry and Banking (JSCCIB) and th e WTO Committee, which the JSCCIB formed in 
1999.  The WTO Committee aims to f acilitate private sector particip ation in multilateral negotiations 
to help enhance Thailand's competitiveness.9  Other important committees with private and public 
representatives are the National Economic Social De velopment Committee, the Board of Investment 
Committee, and the Nationa l Competitiveness Committee. 
(4) TRADE POLICY OBJECTIVES  
14. Under its Tenth National Economic and Social Development Plan for 2007-11, Thailand aims 
for balance and sustainability in all areas of national development.10  Its guiding principle is that of the 
"Sufficiency Economy" based on the idea of buildi ng economic resilience to internal and outside 
shocks, keeping investment and hou sehold debt within sustainable le vels, and ensuring growth with 
stability.  The Plan focuses on effectively using th e country's economic, social, and natural resources 
to empower Thai society at all levels, and furt her strengthen institutional capacity throughout the 
country, which would in turn develop Thailand's po tential as a knowledge-based society.  Priority 
areas include human and social capital deve lopment, community strengthening, economic 
restructuring, environmental diversity, and good governance.  
15. To adhere to the "Sufficiency Economy" princi ple, the authorities are attempting to develop 
the economy in a liberal market-based way with fair competition to ensure sufficient and sustainable 
economic growth.11  To boost the economy, the Government is promoting local and foreign 
                                                      
8 For more information on the NESDB's work, s ee NESDB online information.  Viewed at:  
http://www.nesdb.go.th/. 
9 The WTO Committee comprises sub-committees on agri culture and fisheries, services, industrial 
goods, legal and investment issues, food safety, rules of origin and government procurement under the WTO 
framework. 
10 World Bank (2006a);  and Asian Development Bank (2007). 
11 Reportedly, the "Sufficiency Economy" thinking has three key principles: moderation, wisdom of 
insight, and the need for built-in resilience against risks that arise from internal and external changes/shocks. In addition, those applying these principles must value know ledge, integrity, and honesty, and conduct their lives 
with perseverance, toleration, wisdom, and insight.  It  advocates growth with quality, stability, and equity over 
rapid but unbridled growth, and emphasizes sustainable development, sound macroeconomic policies and the equitable sharing of the benefits of economic prosperity.  It calls for prudent management of the economy, a WT/TPR/S/191/Rev.1 Trade Policy Review 
Page 24 
 
 
investment in very competitive industries, fo cusing on technological development and building 
intellectual property, including the small- and me dium-size enterprises that count on IPRs.  The 
Government is also promoting exports and services ;  and encouraging the private sector to drive 
growth. 
16. According the authorities, Thailand's trade policies embody the guiding principles of:  
sufficiency and sustainable economy;  free, fair a nd progressive trade liberalization;  income and 
happiness distribution;  and good go vernance and transparency.  They aim to build Thailand into a 
trading nation, cultivate more service providers , strengthen competitiveness and lay the groundwork 
for Thailand to become an investor-country.  Ac tion is focused on promoting:  export-oriented 
business-driven trade;  stability and prosperity in the agriculture sector;  consumer welfare protection;  
development of the services sector, reform of tr ade regulations;  competitiveness enhancement and 
capacity building;  and free and fair trade (at multilate ral, regional bilateral leve ls) with an appropriate 
safety net.  To further integrate Thailand into the global economy, Thailand  supports free trade in the multilateral arena, including seeking improved outcomes from negotiations on trade and investment that better reflect Thailand's and other developing  country interests, advancing the ASEAN Free-
Trade Area, and promoting regional trade and investment generally. 
17. Thailand is committed  to voluntary trade liberalization within APEC  and regional 
liberalization within ASEAN, and is looking to expand its bilateral trading arrangements 
(section (6)(ii)(c)). 
(5) T
RADE LAWS AND REGULATIONS  
18. Reform of the legal and judicial regime has progressed.12  The National Law Reform 
Committee was appointed in July 2004 to oversee the reform of the legal and judicial regime under 
the National Laws Development Plan 2005-2008;  3 77 laws identified by line ministries as redundant, 
outdated, or in need of replacement are to be reviewed.  At least 50% of these laws should be 
completely reviewed and revised by end 2008;  13 la ws have been reviewed and 26 laws or law drafts 
related to trade and internationa l trade matters have been proposed (16 in 2005 and the rest in 
2006-2007).   Reportedly, prescribed comment periods fo r new legislation and regulations are 
sometimes not honoured.13 
19. Ministry/government regulations and notifications  that do not require legislative approval are 
commonly used in conjunction with Acts  to implement trade-related policies.14  Despite concern over 
the alleged complexity of the system of laws and regulations15, the authorities maintain that the Thai 
regulatory system is transparent and very simple co mpared with that of other major trading partners  
(Table II.1).  Several laws or amendments have been enacted during the review period (e.g. customs 
valuation, intellectual property rights, competition pol icy, bankruptcy) or are under different stages of 
preparation (government procurement, energy, electricity, telecoms, e-commerce, tourism). 
                                                                                                                                                                     
step-by-step approach to market liberalization, developi ng the economy to keep up w ith the world in the era of 
globalization, and strengthening of society's immunity against the negative side effects of globalization.  It 
shuns excessive risk-taking, untenable inequalities, and the wasteful use of natural resources/factors of 
production (NESDB, 2007).  See also U.S.-Asian Business Council (2007), and Royal Thai Government (2006). 
12 APEC (2007). 
13 EIU (2006b). 
14 For example, applied tariffs may be increased up to 50% above the statutory rates.  Other important 
issues requiring inter-ministerial coordination but not pa rliamentary approval includ e:  investment incentives; 
VAT, excise, interior taxes, and surcharges;  controls on imports and exports;  and anti-dumping and 
countervailing policies.  
15 EIU (2006b). Thailand WT/TPR/S/191/Rev.1 
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Table II.1 
Main trade-related legislation, May 2007 
Legislation Description 
Anti-Dumping and Countervailing Duty Act, B.E. 2542 
(1999) Ministry of Commerce can impose anti-dumping or countervailing 
measures 
Bankruptcy Act (No.5), B.E. 2542 (1999) Amendments to bankruptcy provisions 
Corporatisation Act, B.E. 2542 (1999) (also called 
Capital of State Enterprise Act) Provides regulatory framework for conve rting state enterprises to private 
or public limited companies 
Direct Sales and Direct Marketing Act, B.E. 2543 (2000)  Protect s consumers against business opera tors taking "wilful advantage " of 
them through deception or coersion.  In ternet sales and marketing seem to 
be covered 
Electronic Transactions Act, B.E. 2545 (2002) Governs both civil and commercial electronic transactions 
Establishment of and Procedure for Bankruptcy Court 
Act, B.E. 2542 (1999) Established the Bankruptcy Court and sets out the rules governing its 
procedures 
Foreign Business Act, B.E. 2542 (1999) Replaced the 1972 Alien Business Law.  Identif ies the scope of foreign 
participation in businesses in Thailand 
Governing Leasing of Immovable Property for 
Commercial and Industrial Purposes Act, B.E. 2542 
(1999) Rights to lease commercial or industria l property for a term of 30-50 years, 
to use as loan collateral, to tr ansfer leases and to sub-lease 
Money Laundering Control Act, B.E. 2542 (1999) Combating illic it drug trade and corruption. An Anti-Money-laundering 
Prevention and Suppression Office established 
Price of Goods and Services Act, B.E. 2542 (1999), and 
Trade Competition Act, B.E. 2542 (1999) Replaced the 1979 Act on Price Fi xing and Anti-Monopoly; Trade 
Competition Act aims to promote free  and fair competition by preventing 
monopoly;  administered by the new Trade Competition Commission 
Protection of Layout Designs of Integrated Circuits Act, 
B.E. 2543 (2000);  Protection of Plant Varieties Act, B.E. 
2542 (1999);  Trade Secret Act, B.E. 2545 (2002);  
Copyright Act (No. 3), B.E. 2542;  Patent Act (No. 3), 
B.E. 2542;  Patent Act, B.E. 2522 (1979);  Trademark Act, B.E. 2534 (1991) Intellectual property protection, including protection of trade secrets 
Quarantine Act (No. 2), B.E. 2542 (1999) Quarantine regulations 
Ministry of Commerce Notification on Safeguard 
Measures, B.E. 2542 (1999) Safeguard measures on imports 
Land Code Act  (No. 8), B.E. 2542 (1999), 
Condominium Act (No. 3), B.E. 2542 (1999) Foreign ownership of land and property 
Customs Act Customs and import pro cedures, including customs valuation 
Telecommunications Business Act, B.E. 2544 (2001) Defines ty pes of telecommunication licen ces, licensing scheme, network 
interconnection, rights of way, ta riff regulations, universal service 
obligations and the role and responsibilities of the National 
Telecommunication Commission (NTC) 
Act on Organizations to Assign Radio Frequency Spectrum and to Regulate Broadcasting and 
Telecommunication Services, B.E. 2543 (2000) National Broadcasting Commission (NBC) 
Life Insurance Act, B.E. 2535 (1992) 
Non-life Insurance Act, B.E. (1992) Provide for licensing requirements and procedures, technical reserves, 
solvency margins, security deposits;  administered by the Department of 
Insurance 
Commercial Banking Act, B.E. 2505 (1962) To  be replaced by the new Financial Institutions Act, which is designed to 
strengthen supervisory practices and pr ocedures in line with international 
best practices.  It will combine the Commercial Banking Act and the Act on the Undertaking of Finance Busi ness, Securities Business and Credit 
Foncier Business, thereby creating a uniform standard of supervision 
Act on Undertaking of Fina ncial Business, Securities 
Business, and Credit Foncier Business, B.E. 2522 (1979) Covers finance business for commer ce, development, disposition and 
consumption, housing and other types pr escribed by ministerial regulation.  
Legislation also covers the formati on of a company and application for a 
licence for finance, securities,  and credit foncier companies 
Table II.1 (cont'd) WT/TPR/S/191/Rev.1 Trade Policy Review 
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Legislation Description 
Public Company Act, B.E. 2544 (2001) Listed companies e xpected to benefit in terms of management and new 
tools to enhance efficiency in generating investor returns.  Aims to 
promote debt workouts and raise the stock exchange to international 
standards.  Key features include the abolition of the minimum par value for 
shares and provision of debt to equity  conversion to assist creditor-debtor 
workouts 
Mercantile Marine Promotion Act, B.E. 2521 (1978) Provisions on possible measures to promote the maritime transport sector, 
prevention and prohibition of unfair practices, registration of maritime 
transport, port and shipyard opera tors, and submission of data and 
information to relevant authority 
Source: Information provided by the Thai authorities.  
20. A more effective regulatory frameworks a nd institutional arrangements would promote 
transparency and facilitate investment, including from overseas.  Legislation is published in the 
official Government Gazette .  Most ministries, including the Ministry of Commerce, have websites to 
disseminate information, mainly in Thai.  An E-Government Action Plan (2005-2007), approved on 
6 August 2005, should increase transparency.16  It should promote e-services and develop a 
government portal, enhance efficiency of infr astructure and networks, and improve laws and 
regulation related to e-commerce, security, and computer crime.  So far the authorities have proposed 
six laws related to e-commerce, security, and computer crime.17 
21. Thailand has made efforts to meet its transpar ency obligations concerning WTO notifications 
in certain areas, e.g. agricultu re, subsidies, customs tariff (WTO Integrated Database (IDB)) 
(Table II.2) and import licensing procedur es (first notification submitted in 2007). 
Table II.2 
Principal notifications under WTO Agreements, 2003 to July 2007 
Agreement Requirement/content Document symbol and date of latest 
notification 
Agreement on Agriculture  
Articles 10 and 18.2 Table ES:1 and ES:2 – E xport subsidies G/AG/N/THA/61, 20 December 2006 
Article 18.2  Table MA:1 – Administration of tari ff quotas G/AG/N/THA/62, 22 January 2007 
Article 18.2 Table MA:2 – Imports under ta riff quotas G/AG/N/THA/63, 22 January 2007 
Article 18.2 Table DS:1 and the relevant supporting tables – 
Domestic support G/AG/N/THA/59, 13 July 2006 
Article 5.7 and 18.2 Table MA:5 – Use of special safeguard provisions G/AG/N/THA/60, 21 December 2006 
General Agreement on Tariffs and Trade (GATT) 1994  
Article VII Customs valuation legi slation G/VAL/N/1/THA/1, 23 July 2003 
Article XVII:4(a) Notification of th e understanding on the interpretation 
of Article XVII on State-trading G/STR/N/11/THA, 17 August 2006 
Free-trade agreement between Thailand and 
New Zealand  WT/REG207/N/1, S/C/N/361, 
2 December 2005 Article XXIV:7(a) - Free-Trade Areas 
Free-trade agreement between Thailand a nd Australia WT/REG185/N/1, S/C/N/311, 
5 January 2005 
Table II.2 (cont'd) 
                                                      
16 APEC (2007). 
17 These are:  the Electronic Transaction Act;  the Computer Related Crime Act;  the Royal Decree to 
Regulate e-Business Service relating to e-Transaction unde r Electronic Transaction Act B.E. 2544 (2001);  the 
Royal Decree on Electronic Transactio ns in Public Sector;  the Roya l Decree to Regulate the Electronic 
Payment Service Provider;  and the Royal Decree to oversee the Certification Authority. Thailand WT/TPR/S/191/Rev.1 
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Agreement Requirement/content Document symbol and date of latest 
notification 
Agreement on Implementation of GATT Article VI of the GATT 1994 (Anti-dumping)  
Article 16.4 Ad hoc reports of anti-dumping actions G/ADP/N/159, 12 July 2007 
 Semi-annual reports of anti-dumping actions (taken 
within the preceding six months) G/ADP/N/153/THA, 24 January 2007 
Article 16.5 Competent authoritie s G/ADP/N/14/Add.23, 24 April 2007 
General Agreement on Trade in Services  
Articles III:4, and IV:2 Enquiry and cont act points S/ENQ/78/Rev.9, 1 December 2006 
Article V:7(a)   Free-trade agreement between Thailand and 
New Zealand  WT/REG207/N/1, S/C/N/361, 
2 December 2005 
 Free-trade agreement between Thailand and Australia WT/REG185/N/1, S/C/N/311, 
5 January 2005 
Agreement on Import Licensing Procedures  
Article 7.3 Replies to questionnai re G/LIC/N/3/THA/1, 22 March 2007 
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7 and Annex B Notification of SPS measures G/SPS/N/THA/161, 7 May 2007 
Agreement on Subsidies a nd Countervailing Measures  
Article 25.1 Notification of subsidies G/SCM/N/123/THA/Corr.1, 
G/SCM/N/128/THA/Corr.1, 5 July 2005 
Article 25.11 Semi-annual report on countervailing duty actions G/ SCM/N/153/Add.1, 18 April 2007 
Article 25.12 Competent authoritie s G/SCM/N/18/Add.23, 24 April 2007 
Agreement on Technical Barriers to Trade (TBT)  
Article 2.10 Notification regarding environmental measures, 
technical barriers and technical regulations G/TBT/N/THA/201, 28 April 2006 
Article 2.9 Notification of technical re gulations G/TBT/N/THA/241, 27 June 2007 
Article 5.6 Notification of pro ducts covered by conformity 
assessment procedure G/TBT/N/THA/244, 24 July 2007 
Source:  WTO documents.  
 
(6) TRADE AGREEMENTS AND ARRANGEMENTS  
(i) Thailand and the WTO 
22. Thailand accords at least MFN treatment to all WTO Members, but not necessarily to non-
members.  Thailand is neither a member nor observer of the WTO Agreement on Government 
Procurement;  however, it participates in the Working Group on Transparency in Government 
Procurement.  As a party to the Ministerial Decl aration on Trade in Information Technology Products 
(the Information Technology Agreement), Thaila nd phased out tariffs on eligible products in 2005 
(Chapter III). 
23. During the period under review, Thailand, a member of the Cairns Group of agricultural 
producers and exporters18, reiterated that a successful outco me of the ongoing Round of multilateral 
trade negotiations would require Members to comp rehensively address the needs and well-being of 
the people in the agricultural sector;  real impr ovement in market access and reductions and or 
elimination of trade-distorti ng support would be crucial.19  An agreement on the agricultural sector 
                                                      
18 Within the WTO, Thailand has joined other develo ping countries in strongly supporting efforts for 
multilateral trade liberalization in agri culture;  these include major reform s to market access, domestic support, 
and export subsidies, including their elimination, as key outcomes of the Doha Development Agenda. 
19 WTO documents WT/MIN(05)/ST/11, 14 December 2005, and WT/MIN(03)/ST/16, 
10 September 2003. WT/TPR/S/191/Rev.1 Trade Policy Review 
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would advance work on key issues such as the "underp inning rules and disciplines";  fairer and more 
predictable trade disciplines would avoid backdoor protectionism.  All negotiated agreements should 
faithfully reflect the development dimension, and assist developing countries to better integrate into 
the global trading system.  The Government c onsiders that an open and free global trading 
environment is the essential ingredient to achieve  the poverty reduction goal, and that agriculture 
trade is the key to lifting income and to sustainable development. 
(ii) Preferential, regional, and bilateral arrangements 
(a) Preferential arrangements for devel oping and least developed countries 
24. Thailand provides preferential tariff treatment  on certain imports from other developing 
countries under the Global System of Trade Preferences (GSTP) (Chapter III).  According to the 
authorities the utilization rate of GSTP treatment for Th ai exports is very low;  in 2006, Thai exports 
under GSTP treatment decreased by 11.2%.  No fu rther information was available on changes in 
import-related GSTP commitments.  At the same ti me, Thailand receives trade preferences under the 
Generalized System of Preferences (GSP) schem es of 34 partners.  About 30% of Thailand's 
merchandise exports received GSP treatment in 2006 (19% in 2002).  Most GSP exports are destined 
for the EC (33.9% of the total) and the United States 21.7%;  20.2% went to Japan.  
25. In 2006, the United States reinstated GSP priv ileges for nine Thai products (fresh durians, 
dried papayas, preserved papayas, dried tamarind, rice flour, candied fruit and nuts, oil cake, CRT and 
VCR colour televisions, and jewellery and non-electri cal ornaments);  it removed four types of goods 
(cereals, canned lychees and longans, aluminium products, and plastic goods).20  The EC's recent GSP 
programme restored benefits (as from 1 January 2006) for fishery products21, edible preparations and 
beverages, plastic and rubber, leather and fu r skins, footwear, and consumer electronics.22  However, 
two sections were removed:  vehicles, aircraft, vessels and associated transport equipment;  and 
jewellery.  Furthermore, at the end of 2006, th e EC concluded an agreement with Thailand (and 
Brazil) on a new regime for impor ts of salted poultry meat and c ooked chicken meat into the EC 
pursuant to negotiations under Article XXVIII of th e GATT 1994.  In mid 2007, the EC in-quota tariff 
rate on cooked poultry meat from Thailand was lo wered to 8% (from 10.9%), while the out-of-quota 
rate has been €1,024 per tonne. 
(b) Regional arrangements 
ASEAN23 
26. Thailand is an original member of the Associ ation of South-East Asian Nations (ASEAN);  it 
participates in the ASEAN Free-Trade Area (AFTA), which has been in place since 1993 and aims to 
promote the region's competitive advantage as a single production unit.  The elimination of tariff and non-tariff barriers among member countries is expected to promote greater economic efficiency, productivity, and competitiveness.  In consequence of the financial and economic crisis, members 
agreed in 1999 to work towards the elimina tion of all import duties among ASEAN-6 members 
(Brunei Darussalam, Indonesia, Malaysia, the Philippi nes, Singapore, and Thailand) by 2010, and for 
                                                     
 
20 EIU (2006b). 
21 The December 2004 tsunami had badly hurt shrimp exporters, and to help th em the EU agreed, in 
September 2005 to introduce the new GSP import tariffs for this sector, retroactively, from August 2005.  EIU (2006b). 
22 EIU (2006b). 
23 This section is based largely on comprehensive AS EAN Secretariat online information.  Viewed at:  
http://www.aseansec.org/ and h ttp://www.aseansec.org/4920.htm. Thailand WT/TPR/S/191/Rev.1 
 Page 29 
 
 
ASEAN-4 (Cambodia, Lao PDR, Myanmar, and Viet Nam) by 2015 with some flexibilities, except on 
some sensitive products.  Quantitative restrictio ns and other non-tariff barriers are also to be 
eliminated.   
27. ASEAN achieved the original target of the A FTA as scheduled in 2003.  Tariffs on almost all 
products traded among ASEAN-6 were reduced to ra tes between zero and 5%.  The ASEAN-4 have 
been implementing their Common Effective Preferential Tariff (CEPT) commitments in line with 
timeframes agreed upon accession.  According to Thailand's consolidated CEPT, in 2006 AFTA 
preferences granted to imports into Thailand from these countries were set at ten rates ranging from 
zero (49.7% of tariff lines) to 5% (46.9% of tariff lin es) as well as nine items at rates of 30% (flowers, 
potatoes), 35% (copra) and 40% (coffee).24  
28. In 2007, ASEAN continued to eliminate tariffs under the CEPT Scheme and was expected to 
reduce tariffs to zero for at least 80% of products.  Thailand, together with other ASEAN Members, 
transposed its tariff nomenclature from the A SEAN Harmonized Tariff Nomenclature (AHTN) 2002 
to AHTN 2007 on 1 January 2007 (Chapter III);  upon completion of the process, more than 
6,600 tariff lines out of 8,300 (79.5% of all lines) will be at zero tari ff rate.  This tariff reduction will 
be effective retroactively (from 1 January 2007).  Th e remaining tariffs (about 1,700 tariff lines) are to 
be eliminated by 2010.  
29. ASEAN countries are also negotiating intra-re gional services liberalization (the 1995 ASEAN 
Framework Agreement on Services - AFAS);  AFAS liberalization aims to achieve commitments beyond members' commitments under GATS (GATS-Plus  principle).  Members have continued to 
work on further expanding the negotiations to c over all sectors and all modes of supply; steps are 
being taken to achieve a free flow of services by 2015 with flexibility.  ASEAN has concluded 
five packages of AFAS commitments through four  rounds of negotiations since 1 January 1996.  
Individual commitments contain horizontal and sector-specific commitments and MFN exemptions
25;  
the latest (fifth) package was signed in December  2006.  Commitments have liberalized trade in 
priority sectors, i.e. air transport, business services, construction, financial services, maritime 
transport, telecommunications, and tourism.  Thailand's AFAS commitments go beyond its GATS 
commitments by broadening the scope of services activities in:  business services, telecommunications, construction, financial services, tourism, recreational services, air transport, and 
maritime transport.  Nevertheless, foreign equity  limitations of 49% on commercial presence remain 
in the horizontal section.   
30. Other agreements aimed at promoting intra-ASEAN trade, investment, and greater regional 
integration include the ASEAN Industrial Coopera tion Scheme (AICO) and the ASEAN Investment 
Area (AIA).  The AICO, signed in 1996, encour ages technology-based investments in ASEAN;  
ASEAN-based companies meeting certain conditions are eligible.
26  AICO-approved products, raw 
materials, and intermediate input s are immediately subject to pref erential duties ranging from zero to 
5% and eligible for local-content accreditation an d as yet unspecified "non-tariff incentives".  The 
AIA, signed in October 1998, aims to increase foreign investment from ASEAN and non-ASEAN 
                                                      
24 For individual ASEAN member CEPT status see AS EAN Secretariat online info rmation.  Viewed at: 
http://www.aseansec.org/18727.htm [15 May 2007]. 
25 ASEAN Secretariat online information.  Vi ewed at:  http://www.aseansec.org/19353.htm 
[15 May 2007]. 
26 Companies must incorporate and operate in an ASEAN country;  have at least 30% ASEAN equity; 
and be sharing resources (e.g. sharing of technology, market sharing, or consolidated purchases of raw 
materials).  At least two companies in two ASEAN countr ies must participate.  These conditions may be waived 
in certain circumstances.  In February 2007, there were 145 (90 in 2002) approved AICO applications (annual transaction value of US$1.8 billion).  WT/TPR/S/191/Rev.1 Trade Policy Review 
Page 30 
 
 
regional sources by removing barriers to all ASEAN investors by 2010 and for all investors by 2020.27  
Business listed in general exclusions and sensitive products are excluded.28 ASEAN-6 and Cambodia 
agreed to remove their temporary exclusions for ASEAN investors in manufacturing from 2003.  
Temporary exclusions in manufacturing, agriculture, fisheries, forestry, mining and related incidental 
services are to be removed by 2010 for the ASEA N-6 and Cambodia, by 2013 for Viet Nam, and by 
2015 for the Lao PDR and Myanmar. 
31. In 2004, ASEAN decided to establish the ASEAN Economic Community (AEC) by 2020.  Its 
aim is to turn ASEAN into a single market and production base with free flow of goods, services, capital, investment, and skilled labour.  To en sure concrete progress, ASEAN has accelerated 
integration in 12 priority sectors, i.e. w ood-based products, automotive products, rubber-based 
products, textiles and apparel, agri-based produ cts, fishery products, electronics, e-ASEAN, 
healthcare, air travel, tourism, and logistics.  In late 2006, ASEAN Leaders decided to shorten the 
timeframe for realizing the AEC to 2015.  Key measures to be implemented within a specific 
timeframe for the priority goods sectors include: 
- eliminating CEPT-AFTA tariffs on all iden tified products by 2007 for ASEAN-6 and 
2012 for ASEAN-4; 
- improving the CEPT rules of origin by maki ng them more transparent, predictable, 
and standardized; 
- adopting "substantial transformation" as an alternative criterion for conferring origin 
status; 
- extending the application of the AHTN for extra-ASEAN trade; 
- developing a simplified, improved, a nd harmonized customs declaration form; 
- ensuring full implementation of the green lane system for CEPT products; 
- developing the single window approach, including electronic processing of trade 
documents at national and regional levels; 
- accelerating the implementation/development of sectoral mutual recognition 
arrangements (MRAs); 
- harmonizing procedures for the issuance of  visas to international travelers and 
providing visa exemption for intra-ASEAN travel by ASEAN nationals.  
32. Further, ASEAN has strengthened its institu tional mechanisms, particularly the ASEAN 
Dispute Settlement Mechanism, to ensure prope r implementation of all related ASEAN economic 
agreements and expeditious resolution of disputes.  The ASEAN Protocol on Enhanced Dispute 
Settlement Mechanism was signed in November 2004. 
33. Currently, ASEAN is developing the AEC bluepr int, which will be a single and coherent 
work plan for advancing AEC.  This blueprint is to be a legally binding document through a 
                                                     
 
27 The AIA is based on opening all industries to foreign investment, and phasing out exclusions; 
immediate national treatment for ASEAN investors, with few exceptions;  eliminating investment impediments; 
streamlining investment procedures;  enhancing transpar ency;  and applying investment facilitation measures. 
28 A list of temporary exclusions was adopted for ag riculture, forestry, and fisheries in October 2000. Thailand WT/TPR/S/191/Rev.1 
 Page 31 
 
 
declaration by the Leaders, to be signed at the 13th ASEAN Summit to be held in Singapore in 
November 2007. 
34. ASEAN members are increasingly pursuing bila teral cooperation with non-member states, 
and other regional inter-gove rnmental organizations.29  Through ASEAN, Thailand is actively 
pursuing regional trade liberalization.  The A SEAN+3 members (China, Japan, and Republic of 
Korea) agreed in November 2002 to study and formul ate options to gradually establish an East Asia 
Free Trade Area (EAFTA).  A Joint Expert Group (JEG) for Feasibility Study on EAFTA, established in 2004 and comprising representatives from ASEAN+3 countries, submitted its 2006 report "Towards an East Asia FTA:  Modality and Ro admap", to the ASEAN Economic Ministers Meeting 
in 2007.  It recommends mainly that:  (i) th e EAFTA process should start within the ASEAN+3 
framework;  (ii) the EAFTA should be comprehensive in scope with substantial liberalization in all 
sectors;  and (iii) economic devel opment cooperation initiatives with specific action plans must be an 
integral part of EAFTA.  In view of the economic diversity of countries in East Asia, it should take 
into account the need for capacity building among its  members.  The Republic of Korea has proposed 
the Phase II study of EAFTA involving an in-depth  sector-by-sector analysis of EAFTA, to examine 
concrete elements of EAFTA such as market acces s for goods, services and investment, and rules of 
origin.  The new study is expected to come up w ith options for realizing EAFTA.  The first meeting 
was in June 2007.  Thailand supports stronger ASE AN trade links with Austra lia, Japan, Korea (Rep. 
of), India, and New Zealand.   Negotiations for an EC-ASEAN FTA were launched in May 2007. 
35. At the ASEAN-Japan Summit in Cambodia in November 2002, leaders decided that ASEAN 
and Japan would develop a framework for rea lizing an ASEAN-Japan Comprehensive Economic 
Partnership within ten years.  In 2003, ASEAN and Japan signed the Framework for ASEAN-Japan 
Comprehensive Economic Partnership.  There ha ve been eight rounds of negotiations since 
April 2005.  Both sides expect to conclude the negotiations in 2007. 
36. The ASEAN-China Free Trade Ar ea (ACFTA), signed in December 2004 aims to eliminate 
most tariffs on trade between ASEAN and China by  2010 (2015 for the less developed members of 
ASEAN).
30  Tariffs will not be completely eliminated:  members will be able to designate a number of 
sectors as sensitive, and the greatest liberalization is  therefore likely to occu r in areas where Chinese 
and ASEAN trade is complementary.31  The Agreement on Trade in Goods under ACFTA has been 
implemented since 1 July 2005.  Tariffs on normal- track products, which include approximately 90% 
of total tariff lines, are not higher than 12% for ASEAN-6 and China;  and not higher than 40% for 
ASEAN-4.  Furthermore, ASEAN members and China signed a ACFTA Framework Agreement on 
Trade in Services in January 2007  (effective July 2007);  according to the authorities the Framework 
Agreement is GATS-consistent.32  In addition to Thailand's GATS commitments, the Agreement 
covers new sub-sectors (education and transport servi ces) and improvements in terms of expansion in 
modes of supply (professional and tourism services).  An agreemen t on dispute-settlement was also 
signed. 
37. An ASEAN and Korea (Rep. of) agreement on trade in goods was signed in August 2006.33 
However, Thailand has not signed this agreement due to irreconciled negotiations on the products 
included in the sensitive list (the sensitive track).  The ASEAN-6 is to begin cutting its tariff rates on 
at least 50% of total tariff lines to a range between zero and 5%, effective 1 June 2007;  and Korea is 
                                                      
29 These include the Andean Council, the Australia -New Zealand Closer Economic Relations (CER), 
MERCOSUR, the South Asian Association for Regional Cooperation, and the South Pacific Forum. 
30 World Bank (2006c), Box 6. 
31 EIU (2006c). 
32 World Bank (2007);  and APEC (2007). 
33 World Bank (2006c), Box 6. WT/TPR/S/191/Rev.1 Trade Policy Review 
Page 32 
 
 
to eliminate tariffs on at least 70% of its total tariff lines.  The other ASEAN members, Cambodia, 
Lao PDR, Myanmar, and Viet Nam were allowed to  have more flexibility on eliminating their tariff 
rates.  ASEAN and Korea are negotiating an Agre ement on Trade in Services and Investment, which 
is expected to be concluded by the end of 2007. 
Asia-Pacific Economic Cooperation (APEC)  
38. Thailand intends to meet APEC’s target of free and open trade, including in services and 
investment by 2020 for developing economies (20 10 for developed economies).  These are to be 
achieved on a voluntary and non-binding basis (concerte d unilateral liberalization) using Individual 
Action Plans (IAPs) as road maps containing the intended actions in 15 policy areas for realizing 
APEC’s liberalization goals.  The IAPs are updated annually. 
39. APEC's goals are based on key general princi ples of comprehensiveness, WTO consistency, 
and non-discrimination (or open re gionalism) contained in the O saka Action Agenda, whereby trade 
liberalization should not discriminate between APEC economies or between them and non-APEC 
countries.  Nonetheless, many APEC economies, in cluding ASEAN members, have either formed or 
are contemplating regional trading arrangements th at discriminate against other APEC and non-APEC 
economies.  According to the authorities, these agreements help promote economic growth of 
members while also promoting greater internationa l trade liberalization consistent with WTO rules 
and disciplines and APEC's goals and principles.  
40. APEC has strengthened its peer review pro cess to examine more rigorously the progress of 
APEC economies in achieving thei r free and open trade and investment targets.  Thailand was 
reviewed in February 2003;  its next review is due in early 2009.34  The review concluded, inter alia,  
that it is in Thailand's interest to liberalize trade a nd investment.  It indicated that Thailand viewed its 
bilateral/regional arrangements as complementar y to its multilateral trade and investment 
liberalization goals.  The APEC Secretariat also not ed that Thailand's trade regime risked becoming 
more discriminatory if concessions under an anticip ated network of FTAs provided preferential access 
to partners. 
41. APEC has engaged in extensive work on RT As/FTAs and is developing "model measures" 
chapters that could be used by members in th eir negotiations in order to achieve high-quality, 
comprehensive RTAs/FTAs.  Thailand has been ac tive in this work:  of the 17 model measures put 
forward, it has proposed the measures on coopera tion;  sanitary and phytosanitary measures;  
subsidies and countervailing measures;  and an ti-dumping.  In November 2006, APEC leaders 
approved measures on cooperation;  trade in goods;  technical barriers to trade;  transparency;  
government procurement;  and dispute settlemen t;  11 model measures remain under discussion. 
42. Trade facilitation is one of the three pillars  contained in the 1995 Osaka Action Agenda, a 
template for future APEC works towards ach ieving the Bogor goals.  Thailand recognizes the 
significance of trade facilitation in the economy's overall trade strategy, and has implemented 
agreements, conventions, and r ecommendations for the development of trade facilitation in the 
harmonization of standards and conformity, simplif ication and streamlining of customs procedures, 
enhanced transparency of custom s services to assist traders, improved cooperation and coordination 
among private-public sectors, use of risk manageme nt for trade control, IT and e-commerce for 
improved trade documentation, and mobility of business people.  Th ailand's efforts contributed to 
APEC's aim of reducing transaction costs by 5%  from 2001 to 2005.  Thailand will continue to 
improve trade facilitation in order to meet APEC's goal of reducing transaction costs by a further 5% 
during 2006-10. 
                                                      
34 For more information see WTO (2003). Thailand WT/TPR/S/191/Rev.1 
 Page 33 
 
 
Asia-Europe Meetings (ASEM)35 
43. The informal process of dialogue and cooperation among 45 members, (EC States, the EC, 
the ASEAN Secretariat and 16 Asian countries), including Thailand, addresses political, economic, 
social, and other issues to strengthen regional re lationships.  The Trade Facilitation Action Plan 
(TFAP) aims to reduce non-tariff barriers, incr ease transparency, and promote trade opportunities 
between the two regions.  It spec ifies bi-annual "concrete  goals" in the priority areas of customs, 
standards and conformity assessment,  public procurement, quarantin e and SPS, intellectual property, 
mobility of business people, and other trade activities,  such as market access in distribution.  Concrete 
goals adopted for 2002-04 include new initiatives for enhanced paperless customs procedures.  The 
Investment Promotion Action Plan (IPAP) continu es to promote two-way investment by focusing on 
investment promotion and policy issues.  ASEM me mbers negotiating regional and bilateral free-trade 
arrangements are to ensure that these comple ment multilateral rules and are WTO consistent.36  The 
Asia-Europe Business Forum (ABEF) fosters regi onal cooperation among the private sector.  The 
ASEM Trust Fund also finances technical assistance  on financial sector restructuring and addressing 
poverty. 
Asia Cooperation Dialogue (ACD) 
44. The ACD, a Thai initiative launched in June 2002 , aims to serve as a "missing link" for all 
Asian sub-regions to create strategic partnerships  and cooperation by drawing upon and combining 
Asia's diverse strengths so as to position it as a viable partner for other regions.37  The 30-country 
ACD has rapidly enhanced cooperation on dialogue a nd projects.  On the dialogue dimension, ACD 
Ministers have met annually at the ACD Ministeria l Meetings in Cha-Am (2002), Chiang Mai (2003), 
Qingdao (2004), Islamabad (2005), Doha (2006), an d Seoul (2007) to discuss ACD developments, 
issues of regional cooperation, and ways  to enhance and solidify Asian unity.38  On the project 
dimension, many countries have proposed to be "p rime movers" in 19 areas of cooperation, including 
energy, agriculture, biotechnology, tourism, poverty a lleviation, information technology development, 
e-education, and financial cooperation. 
Bay of Bengal Initiative for Multi-Sectoral Tec hnical and Economic Cooperation or Bangladesh-
India-Myanmar-Sri Lanka-Thailand Economic Cooperation (BIMSTEC) 
45. Thailand supports the BIMSTEC forum's objec tives of facilitating and promoting trade, 
investment, and technical cooperation among me mbers by forging links between ASEAN and 
SAARC, and developing a free-trade area.  Currently , there are 13 priority sectors of cooperation with 
the designated lead countries, involving trade and inv estment, tourism, energy, technology, fisheries, 
transport and communications, agriculture, public h ealth, poverty alleviation,  counter-terrorism and 
transnational crime, protection of  biodiversity/environment and natu ral disaster management, culture, 
and people to people contact.  Thailand leads the work on fisheries, public health, and people-to-
people contact. 
46. A Framework Agreement on the BIMSTEC Free Trade Area, signed on 8 February 2004, 
provided for the progressive establishment of a free-trade area between July 2006 and June 2012, as 
                                                      
35 Europa online information.  Viewed at:  http://ec.europa.eu/external_relations/asem/intro/index.htm. 
36 Chair's Statement, 8th ASEM Senior Officials Meeting on Trade and Investment, 17 July 2002, Bali. 
37 Members are Bahrain, Bangladesh, Bhutan, Brunei  Darussalam, Cambodia, China, India, Indonesia, 
Iran, Japan, Kazakhstan, Republic of Korea, Kuwa it, Lao PDR, Malaysia, Mongolia, Myanmar, Oman, 
Pakistan, the Philippines, Qatar, Russian Federation, Sa udi Arabia, Singapore, Sri Lanka, Tajikistan, Thailand, 
United Arab Emirates, Uzbekistan, and Viet Nam. 
38 ACD online information.  Viewed at:  http://www.acddialogue.com/web/2.php. WT/TPR/S/191/Rev.1 Trade Policy Review 
Page 34 
 
 
well as the launch of negotiations on trade in goods, trade in services and investment.39  Trade in 
goods will be liberalized through progressive elim ination of tariffs and non-tariff barriers in 
two phases.  Products will be identified for fast track or normal track liberalization.40  For fast-track 
products, non-LDC parties will eliminate tariffs  for LDC parties by 30 June 2007, but among 
themselves by 30 June 2009;  and LDC parties will  eliminate tariffs for non-LDCs by 30 June 2011, 
but among themselves by 30 June 2009.  For the no rmal-track products, n on-LDCs will eliminate 
tariffs for LDCs by 30 June 2010, but among themse lves by 30 June 2012;  and LDCs will eliminate 
tariffs for non-LDCs by 2017, but among themselv es by 30 June 2015.  Negotiations on trade in 
goods are ongoing (June 2007);  me mbers have not yet reached a consensus on product coverage 
under the normal track.  Reportedly, Thailand would li ke to keep the negative list at 10% of total 
6-digit HS code items while other participants preferred to maintain the negative list at 20%.41  I n  
addition, the rules of origin are in the process of  negotiation.  Negotiations on trade in services and 
investment commenced in December 2005 and are sch eduled to conclude by end 2007, aiming for 
liberalization in line with relevant WTO provisions.  A draft agreement on trade in services and investment was prepared by India in July 2006.
42   
Greater Mekong Subregional Economic Cooperation (GMS-EC) 
47. Along with other members, Cambodia, Ch ina (Yunnan Province and Guang Xi Zhuang 
Autonomous Region), Myanmar, Lao PDR, and Viet Nam, Thailand believes that mutual benefits 
from closer trade, investment, and economic cooperation will promote economic and social 
development.  The GMS vision is for sustai nable development and poverty reduction, and a 
competitive sub-region that is more globally integr ated.  Assisted by the Asian Development Bank, its 
work programme has centred on linking the sub -region through transpor t networks, facilitating 
movement of goods and people by implementing the GMS Cross Border Transport Agreement 
(CBTA) by 2008, marketing GMS as a single touris m destination, and improving infrastructure, 
including in energy and telecommunications, for enhanced regional power and communication 
systems.  An action plan on trade and investment  facilitation was to be formulated by 2003 as a 
support for the ASEAN-China Free Trade Area and ASEAN trade liberalization.43  The GMS also 
agreed on the Phnom Penh Plan for Developm ent Management (PPP), as a capacity building 
initiative, to improve efficiency and e ffectiveness in the GMS countries.  The 3rd GMS Summit is 
expected to be held in March 2008 in Vientiane, Lao PDR. 
Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) 
48. The Indonesia–Malaysia–Thailand Growth Triangl e (IMT–GT) seeks to promote sub-regional 
economic cooperation to drive growth and developmen t in southern Thailand, northern Malaysia and 
Indonesia's Sumatra Island.  Its focus is on trad e and investment, technology transfer, production 
cooperation, and use of natural resources, as well as development of infrastructure and transportation 
linkages in the triangle area, with enhanced involvement of the private sector.  Of the six areas of 
cooperation, Thailand is the lead country for halal products and services and tourism. 
Ayeyawady - Chao Phraya - Mekong Econom ic Cooperation Strategy (ACMECS) 
49. The aim of ACMECS is to bridge the econom ic gaps among Cambodia, Lao PDR, Myanmar, 
Viet Nam, and Thailand, and to promote prosper ity in the sub-region in a sustainable manner.  
ACMECS seeks to build upon existing regional c ooperation programmes and complement bilateral 
                                                      
39 BIMST-EC online information.  Viewed at:  http://www.bimstec.org/free_trade_agreement.asp.  
40 More online information.  Viewed at:  http://www.mofa.gov.bd/bimstec/bimstec_back.html. 
41 World Bank (2007);  and APEC (2007). 
42 World Bank (2006c), Box 6. 
43 Asian Development Bank (2002). Thailand WT/TPR/S/191/Rev.1 
 Page 35 
 
 
frameworks wherever possible and appropriate.  The key areas of cooperation are trade and 
investment facilitation, transport linkages, agricultu re, industry and energy, public health, tourism, 
and human resource development.  ACMECS support s the goals of ASEAN as well as other regional 
and sub-regional frameworks, and thus continues to  form a major component of Thailand's foreign 
policy. ACMECS also represents part of Thailand 's efforts to provide more assistance to other 
developing countries.44   
(c) Bilateral arrangements 
50. During the period under review, Thailand has pursued FTAs with major trading partners, 
viewing trade liberalization under the WTO as being unlikely to produce quick results.45  Thailand 
believes that FTAs can be an effective catalyst fo r free trade and a building block for the multilateral 
trading system.  In addition, Thailand hopes to use FTA negotiations as a means to maintain and 
strengthen its shares in traditional export market s such as Japan, the United States, and ASEAN as 
well as to broaden and deepen its trade and invest ment access in potential new markets, particularly 
China, India, Australia, and New Zealand.  An FTA with a group of South Asian countries (e.g. 
BIMSTEC) is viewed as a means to intensify regional  linkages, while an FTA with a far-off country, 
like Peru, is hoped to be the major step towards expanded trade with Latin America. 
51. A Framework Agreement on Closer Economic Partnership between Thailand and Bahrain 
entered into force on 29 December 2002.  The tw o parties exchanged a list of 626 items, on which 
tariffs of 3% were to be eliminated immediately un der an early harvest programme.  Other tariffs were 
expected to be eliminated by 2010.  By end-Oc tober 2006, the tariff reductions under the early harvest 
programme were not yet in effect.46  This is because of Bahrain's Gulf Cooperation Council 
obligations concerning commitments undertaken with a third country.  Presently, the negotiations on a 
Thailand–Bahrain FTA are suspended. 
52. After eliminating tariffs on 82 items under the early harvest scheme (EHS) in 
September 2006, Thailand and India have continued to work together  to facilitate trade flows by 
negotiating the Agreement on Cooperation on San itary and Phytosanitary Measures and Food 
Standards.47  In April 2007, the Thai Industrial Standards In stitute and the Bureau of Indian Standards 
signed an MOU to facilitate clos er cooperation, with the aim of  strengthening standardization, 
certification, measurement and testing activities, and facilitating sharing of expertise.  A meeting was 
planned for June 2007 to discuss the items to be included in the tariff reduction/elimination schedule 
under a normal-track and sensitive-track list, as well as  issues on trade in services and investment.   
53. The Thailand-Australia Free Trade Agreement (TAFTA) entered into force on 
1 January 2005.  It is to lead to the elimination of  Thailand's tariffs across all sectors by 2025;  around 
half of Thailand's tariffs were eliminated upon entr y into force, while most of the remaining tariffs 
will be phased down and eliminated by 2010.48  Special safeguard meas ures are allowed during a 
certain period for 41 agricultural tariff items.  For each of these products, imports beyond a 
predetermined annual trigger level may, for the re mainder of a calendar year, be charged with the 
current MFN tariff rate or the base rate, whicheve r is lower, in lieu of the preferential rate.  
Implementation progress is reviewed by a Thailand-Au stralia FTA Joint Commission.  The agreement 
                                                      
44 The authorities indicate that the UNDP Global Part nership for Development Report for 2003 cited 
Thailand as having allocated 0.12%t of its GDP to offi cial development assistance (ODA), a level comparable to 
OECD countries, such as the UK (0.12%), Germany (0 .10%), France (0.17%), and the United States (0.04%). 
45 The Nation , "Trade Liberalisation:  Thai-NZ talks kick off today", 15 June 2004.  Viewed at:  
http://www.bilaterals.org/article.php3 ?id_article=215 [16 May 2007]. 
46 World Bank (2006c), Box 6. 
47 World Bank (2007);  and APEC (2007). 
48 Australian Government, Austrade (undated). WT/TPR/S/191/Rev.1 Trade Policy Review 
Page 36 
 
 
substantially improves the environment for bila teral services, investment, and business mobility.  
Further negotiations on trade in services are scheduled  to take place within three years from the entry 
into force of the agreement, i.e. on 1 January 2008. 
54. The Thailand and New-Zealand Closer Economic  Partnership (CEP) Agreement, effective 
1 July 2005, aims to establish an FTA by 20 25.  Initial tariff eliminations took place upon 
implementation of the CEP and a second round fo llowed on 1 January 2006;  subsequent tariff 
reductions will be applied on 1 January each year w ith the last tariffs and quotas removed in 2025.49  
There is scope for negotiations to accelerate tariff re ductions in the future.  Some agricultural imports 
to Thailand are subject to a special safeguard me asure.  As Thailand was not able to consider 
significant coverage of services when the CEP was ne gotiated, it was agreed to schedule negotiations 
on the liberalization of services trade within thr ee years of entry into force (i.e. 2008).  A 
Thailand-New Zealand (CEP) Joint Commiss ion reviews progress on implementation.50  
55. According to a protocol on the acceleration of liberalization of trade in goods and trade 
facilitation, signed in November 2005,  Thailand and Peru agreed to reduce the tariff rates on items in 
the early harvest scheme once the technical issues, in  particular, the rules of origin are mutually 
agreed.51  Although the official agreement on the rules of origin was signed in November 2006, both 
parties are still proceeding to reduce the tariffs, a nd the reductions under the EHS are expected to be 
effective December 2007.  No information on product coverage and depth of tariff cuts was available 
from the authorities. 
56. A comprehensive Japan-Thailand Economic Part nership Agreement (J TEPA) covering trade 
in goods and services as well as investment was signed on 3 April 2007.52  Both parties are in the 
process of completing internal procedures for the entry into force of the agreement, which is expected 
to be effective 1 October 2007.  Once the agreement become effective,  tariff rates on about 90% of 
total tariff lines will be reduced.53  For Thailand, 5,495 products or 99.82% of tariff lines (2006 tariff 
nomenclature) will be subjected to tariff reduction/el imination and tariff quota within ten years.  For 
Japan, 8,612 products or 98.06% of tariff lines will be subject to tariff reduction/elimination and tariff 
quota within 15 years.  In terms of trade in servi ces, Thai investors will be allowed to expand more 
businesses such as spas, hotels, and restaurants in Japan.  In addition to its GATS commitments, 
Thailand's commitments under JTEP A cover advertising services, logistics consulting services, 
computer and related services, maintenance a nd repair (household electrical appliances only), 
wholesale trade and retailing (certain products only), luxury hotel services, restaurant services, and 
management consulting (general management , marketing management, human resources 
management, product management).  Thai investors w ill be allowed to invest in all industries except 
medicine, aerospace, oil production, energy, mining, fishery, agriculture, forestry and other related 
industries.  Japanese investors are allowed up to 50%  equity in manufacture of automobiles with no 
requirement to apply for authorization, subject to certain conditions. 
57. Other bilateral FTA negotiations are still unde r way, include with India, Peru, and EFTA.54  
Negotiations with the United States have been on hold since the 2006 political developments, until a 
new government is appointed.55  
                                                      
49 New Zealand Ministry of Foreign Affairs and Trade (2005). 
50 World Bank (2006c), Box 6. 
51 World Bank (2006c), Box 6;  World Bank (2007);  and APEC (2007). 
52 World Bank (2007);  and APEC (2007). 
53 These include, for example, frozen shrimp and fish, fruit and vegetables, wearing apparel, leather 
goods, textiles, and jewellery. 
54 World Bank (2006c), Box 6. 
55 World Bank (2007);  and APEC (2007). Thailand WT/TPR/S/191/Rev.1 
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(7) TRADE DISPUTES AND CONSULTATIONS  
(i) Dispute settlement under the GATT/WTO 
58. Thailand views the WTO Dispute Settlement Me chanism as a workable instrument that 
provides predictability and stability to the multilatera l trading system, even though some cases require 
outside expertise or legal services to be retained at very high cost.56  As a result, disputes may not be 
pursued through the WTO process because the high cost s of legal or other experts exceed the potential 
benefits.  Thailand considers that the increasing u se of the system by developing Members, both as 
complainants and respondents, demonstrates the need for legal expertise to enable them to navigate 
the system effectively.  It therefore views as cruc ial the role of the Advisory Centre on WTO Law, as 
accessible legal expertise is critical to encouraging and enabling developing co untry Members to take 
on deeper commitments under the WTO. 
59. Thailand has been involved directly in six dispute cases (four initiated since 2003) within the 
WTO since its last Trade Policy Review;  three remain  at the consultation stage and virtually all relate 
to agricultural and fisheries exports  to the EC or the United States.57  During the period under review 
no case was brought against Thailand (Table II.3).58   
Table II.3 
Involvement in the WTO Disput e Settlement Mechanism, 2000-07 
Dispute Complainant/respondent 
(WTO document) Request for 
consultation Panel report 
circulated Appellate Body 
Report circulated/ 
adopted Arbitration 
requested/ 
circulation of 
reports 
Continued Dumping and Subsidy Offset Act of 2000 (Byrd Amendment) Australia;  Brazil;  Chile;  
EC;  India;  Indonesia;  Japan;  Korea;  
Thailand/United States 
(WT/DS217/1) 21.12.00 16.09.02 16.01.03/27.01.03 Article 21.3(c):  
14.03.03/13.06.03Article 22.6:  
23.06.04/31.08.04 
Generalized System of Preferences Thailand/EC 
(WT/DS242/1) 07.12.01 - - - 
Export subsidies on sugar Thailand/EC 
(WT/DS283/1) 14.03.03 15.10.04 28.04.05/19.05.05 Article 21.3(c):  
30.08.05/28.10.05 
Customs classification of frozen boneless chicken 
cuts Thailand/EC 
(WT/DS286/1) 25.03.03 30.05.05 12.09.05/27.09.05 Article 21.3(c):  
09.12.05/20.02.06 
Provisional anti-dumping 
measures imposed on 
certain frozen and canned 
warmwater shrimp Thailand/United States 
(WT/DS324/1) 09.12.04 - - - 
Anti-dumping measures on 
imports of frozen 
warmwater shrimp  Thailand/United States 
(WT/DS343/1) 24.04.06 - - - 
Note: Excludes disputes in which Tha iland participated as a third party. 
Source: WTO Secretariat. 
                                                      
56 Chapter 12 at APEC (2006b). 
57 Overall, Thailand has been a complainant in 12  cases and respondent in one case under the WTO 
Dispute Settlement Mechanism.   
58 Only one case has been brought against Thailand, in 1998 by Poland, on anti-dumping duties 
imposed on angles, shapes and sections of iron or non-alloy steel and H-beams in 1996. WT/TPR/S/191/Rev.1 Trade Policy Review 
Page 38 
 
 
(ii) Other 
60. ASEAN's dispute settlement mechanism is similar to that of the WTO.  The authorities state 
that Thailand's trade and economic disputes with ot her ASEAN members have been reduced amicably 
through bilateral consultation/discussion.  Thaila nd has never used the formal ASEAN dispute 
settlement mechanism. 
(8) FOREIGN INVESTMENT REGIME  
(i) Recent developments 
61. Thailand maintains a relatively open foreign inv estment regime.  It views foreign direct 
investment (FDI) as vital to the economy's growth , and encourages investors from all sources;  FDI 
inflows have remained robust during the period unde r review (Chapter I).  According to a recent 
World Bank study, Thailand's investment climate is  favourable by international standards, although 
firms' operations still seem to be hindered by he avy regulatory burden, shortages of skills, and 
infrastructure deficiencies  especially outside Bangkok.59  However, the authorities consider that 
Thailand has adequate infrastructure, as indicated by the JBIC, IMD, and BOI.60  The authorities' 
statistics show that distribution utilities' power out age have progressively improved;  nevertheless, 
although in general both the average interruption frequency and duration in dicators were reduced 
between 2000 and 2006, the provincial electricity indi cators remain up to 18 times worse than those of 
metropolitan electricity indicators.  Further improveme nts to the investment climate would allow Thai 
businesses to compete more effectively in the region and the world. 
(ii) Basic framework 
62. During the period under review no major ch anges were made to the regulatory and 
institutional framework governing fo reign investment in Thailand.  The legislation (Foreign Business 
Act B.E. 2542) dates back to November 1999.  The Foreign Business Act (FBA) maintains negative 
lists of restricted activities.61  Other activities, except for those gove rned by other laws, for example, 
banking, insurance, aviation, transportation, commodity export, mining, are fully open to foreign 
participation.  Foreigners or foreign companies are prohibited from holding 50% or more equity in 
List 1 businesses (e.g. media, farming, forestry, and fishing).62  Foreigners investing 50% or more 
equity in List 2 businesses (e.g. domestic aviatio n, sugar refining and salt mining), and List 3 
activities (rice milling, fisheries, plywood manufacture, and certain professional services (e.g. legal)), 
                                                      
59 Specific issues of regulatory burden identified by firms participating in the 2006 World Bank study 
include tax regulations and/or rates, bureaucratic bu rden, labour regulations, import and customs regulations, 
and ownership regulations.  Firms also experience a large degree of uncertainty associ ated with the time needed 
to obtain licences, permits, and authorizations.  Repor tedly, Thailand's performance in infrastructure is 
particularly weak in respect of electricity and telephon e-related indicators.  Firms appear to face more frequent 
power outages and a longer delay to obtain electricity co nnections than firms in co mparator countries.  Also, 
firms in Thailand suffer more interruptions and longer delays in obtaining a fixed telephone connection than 
firms in neighbouring countries (World Bank, 2006c). 
60 JBIC 2004 Survey report on Overseas Business Oper ations by Japanese Manufacturing Companies;   
the 2007 Institute for Management Development World Competitiveness Scoreboard;   a n d  B O I  Foreign 
Investor Confidence Survey 2005 . 
61 WTO (2003), Table II.4.  These included mainly manufacturing activities, like drugs, matches, 
cement and cement products, as well as livestock farmi ng (except silkworms), extraction of vegetable oils, trade 
in ores, and certain services, such as hairdressing.  Some services were also partially opened to foreigners by 
being shifted from List 1 to List 3, such as certain construction activities (Max, 1999). 
62 A foreigner (alien) is a non-Thai national, a non-Thai registered company, a locally incorporated 
company with more than 50% overseas share ownership, or a partnership with a foreign managing partner.  Thailand WT/TPR/S/191/Rev.1 
 Page 39 
 
 
require authorization, unless specifically promoted by the BOI, permitted by the Industrial Estate of 
Thailand, or allowed under some other law.  With su ch approval, foreign equity participation of 50% 
or more in a List 2 activity requires cabinet approval through the Minister of Commerce.  Foreign equity participation is allowed up to 60% and, on a case-by case basis, up to 75%.  At least two fifths 
of the board of directors must be Thai nationals.  For List 3 businesses, foreigners need permission 
from the Ministry of Commerce (Director-General of  Department of Business Development) in order 
to hold 50% or more equity.  Initial foreign invest ment is subject to minimum capital requirements of 
B 2 million and, in the case of restricted businesses,  25% of the total three-year average expected 
annual expenditure, but not less than B 3 million.  As  most projects substantially exceed these limits 
their practical significance is reduced.  Local bus inesses (up to 49% foreign equity) can generally 
participate in restricted sector s since they are deemed Thai. 
63. Thailand continues to operate a generally liberal  foreign investment regime.  In June 2007, 
the Ministry of Commerce indicated  that various pr ovisions in the Act clearly set time-periods for the 
Foreign Business Committee to consider and process all applications and that these time lines have 
been strictly observed.  Several key elements, such  as the business lists, can be changed by ministerial 
regulation.  The Foreign Business Committee reviews these lists at least annually and, based on these 
recommendations, the Minister of Commerce can make changes by issuing a ministerial regulation.   
64. The FBA does not apply where an internationa l treaty including the WTO requires Thailand 
to provide national treatment to foreign investor s.  The 1966 Treaty of Amity and Economic Relations 
Between the United States and Thailand extends na tional treatment to U.S. investors, thereby 
exempting them from most FDI restrictions.  Under the Treaty, Thailand can restrict U.S. investors 
only in communications, transport,  banking, exploitation of land or other natural resources, and 
domestic trade in agricultural products. 
65. In early January 2007, despite widespread opp osition from foreign investors, the Government 
approved plans to amend the FBA to include voti ng rights as another criteria for determining which 
juridical persons are foreign in restricted sectors.
63  The proposed amendments cover the definition of 
"foreigners", punishment/penalties, and the List  3 businesses in which Thais are not competitive.64  
Although the changes are not as far-reaching as initially expected, the move seems to have 
compounded investor concerns over the unpredictabilit y of policy.  Companies that seek or have 
already received BOI investment promotion will not  be subject to the pr oposed ownership rule 
revision, except those activities specified in List 1 whereby BOI has already required Thai majority 
ownership, and in activities that fall under specifi c laws such as telecommunications, and marine, air 
and land transport.65  Currently, seven categories covering over 273 activities in both manufacturing 
and services are eligible for BOI promotion (Chapter III). 
Land and labour restrictions 
66. Under the Industrial Estate Authority of Tha iland Act 1979, industrial operators are allowed 
to own land in an industrial estate or an industria l zone for carrying out their business activity to the 
                                                      
63 EIU (2007b). 
64 The proposed amendments may be consulted online at:  http://www.dbd.go.th/eng/FBA-
explanation%20sheet%2019%20Jan%2007%20Rev4.pdf [16 May 2007].  Regarding List 3 it is proposed that 
businesses that are under jurisdiction of other authoritie s would be removed.  These cover:  tour operating 
business;  futures trading of commodities and related busine sses;  securities, derivatives, and related businesses;  
finance, banking, and credit foncier;  and retail/wholes ale (i.e. all foreign retailing/wholesaling companies will 
have to seek permission).  Ministry of Commerce Press Release, Ministry of Industry Press Release Issue 
6/2007.   
65 Ministry of Commerce  Press Release, Ministry of Indu stry Press Release Issue 6/2007. WT/TPR/S/191/Rev.1 Trade Policy Review 
Page 40 
 
 
extent that the Board of the Industrial Estate Authority of Thailand may deem appropriate.  The 
foreign investment must be a minimum of B 40 milli on, for at least three years, in a business that 
benefits the economy, promotes social welfare or is BOI promoted.  While non-Thai businesses and 
individuals can still own land only on government -approved industrial estates, the Land Act as 
amended in 1999 allows foreign investors to own up to 1,600 square metres of land for residential 
purposes in certain areas, including the Ba ngkok Metropolis.  Under the Condominium Act as 
amended in 1999, foreigners can also own up to 49% of the total space of all units in a condominium, 
subject to certain conditions.66  For five years from the date of legislative change, up to 100% foreign 
ownership was allowed in the Bangkok Metropolis  and other areas specified in Ministerial 
Regulations where a condominium is situated  on land not exceeding 8,000 square metres 
(Condominium Act).  Under the Investment Promoti on Act 1977, a person may be permitted to own 
land for carrying on a promoted activity to the exte nt that the BOI deems appropriate.  The BOI may 
grant permission for foreigners to own land within specified limits for offices and residences of 
executives and employees (BOI Announcement No. 2/2546,  2003).  Foreigners may also construct 
buildings on leased land.  The Act on the Lease of Immovable Property for Industrial and Commercial 
Purposes 1999 allows a foreigner to lease property for commercial or industrial purposes for a period 
of not more than 50 years, renewable.  Leases can also now be used for loan collateral.  
67. Foreign workers in Thailand generally require in advance a work permit from the Ministry of 
Labour (Alien Employment Act, 1978).  A number of occupations and professions are closed to 
foreigners (1979 Royal Decree).  A one stop service has been set up by the BOI to facilitate the 
issuance of work permits.  Foreign nationals wo rking in Thailand must also meet immigration 
requirements.   
(iii) International agreements 
68. Thailand has been a member of the World Ba nk Multilateral Investment Guarantee Agency 
(MIGA) since 29 April 2000.  In 2005, MIGA provided political risk insurance involving the guarantee of currency convertibility in Thailand for a hydropower project  in Lao PDR worth 
US$1.25 billion (the Nam Theun 2 Project), the largest investment to date in Lao PDR.  Thailand also 
has bilateral investment treaties (BITs) with 38 economies, is a party to the Agreement on the 
Promotion and Protection of Investment s concluded amongst the ASEAN countries
67, and the 
Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York 
Convention), and is a signatory to the Interna tional Convention on the Settlement of Investment 
Disputes between States and Nationals of  other States (the ICSID Convention).68  Although it has 
modernized its own arbitrati on and conciliation rules (Arbitra tion Act B.E. 2545 (2002) and 
Regulations on Compliance with Arbitration Award s, 2001) in line with the UNCITRAL Model Law 
on International Commercial Arbitration, since its previous TPR, Thailand has been in the lengthy 
process of ratifying the ICSID Convention;  the auth orities indicate that, in any case, foreign investors 
have access to other reliable dispute settlement procedures under applicable BITs and FTAs that 
include ad hoc  arbitration under the UNCITRAL rules.  Other avenues being used by foreign 
investors to resolve disputes are the 1990 arbitratio n and conciliation rules of the private Arbitration 
Institute under the supervision of the Court of Ju stice, and the Thai Commercial Arbitration Rules 
administered by the Thailand Board of Trade.  Th e Department of Intellectual Property, Department 
of Insurance, and the Security and Exchange  Commission also provide arbitration services.   
                                                      
66 Foreigners may also use funds from local bank accounts to make such purchases instead of having to 
bring in foreign funds. 
67 This agreement allows disputes to be brought to the International Centre for Settlement of 
Investment Disputes or centers for arbitration in the ASEAN region as the parties may agree. 
68 APEC (2006b). Thailand WT/TPR/S/191/Rev.1 
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69. Apart from the non-MFN Treaty with the United States (section (8)(ii)), Thailand has signed 
39 investment promotion and protection agreements  with other economies;  33 have entered into 
force.69  These include the ASEAN Agreement on the Pr omotion and Protection of Investments.  The 
FTAs concluded with Australia, New Zealand and Japan also  include a chapter on investment 
(section (6)(ii)(c)).  These agreements cover obligations on national and MFN treatment, 
expropriation, transfers, fair and equitable tr eatment, and investor-state dispute settlement 
mechanisms.  
70. Thailand is pursuing further agreements with de veloped and developing countries, especially 
agreements that promote FDI and encourage techno logy transfer.  Up until June 2007, Thailand has 
signed 61 treaties for the avoidance of double taxati on and the prevention of tax evasion with respect 
to taxes on income with other economies;  54 are in effect (Chapter III).70  Several of these 
agreements contain "tax sparing" provisions, includi ng those concluded with Japan, Australia, Cyprus, 
Denmark, Israel, Luxembourg, New Zealand, Norway, Spain, and Switzerland. 
                                                      
69 APEC (2006b). 
70 APEC (2006b).