RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/191 
22 October 2007  
 
(07-4481) 
Trade Policy Review Body Original: English 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
THAILAND 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Thailand is attached. 
 
 
Note: This report is subject to restricted ci rculation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Thailand. Thailand WT/TPR/G/191 
 Page 3 
 
 
CONTENTS 
 
  Page 
I. OVERVIEW  5 
II. ECONOMIC ENVIRONMENT 5 
(a) Economic developments, 2003-2007 5 
(b) Economic situation in 2007 7 (c) Trade environment 7 
(d) Medium term outlook 8 
III. MACROECONOMIC AND STRUCTURAL POLICIES 9 
(a) Monetary and exchange rate policies 9 
(b) Fiscal policy 10 
(c) Trade and investment policies 11 (d) Privatization 13 
IV. TRADE AND TRADE-RELATED POLICY DEVELOPMENTS 13 
(a) Tariffs  13 
(b) Import system 14 
(c) Export system 14 
(d) Customs procedures 15 
(e) Contingency Measures 15 
(f) Agriculture 15 
(g) Industry  16 
(h) Financial services 17 
(i) Transportation 20 (j) Telecommunications 22 
(k) Tourism  23 
(l) Investment 24 
(m) Intellectual property rights 24 
(n) Competition policy 26 
(o) Initiatives in the WTO 26 
V. REGIONAL TRADE ARRANGEMENTS AND ECONOMIC COOPERATION 27 
(a) ASEAN  27 
(b) APEC  28 
(c) Asia-Europe Meeting (ASEM) 28 
(d) Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation 
(BIMSTEC) 29 
(e) Asia Cooperation Dialogue (ACD) 29 
(f) Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS) 30 
(g) Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) 30 
(h) Greater Mekong Subregion (GMS) 31 
(i) Forum for East Asia – Latin America Cooperation (FEALAC) 31 (j) Free Trade Agreements 32 
(k) Bilateral arrangements 32 
(l) Financial and technical cooperation 34 
VI. FUTURE ECONOMIC AND TR ADE POLICY DIRECTIONS 34 
 
 
 Thailand WT/TPR/G/191 
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I. OVERVIEW 
1. Since its previous trade policy review in 2003, the Thai economy has grown steadily at an 
average annual rate of 5.5%.  Overall, Thailand' s macroeconomic fundamentals have been strong.  
Despite some risks of political instability and exte rnal uncertainties, the economy has performed well 
as a result of significant growth in private consumption and investment, as well as exports.  
2. The Government is firmly committed to a flexib le market-determined exchange rate regime 
notwithstanding the continued appreciation of the Thai currency, intervening only to contain 
excessive volatility.  The Government also adheres to  the inflation targeting framework as a monetary 
policy.  However, in order to enhance the policy’s efficiency, the authority has changed its policy rate 
from a 14-day repurchase rate to a 1-day repurchase ra te.  Moreover, to sup port economic growth and 
maintain fiscal stability, the Government has adopt ed a fiscal sustainability framework, whereby an 
expansionary fiscal policy has been implemented in  connection with a limit on the amount of public 
debt. 
3. Thailand continues to recognize the importance of trade policy in its development.  The trade 
policy direction remains open to foreign trade and investment.  Efforts continue to support free and 
fair trade, together with gradual changes and progr essive liberalization.  At the same time, several 
trade and trade-related measures that are desi gned to strengthen the competitiveness of domestic 
industries have been introduced to enhance the pr ivate sector's ability to compete in the rapidly 
changing trading environment a nd increasing global competition. 
4. Since 1 January 2007, Thailand has adopted th e 8-digit commodity classification code of 
ASEAN Harmonized Tariff Nomenclature (AHTN), and is  applying the code to all imports.  Most of 
Thailand’s applied tariff rates are under a new tariff structure, which is not higher than 10%.  In 
accordance with the Government's policy to libera lize trade, both import and export controls have 
been limited to a minimum.  In addition, th e Electronic Data Interchange (EDI) system and 
"e-Customs" have been implemented to fu rther facilitate the trading environment. 
5. Overall sectoral policies focus on promoti ng Thailand's economic development.  The 
Government has emphasized enhanc ing productivity and competitiveness in both the agricultural and 
manufacturing sectors.  As for services, policy has been geared towards not only comprehensive reforms, but also progressive liberalization.  For inst ance, a liberalization plan for the insurance sector 
is underway.  The telecommunication sector h as been liberalized; foreign ownership in 
telecommunication operators has been in creased from 25% to 49% up to 100%.  
6. On the whole, Thailand will maintain its s upport and commitments to international trade 
liberalization.  Government policy will remain open to foreign investors and FDI from all countries is 
welcome.  Thailand's economic fundamentals are st rong and the outlook is satisfactory.  The economy 
is expected to grow by more than 3.8-4.8% in 2007 and pick up further in 2008 to 4.3-5.8%. 
II. ECONOMIC ENVIRONMENT 
(a) Economic developments, 2003-2007 
7. The Thai economy expanded sharply in 2003, by 7.1%, higher than the 5.3% growth in 2002.  
Despite concerns about the global economic impact  of the US-Iraq War, and the outbreak of the 
Severe Acute Respiratory Syndrome (SARS) in the first half of 2003, the domestic economy 
rebounded robustly in the second half.  In 2004 an d 2005, Thailand's economic  growth moderated 
somewhat to 6.3% and 4.5% respectively.  The moderation was due primarily to the tsunami that 
struck the Andaman coast in December 2004.  More over, significant increase in oil prices, which WT/TPR/G/191 Trade Policy Review 
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resulted in surging inflation, caused a slowdown in both the demand and supply sides.  For 2006, 
overall economic conditions improved as oil prices beca me less volatile, resulting in GDP growth of 
5.0%. 
8. Regarding the fiscal position, government reve nue grew strongly, by 15.1%, in 2003, 
reflecting the strong expansion in economic activ ities, particularly in household spending and 
business performance.  This trend continued in fiscal year 2004, with 16.8% growth.  In fiscal year 
2006, government revenue collections  increased by 7.3% from fiscal  year 2005.  The increase in 
revenue was slightly lower than projected, partly due  to the cuts in the tax imposed on diesel oil and 
the reduction of import tariffs.  
9. The 2003 and 2004 growth was rela tively balanced, with continued increases in private 
consumption and investment, as well as exports.  In 2005, however, economic activities decelerated to 
some degree, particularly in terms of production fo r domestic consumption.  The services sector, in 
particular, expanded at a slower pace in 2005, due  mainly to the tsunami that affected the 
six Andaman coastal provinces, which resulted in a declining number of foreign tourists and average 
hotel occupancy rate.  The decline in tourism receipts,  together with the surge in world oil prices, led 
to a current account deficit in 2005.  However, th e current account returned to surplus in 2006 as a 
result of strong export growth and a slowdown in imports.  
10. The net flow of foreign direct investment (FDI) increased from US$3.4 billion in 2002 to 
US$10.4 billion in 2006, with an average growth rate of 21% during that period.  The main 
destination sectors for FDI into Thailand were i ndustry (45%) and services (40%).  In 2006, FDI in 
electrical appliances and machinery and transpor t equipment accounted for approximately 58% of 
total FDI into the industrial sector.  The major source s of FDI flows into Thailand were:  Japan (30%), 
ASEAN member countries (27%), the countries of th e European Union (14%), and the United States 
(8%). 
11. Overall economic stability remained sound throughout 2003-2006, despite significant 
increases in global oil prices in 2005-2006.  Unempl oyment continued to decline from 2.2% in 2003 
to 1.5% in 2006.  Although average headline infla tion accelerated from 1.8% in 2003 to 4.7% in 2006, 
core inflation generally remained at the lower end of  the target range of 0-3.5 %.  Meanwhile, the baht 
appreciation over the period was due to the following domestic and external factors:  (1) the appreciating trend of regional currencies, (2) in creased foreign investment into the Thai capital 
market, and (3) the weaker U.S. dollar.  The baht  appreciated from an average of 41.53 baht per 
U.S. dollar in 2003 to 37.93 baht per U.S. dollar in 2006. 
12. Following the upward cycle of the policy rate, which started in August 2004, short-term 
money market rates had been rising gradually.  Th e policy rate (14-day repurchase rate) was raised 
from 1.25% in May 2004 to 5.0% pe r annum by June 2006.  As inflation pressure declined, in line 
with the reduction in oil prices in the world market , the policy rate was maintained at the 5.0% level 
throughout the second half of 2006.  The overnight interbank rate averaged 4.69% per annum in 2006, 
compared with the average of 1.35% per annum in 2003. 
13. In response to the policy rate hike, most comme rcial banks started to raise deposit and lending 
rates.  Nevertheless, commercial bank claims to both corporate and household sectors accelerated in 
2004 and 2005, while intense competition among banks, as well as the rise in de posit rates, increased 
the incentive to save.  Commercial bank deposits increased from 4.4% in 2003 to 8.4% in 2005.  
However, for 2006, due to less competition among banks , deposit growth slowed to 5.7%, while loans 
to the private sector moderated somewhat during the second half of the year.  Excluding the effect of the newly established commercial banks, and adding b ack debt write-offs and net transfers to AMCs, 
bank claims expanded by 4.6% in 2006, compared to 8.1% in 2005. Thailand WT/TPR/G/191 
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(b) Economic situation in 2007 
14. In the first quarter of 2007, the Thai economy e xpanded satisfactorily at 4.3%.  Despite some 
political uncertainties, the economy is expected to grow at 3.8-4.8% in 2007, as private consumption 
and investment are both expected to rebound in the second half of the year.  The key supporting 
factors are low inflationary pressures, a decline in the public debt-to-GDP ratio, a current account 
surplus, and low unemployment.  Exports continue to trend upwards, in line with economic growth in 
major trading partners.  Exports of electronics, elect rical appliances and automobile and parts remain 
strong.  For the second half of 2007, a decrease in in terest rates and the inflation rate, as well as 
increased investment by state enterprises and the export sector, are expected to facilitate future 
economic expansion. 
15. Given the absence of inflationary pressure, the Monetary Policy Committee (MPC) reduced 
the policy rate four times in the first half of 2007,  totaling 1.5 percentage points.  Improvement in 
private consumption and investment is expected to be evident in the latter half of the year, while 
export growth in 2007 should remain  strong at 9.0-12.0%.  Economic stability remained sound, with 
the average inflation rate expected to be around 1.5-2. 5% and core inflation in the range of 1-2%.  The 
current account is projected to be in surplus at around US$4.0-6.0 billion.  
(c) Trade environment 
16. In 2006, Thailand's exported US$129,744.1 million in goods, a 16.9% increase from the 
previous year.  All product groups expanded, led by  agricultural and agro-industrial products (19.5%), 
manufacturing (13.9%), and others (26.7%).  
17. Principal Thai exports were:  automatic data  processing machines;  motor-cars, parts and 
accessories;  electronic integrated circuits;  rubbe r and rubber products;  plastics;  iron and steel;  
precious stones and jewellery;  chemical products ;  air conditioning machines and parts;  
radio-broadcast receivers, televisions;  garments;  prepared or preserved fish and crustaceans;  and 
rice. 
18. The country's major export markets remain the U.S., EU, Japan and ASEAN.  However, there 
has been an attempt to lower the dependence on these few markets by introducing exports to new 
markets such as China, Latin America, Eastern Eu rope, Chinese Taipei, Australia, Canada, India, and 
Middle East.  In 2006, exports to the major markets grew steadily at 11.7% while exports to the new 
markets expanded by 24.7%, raising the proportion of  Thai exports to the new markets to 43.2% from 
approximately 37% in 2003. 
19. In 2006, Thai imports tota led US$126,830.5 million, a 7.3% increase from 2005.  Product 
groups that increased were:  fuel lubricants (20.9%), capital goods (3.9%), raw materials and 
intermediate products (4.3%), and consumer goods  (13.8%);  products whose imports declined 
included vehicle and transport accessories (4.4%), a nd arms, munitions used in official services and 
others (7.7%). 
20. The principal imports were:  crude oil;  machinery and parts, chemicals;  electrical circuit 
panels;  electrical machinery and parts;  iron, st eel and steel products;  computers, accessories and 
parts;  other metal ores;  jewellery, including silver  bar and gold;  electrical household appliances;  
vegetables and vegetable products;  scientific, medical, and testing appliances;  metal products;  
plastic products;  fertilizer and pharmaceutical produc ts;  finished oils;  and fresh, chilled or frozen 
aquatic animals. WT/TPR/G/191 Trade Policy Review 
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21. The balance of trade in services was in surplus every year during the period under review.  In 
2006, the surplus was US$4.66 billion, compared to US$4.79 billion in 2005, US$5.29 billion in 
2004, and US$5.06 billion in 2003. 
22. International trade in services has become more  important to the Thai economy.  From 2003 
to 2004,  the growth of exported services was 20.56% (increasing from US$15.80 billion to 
US$19.05 billion).  This is far greater than th e 2.66% growth from 2002 to 2003 (US$15.39 billion to 
US$15.80 billion).  However, from 2004 to 2005, the rate of growth declined to 5.85% 
(US$19.05 billion to US$20.16 billion), due mainly  to the significant plunge in tourism revenue 
following the tsunami in December 2004. 
23. After the tsunami, revenue from passenger transportation services and travel services 
decreased by 16.05% (from US$3.01 billion in 2004 to US$2.53 billion in 2005) and by 4.78% (from 
US$10.06 billion in 2004 to US$9.58 billion in 2005), respectively.  Nevertheless, revenue from other 
services increased during the same period. 
24. The pickup in exports of passenger transpor tation and travel services resulted in 19.71% 
growth in exported services in 2006 (from US$20.16 billion in 2005 to US$24.14 billion in 2006).  
Revenue from passenger transportation and travel services, which accounted for 65% of total revenue 
from exported services in 2006, increased by 27.56% and 29.92%, respectively.  
25. From 2002 to 2006, Thailand’s import of ser vices increased from US$10.38 billion to 
US$19.48 billion, corresponding to an annual average rate of import growth of 18%.  The major source of imported services in 2006 was transporta tion and travel services, which accounted for 47% 
of total imported services.  
(d) Medium term outlook 
26. Based on the Bank of Thailand's projections, th e Thai economy is expected to grow by 
3.8-4.8% in 2007 and pick up further in 2008 to 4.3-5.8% (Table 1).  Despite lower growth in 2005-2006, which was mainly due to the high global  oil prices and domestic political uncertainties, 
Thailand's economic fundamentals remain strong.  As these negative factors subside, private 
consumption and investment should pick up in  accordance with improved domestic demand, 
particularly after the general election, which is sch eduled for the end of 2007.  Moreover, the lower 
rate of inflation should enhance purchasing power  and confidence, while government spending and 
investments from state enterprises are also expected to improve.  
Table 1:  Economic Projection for 2007-08  
Projection  
Preliminary 
NESDB1/ BOT2/ 
 2003 2004 2005 2006 2007 2007 2008 
GDP (at constant 1988 price) 7.1 6.3 4.5 5.0 4.0-4.5 3.8-4.8 4.3-5.8 
Consumption (at constant price, %) 5.9 6.1 5.5 3.2 2.8 3.5-4.5 4.0-5.0 
Private 6.5 6.2 4.3 3.1 2.2   
Public 2.5 5.6 13.7 3.4 6.3   
Investment (at constant price, %) 12.1 13.2 11.1 4.0 2.1 4.0-5.0 7.5-8.5 
Private 17.7 16.2 10.9 3.9 1.5   
Public -0.6 5.0 11.3 4.5 4.0   
External account        
Export value (%) 18.2 21.6 15.0 17.4 12.4 9.0-12.0 5.5-8.5 
Table 1 (cont'd) Thailand WT/TPR/G/191 
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Projection  
Preliminary 
NESDB1/ BOT2/ 
 2003 2004 2005 2006 2007 2007 2008 
Import value (%) 17.4 25.7 25.9 7.0 8.3 7.5-10.5 8.0-11.0 
Trade balance (Billion US$) 3.8 1.5 -8.5 2.3 7.7 3.0-5.0 0-3.0 
Current account balance  
(Billion US$) 4.8 2.8 -7.9 3.2 8.5 4.0-6.0 1.0-4.0 
Current account/GDP (%) 3.3 1.7 -4.4 1.5 2.0-2.5   
Inflation, CPI (%)        
Headline 1.8 2.7 4.5 4.7 2.0-2.5 1.5-2.5 1.0-2.5 
Core 0.2 0.4 1.6 2.3 2.0-2.5 1.0-2.0 1.0-2.0 
Unemployment rate (%) 2.2 2.1 1.8 1.5 1.5-2.0   
Note:  1/ projection as of 4 June 2007 
 2/ Inflation Report, April 2007. 
Sources:  Office of National Economic and Social Developm ent Board (NESDB) and the Bank of Thailand (BOT). 
27. A significant recovery in domestic demand should become evident from 2008 onwards. 
Exports of goods and services are also expected to e xpand, in line with strength in trading partners’ 
markets, particularly China, Japan, ASEAN and India.  Increasing income from export goods and 
tourism will help strengthen economic growth.  Ne vertheless, Thailand's export competitiveness is 
likely to be constrained from a slowdown in th e global economy and continued appreciation of the 
baht.  
III. MACROECONOMIC AND STRUCTURAL POLICIES 
(a) Monetary and exchange rate policies 
Monetary Policy 28. The Bank of Thailand (BOT) has put in place an independent and open decision-making 
process, including the establishment of a Moneta ry Policy Committee (MPC) and mechanisms to 
ensure accountability and transparency.  Changes in  the monetary policy stance and the operational 
framework are promptly announced and explained to the public.    
29. Under the inflation targeting framework adopt ed since May 2000, monetary policy aims to 
maintain price stability and foster sustainable growth .  The BOT targets core inflation, which excludes 
volatile raw food and energy prices, within a range of 0-3.5%. 
30. The MPC is one of the main committees of the Bank of Thailand and is responsible for setting 
monetary policy direction.  The MPC compri ses the BOT Governor, two Deputy Governors and 
four experts from outside the BOT.  The MPC works closely with BOT staff in monitoring domestic 
and international economic conditions.  The MPC si gnals shifts in monetary policy stance through 
announced changes in the policy rate.  
31. In the first half of 2006, the BOT raised the pol icy rate four times from 4.0% to 5.0% to curb 
inflationary pressure.  After the latest tighteni ng in June 2006, the MPC decided to hold the policy 
rate at 5.0% throughout the latter half of 2006 in  response to slowing domestic spending and reduced 
inflationary pressures.   
32. From 17 January 2007 onward, the BOT change d its policy rate from a 14-day repurchase 
rate to a 1-day repurchase rate in order to enhance th e efficiency of monetary policy.  In light of the WT/TPR/G/191 Trade Policy Review 
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slowdown in domestic demand and declining inflation, the policy rate has been reduced by a total of 
1.5 percentage points in the first half of 2007. 
33. Despite some weaknesses in the current legal framework, the BOT is ab le to maintain its 
operational independence in the formulation of moneta ry policy, in line with a transparent inflation 
targeting regime.  Currently, the Government is  in the process of amending the BOT Act.  The 
proposed amendments would help address existing institutional shortcomings in the conduct of 
monetary policy, including defining the objective of  monetary policy and enhancing the operational 
independence of the BOT.  The draft of the ame nded Act has been approved in principle by the 
Cabinet and is being reviewed by the Council of St ate for legal clearance.  After approval from the 
Council of State is obtained, the draft will be resubm itted to the Cabinet before being presented to the 
National Legislative Assembly for approval.  This pr ocess is expected to conclude by the end of 2007.  
Exchange rate policy 
34. The Government is committed to a flexible market-determined exchange rate.  The BOT 
intervenes in the foreign exchange market only to contain the excessive volatility of exchange rates.  
Intervention is believed to help limit the extent of exchange rate overshoo ting, thus avoiding the 
disruptive impact and the need for costly real econo mic adjustment.  It would also enable the private 
sector to gradually adjust to the changing environment more effectively.  
35. Since the adoption of the floating exchange rate in July 1997, interventions were carried out 
from time to time, as deemed appropriate.  The ra pid 16.5% appreciation of the baht against the 
U.S. dollar (from the beginning of 2006 to 15 Decemb er 2006) led the BOT to adopt several measures 
in 2006 in order to maintain economic and financial stability, and to allow some  time for the external 
sector to adjust to this volatile financial devel opment.  These measures were aimed at discouraging 
short-term capital inflows into short-term  debt and money market instruments.  
36. However, the baht appreciation continued to be out of line with regional currencies, especially 
during in November and December 2006.  By mid- December, the baht reached its nine-year high at 
35.23 baht per U.S. dollar.  The BOT, thus, impo sed a 30% capital reserve requirement on short-term 
capital inflows to end the one-way speculation on the baht.  This measure has been gradually relaxed, 
and the BOT has monitored the situation clo sely to ensure financial system stability. 
(b) Fiscal policy 
37. To counter the possible negative effects of  the global economic slowdown in 2007, the 
government has committed to an expansionary fiscal policy to promote domestic demand in fiscal 
year 2007 and 2008.  The planned fiscal deficit of  1.7 % of GDP in FY2007, along with the planned 
infrastructure projects (including five lines of mass-transit systems), are expected to bring Thai economic growth back on a sustainable path (Table 2). 
38. In essence, the government has set the followi ng seven strategic priorities in the FY 2007 
budget:  (1) poverty alleviation and rural deve lopment;  (2) quality of human and societal 
improvement; (3) balancing economic growth;  (4) natural resource manage ment and environmental 
sustainability;  (5) efficient energy consumption;  (6) promotion and sustaining of good governance;  
(7) enhancing public sector management.  
39. While expansionary fiscal policy is impor tant for supporting economic growth, the 
government still adheres to its framework for main taining fiscal stability.  The fiscal sustainability 
framework, which is designed to keep the ratio of public debt to GDP at less than 50% and the ratio of 
debt service to the budget at less than 15%, has b een used as a guideline to conduct fiscal policy.  Thailand WT/TPR/G/191 
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Currently, the public debt to GDP ratio is only at 38.1% and at the end of January 2007, the debt 
service to budget ratio stood at 11.26%. 
Table 2:  Budget Framework for Fiscal Year 2006-2007 
FY 2006 FY 2007 
Budget Framework  Million baht Increase/ 
Decrease (%) Million baht Increase/ 
Decrease (%) 
1. Budget Expenditures  
 (Ratio to GDP) 1,360,000.0 
           17.5 8.8 1,566,200.0 
           18.5 15.2 
- Current Expenditures  
 (Percent of Budget Expenditures) 958,477.0 
70.5 8.8 1,136,060.8 
72.5 18.5 
- Capital Expenditures 
 (Percent of Budget Expenditures) 358,335.8 
26.3 12.4 374,648.7 
24.0 4.6 
- Principal Repayment 
 (Percent of Budget Expenditures) 43,187.2 
3.2 -13.8 55,490.5 
3.5 28.5 
2. Receipts 
 (Percent of GDP) 1,360,000.0 
17.5 8.8 1,566,200.0 
18.5 15.2 
- Revenue 
 1,360,000.0 
(1,339,385.0) 8.8 1,420,000.0 4.4 
(6.0)  
- Deficit financing  - - 146,200.0 100.0 
3. GDP  7,886,200.0 9.6 8,471,400.0 8.8 
  
40. In addition, the Government plans to continue  its expansionary fiscal policy in FY 2008 by 
setting the budget expenditure frame work at 1,660 billion baht, even though the estimated revenue 
collection is 1,495 billion baht.  Hence, the planne d fiscal deficit is estimated at 165 billion baht, 
equal to 1.8% of GDP.  This fiscal stimulus aims to further boost long-term private consumption and 
investment since the slowdown in the current econo mic situation poses a threat to long term economic 
stability.  Therefore, the revised budget expenditure framework will play an essential role as a fiscal 
policy instrument, both for the current economic situ ation and to support crucial government policies. 
(c) Trade and investment policies 
41. Thailand recognizes that the global trading system has become much more liberalized and 
individual countries' economies are becoming increasingl y integrated.  To chart the future direction 
for trade policy, Thailand continues to support free and fair trade that gra dually introduces changes 
and to promote progressive liberalization.  One im plication of pursuing a liberal policy, from the 
development perspective, is that there is a need  to strengthen the competitiveness and efficiency of 
domestic industries to be able to compete in the ra pidly-changing trading environment and be able to 
prosper amid increasing competition.  In addition, Thailand also aims to promote transparency and 
good governance by closing loopholes and strengtheni ng the enforcement of the existing laws.   
42. Promoting the export of goods and services, in cluding an expansion of export markets, 
remains one of the key areas for Thailand.  To achieve such goal, the Government insists on continuing the long-standing practice of close collaboration with the private sector in order to maintain the momentum of export growth and to enhance it in the future.  The creation of new 
exporters, in particular sm all and medium size entrepreneurs and the “One-Tambon
1-One-Product” 
(OTOP) producers, is encouraged.  Moreover, in order to reduce the costs of production relating to 
international business management, the Governme nt focuses on the improvement of supply chain 
management and domestic logistic providers, especi ally those in the freight forwarding, warehouse, 
and insurance businesses.  Apart from these measures, th ere is an intention to lay the groundwork for 
                                                      
1 A Tambon is a traditional municipal unit co mprising an agglomeration of villages. WT/TPR/G/191 Trade Policy Review 
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promoting outward investment in areas in which Th ai entrepreneurs are alre ady competitive, such as 
agriculture and agri-business. 
43. As many Thais attach their livelihood to agricu lture, it is important for the Government to 
ensure that the agriculture sector and those dependant  on it will thrive within a fair and equitable trade 
environment.  The first priority is to set guidelines l eading to agriculture price stability that is fair to 
producers, consumers and the overall economy, w ith a minimum of government intervention and 
reliance, instead, on market mechanisms.  Furthermore, to strengthen the vast number of people engaged in the agricultural sector, the Governme nt places great importance on forging producers' 
cooperatives to achieve a three-prong goal of increa sing their bargaining power; acting as focal points 
for dissemination of trade and market information; and laying a basis to link real markets to futures 
markets trading.  Aside from the aforementioned task s, the Government has also been trying to make 
the distribution of agriculture produce more efficient by improving logistics systems in regional areas.  
44. In terms of consumer welfare protection, the sh ort term goal is to ensure consumer interests 
primarily through close monitoring of commodity and consumer prices.  For the long run, the 
Government plans to revise the Competition Law to make it credible, practicable and more 
enforceable, in order to forge greater competiti on in the economy.  Cons umer group networking and 
engagement is also encouraged, and channels to  provide information on standards and products to 
consumers are to be improved. 
45. By recognizing the benefit of services to the l ong-term development of the Thai economy, the 
Government has taken steps to nurture service sector s that have high export potential and to assist 
them to go abroad on a strong footing.  Domestical ly, particular support is to be given to services 
provided by small and medium enterprises at the local level. 
46. To attain a strong, accountable and modern  legal framework, the Government places 
importance on revitalizing and improving the legal e nvironment for doing business in Thailand.  At 
present, several existing laws, i.e., the Competition Law, Foreign Business Act, and three Insurance-
related Acts, are under review.  Some new bills, such as a draft law on safeguards, laws or regulations 
on retail and wholesale trade, and a bill to spin out the Insurance Department into a new entity will 
also be submitted to the Parliament for approval.  All have been amended or drafted by taking into 
account the full recognition of the role of foreign investment in the Thai economy, as well as common 
business practices, with an aim of building a ‘level playing field’ for all players, both local and international, to ensure that cons umers are the ultimate beneficiaries. 
47. Another area that the Government consider s necessary is enhancing competitiveness and 
building capacity.  Efforts have been made to pr ovide a basic understanding to local and provincial 
communities, schools, education institutions and c onsumers and producers’ associations of issues 
relating to trade, investment and the global economy .  In addition, attention has been focused on better 
appreciation and utilization of inte llectual property rights protection a nd how it could help Thailand in 
the future. 
48. On the international trade front, Thailand still adheres strongly to the principles of free and 
fair trade.  The Government will continue to lib eralize policy, with phased , gradual and progressive 
trade liberalization, by focusing on multilateral a nd regional initiatives.  For the WTO Doha Round, 
Thailand is ready to cooperate actively with all Members to help steer the DDA back on track and 
bring the Round to a successful conclusion.  Th e aim on multilateral commitments remains the 
creation of fair and equitable trading rules and the st rengthening of global development.  In terms of 
regional engagement, Thailand has continuously played a constructive role in supporting ASEAN, in 
particular the ASEAN integration plan to further solidify the region.  Moreover, the Government Thailand WT/TPR/G/191 
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views it necessary to introduce a me chanism that involves broader public participation in the 
negotiations process and a clear procedural framework  for the approval of future trade arrangements. 
49. With regard to investment, the Government is  committed to improving the overall investment 
environment.  Thailand,  through the Board of Investment (BOI),  promotes investment in industrial 
and services sectors, namely agro-business;  mining, ceramics and basic metals, light industry, metal 
products, machinery and transport equipment;  el ectronic industry and electrical appliances;  
chemicals, paper and plastics;  and services and public utilities.  FDI is recognized as a means to 
generate employment, economic growth, skills a nd technology transfer.  While Asia, Europe and 
North America are the major sources of FDI, investment from all sources is welcomed. 
(d) Privatization  
50. Presently, there are 59 state-owned enterprises (SOE) that are owned by the Ministry of 
Finance.  These SOEs can be grouped into nine br oad sectors:  energy, transportation, telecoms, 
infrastructure, social and technology, agriculture  and natural resources, manufacturing, financial 
(specialized financial institutions: SFIs) and other services activities. 
51. In 2004, the Mass Communications Authority of  Thailand, presently known as MCOT Public 
Co., Ltd, was successfully incorporated and listed on the Stock Exch ange of Thailand. 
52. The present administration has proposed a new law to replace the Corporatization Act B.E. 
2542 (1999).  The new legal framework will focus on three fundamental aspects.  The first is the 
criteria on the selection of SOEs to be corpora tized.  The second is an improved corporatization 
process that will be more transparent and account able by prescribing mandatory public hearing 
requirements in key stages, requiring the establishment of relevant independent regulators prior to 
corporatization, and share listing and imposing a bolition of legal privileges and powers previously 
enjoyed by the SOEs.  The third principle is esta blishment of a clear guideline covering the offering 
of shares, which will be primarily allocated randomly. 
IV. TRADE AND TRADE-RELATED POLICY DEVELOPMENTS 
(a) Tariffs 
53. Customs tariffs, imposed under the Customs Tariff Decree B.E. 2530 (1987) are levied on 
both imports and some exports. 
54. Thailand is a member of the Harmonized Sy stem Convention and currently applies the 
HS2007 tariff nomenclature.  As an ASEAN member country, Thailand has adopted the 8-digit commodity classification code of AHTN (ASEAN Harmonized Tariff Nomenclature) that applies to 
all imports, i.e. imports from ASEAN member c ountries and from any other countries.  Under the 
8-digit classification, Thailand has 8,301 nati onal tariff lines, corresponding to the AHTN 
classification. 
55. Thailand's customs tariff rates can be categorized as follows: 
- Statutory Rate :  The Decree stipulates the tariff rate  for each tariff line (8 digits) as 
an ad valorem  rate, specific rate, or both.  If goods are subjected to both ad valorem  
and specific rates
 (mixed rate), the higher amount of duty shall be paid.  
- General Rate :  With the Cabinet's approval, statut ory rates can be adjusted, i.e. rates 
can be reduced or a special duty can be imposed (but not more than 50% of the WT/TPR/G/191 Trade Policy Review 
Page 14 
 
 
statutory rates).  The general rates can be  applied to imports from all countries (WTO 
and non-WTO members).  If the general rate exists, the statutory rate will no longer 
be applied.  However, the general rat es cannot be applied to the 23 tariff quota 
products. 
- WTO Bound Rate :  The WTO bound rate is the tariff rate that is committed under the 
WTO. 
- WTO Applied Rate :  In general, the WTO applied rate  is simply the WTO bound rate.  
However, there are some tariff rates redu ced below their WTO bound rates, such as 
some tariff quotas of agricultural products.  These tariff rates are called WTO applied 
rates. 
- Preferential Rate :  With the Cabinet's approval, the statutory rate can be reduced, 
increased or kept at the same rate in order to fulfill the obligations under international 
treaties or agreements, e.g. WTO, CEPT (AFTA), AISP (ASEAN Integration System 
of Preferences), GSTP (Generalized Sy stem of Tariff Preferences), TAFTA 
(Thailand-Australia Free Trade Agreement), TNZCEP (Thailand-New Zealand 
Closer Economic Partnership), and ASEAN-China.  
56. If the WTO bound rate or preferential rate is highe r than the general rate, the general rate can 
be applied. 
57. The customs tariff rates are listed in Part 2 of  the Customs Tariff Decree B.E. 2530 (1987).  
Duties are levied on either a specific or an ad-valorem  basis, whichever is the higher.  The value of 
imports is based on their CIF prices.  Custom s tariffs at present range between 0%-80%.  
58. Nowadays, the General Rate has been reduced a nd the range has narrowed to apply four rates 
for production processes:  0% for inputs not pro duced locally, 1% for raw materials, 5% for 
semi-finished products, and 10% for finished products. 
(b) Import system 
59. In accordance with the government trade po licy to liberalize trade and minimize trade 
distortion, most products can be imported freely in to Thailand.  However, goods that are obscene, 
dangerous to health, or harmful to the national ec onomy may be prohibited from import in accordance 
with Thailand's international trade rights and obligat ions.  Specific goods may be restricted from time 
to time, and these require prior government permissi on before being imported.  Apart from that, most 
goods may be imported after complying with the ne cessary customs procedures and the payment of 
customs tariffs, where applicable. 
(c) Export system 
60. Thailand's trade policies have been geared towards promoting exports by limiting export 
control to a minimum.  As in the case of imports, most products can be exported freely, while a few 
items are subject to the requirements of prior appr oval for reasons such as public health, economic 
stability, national security, and protec tion of public morals, etc.  
61. Thailand does not provide any export subsidies to  its producers.  Moreover, as per Thailand's 
multilateral trade commitments, export incentives in terms of local-content a nd/or export performance 
requirements are no longer in place.  Thailand WT/TPR/G/191 
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(d) Customs procedures 
62. The Customs Department has adopted the WT O Agreement on Customs Valuation and thus 
the relevant rules, under the Agreement are being app lied.  The primary basis for customs valuation is 
the "Transaction Value", which means the price actua lly paid or payable for the goods when sold for 
export to Thailand, adjusted in accordance with the provisions of Articles 9-12 of Ministerial 
Regulation No. 132 B.E. 2543 (2000). 
63. The Customs Department has also introduced cl ear customs appeal procedures which covers a 
variety of custom-related areas, including valuation,  tariff classification, amount of duty payable, 
origin of goods, and quantity of imported goods. 
64. The Electronic Data Interchange (EDI) syst em has been established to reduce paper 
consumption.  Currently, approximately 85% of d eclarations are administered by using EDI.  
However, in recent years, the Customs Department has shifted its focus from EDI to an open system 
philosophy, ebXML, that would enable it to electroni cally exchange information by different means. 
65. Starting on 1 January 2007, the "e-Customs", comprising e-Import, e-Export, e-Manifest, 
e-Payment, and e-Warehouse, has been implemente d.  It provides clients, such as exporters, 
importers, customs brokers, and shipping companies,  with a paperless envi ronment and a one-stop 
service.  Under the "e-Customs", several steps, such  as verification of classification and valuation, are 
processed automatically. 
66. In terms of transparency enhancement, all cu stoms-related laws and regulations, as well as 
important customs information, are publicly av ailable on the Customs Department website 
[http://www.customs.go.th].  
(e) Contingency Measures 
67. Thailand conducts anti-dumping investiga tions and imposes anti-dumping measures in 
accordance with the Anti-Dumping and Countervaili ng Act that was promul gated in 1999.  The 
legislation is consistent with the Agreement on Implementation of Article VI of the GATT 1994 and 
the Agreement on Subsidies and Countervailing Measures.  Since 2004, Thailand has initiated 
eight new anti-dumping cases.  Thailand has ne ver imposed any countervailing measures. 
68. Thailand's application of safeguard measures is governed by the Ministry of Commerce 
Notification on Safeguard Measures B.E. 2542 (19 99).  To date, Thailand has never adopted any 
safeguard measures under such Notification.  
69. In addition, Thailand has consistently s ubmitted semi-annual reports  on its contingency 
measures as required by the relevant WTO agreements. 
(f) Agriculture 
70. In the globalization era, the agricultural sector  of Thailand remains relatively significant to 
the country and to the world.  Thailand is the world's 15th largest exporter of food and agricultural 
products.  Approximately 80% of Th ai food products are exported to supply 250 million people, or 
around four times the Thai population.  Thailand is the world’s number one exporter of many 
agricultural products, including natural rubber pr oducts, cassava products, canned pineapple, and 
black tiger prawn. WT/TPR/G/191 Trade Policy Review 
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71. The Ministry of Agricultural and Cooperatives is the principal authority responsible for 
implementing Thailand's agricultural policies.  During 2005-2008, agricultural development will center on the farmer.  The objectives are to increase agricultural gross domestic product (Agricultural 
GDP) to 900,000 million baht and to raise the aver age net income of farmers to 40,000 baht/farm 
household/year.  Such policies have been driven by following five strategies: 
72. First, rural poverty eradication, with the objec tives of providing farmer's  with lands and skills 
to be able to earn sufficient income for living;  su pplementing basic infrastructure in rural areas;  and 
creating effective administration and management systems of production, processing, and marketing 
of agricultural products.  
73. Second, restructuring of the agricultural sect or, aiming to improve the competitiveness of 
agricultural products by creating brand names, deve loping marketing and advancing logistic systems 
that are in accordance with farmers' ab ilities to compete in the global markets. 
74. Third, natural resource management, with goa ls to enhance the balance between utilization 
and conservation of fishery, soil, and water res ources by encouraging the effective management of 
soil and water, as well as conservation systems, and the dissemination of knowledge, including an 
understanding of effective utilization of resour ces; and to promote public awareness of natural 
resource conservation. 
75. Fourth, improving regulation of domestic production to meet the quantity and quality 
demands of both local and foreign consumers by emphasizing greater market access, reduction of non-tariff barriers, and enhanced trade facilita tion during international trade negotiations. 
76. Finally, enhancing efficiency of bureaucra tic administration and management, with the 
objectives of restructuring government organiza tions; establishing standards for knowledge-based 
organizations;  providing fast and efficient public  services;  and developing the most up-to-date 
agricultural database. 
77. The Ministry of Agriculture and Cooperatives, in cooperation with core-economic ministries 
as well as producers and processors, has also been implementing plans to alleviate the impacts of 
current trade agreements.  The main activities fo cus on improving the quality and safety standards
2 of 
food and agricultural products according to cons umers' demand.  Other activities include the 
establishment of agricultural economic zones for each product, proactive marketing strategies, 
technology and input support, training and worksh ops, and farmer adjustment programs, etc.  
(g) Industry 
78. In 2006, the growth of the industrial sector increased from 5.5% in the 3rd quarter to 5.8% in 
the 4th quarter, mainly due to the expansion of the light  and raw material industries.  In contrast, the 
capital and technology goods industries slowed down during the same period. Major industries that 
performed well in the 4th quarter of 2006 were food and bevera ge, computer and parts, as well as the 
oil refinery industry. 
79. At present, the Ministry of Industry pursu es industrial development through six principle 
policies:  development of local products;  pr omotion of small and medium size industries;  
                                                      
2 Such standards are, for example, the Good Ag ricultural Practice (GAP), the Good Manufacturing 
Practice (GMP), the Code of Conduct  (CoC), the Hazard Analysis Criti cal Control Point (HACCP), and the 
Q-Brands. Thailand WT/TPR/G/191 
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improvement of the efficiency and productivity of the industrial sector;  creation of intellectual 
capabilities;  introduction of environmental governance;   and enhancement of industrial standards. 
80. To develop local and regional products, such as OTOP, the Government stresses self-reliance 
for local producers, building sustainable economic growth, and promoting production in response to 
the market's needs and tastes. 
81. Three levels of promotion are designed for small and medium enterprises.  First, the sector 
level includes production, trade and services.  Seco nd, the firm level comprises start-up businesses, 
growing or expanding enterprises, as well as firm s operating in the transitional/adapting period.  
Third, the promotion is at the individual level.  
82. The Ministry of Industry also focuses on enha ncing the efficiency and productivity of the 
industrial sector by adopting specific strategies , such as elevating human skills, improving the 
capabilities of management, enhancing efficiency, advancing logistics systems within industrial 
groups, and developing business allia nces and the supply chain. 
83. In addition, the Government issued a Mast er Plan on knowledge improvement with the 
objective of creating intellectual ability in soci ety to support the "Sufficiency Economy" and 
enhancing the sustainability of Thai industry, as well as supporting the cooperation between the public 
and private sectors in creating innovations.  The pl an consists of three strategies:  advancing 
technological and innovative capability in the pr oduction sector, strengthe ning knowledge centers, 
and creating linkages between knowle dge centers and knowledge users. 
84. The environment has always been another ar ea of concern for Thailand.  To solve 
environmental problems, the Government h as adopted the philosophy of "Environmental 
Governance", which requires good information, disclosur e of information, consent for examination or 
verification, and coordination with locals.  An impor tant operating tool for achieving this goal is the 
utilization of an emission charge measure. 
85. Finally, it is necessary to raise the level of  industrial standards in order to create the 
entrepreneur's ability to respond to  the needs of trading partner, vis-à-vis  quality, safety, and sanitary 
and environmental concerns to co rrespond to the global situation. 
(h) Financial services 
Banking 
86. Comprehensive reforms continue to strengthe n the stability and efficiency of the Thai 
financial sector following the aftermath of the Asia n financial crisis.  The performance of banks has 
improved, while reforms are progressing on many fr onts, including the adoption of International 
Accounting Standards (IAS 39) for loan appraisal and provisioning, implementation of the Financial 
Sector Master Plan (FSMP), issuance of new prud ential regulations and related policy guidelines 
under Basel II, and the participation in the IMF- World Bank Financial Sector Assessment Program 
(FSAP).  
87. The banking system has continuously recorded profits since 2001, with non-performing loans 
declining to 7.5% of total loans as of December  2006.  Continued profitability, capital increases, and 
moderate growth in risk assets resulted in the increase  in the BIS ratio of the banking system to 14.1% 
as of December 2006, higher than the minimum regulatory requirement of 8.5%. WT/TPR/G/191 Trade Policy Review 
Page 18 
 
 
88. The FSMP further guided the broadening of  financial services access, efficiency 
enhancements and cons umer protection.  The licensing regime was rationalized in order to clarify the 
overlapping scopes of business of different types of financial institutions.  As a result, financial 
consolidation reduced the number of financia l institutions from 83 in 2003 to 44 in 2006.3  The next 
phase – the FSMP II – is currently under formulation,  with the aim of enhancing the efficiency and 
stability of the financial system. 
89. Prudential regulations have progressed in su pport of risk-based supervision and good 
governance in financial institutions.  Important prud ential guidelines introduced in the past five years 
include, for example:  Market Risk Supervisio n Policy, guidelines on consolidated supervision, 
prudential guidelines on credit card and pers onal loans, guidelines on governance and Board's 
committees and fit-and-proper criteria for directors of  financial institutions, adopting IAS 39 for loan 
provisioning, and guidelines on business contingency plans.  These are all aimed at enhancing risk-
based supervision and strengthening th e robustness of financial institutions.  
90. Implementation of Basel II is scheduled for 2008.  Since 2005, the BOT has issued series of 
policy guidelines, with close industry consultati ons, on minimum capital requirements relating to 
credit risk, operational risk and market risk. 
Securities 
91. Thailand attaches great importance to deepeni ng its capital markets to better serve as an 
alternative for capital mobilization and investment.  Foreign investors are welcome to invest in the Thai securities market. 
92. In 2006, the total value of securities issued in  the primary market was 136 billion baht and the 
total value of market capitalization in the Stock Exch ange of Thailand (SET) wa s 5,079 billion baht, with 
12 newly listed companies in the SET (main market) and six newly listed companies in the Market for Alternative Investment (MAI).  The SET index at the end of the year stood at 679.84.  The SET's 
dividend yield was 4.23% while the MAI's dividend yi eld was 3.91%.  Total trading value in 2006 was 
7,967 billion baht.  Among the groups of investor s, the trading value of foreign investor was 
4,365 billion baht;  local institutional investor was 921 billion baht; and non-in stitutional investor was 
2,682 billion baht.  
93. The Securities and Exchange Commission (SEC ) has, as its principal function, the 
supervision and development of the primary and secondary market  of Thailand's capital market 
system.  Its primary role is to formulate polici es, rules and regulations regarding supervision, 
promotion, and development of securities businesses,  as well as other activities relating to securities 
businesses, securities exchange, other organized s ecurities trading centers, and entities related to 
securities businesses, including the issuance and offe ring of securities for sale to the public, the 
acquisition of securities for business takeovers, an d the prevention of unfair securities trading 
practices.  
94. In recent years, the SEC has focused its efforts towards pr omoting good corporate governance 
of listed companies, raising standards of securities regulation for the Thai capital market to be on a 
par with international best practices, and develo ping new products and market infrastructure to 
                                                     
 
3 As of December 2006, there were 34 commercial banks, 6 finance companies and 4 credit foncier 
companies under the supervision of the BOT.  Internati onal banking facilities attached to commercial banks and 
on a stand-alone basis ceased operations since 2005 foll owing the promulgation of guidelines to merge and 
upgrade to full branches or merge with finance or credit foncier companies to become a subsidiary. Thailand WT/TPR/G/191 
 Page 19 
 
 
enhance market access by participants, both local and overseas.  Some of the highlights of the SEC's 
efforts are as follows: 
95. Since 2002, the SEC has implemented an Acti on Plan on Good Corporate Governance, which 
included amending relevant laws, issuing a set of best practices, introducing incentive schemes, and 
launching educational programs.  The Plan is aimed at promoting shareholders' rights, transparency 
and accounting standards, and e nhancing good corporate governance, directors' accountability, a good 
corporate governance rating program, and e ducational and public relations programs.4  These were 
last updated in March 2006, when more principl es were added to be more comprehensive and 
comparable to the Principles of Corporate Govern ance of the Organisation for Economic Cooperation 
and Development (OECD), as well as to include the recommendations made by the World Bank in its 
Report on the Observance of Standards and Cod es related to Thailand corporate governance 
(CG-ROSC).5  The 2006 principles and recommended best pr actices cover the rights of shareholders, 
equitable treatment of sharehol ders, role of stakeholders, disclosure and transparency and 
responsibilities of the Board.   
96. With its successful participation in the CG-R OSC as mentioned above, the authority decided 
to undergo assessment of securities regulation as part  of the IMF-World Bank conducted Financial 
Sector Assessment Program (FSAP).  The assessment program, in which the Thai regulatory regime would be evaluated against inte rnational standards, will help the SEC identify weaknesses in the 
system that need to be removed or improved in orde r to be on par with international best practices.  
The expected result is that enhan ced effectiveness in market regula tion will help raise the confidence 
in the Thai capital market as a place where high quality products and services are offered under 
internationally-accepted s upervision standards. 
97. To further develop the capital market structure, a number of measures were carried out.  For 
example, to enhance local players' competitiveness in the global arena, the authority encouraged 
securities companies to introduce new products and services to lessen their dependency on brokerage 
fees.  The product innovations include ETF (Excha nge Traded Fund), TCR (Transferable Custody 
Receipt), FIF (Foreign Investment Fund), as well as futures and options. 
98. For bond market development, measures launc hed include increasing market channels for 
foreign issuers by allowing multinational corpora tions (MNC) to issue baht-denominated bonds in 
Thailand and allowing full branches of foreign bank s to issue bonds.  In addition, to streamline the 
issuance process, the authority allo ws shelf-registration (3-year) for issuers, both local and foreign, 
accepts English prospectus when offering is made by foreign issuers and accepts credit rating by 
international CRAs.  
99. In preparation for intra-regional securities tr ading and freer flows of capital among member 
countries, at the ASEAN Capital Market Forum (A CMF), initiated by the SEC, Thailand agreed to 
work towards mutual recognition and harmonization of standards in certain key areas, namely, (1) 
information disclosure, (2) accounting and auditing,  (3) comparability of credit rating, (4) securities 
distribution rules, and (5) cross-recognition of qu alifications and certification of capital market 
professionals.  
 
100. The SEC has already announced planned liber alization of the securities business licensing 
within 5 years.  Starting on 1 January 2012, th e SEC will accept unlimited applications for new 
                                                      
4 SEC online information is available at:  http ://www.sec.or.th/secen1/news/secnews/10-2002.doc. 
5 The Stock Exchange of Thailand (2006), The Principles of Good Corp orate Governance for Listed 
Companies  (online), Corporate Governance Center, March.   Available at:  http://www.acga-asia.org/ 
public/files/Thai_New_CG_Code_March2006.pdf [1 March 2007]. WT/TPR/G/191 Trade Policy Review 
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securities business licenses, if the applicants meet the "fit and pr oper" requirements, and securities 
brokerage fees will be fully negotiable.  
Insurance 
101. The insurance industry in Thailand has expanded su bstantially in recent years due to continual 
economic growth and the expansion of motor vehicles.  In addition, the growth of life insurance 
premiums has been fueled by the differential betw een the bank deposit interest  rates and the rate of 
return required to be built into Thai life insurance products, and the Government's decision to increase 
the annual tax-deductibility of life insurance premiums from 10,000 baht to 50,000 baht. 
102. In 2005, Thailand had a 0.19% share of the world insurance market and ranked 34th in terms 
of total premium volumes. 
103. The penetration rate registered at 3.61%, whic h is average when compared to other countries 
in Asia.  The insurance density level or premium per capita was US$53.9. 
104. At present, Thailand has 99 insurance companies, of which 24 are life insurers (23 domestic 
companies and 1 foreign branch), 68 are non-life insurers (63 domestic companies and 5 foreign 
branches), 5 are domestic specialized health insurers, and two are domestic reinsurers. 
105. The sector is governed by two pieces of legislati on: the Life Insurance Act B.E. 2535 (1992) 
and the Non-Life Insurance Act B.E. 2535 (1992), which are both administered by the Department of Insurance (DOI), Ministry of Commerce. 
106. A three-stage liberalization plan for insurance,  which was initiated in 1995 to allow greater 
foreign participation, has completed its first stage.   Thailand's insurance mark et has been opened up 
by creating a more competitive environment and a better service standard through the invitation of 
applications for new insurance licenses.  As a r esult, 12 new life and 13 new non-life insurers were 
approved. 
107. Currently, Thailand is in the second stage of the plan, with the Government in the process of 
amending the current Life and Non-Life Insuran ce Acts.  In March 2004, the Cabinet approved the 
proposed draft amendments of the Life and Non-Li fe Insurance Acts.  The Acts are now under the 
consideration of the Office of the Council of Stat e before being submitted to  the National Legislative 
Assembly for deliberation.  The proposed amendm ents, if approved, would facilitate insurance 
business operations in a more competitive enviro nment and maintain s oundness and long-term 
viability.  Apart from streamlining the licensing re gime and prudential measures such as security 
deposit, calculation of capital fund, corporate gove rnance, and policyholder protection fund, one of 
the key areas is the proposed amendment on fore ign equity participation from 25% to 49%. 
108. The final stage aims at removing barriers in order to provide market access for foreign 
insurers.  When completed, there shall be fu ll market liberalization and domestic and foreign 
insurance entities will operate in  Thailand on equal footing. 
(i) Transportation 
Air transport 109. Thailand continues to implement a liberalization policy on air transport by allowing Thai 
private-owned airlines to provide air services on the same routes operated by the national carrier.  As Thailand WT/TPR/G/191 
 Page 21 
 
 
a result, the number of international and domestic scheduled Thai airlines has increased from six in 
2003 to nine in 2007. 
110. Limitations and restrictions imposed on fore ign airlines, involving the capacity and frequency 
as well as route schedule and traffic rights, are gr adually being removed.  The capacity arrangements 
set in advance are more in line with the traffi c demand and long-term plans.  Moreover, foreign 
airlines are encouraged to operate extra fli ghts to every custom airport in Thailand. 
Maritime transport 
111. Thailand's international seaborne trade has been  increasing rapidly, particularly during the 
past decade.  Nevertheless, only ap proximately 10 to 12% of the total trade volume is carried by Thai 
flag vessels.  Despite a relatively small size, the Thai merchant fleet has increased from 133 vessels, 
with total carrying capacity of 585,873 DWT in  1981, to 354 vessels, with total capacity of 
3,708,687 DWT in 2006. 
112. The Tenth National Economic and Social Deve lopment Plan aims to enhance transport 
infrastructure development and logistics manageme nt by promoting the use of cost-effective and 
energy-saving modes of transport, including rail, wa ter and pipeline transportation.  The Plan also 
emphasizes the necessity of having transparent infr astructure management, with the participation of 
stakeholders and relevant parties. 
113. A package of substantial legislation specifica lly applied to the maritime transport sector 
includes;  The Thai Vessels Act B.E. 2481 (1938), as amended by the Act B.E. 2540 (1997);  The Navigation in Thai Waters Act B.E.2456 (1913) , as amended by the Act B.E.2540 (1997);  The 
Prevention of Collision of Vessels Act B.E.2522 (19 79);  The Carriage of Goods by Sea Act B.E.2534 
(1991);  The Arrest of Ships Act B.E.2534 (1991) ;  The Ship Mortgages and Maritime Lien Act 
B.E.2537 (1994);  The General Average Act B.E.  2547 (2004);  and The Multimodal Transport Act 
B.E. 2548 (2005).  Thailand also has a great deal of subsidiary legislation regulating ship surveying, maritime safety and security, training of seafarers a nd marine environment protection, all of which are 
based on international standards. 
114. Thailand's international shipping is open to  both Thai and foreign maritime transport 
operators, except those operating Thai flag vessels, which must conform to the Thai Vessels Act B.E. 
2481 (1938) and the Navigation in Thai Waters Act B.E. 2456 (1913). 
115. According to the Thai Vessels Act B.E.2481 (193 8), maritime transport services in Thailand 
can be classified into two categories.  The first cat egory relates to international shipping, which is 
open to both Thai and foreign vessels.  Section 7 bi s of the Act provides that, for a registered Thai 
vessel engaged only in international shipping, the owner must be a juristic person established under 
Thai law with a head office in Thailand and at least 51% Thai equity.  The second category covers 
domestic shipping and is exclusively reserved for Thai vessels for reasons of national security.  Section 7 of the Act requires that the owner of a regi stered Thai vessel for trading in Thai waters must 
be a juristic person with at least 70% Thai equity.  However, Section 46 bis of  the Navigation in Thai 
Waters Act B.E. 2456 (1913) states that employin g a foreign vessel in domestic shipping may be 
allowed under certain conditions on a case by case basis by the Minister of Transport. 
116. Maritime transport auxiliary services that are c onducted within Thai territories, including port 
services and other related services, are also subject  to the Foreign Business Act B.E.2542 (1999).  
Currently, there are six ports under the administra tion of the Thai authorities and approximately 
120 private ports that are capable of accommoda ting sea-going ships of 500 DWT and up.  The port 
operators are required to obtain pe rmission and conform with the Notification of the Revolutionary WT/TPR/G/191 Trade Policy Review 
Page 22 
 
 
Council No.58 (control of business affe cting public security and well-bei ng) and are also required to 
obtain permission for the construc tion and operation of the port from the Marine Department.  The 
operations of terminals at Laem Chabang Port, the largest port in terms of cargo throughput, have 
been contracted out to private operators. 
117. Up until now, Thailand has concluded bilateral maritime agreements with certain countries, 
namely, Viet Nam, China, Peru, Morocco and Repu blic of Korea.  Those maritime agreements are 
mainly based on free competition, and contain principal provisions involving reciprocal recognition of certificates on board a vessel, identity documents of crew members, facilitation of the arrival/departure of ships, immigration pr ocedures and formalities for ship crew, and 
cooperation/assistance in search and rescue for ships in distress. 
(j) Telecommunications 
118. Thailand has made considerable progress toward  reforming its telecommunications regulatory 
regime during the period under review.  Efforts have also been made to advance sufficient 
telecommunications and services extensively at reas onable prices.  In addition, the services must be 
able to support economic growth, electronic comme rce, knowledge transfer, and management of the 
country. 
119. The National Telecommunications Commission (NTC) was appointed by His Majesty the 
King of Thailand on 1 October 2004 to as an independe nt state telecommunications regulator pursuant 
to the provisions of the Organization to Assign Radio Frequency and to Regulate the Broadcasting 
and Telecommunications Services Act B.E. 2543 (2000) and the Telecommunications Business Act 
B.E. 2544 (2001), with responsibilities for managing radio frequencies and telecommunications 
regulation. 
120. The Telecommunications Master Plan 2005-2007 was publicized in the Government Gazette 
on 3 August 2005.  The essence of the Plan is to frame regulatory guidelines and promote 
telecommunications services.  A series of Notifications
6 have been prescribed to enhance free and fair 
competition;  support industry development;  mana ge the allocation and use of telecommunications 
resources;  provide universal services obligatio n and consumer protection;  encourage the 
liberalization of telecommunications markets and facilitate the operations of service providers;  
                                                      
6 For example, the Notification on Measures to Prevent Some Certain Acts Leading to Monopoly or 
Causing Unfair Competition in Telecommunication Busine ss B.E. 2549 (2006) ;  the Notification on the Access 
and Interconnection of the Telecommunication Networks B.E. 2549 (2006);  the Notification on Maximum 
Rates of Service Charges and Advance Service Charges in Telecommunications Business B.E. 2549 (2006);  the Notification on Exemption of Some Telecommunication Tari ff B.E. 2550 (2007);  the Notification on Rules, 
Conditions and Procedures on Providing Universal Service of Basic Telecommunications Services and Social 
Service B.E. 2548 (2005);  the Notification on Operat ion of Telecommunication Business in the Category of 
Resale Service and Wholesale Service B.E. 2549 (2006);  the Notification on Temporary Measures for Radio 
Frequency Assignments B.E. 2548 (2005);  the Notification on Rules on Applying for the Radio Frequency 
Assignments for Public Services and Business Services B.E. 2548 (2005);  the Notification on Spectrum License 
Transfer and Sharing in Telecommunications B.E. 2548 (2005);  the Notification on Rules on the Allocation of 
Temporary Telecommunication Numbers B.E. 2548 (2005);   the Notification on Rules on the Allocation and 
Permission for Special Telecommunications Numbers B.E. 2548 (2005);  Notification on Frequency Plan for 
Broadband Wireless Access Trial or Testing B.E. 2550 (2007);  the Notification on Frequency Usage for Short 
Range Device (SRD) in 5 GHz ban B.E. 2550 (2007);  and, notifications regarding telecommunication licensing regime, i.e. the Characteristics and Categories of Telecommunications Service;  the Characteristics and 
Categories of Telecommunications Service Requiring a License for the Operation of Telecommunications 
Services;  the automatic license scheme for granting certain types of license (type 1 internet license and type 2 IIG/IX license);  and the standard conditi on for telecommunications business licenses. Thailand WT/TPR/G/191 
 Page 23 
 
 
promote education, culture, and social bene fits as well as non-commercial telecommunications 
services, and provide disaster and emergency preparedness. 
121. In terms of foreign equity participation, the Pa rliament has approved the revision of Section 8 
of the Telecommunications Business Act B.E. 2544 (2001) as follows:  "the applicant for type 
two and type three licensees shall not be a foreigne r under the law on foreign business.  In this regard, 
the Commission may prescribe the prohibition that th e applicant for certain natures or categories of 
telecommunications business who is a juristic pers on, shall not commit any other act which has the 
nature of business takeover by a foreigner".  The revision came into effect on 9 July 2006. 
122. As of 31 July 2007, the NTC had granted 104 telecommunications licenses to operators.  
These are divided into 22 Type I (without network) licenses, 6 Type II (with or without network for 
specific groups or users) licenses, 11 Type III (with network for public telecommunications services) licenses, and 65 internet licenses. 
123. There have been three Institutes set up to s upport related works in telecommunications.  The 
first, the Telecommunications Research and Industr ial Development Institute  (TDIRI) was established 
to be a center for promoting research and deve lopment in the telecommunication technology and 
information technology industries.  The second, th e Interconnection Institute (ICI) was established to 
be the administrative unit for the Dispute Resoluti on Committee in the telecommunications sector, as 
well as the academic unit to educate, develop, an d improve the interconnecti on regulation to be in 
conformity with existing technologies.  Finally, the establishment of Thailand Consumer Protection 
Institute (TCPI) aims to strengthen and balance the interests of consumers, resolve disputes 
impartially, and encourage consumers' partic ipation in the telecommunication services.  
(k) Tourism 
124. Tourism and related industries is one of the key sectors providing immense contribution to the 
Thai economy.  It has been an effective means of  creating job opportunities and raising local incomes 
as well as foreign exchange revenue.  Foreign tourists generate more than 300 billion baht in national 
income each year, e.g. 309.27 billion baht in 2003 and 384.36 b illion baht in 2004.  
125. The number of tourists coming to Thailand has grown steadily.  In 2006, there were 
approximately 13.8 million international tour ist arrivals, up from 10.1 million in 2003.  
126. The tourism industries, ranging from leading fi ve-star hotels and world-class airlines to a 
continuum of restaurants, one-person tour opera tors, and secondary businesses such as primary food 
producers, health providers and domestic transpor tation industries, are Thailand's major source of 
export service revenue.  From 2003-2005, income  generated by hotels and restaurants has 
significantly increased from 299.5 billion baht to 346.9 billion baht, equaling to 15.8% growth.  
127. The Government has been very active in upgr ading infrastructure, for example, roads, 
telecommunications, waste disposal and the safety sta ndards of public facilities to keep abreast with 
the industry's growth and to ensure the industry's long-term stability. 
128. The Ministry of Tourism and Sports is main ly in charge of the promotion, support and 
development of tourism industry, while the Touris m Authority of Thailand (TAT) is responsible for 
marketing strategies, campaigning and promotiona l schemes.  Priority has been placed on the 
long-term protection of the environment, the enc ouragement of "eco-tourism", training of personnel, 
and adoption of measures to prevent the exploita tion of tourists.  The Thailand Conventions and 
Exhibition Bureau, in partnership with the TA T, also places emphasis on the Meeting Incentive 
Convention and Exhibition market (MICE) and has suggested that the public and private sectors WT/TPR/G/191 Trade Policy Review 
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should form a bidding fund as a mechanism to help support various organizations in bidding for 
international events. 
(l) Investment 
129. Thailand's investment regime is among the most liberal in the region.  Foreign investment 
from all countries is welcomed as Thailand recogn izes its importance for economic development, 
employment and technology transfer.  Various kinds of investment incentives ar e offered, with some 
restrictions for certain industries and activities. 
130. Foreign investment is generally governed by the Foreign Business Act B.E.2542 (1999), the 
Alien Employment Act B.E 2521 (1978), the Investment Promotion Act B.E 2520 (1977), as 
amended, and other laws re lating to foreign investment.  The subject of such legislation includes, for 
instance, immigration law, exchange controls, im port and export regulations, and stock exchange 
regulations. 
131. According to the Foreign Business Act B.E. 2542 (1999), foreign participation is allowed in a 
wide range of activities, such as brokerage services,  wholesale and retail trade, construction, non-silk 
textiles, garments, footwear, hotels, beverage pr oduction, and auction businesses.  However, foreign 
investors are required to obtain necessary permissions from relevant ministries to be able to operate.  
Such permissions may take differe nt forms, varying from commercial and tax registrations to licenses 
to operate a factory and obtain work permits and visas.  Investors seeking protection under Bilateral 
Investment Treaties to which Thailand is a party ar e required to apply for approval for protection in 
accordance with the terms of the treaties, usually in the form of a Certificate of Approval for 
Protection (C.A.P) from the Committee on the Approva l for the Protection of Investments between 
Thailand and Other Countries.  
132. In terms of incentives, the Board of Investment (BOI) imposes no foreign equity restrictions 
in the manufacturing sector.  Since August 2000, th e criteria for granting investment incentives have 
been free of local content requirements and expor t requirements.  The BOI has also continuously 
eliminated all export subsidies on the pre-existing projects prior to the year 2000, and currently no 
export subsidies remain.  Moreover,  the Government has improved the internal procedures to facilitate 
businesses and services.  It is poised to become more proactive in attracting projects in industrial sectors that will improve both the qu ality and quantity of investment. 
(m) Intellectual property rights 
133. Thailand recognizes the importance of all fields of intellectual property rights (IP) protection.  
Various strategies and measures have been integrat ed into national policy to strengthen the whole 
intellectual property system, i.e. developing comp rehensive and efficient IP protection systems, 
promoting the creation and commercial exploitation of IP, preventing and suppressing IP infringement, and ensuring equitabl e and fair exploitation of IP. 
134. Since the end of the Uruguay Round, Thaila nd has revised and enacted several laws to 
comply with the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) 
including The Copyright Act B.E. 2538 (1995);  The Patent Act B.E. 2522 (1979), as amended in 1992 and 1999;  The Protection of Plant Varieties Act B.E. 2542 (1999);  The Trademark Act B.E. 
2534 (1991);  The Topographics of Integrated Circuits Protection Act B.E. 2543 (2000);  The Trade Secret Act B.E. 2545 (2002), and The Geogr aphical Indications Act B.E. 2546 (2003). 
135. The Intellectual Property Center (IPC) was founded under the Department of Intellectual 
Property (DIP), Ministry of Commerce, to promote innovations and exploitation of IP, and to improve Thailand WT/TPR/G/191 
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the capabilities of Thai entr epreneurs in absorbing technology.  The organizational structure of IPC 
comprises the Intellectual Property Information Center (IPIC)7, the Intellectual Property Training 
Center (IPTC)8, and the Intellectual Property Management Center (IPMC)9.  
136. In terms of IP enforcement, the Government  has demonstrated a strong and steadfast 
commitment towards the protection and enforcement of IP.  The Ministry of Commerce's Department 
of Intellectual Property, the Royal Thai Police, a nd relevant public and private agencies have taken 
systematic measures to stem IP violations in all aspects: production, distribution, and import and 
export. 
137. Under the Import and Export Law, the Optical Disc Production Law and other relevant laws, 
the Government has strictly monitored the op tical disc (OD) production business by licensing the 
import of OD production machineries and by keeping track of optical disc production process.  The OD Production Law requires OD producers to affix a DIP Code (mould code, mastering code and 
copyright code) on every OD.  In addition, to ensure that OD plants comply with all requirements, a task force consisting of officers from the DIP, the Department of Special Investigation (DSI) and the 
Royal Thai Police, is assigned to pe rform daily inspection of the plants. 
138. In order to strengthen coopera tion among all concerned agencies such as the Royal Thai 
Police, the DSI, the Customs Department, the Re venue Department, the Factory Department, the 
Internal Trade Department, the associations of IP , etc., the DIP has promulgated eight Memorandums 
of Understanding (MOU) for effective prevention an d suppression of IP violations, e.g. MOU on the 
Cooperation on Prevention and Suppression of IP Vi olations, MOU on the Cooperation on Prevention 
and Suppression of Sale of Pirated Products, and MOU on the Cooperation on the Prevention and 
Suppression of the Import and Export of Pirated Pr oducts, etc.  These initiatives have contributed to 
continuous, rigorous and more effec tive enforcement activities and results. 
139. Statistics showed that the number of raids by the Royal Thai Police and the DSI increased by 
25% in 2006 from 7,649 in 2005 to 9,563, and the nu mber of infringing goods destroyed increased by 
25.8% in 2006 from 2,238,386 in 2005 to 2,815,807.   The destruction ceremony of these goods was 
witnessed by IPR owners, or their representativ es, and members of the diplomatic corps. 
140. As for border measures, customs officers stopped 222 pirated shipments and seized 
862,607 infringing goods in 2006.  In 2005, customs officers stopped 193 pirated shipments and seized 765,438 infringing goods.  This represents a 15%  increase in the number of border actions and 
12.6% increase in the amount of infringing goods seized.  All seized goods are destroyed by the 
Customs Department.  
141. Public awareness remains one of the key challenges for long-term IP protection.  
Accordingly, Thailand has intensified its efforts to make people aware of the importance of IP 
protection. 
142. So far, Thailand has signed three bilateral trade ag reements that include IP issues.  The parties 
to such agreements are Aust ralia, New Zealand and Japan.  
                                                     
 
7 The IPIC serves as a focal point for IP data linked with patent databases around the world and makes 
data electronically available to the public.  The IPIC also offers advice on IP management and performs patent 
analyses and patent mapping. 
8 The IPTC is in charge of developing human resources in IP in order to serve IP-related 
responsibilities of various bodies and also enhance creativity and commercial exploitation of IP. 
9 The IPMC aims to promote businesses based on IP, so as to give added value to entrepreneurs' goods 
and services, and to encourage inventions and re search leading to commercial applications.  WT/TPR/G/191 Trade Policy Review 
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143. Since November 2006, Thailand by the Ministry  of Health has issued compulsory licenses 
(CL), for the purpose of public non-commercial u se, for two HIV drugs (E favirenz and Kaletra®) and 
one anti-platelet drug (Clopidogrel).  The implem entation of CL is cons istent with Thailand's 
obligations under the WTO and the TRIPS Agreemen t.  Drugs derived from the CL implementation 
will be distributed only to those patients under government public health insurance plans.  
144. Currently, the Committee on the Negotiation of  Increasing Access to Essential Patented 
Drugs is negotiating with the patent holders of the drugs under CL.  The negotiations have been 
positively conducted as many productive pr oposals have been put forth by both the Ministry of Public 
Health and the companies.  Thailand is expecti ng that fruitful and satisfactory outcomes will be 
reached in the near future. 
145. In the coming year, Thailand will focus its effo rts on IP enforcement and the improvement of 
the patent registration system.  Yet, the misuse and misappropriation of Thai traditional wisdom and 
generic resources is another important problem to be tackled in an effective means to ensure equitable 
protection of the communities who hold, maintain  and preserve traditional knowledge and generic 
resources. 
(n) Competition policy 
146. Thailand recognizes that competition policy play s an important role in fostering fair 
competition in the market and enhances a climat e that is conducive for investment and economic 
growth.  The main purposes of the competition policy are to promote free and fair market competition, encourage business activities and stimul ate creative initiatives of enterprises, and assure 
consumer interests in the long run. 
147. A competition law is a major tool to implem ent the said competition policy.  In 1999, 
Thailand introduced the Trade Competition Act for th e first time.  The Act came into effect on 
30 April 1999 with the objectives of promoting fair  and free trade with competitive environment and 
controlling anti-competitive practices.  It is based on the notion that competitive markets are the best 
way to promote economic efficiency, and thus maximize total economic welfare.  Moreover, 
consumers will get benefits from lower prices, increased choices, and improved product quality. 
148. The enforcement and implementation of the Act is under the responsibility of the Trade 
Competition Commission, which is chaired by the Mi nister of Commerce.  The Act prohibits business 
operators from the abuse of dominant position, bu siness combination, collusion, unreasonable 
agreement with foreign firms, and unfair trade practices. 
149. In order to make enforcement of the law more transparent and effective, the Trade 
Competition Commission has settled the threshold of  business operators with market domination.  
The threshold was approved by the Council of Mi nisters and became effective in January 2007. 
(o) Initiatives in the WTO  
150. Thailand has been and will continue to be an active player in multilateral trade negotiations, 
as well as a strong supporter of the successful conclu sion of the Doha Development Agenda.  Since 
Thailand's last review it has submitted a number of  proposals in the areas of agriculture, NAMA, 
rules, and DSU for other Members to consider. 
151. As an economy in which agriculture play s a significant role, Thailand attaches great 
importance to the WTO's agriculture negotiations .  Along with the CAIRNS Group and G20, the Thailand WT/TPR/G/191 
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country is in favour of substantial improvement in  market access, considerab le reduction of domestic 
support while incorporating stricter disciplin es, and elimination of export subsidies.  
152. In the negotiations on market access for non-ag ricultural products, Th ailand stepped up its 
efforts to reach a compromise on extreme positions by joining some developing countries in 
proposing a possible middle ground solution in NAMA.  The aim was to show the flexibility needed 
to conclude the negotiations in a timely manner, as well as provide contributions to the Round.  
153. Thailand also gives priority to S&D provisions, which are necessary to ensure that developing 
countries can fully and effectively implement all WT O provisions and that their participation will not 
only lead to increased obligations but al so yield greater commensurate benefits.  
154. Equally important are rules and disciplines under the WTO's Agreement on Anti-Dumping 
and on Subsidies and Countervailing Measures, which c ould be further clarified and improved so that 
they cannot be easily used as a disguised form of non-tariff barriers. 
V. REGIONAL TRADE ARRANGEMENTS AND ECONOMIC COOPERATION 
(a) ASEAN 
155. ASEAN continues to eliminate tariffs unde r the Common Effective Preferential Tariff 
(CEPT) scheme.  In this respect, the ASEAN-6 (Brunei Darussalam, Indonesia, Malaysia, the 
Philippines, Singapore and Thailand) have to eliminate tariffs for at least 80% of products in the 
Inclusion List (IL) by 1 January 2007 and all products on the IL by 1 January 2010;  while the ASEAN-4 (Cambodia, Lao PDR, Myanmar and Viet Na m) have to eliminate tariffs for all products 
on the IL by 1 January 2015. 
156. To achieve the agreed-upon target on time on 1 January 2007, Thailand had prepared for all 
related works.  However, technical problems, rela ted to the transposition of the CEPT package into 
AHTN 2007, have caused some delays.  In consequen ce, Thailand is now in the process of issuing the 
legal enactment for eliminating tariffs of pro ducts under the IL and expects to issue it by 
October 2007.  Upon its entry into force, the law will be made retroactively effective from 
1 January 2007.  
157. After the completion of the internal process, Thailand will have approximately 8,300 tariff 
lines in the CEPT scheme.  Tariff rates of over 6, 600 tariff lines will be reduced to 0%, with the 
remaining tariffs (around 1,700 tariff lines) to be eliminated by 2010. 
158. As for services liberalization, Thailand signed the Protocol to Implement the Fifth Package of 
Commitments under the ASEAN Framework Agreem ent on Services on 8 December 2006.  Under 
this package, Thailand has made additional commitments to the GATS on business services, 
telecommunication, healthcare, tourism, and maritime transport. 
159. In 2004, ASEAN agreed to accelerate the inte gration of 11 priority sectors (agro-based 
products, fisheries, wood-based products, rubber-based  products, automotives, textiles and apparels, 
electronics, e-ASEAN, healthcare, air travel, and t ourism) by developing the Roadmap for Integration 
of 11 Priority Sectors and assigning country-coordinators  for each sector.  In this respect, Thailand is 
responsible for the tourism and air travel sectors.  The measures specified in the Roadmap cover a wide range of activities including lib eralization, facilitation, and prom otion measures, so as to push 
forward the integration of these sectors by 2010.  Later in 2005, the ASEAN Economic Ministers 
(AEMs) agreed to add the logistics sector as one  of the priority sectors to be integrated. WT/TPR/G/191 Trade Policy Review 
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160. Currently, Thailand is working in collaborati on with the other ASEAN country members in 
developing the AEC blueprint, which will be a single  and coherent work plan for advancing the AEC.  
The blueprint will cover all necessary measures in order to bring ASEAN towards:  (a) a single 
market and production base, (b) a highly competi tive economic region, (c) a region of equitable 
economic development, and (d) a region fully integr ated into the global economy.  The blueprint will 
also be a legally binding document through the Leaders’ Declaration to  be signed at the 13th ASEAN 
Summit in November 2007. 
(b) APEC 
161. APEC has engaged in extensive work in th e area of RTAs/FTAs and is developing model 
measures chapters that could be used by member economies in their negotiations in order to achieve 
high-quality and comprehensive RTAs/FTAs.  Th ailand has been active in this work, having 
proposed 4 of the 17 model measures put forward,  on Cooperation, Sanitary and Phytosanitary 
measures, Subsidies and Countervailing measures, and Anti-dumping.  In November 2006, 6 model 
measures were approved by APEC Leaders:  Coope ration, Trade in Goods, Technical Barriers to 
Trade, Transparency, Government Procurement a nd Dispute Settlement.  The remaining 11 model 
measures remain under discussion.  Once completed,  APEC economies can use the model measures 
voluntarily in their RTA/FTA negotiations. 
162. In APEC, Trade Facilitation is one of the three pillars contained in the Osaka Action Agenda, 
a template for future APEC works towards ach ieving the Bogor goals.  Thailand recognizes the 
significance of trade facilitation in relation to  the economy's overall trade strategy and has 
implemented agreements, conventi ons, and recommendations supplementing the development of the 
trade facilitation in areas such as harmonization of standards and conformance, simplification and 
streamlining of customs procedures, enhanced tran sparency of customs services to assist traders, 
improved cooperation and c oordination among private-public sectors, use of risk management for 
trade control, IT and e-commerce for improved trad e documentation, and mobility of business people.  
Thailand's efforts in the above areas have contribut ed towards APEC's aim to reduce transaction costs 
by 5% from 2001-2005.  Furtherm ore, Thailand will continue to make improvements in trade 
facilitation in order to meet APEC's future endea vours to reduce transaction costs a further 5% during 
2006-2010. 
(c) Asia-Europe Meeting (ASEM) 
163. The first Summit of the Asia-Europe Meeting (ASEM) was held in Bangkok in March 1996.  
The principal goals of the ASEM are to establis h a comprehensive partne rship between Asia and 
Europe, to create favourable conditions for economic and social development of the two continents, 
and to maintain world peace and stability.  To th is end, ASEM addresses three main pillars namely, 
politics, economics, and finance, as well as social, cu ltural and educational fields.  Ten years later, 
ASEM has expanded from 26 to 45 members, compri sing the 10 ASEAN members and its Secretariat, 
the 27 EU members and the European Commissi on, and 6 Northeast and South Asian countries, 
namely China, Japan, Mongolia, South Korea, India and Pakistan. 
164. Thailand has been particularly active in the area of economic cooperation.  It has drafted the 
Investment Promotion Action Plan (IPAP) and served as co-facilitator of 3 sectors in the Trade Facilitation Action Plan (TFAP) – standards a nd conformity assessment issues, sanitary and 
phytosanitary issues, and intellectual property.  A project financed by the ASEM Trust Fund since 
1998 to provide technical assistance on restructuring the financial sector and facilitating sustainable 
poverty reduction was completed in 2006.  Exch ange of views on the progress of the Doha Thailand WT/TPR/G/191 
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Development Agenda among Asian and European members is a re gular agenda item during the 
meetings of Leaders, Foreign Ministers and Economic Ministers. 
(d) Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation 
(BIMSTEC) 
165. To enhance sub-regional economic ties with count ries to the West, Thailand adopted a "Look 
West" Policy a decade ago.  In 1997, the Declar ation on the establishment of Bangladesh-India-Sri 
Lanka-Thailand Economic Cooperati on (BIST-EC) was launched in Bangkok.  The membership was 
later extended to Myanmar, upon which the name  of the grouping was changed to BIMST-EC 
(Bangladesh-India-Myanmar-Sri Lanka-Thailand Econom ic Cooperation).  Subsequently in 2003, 
membership was further granted to Nepal and Bhut an.  Then, at the First Summit held in Bangkok on 
31 July 2004, the name of this group was changed to the Bay of Bengal Initiative for Multi-Sectoral 
Technical and Economic Cooperation, or BIMSTEC.  
166. BIMSTEC is the only economic cooperation foru m to bridge the nations of South and 
Southeast Asia, focusing on the Bay of Bengal area.  Its main objectives are to facilitate and promote trade, investment, and technical cooperation among the member countries, as well as develop a 
free-trade area.  Currently, there are 13 coopera tion sectors:  trade and investment, technical, 
transport, energy, tourism, fisheries, agriculture , public health, environment and disaster management, 
counter terrorism and transnational crime, povert y reduction, culture, and people-to-people contact, 
each with a designated lead country.  Among them, Th ailand has the lead in fisheries, public health, 
and people-to-people contact. 
167. For promoting trade and investment in this  region, a framework agreement on BIMSTEC 
FTA was signed on 8 February 2004, providing for the progressive establishment of a free-trade area between July 2006 and June 2015, as well as the launc hing of negotiations for the elimination of 
discrimination and liberalization of trade in servic es in line with the WTO provisions.  The framework 
covers Trade in Goods, Trade in Services, Invest ment and Economic Cooperati on, and it is scheduled 
to be fully implemented by 2012. 
(e) Asia Cooperation Dialogue (ACD) 
168. The Asia Cooperation Dialogue (ACD) aims to tap into Asia's strengths to enhance the 
competitiveness of member countries and maximize the complementarities of their diverse and rich resources.  The ACD is a top-down process, intended to foster closer dialogue among Asian Foreign Ministers and cooperation on development issues.  The forum also aims to add value to country 
efforts and serve as a "missing link" to bring toge ther existing sub-regional and regional cooperative 
mechanisms in Asia.  Its core guiding principl es are positive thinking, informality, voluntarism, 
non-institutionalization, openness, diversity, and the comfort level of member countries. 
169. The ACD was established in 2002 with 18 memb er countries.  Now entering into its 6
th year, 
the forum has expanded to include 30 member count ries, representing every geographical sub-region 
of the continent:  north, east, south, west, and ce ntral Asia.  It has made steady progress along 
two major dimensions:  cooperation and dialogue.  
170. On the cooperation front, the ACD focuses on technical cooperation in various areas.  Some 
member countries volunteer to serve as prime a nd co-prime movers in areas where they have 
expertise;  others participate in areas of interest by sharing their best practices.  There are currently 19 areas of cooperation:  agriculture, standard s, biotechnology, e-commerce, e-education, 
environmental education, energy, financial cooperation, human res ource development, infrastructure WT/TPR/G/191 Trade Policy Review 
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funding, IT development, natural disaster manageme nt, poverty alleviation, road safety, science and 
technology, SME cooperation, strengthening legal in frastructure, tourism and transport linkages.  
171. On the dialogue dimension, ACD Ministers meet  twice annually, once at the ACD Ministerial 
Meeting to discuss ACD developments, issues of re gional cooperation and ways to enhance Asian 
solidarity.  The ACD Foreign Ministers also m eet once again on the sidelines of the UN General 
Assembly in New York in September to update one another on the progress of ACD cooperation 
projects and to discuss international issues of mutual  concern.  Member countries have taken turns 
hosting the past six annual Ministerial Meetings.  The 6th ACD Ministerial Meeting was hosted by 
South Korea in Seoul on 4-5 June 2007.  Kazakhstan and Sri Lanka will host the 7th and 8th ACD 
Ministerial Meetings in 2008 and 2009, respectively.  
(f) Ayeyawady-Chao Phraya-Mekong Econom ic Cooperation Strategy (ACMECS) 
172. The aim of ACMECS, a forum initiated by Tha iland in 2003, is to help narrow the economic 
gaps between Thailand and its neighbouring countri es of Cambodia, Lao PDR, Myanmar and, to a 
lesser extent, Viet Nam.  ACMECS seeks to build  upon existing regional co operation programs and 
complement bilateral frameworks wherever possible.  The key ar eas of cooperation under ACMECS 
are trade and investment facilita tion, transport linkages, agriculture, industry and energy, public 
health, tourism and human resource development. 
173. ACMECS also supports 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 welcomes the participation of development partners from outsi de the region in its development 
assistance projects. 
174. The ACMECS Foreign Ministers' Meeting, he ld in Mandalay, Myanmar, in May 2007, 
provided an overview of the significant progress in ke y areas of cooperation.  The Meeting agreed to 
expedite the following key ACMECS activities;  (1 ) the signing of the Memoranda of Understanding 
on contract farming;  (2) the establishment of more one-stop-service centers along the East-West Economic Corridor;  (3) the exploration of Cambodia's proposal on an association of rice producing 
countries;  (4) the development of Jatropha planta tion and Bio Fuel production in ACMECS Region;  
(5) the development of infrastructure support for transport linkages among ACMECS member countries;  and (6) the ACMECS Single Visa pilot project between Thailand and Cambodia. 
175. Thailand's effort to increase its assistance to other developing countries is also implemented 
through ACMECS.  Together with its efforts in other frameworks, Thailand, as cited in the 2003 
UNDP Global Partnership Report, allocated 0.12% of its GDP to the Official Development Assistance 
(ODA), compared with OECD countries such as the UK (0.12%), Germany (0.10%), France (0.17%) 
and the United States (0.04%). 
(g) Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) 
176. Established in 1993, the Indonesia-Malaysia -Thailand Growth Triangle (IMT-GT) seeks to 
promote sub-regional cooperation to drive growth and development in the geographical triangle that 
encompasses southern Thailand, northern Malaysia  and Sumatra Island of Indonesia.  The main 
objective of IMT-GT is to provide economic and social support by encouraging joint usage of 
resources with the hope that efficient utiliza tion of resources to achieve maximum production 
capacity, greater technology transfer, and better li nkage of basic infrastructure will help reduce 
transportation costs and increase comp etitiveness in the world market. Thailand WT/TPR/G/191 
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177. As a consequence, the focus has been on trade and investment, technology transfer, 
production cooperation, use of natu ral resources, development of infrastructure and transportation 
linkages in the triangle area, together with enhan ced involvement of the private sector.  Currently, 
there are ten major areas of cooperation:  (1) land transport and maritime transport, (2) energy, (3) 
agriculture and fisheries, (4) industry, (5) touris m, (6) trade (7) investment and finance (8) human 
resources development and labour mobility (9) air tran sport, and (10) telecommunications.  Thailand 
is the lead country for Halal Product & Services and tourism. 
178. The future work of IMT-GT will concentrate on promoting trade and investment, identifying 
common areas for joint development and exploring ways to establish a system for making payments 
that would reduce reliance in the U.S. dollar amongst the three countries.  
(h) Greater Mekong Subregion (GMS) 
179. Another instance of economic linkages and cooperation illustrating Thailand's close 
relationship with neighbouring countries is the Greater Mekong Subregion (GMS), which was 
founded in 1991.  Along with the other five memb ers, Cambodia, China (Yunnan Province and Guang 
Xi Zhuang Autonomous Region), Myanmar, Lao PD R, and Viet Nam, Thailand shares the GMS 
vision on sustainable development and poverty reduction, as well as the goal of the GMS becoming a 
competitive and more globally integrated sub-region.   
180. The Asian Development Bank (ADB ) has provided technical assistance on the nine areas of:  
agriculture transportation, energy, telecommuni cations, human resource development, tourism, 
environment, trade facilitation, and investment.  The work program has centered on linking the 
sub-region through transport networks such as the East-West Economic Corridor Development 
project, facilitating movement of goods and pe ople by implementing the GMS Cross Border 
Transport Agreement (CBTA) by 2008, marketing the GMS countries as a single tourism destination, 
and improving infrastructure in particular for energy  and telecommunications.  By 2003 an action plan 
on trade and investment facilitation was formulated , which has also supported the ASEAN-China Free 
Trade Area and ASEAN trade liberalization.10  GMS also instigates Phnom Penh Plan for 
Development Management (PPP) as a capacity building initiative.  The 3rd GMS Summit is to be held 
in March 2008 in Vientiane, Lao PDR.  
(i) Forum for East Asia – Latin America Cooperation (FEALAC) 
181. Thailand plays an active role in FEALAC11, which has been a significant and meaningful 
forum for promoting closer cooperation between East Asia and Latin America.  As Co-chair for the 
East Asia of the Science and Technology Working Group12, Thailand hosted the 4th meeting of the 
Working Group and the FEALAC Inter-regiona l Workshop on Clean Fuels and Vehicle 
Technologies:  the Role of Science and Innova tion during 28-30 June 2006 in Bangkok.  The 
Workshop was successful in reinforcing partners hip between the two regions through sharing of 
knowledge and experiences in alternative energy. 
                                                      
10 Making it Happen:  A Common Strategy on Cooperation for Growth, Equity and Prosperity in the 
Greater Mekong Region, Joint GMS Summit Declaration, Phnom Penh, 3 November 2002 . 
11 FEALAC comprises the following 32 countries:  10 ASEAN members, China, Japan, South Korea, 
Australia, New Zealand, Argentina, Brazil, Bolivia , Colombia, Chile, Ecuador, Mexico, Paraguay, Peru, 
Panama, El Salvador, Costa Rica, Cuba, Uru guay, Venezuela, Nicaragua, and Guatemala. 
12 There are 3 Working Groups:  (1) Politics, Cultu re, and Education co-chaired by Singapore and 
Colombia, (2) Economy and Society, co-chaired by Japan and Argentina, and (3) Science, and Technology, co-chaired by Costa Rica and Thailand. WT/TPR/G/191 Trade Policy Review 
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182. Thailand also hosted several cooperative proj ects under the Economy and Society Working 
Group and the Political, Cultural and Education Wo rking Group which includes training courses on 
poverty reduction, tourism and hotel management , narcotic drugs control as well as Buakaew 
Roundtable International for Foreign Officials.  Th ailand also has actively participated in projects 
hosted by other member countries and in discussi ons to promote trade and investment within 
FEALAC, such as the establishment of FEALAC Business Council and the promotion of small and medium enterprises (SMEs).
 
(j) Free Trade Agreements 
183. While the multilateral trading system remains a priority for Thailand, regional cooperation is 
at the same time seen as an important instrument  in complementing strengths and cushioning regional 
economies from external shocks.  Thailand views th at free trade agreements are one of the stepping 
stones towards free trade at the multilateral level as they allow gradual increases in market access for 
FTA partners, while granting domestic industries time  to adjust to progressively liberalized exposure 
to global competition.  
184. Thailand has taken a proactive approach in st rengthening trade ties with its major trading 
partners.  Not only has Thailand engaged in bilate ral negotiations, it has also taken part in the 
negotiations of FTAs between ASEAN and some dialogue partners such as ASEAN-Japan, 
ASEAN-China, ASEAN-Korea, ASEAN-Australia and Ne w Zealand.  On the bilateral front, Thailand 
is now in the process of negotiations with Peru a nd India, while negotiations with the United States 
and the European Free Trade Association (EFTA) have  been on hold due to political developments in 
Thailand.  Such negotiations are expected to  resume after a new government is elected. 
(k) Bilateral arrangements 
185. Thailand and Australia signed the Thailand-Au stralia Free Trade Agreement (TAFTA), on 
5 July 2004 which entered into force on 1 January 2005.   It will lead to the complete elimination of 
Thailand's tariffs across all sectors by 2025.  Th e agreement also improves the environment for 
bilateral services, investment and business mobility. 
186. The Thailand and New Zealand Closer Econom ic Partnership Agreement was signed on 
19 April 2005 and became effective on 1 July 200 5.  The initial tariff elimination took place upon 
implementation of the agreement and the second r ound followed on 1 January 2006.  Subsequent 
tariff reductions are to be applied on 1 January each year with the remaining tariffs and quotas 
removed in 2025. 
187. A comprehensive Japan-Thailand Economic Pa rtnership Agreement (JTEPA) was signed in 
Tokyo on 3 April 2007, covering trade in goods and trade in services, as well as investment.  The agreement is expected to become effective on 1 Octo ber 2007.  More than 90% of total tariff lines will 
be subjected to tariff reduction/elimination or tariff quota, accounting to more than 95% of 2005 
import value from the other party.  Additions to or improvements in WTO commitments of the other 
party are also given to some services sectors.  
188. Thailand and Peru have been negotiating a free trade agreement since 2004.  The protocol on 
the Acceleration of Liberalization on Trade in Goods and Trade Facilitation, known as the Early 
Harvest Program, was signed in November 2005, foll owed by the Additional Protocol on the Rules of 
Origin, signed in November 2006.  The Early Harvest Program is expected to be effective not earlier 
than December 2007, while the negotiations on the existing issues are still underway. Thailand WT/TPR/G/191 
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Regional arrangements 
189. Through ASEAN, Thailand is actively pursuing regional trade liberalization.  ASEAN 
together with China, Japan and the Republic of Korea (or ASEAN+3) agreed in November 2002 to 
explore a possibility to establish an East Asia Free Trade Area (EAFTA).  To conduct a feasibility 
study on EAFTA, a Joint Expert Group for Feasibility Study on EAFTA (JEG) was established in 
2004 and finished the report called "Towards and Ea st Asia FTA:  Modality and Roadmap" in 2006.  
Phase II study of EAFTA involving an in-depth sector-b y-sector analysis of the EAFTA has also been 
proposed so as to examine concrete elements of an EAFTA such as market access for goods, services, 
investment, and rules of origin, etc.   
190. During the 2nd East Asia Summit (EAS) in Cebu, Philippines, on 15 January 2007, the leaders 
of ASEAN member countries and Australia, China, India, Japan, Republic of Korea and New Zealand 
exchanged views that economic integration in East Asia had increased in im portance.  As a result, 
they agreed to launch a Track Two study on Comp rehensive Economic Partne rship in East Asia 
(CEPEA).  To explore possible frameworks for ec onomic integration in East Asia, the Track 
Two Study shall focus on academic analysis and usef ul input from the business side, but can also take 
into account inputs from the report of the Joint Study Group on EAFTA.  In addition, the Track 
Two Study Group will focus on analyzing specific economic linkages of East Asia, including 
Australia, India and New Zealand and deepen its discussion by paying more attention to the views of business. 
191. For ASEAN-Japan, at the ASE AN-Japan Summit in Cambodia in  November 2002, leaders of 
ASEAN countries and Japan decided to develop a frame work that would provide a basis for concrete 
plans towards realizing an ASEAN-Japan Comprehens ive Economic Partnership within ten years.  In 
2003, ASEAN and Japan Leaders signed the Fr amework for ASEAN-Japan Comprehensive 
Economic Partnership.  Both sides expect to conclude the negotiations within 2007. 
192. The Framework Agreement on Comprehens ive Economic Cooperation providing for the 
ASEAN-China Free Trade Area (A CFTA) was signed in November 2002.  The negotiations on 
modalities for tariff reduction/elimination schedul es and Trade in Goods and Dispute Settlement 
Mechanism Agreements were concluded in October 2004.  Later, in December of the same year, 
ASEAN and China signed the Agreement on Trade in  Goods under ACFTA, r esulting in elimination 
of most tariffs by 2010 for ASEAN-6, and by 20 15 for ASEAN-4.  Tariffs on the normal track, 
covering approximately 90% of tota l products, have been reduced since 1 July 2005.  Furthermore, in 
January 2007 ASEAN and China signed a Framew ork Agreement on Trade in Services, which is 
GATS-consistent and goes beyond the parties' WTO commitments, and which became effective in 
July 2007.   
193. The leaders of ASEAN member countries and th e Republic of Korea agreed to sign the 
Framework Agreement on Comprehensive Economic  Cooperation between ASEAN and Korea with 
an aim to establish an ASEAN- Korea Free Trade Area on 13 December 2005.  The Agreement on 
Trade in Goods was signed by ASEAN member countries (except Thailand) and Korea in 
August 2006.  Currently, ASEAN and Korea are nego tiating on the Agreement on Trade in Services 
and Investment, which is expected  to be concluded within 2007. 
194. In addition, ASEAN is presently negotiating a free trade agreement with Australia and 
New Zealand.  Negotiations of the ASEAN-Australia and New Zealand Free Trade Area are 
scheduled to conclude by the end of 2007 w ith the agreement becoming effective in 2008. WT/TPR/G/191 Trade Policy Review 
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(l) Financial and technical cooperation 
195. Thailand has pursued development cooperation w ith other developing countries.  Cooperation 
is designed to respond to the needs of the partner countries while taking into account the expertise and 
capacity of Thailand.  Areas of cooperation includ e human resource development in the agriculture, 
education and health sectors.  Priority is given, but not limited, to providing technical assistance to 
neighbouring countries of Cambodia, Lao PDR, Myanma r and Viet Nam.  Assistance is also extended 
to developing countries in other regions, such as South Asia and Africa.  In addition, Thailand has 
cooperated with various developm ent partners in implementing technical assistance programs under 
bilateral and multilateral frameworks. 
196. An example of Thailand's technical assistance fo r developing countries in the areas of trade, 
services and investment is the Annual Intern ational Training Course (AITC) on "Managing a 
Competitive Export Business".  Another example, orga nized in 2004 by the International Institute for 
Trade and Development (ITD) and the World Trade Organization (WTO), was the Intensive Workshop on "Trade Negotiation Skills" for 30 participants from Asian countries, including 
Lao PDR, Cambodia, Viet Nam, Indonesia and the Philippines.  The workshop was co-financed by 
the Canadian International Development Agen cy (ClDA), through the Thailand International 
Development Agency (TICA), Ministry of Fore ign Affairs, and the Department of Trade 
Negotiations, Ministry of Commerce.   
197. Moreover, since 1999, Thailand has provided fina ncial and technical assistance to the new 
CLMV ASEAN member countries (Cambodia, La os, Myanmar, and Viet Nam) under the 
"Cooperation Program for New Member Countries on ASEAN Regional Integration:  AFTA, AIA 
and Facilitation in Transport", with the aim of assis ting CLMV countries to be able to implement their 
commitments in ASEAN, to reduce the devel opment gap between ASEAN-6 and CLMV, and to 
promote economic integration in ASEAN.  The technical assistance provided under this program 
includes training courses in various areas, such as harmonization of standards under AFTA, CEPT/AFTA implementation, origin certification and Form D issuing procedure, the WTO Customs 
Valuation Agreement, business registration, computer  management, collection of statistics and data 
management, road transport, port management a nd operation, etc.  Furthermore, Thailand has 
provided technical assistance to assist new ASEA N countries through the process for accession to the 
WTO and to better understand the current st atus of the Doha Development Agenda. 
VI. FUTURE ECONOMIC AND TRADE POLICY DIRECTIONS 
198. Thailand's economic policy will remain open to  foreign investors and partners.  With 
enhanced confidence of investors, manufacturers and tourists, the Thai economy is expected to 
achieve a more balanced growth performance afte r the general election at the end of 2007.  
199. In line with its domestic economic policy, Tha iland will also strongly support international 
trade, with the aim of ensuring sustainable economic  growth.  To charter the future course of trade 
policy direction, Thailand will maintain its steadfast  principles of supporting free and fair trade.  An 
economic liberalization policy that incorporates the gradual introduction of changes through 
progressive liberalization will continue to be the Gove rnment's core strategy.  Thailand will continue 
to promote bilateral and multilateral arrangements, both regional and global, to achieve market access 
and boost exports for goods and services. 
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