WORLD TRADE  
ORGANIZATION   
WT/TPR/M/255 
30 January 2012 
 (12-0556) 
Trade Policy Review Body 
28 and 30 November 2011  
 
 
 
TRADE POLICY REVIEW 
 
THAILAND 
 
Record of the Meeting 
 
Chairperson:  H.E. Mr. Mario Matus (Chile) 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE RE PRESENTATIVE OF THAILAND 5 
III. STATEMENT BY THE DISCUSSANT 12 
IV. STATEMENTS BY MEMBERS 15 V. REPLIES BY THE REPRESENTATIVE OF THAILAND AND ADDITIONAL 
 COMMENTS  37 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 41 
 
Note:   Advance written questions by WTO Me mbers and the replies provided by Thailand are 
reproduced in document WT/TPR/M/255/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/255 
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  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The sixth Trade Policy Review of Thaila nd was held on 28 and 30 November 2011.  
The Chairperson H.E. Mr. Mario Matus (Chile) we lcomed the delegation of Thailand headed by 
Ms. Srirat Rastapana, Director-General of the Depa rtment of Trade Negotiations of the Ministry of 
Commerce, as head of the delegation of Thailand, and the discussant, Ms. Trudy Witbreuk 
(Australia).   
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The report by Thailand was contained in document WT/TPR/G/255 
and that of the WTO Secretariat in WT/TPR/S/255. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delegation of Thailand:  ASEAN;  Brazil; Mexico;  Korea; 
Australia;  Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu;  Hong Kong, China;  
Chile;  Canada;  China; European Union;  Norway; Si ngapore;  Indonesia; Korea;  Japan;  India;  and 
the United States.  The following delegations submitted add itional written questions after the two-
weeks deadline:  New Zealand;  Co lombia;  Peru;  and Argentina. 
4. The Chairperson noted that he had considered  the reports prepared for this meeting by 
Thailand and the Secretariat and it was clear that  Thailand was, in many ways, a success story and 
trade had played a major role in this success.  Of course, not everything was perfect but overall 
Thailand continued to have an open economy where international trade moved relatively freely and, 
despite global financial problems and internal politi cal events, economic growth had been impressive.  
With low growth in some traditional markets for Th ailand's exports there had been significant changes 
to the pattern of trade as Asian markets had been growing more quickly and China was now 
Thailand's main trading partner.  He would be inter ested to hear to what extent Thailand's policy of 
export-led growth could continue and if it inte nded to put more emphasis on domestic demand. 
5. In reading the reports by the Government and the Secretariat, he noted that Thailand had 
taken several steps over the past few years to liberalize trade and investment both directly and 
indirectly.  He noted that delegations were interest ed in how the adoption of the e-customs system had 
facilitated compliance with import procedures and how  the move, in the near future, to a single-
window service would make compliance more straightforw ard.  It was also interesting to note that the 
liberalization of services had increased foreign participation, and competition, in banking and 
telecoms with benefits to consumers. 
6. He noted that, as he said before, not everything was perfect and there were some areas where 
he was sure delegations would like to comment: 
 - The complicated tariff structure  with various ad valorem  tariffs, specific duties, and 
alternate rates along with a large number of unbound tariffs; 
 - The  complicated systems of internal taxes  from excise duties to corporate taxes along 
with exemptions and tax-based incentives that make the process of paying taxes 
expensive and time-consuming; 
 - The  widespread use of price controls  of varying kinds for a wide variety of products 
which can distort markets and delay structural change; 
 - Some  issues concerning intellectual property  and efforts to tackle abuses in Thailand; WT/TPR/M/255 
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   - Agriculture policies , particularly prices for rice - although the damage caused by the 
recent flooding may be of more concern to prod ucers, millers and the Government at this 
moment; and  
 - Implementation of the Financial Services Master Plan , Phase II of which started in 
2010 and is intended to improve access to finan ce and regulation of the financial system.  WT/TPR/M/255 
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  II. OPENING STATEMENT BY THE RE PRESENTATIVE OF THAILAND 
7. Before I proceed, please allow me, on behalf of  the Thai people, to express our heart-felt 
gratitude for all the support exte nded to Thailand at this difficult time. As you all may know, the 
newly elected government took office in late Augus t and has met immediate challenges of Thailand's 
worst flooding in 70 years, indeed the most challengi ng natural disaster to date.  Almost a third of the 
country is under water.  The flood-related death to ll has climbed to 615.  Key industrial estates 
employing over half a million workers have been inundated.  Over 4 million acres of farm land have 
been affected which accounts for 33% of the paddy fields.  The damage from the disaster has been 
estimated by the Office of National Economic an d Social Development Board to exceed US$8.1 
billion or 2.32% of the GDP. The situation has b een improving as the government has been able to 
contain the flood water, and many parts of the city returning to normalcy. 
8. Throughout the recent months, we have recei ved strong support and warm encouragement 
from many countries, international organizations, non-governmental organizations and others. In 
return, we reaffirm our commitment to rigo rously pursue our rebuilding as well as economic 
restructuring based on people-centered developm ent through a comprehensive, multi-billion dollar 
relief and recovery plan and package (RRPP), a nd we remain steadfast in our international 
commitments and contributions, as we have done, for the development of the world. 
9. Please allow me to proceed on the essence of this  TPR meeting. As I have mentioned earlier, 
Thailand has received 412 questions from 20 WTO Members. We will, to the best of our abilities, try to answer all of them within the required timeframe . The first set has been circulated today with the 
second set to be followed on Wednesday. I hope our  answers, in conjunction with this meeting, 
contribute positively to a better understanding of Th ailand's economic and trade policies, based on the 
materials prepared by the Secretariat and the Thai Government. 
10. In today's session, I will highlight some of Th ailand's trade-related de velopments and policies 
for the coming years. These demonstrate our contin ued commitment to the multilateral trading system 
and to progressive liberalization.  My presentation this morning will be divi ded into four parts: 
(1) Thailand's economic environment; (2) macroeconomic and structural policies; (3) trade and trade-
related policy developments; a nd (4) regional trade arrangements and economic cooperation.  
ECONOMIC ENVIRONMENT 
11. Since Thailand's previous trade policy review in 2007, the Thai economy has thriven through 
challenges and crises and expanded moderately at the annual rate of 3.22%. Overall, Thailand's 
macroeconomic fundamentals have always been  strong. Despite some unexpected political 
developments and external uncertainties, the ec onomy has performed well as a result of significant 
growth in investment as well as strong domestic a nd external demands, in particular from private 
consumption which continues to grow following higher income and low unemployment rate. 
12. To be more specific, in 2007, the Thai ec onomy expanded by 5.0% with export sector as the 
major driving force. The economic growth in 2008 grew  at a slower pace by 2.5%, in large part, due 
to the global economic slowdown coupled with internal  political events in Thailand. The global crisis 
adversely affected the Thai economy severely in 2009 , reflected by a contraction of 2.3% in growth.  
However, due to an open trade liberalization from the second half of 2009, the economy showed signs 
of recovery following the world economic rec overy as well as our accommodative monetary and 
fiscal policies.  In 2010, the economy grew ma rkedly by 7.8%, despite facing global economic 
uncertainties, internal political events, and natural disasters. 
13. In 2010, a surplus in trade balance slight ly declined from US$19.39 billion in 2009 to 
US$14.08 billion in 2010 as import growth outpaced that of exports. Specifically, even though Thai WT/TPR/M/255 
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  exports recovered rapidly after th e world financial crisis, there also was a high import demand for 
both domestic consumption and investment. Exports in  goods expanded significantly in 2010, register 
at US$193.66 billion, the expansion of 28.5% fro m 2009. Solid growth rates were well observed 
across major product categories namely, agricultura l products (36.2%), manufacturing (27.8%), and 
others (30.9%). 
14. Strong demand from Asia and several em erging economies boosted exports of both 
agricultural and non-agricultural products. Agricu ltural products, such as r ubber and rubber products, 
and prepared food, benefited from strong demand  in Asia and high prices as a result of supply 
shortages in other major producing countries. While non-agricultural products, especially vehicles, parts and accessories, electrical appliances, electronic products including computers and parts, 
integrated circuits and parts, plastics, petrol eum products, chemical products, precious stones and 
jewellery rose significantly. 
15. While Japan, the U.S., the EU, and ASEAN re mained major export markets for Thailand, 
China became our largest export market in 2010.  Exports to the traditional markets such as G3 
remained unchanged from the pre-crisis level. Howe ver, a strong economic development of emerging 
countries, along with intra-regional trade development in Asia enhanced exports to the new markets, 
led by China and ASEAN, which grew as high as 30.4% from the previous year. 
16. In 2010 Thailand imports grew by 36.7% fro m 2009, totalling US$179.57 billion. Imports of 
raw materials and intermediate  products grew by 41.8% and cap ital goods by 26.6% reflecting 
investment and production growth. An increase in impor ts of fuel and lubricants by 26.6% as well as a 
rise in import of consumer goods by 26.2% indicat ed higher imports for domestic consumption and a 
stronger consumers' confidence. The country's ma jor import markets are Japan, ASEAN, China, EU, 
and the U.S. 
17. The balance of trade in services in 2010 regist ered a surplus of US$6.5 billion, increasing 
from a surplus of US$5.5 billion during the previous year. This was due mainly to tourism revenue 
growth.  As for imports of services, imports value grew at the rate of 12.6%, from US$24.4 billion in 
2009 to US$27.5 billion in 2010.  The major sources of  imported services in 2010 were transportation, 
travel, and charges for the use of intellectual pr operty which accounted for 51.7% of total imports.  
18. In the first nine months of this year, the Thai  economy grew by 3.1%.  While the third quarter 
of 2011, the economy expanded by 3.5%, up from a 2.7% growth in the preceding quarter.  The main 
driving factors of this quarter's growth incl uded the manufacturing sector that rebounded from the 
shortage of raw material resulting from the Tsuna mi in Japan, as well as positive contributions from 
exports, tourism sector, private investment and in creased domestic and global demand.  Furthermore, 
the employment remained strong. 
19. Unfortunately, the severe flooding situation that occurred since the end of the third quarter 
has affected production in many sectors, especially  the automotive and electronics industries, supply 
chains of major industries in other countries were also interrupted.  Moreover, the effect of the 
disaster has spread to our key service sector, especially tourism. 
20. Inflationary pressures continued to build up in the first half of 2011.  As core inflation surged 
in tandem with prices of prepared food and construc tion materials, headline inflation edged up in line 
with soaring fresh food prices owing to natural di sasters and high energy prices due to both global 
demand growth and political unrests in the Middle East and North Africa.  Taking into account the risk of financial imbalances in the economy resulted from the long-period accommodative policy 
interest rate and rising inflationary pressure, the Monetary Policy Committee (MPC) increased the 
policy interest rate four times in the first half of  2011, totalling 1.0 percentage point from 2.0 to 3.0 as 
of 1 June 2011.  WT/TPR/M/255 
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  21. As a result of the floods, Thai economy is expect ed to grow by 1.5% after taking into account 
a decline of 1.8-2.2% estimated impact of the floods  to our GDP.  In addition, export is expected to 
expand by 17.2%, while consumption and investment  are forecasted to grow by 2.5% and 4.7% 
respectively.  Headline inflation is expected to st and at 3.8%, with an unemployment rate of 0.7%.  
Current account surplus is expected to be equivalent to 2.2% of GDP. 
22. For 2012, the Thai economy growth is forecasted  to expand in the range of 4.5-5.5%, with 
domestic and global demand as the main driving factor s.  Export value is expected to grow by 19%, 
while consumption and investment ar e forecasted to grow by 4.4% and 10.3% respectively.  Headline 
inflation is expected to be in the range of 3.5- 4.0%, with an unemployment rate of 0.7%.  Current 
account surplus is expected to be equivalent to 1.2% of GDP. 
MACROECONOMIC AND STRUCTURAL POLICIES 
23. Under the inflation targeting framework adopt ed since May 2000, monetary policy aims to 
maintain price stability and foster sustainable growth. The Bank of Thailand has put in place a 
framework that meets international-standard b est practice in terms of decision-making process, 
adequacy of instruments and data used in conducting monetary policy, as well as external 
communication to ensure accountability and tr ansparency.  Since January 2011, the MPC has 
provided regular press releases in order to better gui de market expectation on policy direction as well 
as inflation. The Bank of Thailand targets core infl ation, which excludes volatile raw food and energy 
prices, within a range of 0.5-3.0%. 
24. Since the latter half of 2010, the MPC has assessed that gradual normalization of the policy 
interest rate was needed to support the strong economic recovery as a means to anchor inflation 
expectations and minimize the risks of financial imbalances.  The MPC therefore decided to raise the 
policy interest rate from 1.25 to 3.00% per annum at the end of June this year. 
25. Regarding the exchange rate policy, the Thai Government is committed to a flexible market-
determined regime. The Bank of Thailand would in tervene only to contain excessive volatility and to 
limit exchange rate overshooting, thus avoiding di sruptive impacts and the need for costly real 
economic adjustment. To counter the economic sl owdown in 2009, the govern ment has committed to 
an expansionary fiscal policy and Economic Stimul us Packages to enhance domestic demand in fiscal 
year 2009 and 2010. Moreover, the government also applied expansionary fiscal policy in FY 2011 in 
order to stimulate continuous econom ic growth.  Nevertheless, the government strictly adheres to its 
framework for maintaining fiscal stab ility. The framework, designed to k eep the ratio of public debt to 
GDP at less than 60% and the ratio of debt service to the budget at less than 15%, has been 
implemented as a fiscal policy guideline. 
26. Thailand recognizes that the global trading system  has evolved on liberalization path and the 
economies of individual countries are increasingly integr ated.  To chart the future direction for trade 
policy, Thailand firmly supports free and fair trade that gradually adapts to changes and progressive 
liberalization.  One implication of pursuing a liberal  policy, from a development perspective, is that 
there is a need to strengthen the competitiveness and efficiency of domestic industries to be able to 
compete in the rapidly-changing trading enviro nment and be able to prosper amid increasing 
competition.  In addition, Thailand also aims  to promote transparency and good governance by 
closing loopholes and strengthening the enforcement of the existing laws. 
27. For the WTO Doha Round, Thailand is ready to participate and cooperate actively with all 
Members to advance the DDA and bring the Round to  a successful conclusion.  Our main aim is to 
strengthen the multilateral trading system based on fa ir and equitable trading rules. In terms of 
regional engagement, Thailand, as an ASEAN member, has continuously played a constructive role in WT/TPR/M/255 
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  supporting the intra ASEAN integration as well as ASEAN's global economic integration for 
equitable development and sustaina ble prosperity of the region.  
28. With regard to investment, the Government is  committed to improving the overall investment 
environment.  Thailand, through the Board of In vestment, promotes investme nt in industrial and 
services sectors, namely agro-business;  mining, ceramics, light industry, metal products, machinery 
and transport equipment;  electronic industry and elect rical appliances;  chemicals, paper and plastics;  
and services and public utilities.  FDI is recognized  as a means to generate employment, economic 
growth, skills and technology transfer.   
29. The Thai Government has attached importance to  Public Private Partnerships as a means of 
alternative financial resources for investment as well  as to increase efficiencies within various sectors. 
It is anticipated that the country will require si gnificant investment in energy and transportation 
sectors, particularly in mass transit system in Bangkok as well as other urban areas. 
TRADE AND TRADE-RELATED POLICY DEVELOPMENTS 
30. Thailand is a member of the Harmonized Sy stem Convention and currently applied 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 countries and from any other countries. Under the 8-digit classification, Thailand has 8,300 na tional tariff lines, corresponding to the AHTN 
classification. 
31. Thailand's tariff rates are divided into five cate gories: statutory rate, general rate (i.e. the 
applied rate), WTO bound rate, WT O applied rate, and preferential rate. For WTO Members, if the 
WTO bound rate is higher than the general applied rate, the latter w ill be applied.  A more detailed 
explanation can be found in our Gove rnment Report.  Customs duties are levied on either a specific or 
an ad valorem  basis, whichever is the higher. The value of imports is based on their c.i.f. prices. 
Customs tariffs at present range between 0-80% with average rate at 11.17%. 
32. In accordance with the government policy to lib eralize trade and minimize trade distortion, 
most products can be freely imported into or e xported from Thailand. Only some goods might be 
subject to prior approval requirements on grounds  such as public health, economic stability, national 
security, and protection of public morals. 
33. Computerized systems have been installed and continuously improved to support a wide 
range of the Thai Customs operations. The Thai Customs Department has provided the e-customs 
paperless services nationwide since 2008. These services include e-import, e-export, e-payment, 
e-manifest services, and the National Single Window  System. Since Thailand's last TPR, the Customs 
Department has introduced clear customs appeal procedures which covers a variety of customer-related areas, including valuation, tariff classifica tion, amount of duty payable, origins of goods, and 
quantity of imported goods. All cust oms-related laws and regulati ons, as well as important customs 
information, are publicly available on the website (www.customs.go.th).  
34. Regarding contingency measures, since 2007, Thailand has initiated 11 new anti-dumping 
cases. Thailand has never resorted to CVD m easures, and has only once imposed a safeguard 
measure.  Such measures are imposed in accord ance with the Agreement on Implementation of 
Article VI of the GATT 1994.  In addition, Tha iland has consistently s ubmitted semi-annual reports 
on its contingency measures as required by the relevant WTO Agreements.   
35. During 2008-10, the agricultural sector accounted for 8.8%, 9.2%, and a pproximately 8.5% of 
GDP, respectively. In the first half of 2010, Thailand faced severe drought, whereas there were  WT/TPR/M/255 
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  widespread floods throughout the country in the sec ond half of the year. These floods devastated vast 
farming areas, especially rice paddy, cassava, su garcane, and oil palm.  Agricultural policies 
implemented during 2009-2010 concentrated on th e Economic Rehabilitation Policy on Agricultural 
Sector which consists of three major strategies: (1) strengthening farmers and farmers' organization 
(2) production development and (3) infrastructure development. 
36. Presently, the government pursues industrial development through three principle policies, 
namely, internationalized industrial structure and cl usters to capture global opportunities; upgrade and 
create sustainable entrepreneur; and enhancing competitive industry platform. 
37. I would like to highlight key developments in some infrastructure services, namely, financial, 
transport, telecommunications and tourism.  On fi nancial services, all three segments (i.e. banking, 
insurance and securities), are undergoing regulatory a nd supervisory reforms, the implementation of 
which, have further strengthened the stability and efficiency of the Thai financial sector. These 
include, the implementation of the Financial Sect or Master Plan Phase II (FSMP Phase II), the 
enactment of Financial Institutions Businesses Act B. E. 2551 (2008), the amendment of the Securities 
and Exchange Act (SEA No. 4), the Capital Market  Development Master Plan 2010-2014 (the Master 
Plan). 
38. Thailand attaches importance to the capital markets to better serve capital mobilization and 
investment. Therefore, in recent years the aut horities have focused efforts on promoting good 
corporate governance of listed companies, raisi ng standards of securities regulation for the Thai 
capital market to be on par with international best  practices, and developing new products and market 
infrastructure to enhance the entry by participants, both local and overseas. 
39. In preparation for the creation of the ASEAN Economic Community in 2015, the Securities 
and Exchange Commission (SEC) as the chair of  the ASEAN Capital Markets Forum (ACMF), has 
played leading role in ASEAN work process to wards establishing an integrated ASEAN capital 
market by 2015. 
40. On the insurance front, Thailand is in the second stage of a three-stage liberalization plan. The 
market has been opened to international competition and is supervised by the Office of Insurance 
Commission which is an independent regulatory agency. 
41. With regard to transport services, in line w ith the Tenth Economic and Social Development 
Plan covering 2007 to 2011, which aims to enhan ce transport infrastructure development and logistics 
management by promoting the use of cost-effectiv e and energy-saving modes of transport, Thailand 
continues to implement an open policy on air tran sport by allowing Thai private-owned airlines to 
provide air services on the same routes operated by th e national carrier. Limitations and restrictions 
imposed on foreign airlines, involving the capacity and frequency as well as route schedule and traffic rights, are gradually being relaxed. Moreover, forei gn airlines are encouraged to operate extra flights 
to every custom airport in Thailand. 
42. On telecommunications , Thailand's telecommunications sector has been under reform since 
the previous review and some significant progress has been made in order to respond to the increased 
demand for technology-advanced telecommunications services and the need for better administrative 
efficiency and regulation in this area. 
43. In recent years, the NTC has undertaken to pr omote the telecom sector by improving rules 
and regulations concerning the development of the telecom industry. Many rules and regulations were 
also issued by NTC to foster free and fair comp etition such as the NTC Notification on Measures for 
the Prevention of Monopoly or Unfair Competiti on in the Telecommunications Business (2006) and 
the NTC Notification on Market Definition and Relevant Market (2008). WT/TPR/M/255 
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  44. At present, the National Broadcasting and Te lecommunications Commission (NBTC) is the 
independent regulatory body to oversee the br oadcasting and telecommunications business in 
Thailand pursuant to the provisions of the Act on Organization to Assign Ra dio Frequency and to 
Regulate the Broadcasting and Telecommunications Services B.E.2553 (2010) which became 
effective on 20 December 2010. As a result, th e role of the (NTC) has been repealed. 
45. Last but not least, tourism services. To keep abre ast with the industry's growth and to ensure 
the industry's long-term stability, the Governme nt adopts proactive policy and measures including 
upgrading public roads, telecommunications, waste disposal and the safety standards of public 
facilities. The National Tourism Development Plan  2012-2016 has been established with the aim of 
advancing Thailand's position as a world-class t ourist destination, in line with sustainable 
development policies. 
46. Moving to investment, Thailand's investment regi me is among the most liberal in the region. 
Foreign investment from all countries is welcomed as Thailand recognizes its importance for economic development, employment and technology transfer. The Board of Investment imposes no 
foreign equity restrictions in sectors that are being promoted for FDI. Aside from investment 
incentives, improved investment facilitation and ser vices provided are key to attracting FDI. From 
BOI's statistics, FDI increased by approximately 18% in 2009, leading contributors to the growth in 
FDI were the U.S., India, the EU, and China. 
47. According to the Foreign Business Act B.E. 2542 (1999), foreign particip ation 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. In addition, foreign 
investors are required to obtain necessary permissions from relevant ministries to be able to operate. 
Investors seeking protection under Bilateral Invest ment Treaties to which Thailand is a party are 
required to apply for approval for protection in accordance with the te rms of the treaties, usually in 
the form of a Certificate of Approval for Protection (C.A.P) from the Committee on the Approval for the Protection of Investments between Thailand and Other Countries.  
48. Thailand fully recognizes that a strong and efficient intellectual property system can help 
promote long term growth and ensure Thailand's comp etitiveness in the global market.  To this end, 
the Thai Government has undertaken several measur es to facilitate the development of intellectual 
property system on all aspects including creation, pr otection, commercialization and enforcement of 
intellectual property rights. The creative Economy Po licy was launched in 2009, aiming at developing 
Thailand into a creative industry hub in ASEAN.  A number of IPR related legislation amendments 
and enactments are being carried out.  Public awareness campaigns on IPR have been conducted 
targeting different groups of stakeholders such  as academics and researchers, youth, enforcement 
officers and the general public.  Furthermore, Tha iland has recently become a member of the Patent 
Cooperation Treaty and the Paris Convention for the Pr otection of Industrial Property.  It is also 
working toward the accession to the Madr id Protocol in the near future. 
REGIONAL TRADE ARRANGEMENTS AND ECONOMIC COOPERATION 
49. There is no question that the multilateral tradi ng system remains a priority for Thailand. 
Thailand also supports LDC-related issues such as Aid for Trade, DFQF, LDC Accession, and LDC 
services waiver. At the same time regional cooperation is seen as an important instrument in complementing strengths and cushioning regional economies from external shocks.  Thailand is a 
member to several regional arrangements and/ or economic cooperation such as ASEAN, APEC, 
ASEM, BIMSTEC, ACD, ACMECS, IMG-GT, GMS and FEALAC (Forum for East Asia – Latin 
America Cooperation).  WT/TPR/M/255 
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  50. Thailand views that free trade agreements are the stepping stones towards free trade at the 
multilateral level as they grant gradual increases in  market access for FTA pa rtners, while allowing 
domestic industries time to adjust to progressive ly liberalized exposure to global competition. 
51. Thailand has taken a proactive approach in st rengthening trade ties with its major trading 
partners.  Not only has Thailand enga ged in bilateral cooperation, we ha ve also taken an active part in 
the establishment and implementation of FTAs between  ASEAN and some dialogue partners such as 
ASEAN-Japan, ASEAN-China, ASEAN-Korea, A SEAN-Australia and New Zealand.  On the 
bilateral front, Thailand is now in the process of  FTA negotiations with Peru, India and Chile. 
FUTURE ECONOMIC AND TRADE POLICY DIRECTIONS 
52. Despite the great challenge posed by Thailand's worst floods incident in more than half a 
century, Thailand's commitment to th e goals and policies of economic restructuring, more balanced 
growth and people-centered development remain unch anged.  Thailand will also continue to strongly 
support international trade with the aim of ensuri ng sustainable economic growth. Its economic policy 
will remain open to foreign investors and partners . To further integrate Thailand into the global 
economy, Thailand will maintain its unwavering pr inciples of supporting free and fair trade at 
multilateral, regional, and bila teral levels. Moreover, Thaila nd will continue its efforts on 
strengthening its competitiveness, advancing trading and logistics systems, as well as elevating the 
quality of products to meet internationa l standards to better serve global demands. WT/TPR/M/255 
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  III. STATEMENT BY THE DISCUSSANT (MRS. TRUDY WITBREUK (AUSTRALIA)) 
53. Thailand and Australia have deep  and enduring connections.  In fact, next year marks the 
60
th anniversary of formal diplomatic relations betw een our two countries.  Our relationship has been 
forged through strong people to people relations.  Th ere are many examples of this, for instance, the 
Crown Prince of Thailand studied in Australia.  In trade terms, our shared participation in a number of 
key regional groupings has further built upon and enha nced our bilateral rela tionship, including in 
East Asia Summit, APEC, the ASEAN PMC and the Cairns Group.   
54. Before going much further, it is hard not to mention, with a great deal of concern and 
sympathy, the devastating effects of the floods which Thailand has endured over these past few 
weeks.  The damages caused by this natural disaster are significant with homes of 19% of the 
population damaged and 15% of the main rice crop dest royed.  No doubt this will have an impact on 
the Thai economy for the medium term.  Already,  in recent days, the National Economic and Social 
Development Board revised growth  projection down from 4% to 1.5% for the year as a whole.  
However, we are confident that Thailand will demo nstrate the same resilience it has demonstrated 
over the years in the face of adversities such  as natural disasters and political instability. 
55. Over the past few decades, Thailand's economic  philosophy has been based on its ideal of 
finding a middle path – providing for the well-being of people through development.  The Sufficiency 
Economic Philosophy, approved by the King in 1999, a ttempts to strike a balance in its three core 
components of (i) moderation, (ii) wisdom or insight  and (iii) the need for in-built resilience against 
risks.  Following this philosophy Thailand has made considerable advances in  terms of achieving its 
own development goals to the bene fit of its people.  It is commendable that Thailand has met its 
Millennium Development Goals ahead of time.  It also continues to record  enviable unemployment 
rates of less than 2%. 
56. Thailand maintains a largely open economy.  Th is has made it more resilient - overcoming 
economic challenges such as the Asian Financial Cris is of the late 1990s and more recently the Global 
Financial Crisis - but, of course, susceptible at  times to the risks of external shocks.   
57. Thailand's position in the world is part of its strength.  As a country in the middle of South-
East Asia it and its regional partners are some of the most dynamic economies in the world.  Over the past two decades, we have witn essed a re-orientation of Thailand's trade focus from looking West to 
looking East.  While the U.S. and the EU remain among the largest export destinations for merchandise trade over the period of Review, there has been strong growth in other key markets 
within the Asia Pacific region, including China.   Just as significantly however, Thailand's largest 
import destinations are also within the Asia Paci fic region - a further demonstration of the growing 
interdependence of economies in this region. 
58. Thailand has made regional economic  integration part of its success story.  Thailand is both a 
successful supplier of intermediate and finish ed goods.  The manufacturing sector is a major 
contributor to Thailand's GDP but it is also the largest merchandise export sector in the Thai 
economy, with particular strength in the electronics and automotive sectors.  Thailand is currently the 
world's 12
th largest automotives manufacturer.  While the automotives sector is largely export-
oriented, the government has implemented stimul us package schemes to support the sector and 
domestic consumption.  One recent example, announ ced on 13 September, was the Government's first 
car buyer initiative.  According to media reporting on  the Thailand Ministry of Finance website, there 
appears to be some concerns about elements of th is proposal.  In a similar vein, Members have posed 
questions with regard to investment-related in centives under the Eco cars program which granted, 
inter alia, a reduced excise tax to domestically -produced but not imported cars meeting identical 
environmental and other criteria.  WT/TPR/M/255 
 Page 13 
 
 
  59. A review of Thailand's applied MFN tariff ra tes within the Secretariat's report (26.5% 
agriculture and 9% on non-agricu lture products) would not provide a particularly accurate picture of 
tariffs rates on a large portion of actual trade, give n that Thailand has over the past decade also looked 
to secure bilateral and regional trade agreements, w ith preferential duty free or quota free access, with 
many of its trading partners in the Asia Pacific region.  One feature of the tariff regime identified in 
the Secretariat's Report where there is perhaps room for improvement is in the area of products with 
no bound tariffs, including on a number of agriculture products. 
60. While Thailand is clearly committed to open regi onalism, the complex web, or "Pad Thai" 
effect of regional and bilateral agreements was highlighted in the WTO Secretariat's Report.  The 
Secretariat's Report noted that this could, at times, create some degree of confusion for businesses 
trying to exploit the benefits of such agreements.   
61. Behind the border trade issues are clearly of  increasing relevance to businesses throughout 
South East Asia.  Thailand ranks as number 17 in the World Bank's Ease of Doing Business Report  
and as an APEC member it has contributed in the work  of that organisation to help reduce the costs of 
doing business.  Of course, there is still room fo r improvement.  Simplifying the taxation structures, 
improving customs procedures and trade facilitation will be an important part of Thailand's continuing 
reform efforts.  Thailand is not yet part of  the Kyoto Convention on the Simplification and 
Harmonisation of Customs procedures but expressed its intention to accede to the Revised Kyoto 
Convention.  Adopting further legislative reforms in other areas such as intellectual property and 
copyright – which the Secretariat Report highlights as  not having occurred in this most recent review 
period - would provide a further boost to foreign investor confidence. 
62. In the services sector, post-Asian financial crisis, Thailand undert ook robust prudential and 
regulatory system reforms of its financial service s sector following the unpegging of the Thai baht 
from the U.S. dollar.  Developments since those tu rbulent times following the floating of the baht 
have brought about positive cha nges and a more predictable environment for those doing business.  
The establishment of currency futures markets in Th ailand has allowed exporters to mitigate risks on 
currency fluctuations.  The market share for fo reign banks however, remains at around 20%.   
63. The telecommunications sector reforms have been made, although, according to the 
Secretariat's Report, there have been some delays  in implementing some of these reforms.  Some 
improvements in foreign ownership limits have occurred over the peri od of this current review for 
certain telecommunication license types.  However, these improvements have not yet been captured in 
the Thailand's GATS schedule.   
64. As in many economies, agriculture remains a politically sensitive sector, driven by an 
overarching food security imperative but also partly by the fact that this sector accounts for 34% of all employment.  Thailand is a major producer of several key agricultural products, including rice, cassava, pineapples, mangoes, palm oil, sugar cane and coconuts.   
65. While rice is a thinly traded product generally, Thailand is the world's largest exporter.  Its 
exports constitute one third of worl d exports.  It is unsurprising then  that policy shifts on issues such 
as domestic support to the rice industry can have a significant effect on world prices.  Thailand has 
introduced and altered its price support policies on ri ce on a number of occasions in the past decade.  
Maintaining these levels of support have, in part, c ontributed to the boom/bust cycles in the industry, 
at time causing significant stocks to accumulate.  Given the international markets dependency on Thai 
rice reports, this is perhaps one area where it would be preferable to see some stability maintained in 
policy settings. 
66. In order to fulfil its potential Thailand must conti nue to attract FDI in order to meet some of 
the infrastructure challenges as the country contin ues to grow.  According to Oxford Business WT/TPR/M/255 
Page 14  
 
  Group 2011 Thailand Report, demand for electricity w ill more than double in the next two decades.  
Maintaining water supply also remains a priority for the Government.  This sector attracted some 
US$7.1 billion in stimulus package funding in  2009.  The National Economic and Social 
Development Board has also placed an emphasis on im proving transport systems, given benefits this 
will have on reducing logistics costs for those Th ai manufacturers who are reliant on their access to 
international markets. 
67. In conclusion, it would appear Thailand has b een successful in striking the middle path - 
providing sound economic development wh ile confronting a myriad of internal and external shocks.  
Thailand's commitment to regional ec onomic integration and to trade lib eralisation more generally are 
key ingredients of its success to date.  Thailand has demonstrated over time a strong commitment to 
the multilateral trading system, including the Doha Round of negotiations.  Wh ile Thailand looks to 
develop policies which stimulate further domestic cons umption, like for all of us the challenge will be 
to ensure that these do not distort trade.  Of c ourse, trade and economic policies are not static and 
there is always room for improvement.  For Tha iland, this will require a focus on addressing behind 
the border barriers to trade.  Indeed, some of Th ailand's most significant challenges in the coming 
years will lie here.  WT/TPR/M/255 
 Page 15 
 
 
  IV. STATEMENTS BY MEMBERS 
BRUNEI DARUSSALAM ON BEHALF OF ASEAN 
 
68. Thailand has always played a prominent role within ASEAN, where its policies of openness 
have been integral in reinforcing the region' s efforts towards establishing the ASEAN Economic 
Community, which is the ultimate goal of the regi on's economic integration, allowing for the free 
movement of goods, services and investment by 2015, and building a region fully integrated into the global economy.  
69. The ASEAN region also remains one of the larg est markets for Thailand, absorbing 22% of 
its merchandise exports in 2010, which has increased  following the duty free treatment provided for 
under the ASEAN Free Trade Area.  
70. We are therefore pleased that Thailand's economy  has shown great resilience in light of the 
many challenges faced since its last review and commend Thailand in refraining from the adoption of 
protectionist measures during the global econom ic downturn. Thailand has since undergone a 
remarkable economic recovery, with growth rates at 7.8% for 2010, which is expected to grow by an 
additional 4% this year.  
71. On Thailand's specific trade policies, we note th at some restrictions remain on market entry 
and foreign equity participation in a number of servi ces subsectors. In spite of this, we are encouraged 
that Thailand has continued to focus on the comp rehensive reform of its policies as well as the 
progressive liberalization of its services, which remains on going.  
72. We are also pleased to note that Thailand has actively pursued the improvement of its 
customs procedures and has taken active steps to f acilitate trade, where a fully paperless system has 
been in place since 2008. We look forward to the establishment of its single-window system, in line 
with ASEAN's efforts in establishing the ASEAN Single Window. 
73. Overall, we are pleased to note that Thaila nd's policy direction remains open to trade and 
investment and have every confidence that Tha iland will maintain its support and commitments to 
international trade liberalization.  
74. In conclusion, we would like to thank Thaila nd for always being a strong supporter of the 
multilateral trading system and actively participati ng in all areas of the DDA negotiations. We highly 
appreciate Thailand efforts in this regard wish th em every success in their sixth trade policy review.  
BRAZIL 
75. Brazil is greatly pleased to participate in the sixth Trade Policy Review of Thailand. Over the 
last decades, Thailand has advanced economical ly, providing better living conditions for its 
population and sharply reducing poverty. Brazil comme nds the fact that Thailand has already met its 
Millennium Development Goals.   
76. A great part of the economic successes of Th ailand is due to its very competitive export 
sector. Thailand's outward-orientation can be easily as sessed by analyzing its trade data. Foreign trade 
in Thailand was equivalent to 135% of Thailand's GDP in 2010. It is also important to highlight that 
Thailand is not only an important exporter, but also an important importer. Thailand was the 19
th 
largest exporter and 17th largest importer in 2010.  This fact confirms the importance of Thailand as a 
trading nation.  WT/TPR/M/255 
Page 16  
 
  77. Turning to our bilateral relations, Thailand is an important trading partner of Brazil. Trade 
between Brazil and Thailand was over US$3 billion in 2010. This value is actually more significant 
for Brazil than the one registered with some of count ries in our region. That is a clear indication of the 
level reached by the trade relations between Brazi l and Thailand.  Bilateral trade, indeed, has 
experienced significant growth in recent year s (391% between 2003 and 2010). According to 
Brazilian data, between January and October 2011, b ilateral trade reached a new record, an increase 
of 32% over the same period of last year. 
78. Brazilian exports in 2010, however, showed gr eat concentration in commodities (soybeans 
and iron to name a few) while imports were c oncentrated on higher value-added goods, such as 
machinery, electrical appliances and vehicles. Braz il is convinced that there is still plenty of 
unexplored potential for substantially enhancing our  trade relations, both in terms of volume and of 
the composition of the trade basket.  
79. Brazil stands ready to further enhance our ec onomic relations as a whole, especially through 
the development of bilateral cooperation in areas of mutual interest, as we are convinced that 
strengthening South-South Cooperati on is an important means to foster the sharing of technologies 
and practices developed under simila r social and economic conditions. 
MEXICO 
80. Thailand has become a strategic trading partner for Mexico.  Over the past ten years, our 
bilateral trade has grown sevenfold and the averag e annual rate of growth has been almost 18%, 
reaching almost US$3 billion in 2010. 
81. It is important to highlight that Thailand has shown its ability to adjust, not only to an 
unfavourable international economic environment, but to periods of political instability and recent 
natural disasters.  While its GDP has grown at an av erage rate of 3.2% over the past four years, it 
should be noted that it grew by 7.8% last year, which means that its GDP per capita rose just over 25% during this period.  This economic performance,  combined with its great potential for foreign 
trade, has played an important role in helping Th ailand to achieve its Millennium Development Goals. 
82. Regarding trade, it should be noted that cust oms formalities in Thailand have been totally 
paperless since 2008, and that the national singl e-point business service for setting up businesses, 
which cuts the processing time for business registration from four days to 90 minutes, has significantly helped facilitate business. 
83. However, as indicated in the Secretariat's Report,  there is still work to be done.  Episodes of 
political instability have hindered the conclusi on of legislative amendments to implement 
international conventions, such as the Kyoto Convent ion on customs, and certain intellectual property 
reforms.  It is also necessary to simplify tax systems for direct, income and corporate taxes. 
84. Thailand has a complex tariff structure:  31 ad valorem  rates of 0-8%, 19 specific-duty rates 
and 158 alternate-duty rates.  Even more importantly, more than 25% of tariff lines are unbound. 
85. It is also important to simplify the competiti on regime.  The Trade Competition Act is seen as 
having little impact on business practices, partly due to poor transparency in administration and 
enforcement of the law and, according to the Secret ariat, the broad discretionary authority of the 
Commission. 
86. Market restrictions continue to exist in va rious service sectors, such as telecommunications 
and finance, and the regulatory framework for services is burdensome.  We believe that an  WT/TPR/M/255 
 Page 17 
 
 
  improvement in both competition and the regulatory regime would help Thailand to become more 
competitive. 
87. We agree with the Secretariat's Report that Thailand, like other countries, is facing serious 
challenges both abroad and domestically.  One of thes e challenges is the very slow economic recovery 
in its main export markets, which suggests that  Thailand might strengthe n domestic demand and 
diversify its markets, improve the country's infrast ructure with a view to becoming more competitive, 
and increase foreign investment backed by a stable political climate.  We are sure that Thailand is 
strong enough to overcome these and many other challenges. 
KOREA, REPUBLIC OF 
88. Thailand is one of Korea's key trading partners. The two count ries have expa nded bilateral 
economic relationship over the years with the tr ade volume reaching about US$10.6 billion in 2010. 
Korea hopes that both countries will continue to st rengthen bilateral economic  partnership well into 
the future based on, among others, the Korea-ASEA N Agreements on Trade in Goods and Services 
and the Korea-ASEAN Agreement on Investment whic h entered into force between the two countries 
in January 2010 and October 2009, respectively. 
89. We applaud Thailand's commitment to the multilate ral trading system as well as its proactive 
participation in numerous regional and bilateral trade liberalization efforts during the period under 
review. Thailand's continued pursuit of open and fr ee trade enabled its economy to grow rapidly after 
the Asian financial crisis in 1997 and to successfu lly weather the global financial crisis in 2008 and 
2009. We would like to continue to work together with Thailand to reinforce our shared commitment 
to a strong, rules-based multilateral trading system. 
90. Let me now make some comments on Thailand's economic and trade policies.  We welcome 
Thailand's steady economic growth at an annual aver age of 3.2% during the review period. We also 
welcome the fact that Thailand's macroeconomic f undamentals generally remain strong despite some 
risks of political instability and natural disaster as well as precarious global economic outlook.  
However, to sustain its economic growth amid incr easing internal and external uncertainties, Korea 
believes it is important for the Thai government to  continue undertaking structural reforms with 
prudent fiscal and monetary policies, while main taining openness to foreign trade and investment. 
91. Regarding Thailand's trade policy and regime , we find there is still room for further 
improvement, although we are generally satisfied w ith its overall level of openness.  Korea remains 
concerned particularly over the restrictions a pplied to foreign investment, complex regulatory 
framework in areas such as the services sector, the complicated tariff structure and tax systems, the 
widespread use of price controls, and non-tariff barriers such as non-automatic import licensing and 
other technical requirements, as indicated in the Secr etariat Report.  Korea notes that there have been 
no major changes in these areas since the last TPR of  Thailand, and hopes that  the Thai government 
will address these concerns in a timely manner to  further facilitate trade and to enhance the 
predictability of its trade regime. 
92. My delegation submitted some advance written questions to Thailand which concern, among 
others, its current fiscal situation after implemen ting various stimulus packages to respond to the 
crisis, plans to address the damages to its IT sect or caused by the recent flooding, policy objectives 
behind its export taxes, and a plan to inco rporate its market access improvement for 
telecommunications sector into its GATS Schedule.  WT/TPR/M/255 
Page 18  
 
  AUSTRALIA 
93. Australia and Thailand have a long history of friendship and cooperati on.  Next year will 
mark the 60
th anniversary of diplomatic relations betw een our two countries.  Our bilateral 
relationship is broad a nd expanding in numerous areas, including trade, investment, education and 
tourism.  Our regional economic cooperation in multi lateral forums like the WT O, East Asia Summit, 
APEC and the Cairns Group is excellent. 
94. We applaud the resiliency of Thailand's ec onomy and its strong recovery from the global 
financial crisis.  Trade has played a key role in th at recovery.  Last year Thailand's exports were up 
over 28%, with strong growth in agriculture and manu facturing exports.  This strong growth has led to 
greater prosperity among the Thai people, with stead ily increasing GDP per capita which this year led 
the World Bank to declare Thailand to be an uppe r-middle income country.  Thailand has met many 
of its Millennium Development Goals ahead of sc hedule.  Broader regiona l economic integration 
under the ASEAN Economic Community and beyo nd will continue to develop and enhance 
Thailand's export economy. 
95. Our mutual commitment to the multilateral tradi ng system is complemented by our bilateral 
and regional trade agreements.  The Thailand- Australia Free Trade Agreement (TAFTA) was 
Thailand's first comprehensive FTA, and trade has incr eased significantly since it went into effect in 
2005.  Bilateral trade has more than doubled , with two-way goods and services trade now 
approximately $20 billion.   
96. Our bilateral investment has grown together  with our trade, with major Australian 
investments in mining, steel and automotive in Th ailand, and new Thai investments this year in 
Australia's coal and sugar industries.  Thailand has maintained a liberal forei gn investment regime in 
manufacturing, and this policy reaping benefits. Thailand has built world standard industries in 
automotive manufacturing, electronics, and petrochemicals, and continues to move up the value chain to higher-end manufacturing.  We would be keen to  know more about Thailand's plans to review the 
Foreign Business Act and ease restrictions on i nvestment in sectors and business activities where 
foreign ownership is currently limited to below 50%. 
97. Thailand's Creative Economy policy is an excelle nt example of how middle-income countries 
can develop their creative industries and find new sources of economic growth.  Improved protection 
for intellectual property rights would help attract even more investment, and help build Thailand's 
creative industries as well.  We would be interested  in hearing how this polic y is developing and how 
Thailand's intellectual property rights regime is changing to meet the needs of these new creative 
industries. 
98. Thailand has made progress in liberalising so me services sectors.  We note that the 
Secretariat's report highlights the complex regulator y framework governing Thailand's services sector.  
We have asked several questions in advance of this  meeting on these particular issues.  We would be 
interested to hear Thailand's future plans to re view the regulatory regimes governing key sectors like 
transport, professional services and financial service s, and increasing competition in those key sectors 
to enhance productivity and innovation.  We also l ook forward to Thailand's completion of a review 
for liberalising the insurance sector. 
99. We welcome Thailand's announcement that it w ill review its automo tive excise tax regime, 
which currently discriminates against imported ve hicles in favour of domestically manufactured 
vehicles.  Australia would positively view a new regime that better aligns duty rates to CO
2 emissions 
rather than to engine capacity which is often not well correlated with the level of emitted pollutants.  
We look forward to hearing the status of this review.  WT/TPR/M/255 
 Page 19 
 
 
  100. Australian companies have often found Thaila nd's Tariff Rate Quota (TRQ) system to be 
difficult to follow, with different methods of administration for different products.  We would 
appreciate advice on the administrative steps Tha iland takes for opening WTO and bilateral TRQs, 
and also how Thailand communicates calls for e xpressions of interest for these commodities.  
Australian companies would like to better utilise th ese quotas and would appreciate any clarifications 
on how companies can better take advantage of them. 
101. We value our good working relationship in the World Trade Organisation and look forward to 
continued close cooperation as we strive to find a new pathway forward for the Round, including next 
month at the WTO's Eighth Ministerial Conference. 
102. Thailand is Australia's ninth largest trading partne r and we expect that relationship to continue 
to grow strongly.  We look forward to working closely with Thailand in the WTO as well as 
bilaterally and multilaterally in othe r economic forums to achieve further market openings globally.   
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
103. During the period under review, Thailand's economy , has been hit, like many others, by the 
severe global financial crisis and the economic downturn.  We are pleased to see how well it has 
managed to weather these storms, without resor ting to trade protectionist measures. Its economy 
started to make a rapid recovery from late-2009, and GDP grew by 7.8% in 2010.  We also commend 
Thailand on the special efforts made over the last few years to promote and facilitate trade, notably with the introduction of paperless customs procedures, of tariffs at less than half their bound levels, 
further liberalization of trade in services, and so on. 
104. Nevertheless, at the same time, Thailand has faced  a sharp decline in the level of FDI, which 
dropped by 43.8% between 2007 and 2010.  FDI in the past has been a key driver of growth for the 
Thai economy.  We would urge Thailand in its r esponse to improve its investment environment and 
international competitiveness, for example by simp lifying the complex tax structure and payment 
system, rationalizing the regulatory regime, and el iminating restrictions on foreign ownership and 
market access.  We look forward especially to fu rther reform of its financial services and to new 
foreign investors being allo wed in the banking sector. 
105. Thailand has long been a valued trade and i nvestment partner of ours, and our economic 
relationship had broadened and deepened over the years.   According to Thai statistics, we are its third 
largest source of FDI, reaching a total of US$12.79 billion invested in 2,062 projects up to the end of 
July 2011.  Thailand is our 12
th largest trading partner, with the value of two-way trade rising by 40% 
to US$9.1 billion in 2010. And, we are one of Tha iland's ‘top 10' trading partne rs in Asia.  We have 
also established between us a ministerial-level standing conference paving the way for industrial 
cooperation.  Here, under the framework of the WT O, the Mission of Thailand is one of the most 
active Members in the WTO regular work and in th e DDA negotiations.  My delegation will continue 
to work closely with the Th ai Mission here in the WTO. 
106. On the RTA front, Thailand is a very active partic ipant in this area, and given the very close 
economic relationship between our two countries, we would encourag e Thailand, for the benefit of 
both our economies, to consider putting us on its  priority list for starting FTA negotiations. 
HONG KONG, CHINA 
107. I need not describe how we close we are with Thailand.  That over 60% of rice HKC people 
consume comes from Thailand is self-explanatory.  Th ailand is HKC's ninth largest trading partner 
and we have enjoyed excellent bilateral trade relationship.  WT/TPR/M/255 
Page 20  
 
  108. Let me come straight to the point on a number of aspects of Thailand's trade policy.  On 
tariffs, my delegation has been working closely w ith the Thai delegation in NAMA negotiations to 
pursue ambitious and balanced liberalisation.  While we wish to sustain those efforts, we note that 
Thailand has a slightly complex tariff structure comprising duty-free tariff lines , ad valorem duty, and 
non-ad valorem duty including specific duty and alternate duty.  For NAMA products, some applied 
tariffs for clothing and transport equipment are as high as 45% and 80% respectively.  Moreover, 
almost a quarter of its tariff lines in 2011 are subject to peaks that exceed 15%.  We encourage Thailand to improve these aspects of its tariff regime. 
109. Thailand's average MFN applied tariff on imports  of agricultural products (26.5%) is much 
higher than that for non-agricultural products (9%).  Moreover, there is a high degree of variability of 
tariffs within a product group and among different gr oups.  We encourage Thailand, in line with its 
economic policy to favour liberal and market-based gr owth, to continue to liberalise its agricultural 
sector. 
110. Thailand's priorities in the DDA negotiations include agricultural trade reform to open 
markets, elimination of export subsidies, and deep cu ts in trade-distorting domestic support.  We look 
forward to the continuous contribution fr om Thailand in the negotiation process. 
111. Trade in services is another area that we have paid  a lot of attention to.  We note that services 
still make up a large part of the Thai economy and continue to contribute much to its employment, 
though the share in GDP has slightly dropped.  We  appreciate Thailand's effort to liberalise the 
services sector in recent years.  We are however  concerned that Thailand has exempted commerce 
presence from national treatment and maintained fo reign investment caps across various services 
sectors.  We think these restrictions are not conducive to continuous growth of trade in services in 
Thailand, especially so for the financial and tel ecommunication services sectors, where modernisation 
and greater competition is much needed for Thailand  to remain competitive.  We encourage Thailand 
to consider further opening up market entry and li beralizing the trade regime for foreign investment, 
in particular, reducing if not removing, foreign e quity limitations for various sectors and incorporating 
national treatment elements into its commitment schedule. 
112. We commend Thailand in making progress in tr ade facilitation, including the Advance Tariff 
Ruling System and e-Customs paperless services launch ed in 2008.  We also note that Thailand is 
working towards operation of a single-window servi ce in 2012.  We look forward to Thailand's 
continuous efforts on facilitating trade and in foster ing a stable business environment for traders.   
113. Thailand's FDI framework is gene rally open in the manufacturing sector, but we also note that 
significant restrictions on foreign ownership are maintained in agriculture and services. Such 
restrictions, together with other factors, have a dded to the impact of the global economic downturn 
and apparently contributed to the significant dec line in FDI inflows (by 44% between 2007 and 2010).   
We are also aware that the complex tax regime in Thailand has also inhibited to a certain extent the 
willingness of foreign investors to participate in the Thai market.  HKC has maintained a very simple 
and transparent tax regime and we know this is  one of the essential factors that can boost an 
economy's attractiveness for doing business.  We therefore encourage Thailand to continue to 
liberalise its investment regime, im prove its investment environment, and rationalise its tax regime for 
foreign investors.  
114. Since 2010, Thailand implemented an advan ce ruling policy for customs valuation.  
Currently, the ruling is available through an Electronic Advance Ruling on Valuation system.  
Thailand considers that the policy provides a more tr ansparent and consistent service to customers and 
enables importers, exporters and international tr ade entrepreneurs to be more competitive.  We 
welcome Thailand's effort in enhancing the transparency of it valuation procedures.  WT/TPR/M/255 
 Page 21 
 
 
  115. To conclude, Thailand is our valu ed trading partner and we look forward to fostering an even 
stronger economic relation with Thailand, in th is multilateral regime but also regionally and 
bilaterally. 
CHILE 
 116. Thailand is an important trading partner for Ch ile, being its fourth pa rtner in Asia and its 
number one partner in ASEAN.  In 2010, b ilateral trade between both countries exceeded 
US$800 million, with US$287 million in exports from Chile to Thailand and US$528 million in 
imports. 
117. Chile agrees with Thailand on several inte rnational trade issues, on its commitment to 
free trade through bilateral, regiona l and multilateral liberalization, a nd on its participation in APEC 
and the Cairns Group, which supports broad mark et access for agricultural products.  During the 
Summit of APEC Leaders in Yokohama, Japan, in  2010, the leaders of both countries agreed to 
initiate negotiations with a view to concluding a FTA. 
118. This sort of an agreement could increase bila teral trade through ties with ASEAN and other 
Latin American countries.  It would benefit Thai vegetable and fruit preparations and some categories 
of textiles and clothing, as well as Chilean fresh fru its, wines, paper and carton, and cellulose.  Only 
61 out of 860 tariff lines of trade between Ch ile and Thailand are directly competitive. 
119. The process began in April this year and three rounds of negotiations been held since then, 
with considerable progress made.  The FTA is broa d and comprehensive, not only in sectors linked to 
trade in goods, but also in services and invest ment, and endeavours to achieve substantial 
liberalization while bearing in mind the domestic sensitivities of both countries. 
120. Within the framework of this trade policy review, we would like further details on the 
amendments underway relating to several sectors, su ch as the foreign investment regime, the powers 
and authorities vested in the Commercial Court, a nd the trade agreement internalization process.  
With respect to the tax system, we are concerned a bout the system applied to imports, especially light 
alcoholic beverages, as well as the customs system .  Chile, like Thailand, adheres to a multilateral 
trading system based on fair and equitable rules. 
CANADA 
 
121. Canada would like to highlight its close trade ti es with Thailand.  In 2010, total trade in goods 
between Canada and Thailand exceeded $3 billion, an  increase of almost 7% on the previous year.  
Canada concluded an Agreement for the promoti on and protection of foreign investment with 
Thailand in 1998, and today there are considerable Canadian direct investment stocks in Thailand. 
122. We are aware that stronger trade relations will create employment and opportunities for both 
our countries.  We are thus counting on an increase in trade and investment in the future, as the world 
economy recovers from recent economic  and financial crises, and Th ailand and its people recover 
from the tragic floods that recently occurred. 
123. Canada congratulates Thailand on having manage d to increase its economic growth since the 
recession, as well as its GDP per capita since its last  trade policy review in 2007.  The Secretariat's 
Report emphasizes that Thailand avoided resorti ng to protectionist measures during the world 
economic slowdown.  The resilience recently shown by the Thai economy clearly illustrates that 
protectionism is not the answer in times of economic difficulty. WT/TPR/M/255 
Page 22  
 
  124. Canada is also encouraged by the Government of Thailand's statement that it adheres strongly 
to the principles of free and fair trade.  We a pplaud the commitment to further liberalize its trade 
policy and we urge Thailand to implement liberaliz ing measures, in particular in investment and 
services, at an ambitious pace in order to realize gains without delay.  Mo reover, Canada would be 
grateful to learn of progress made in the review s of the Foreign Business Act and insurance-related 
acts. Specifically, what steps have been take n since the last review to support progressive 
liberalization in these areas, and secondly, were these results applicable to all WTO Members. 
Finally, Canada supports the emphasis Thailand has placed on promoting transparency and good 
governance as part of the Government's liberalizing strategy. 
125. Canada is pleased by the measures the Govern ment of Thailand has taken in order to 
encourage trade and investment.  For example, the Secretariat's Report notes that Thailand is using 
online services that have cut the average processi ng time for business registration from 4 days to 
90 minutes.  The continued adoption of innova tions that streamline communication between 
government and business will appeal to investors and will be a factor in ensuring that Thailand is an 
attractive destination for investment.  As mentione d in the Secretariat's Report, increased investment 
will be one of the tools needed to fully realize Thailand's growth potential. 
126. Canada would also like to ac knowledge Thailand's role as a me mber of ASEAN in facilitating 
trade liberalization within Southeast Asia.  In Oc tober of this year, Canada and ASEAN adopted our 
first Joint Declaration on Trade and Investment.  This  is an important step toward deepening Canada's 
ties with ASEAN members, including with Thailand.  
CHINA 
127. I would also like to take this opportunity to  express our deepest condolences for people in the 
flood-stricken areas in Thailand. In order to help the Thai government in its relief efforts, China has 
provided some humanitarian aid materials and fund. We sincerely hope and believe that Thailand will 
recover from this natural disaster soon. 
128. For over three decades, Thailand has pursued a policy of export-led development that has 
successfully turned the country into a major exporter in the re gion and spurred rapid economic 
growth. It was the world's 19
th largest exporter of goods and 16th largest exporter of services in 2010. 
The increased bond of Thailand with the global market  has contributed to the enhanced resilience of 
its economy in adapting to challenges. During the review period, the Thai economy has not only successfully weathered the financial crisis and inte rnal challenges, but also managed to maintain a 
moderate expansion. We believe that, with the implementation of its Eleventh National Economic and 
Social Development Plan for 2012-16, the Thai economy will achieve an even more sustainable 
development. 
129. China commends Thailand for participating ac tively in the Doha Development Round of 
Negotiations. As an important exporter of agricu ltural and manufactured products, Thailand has been 
active in pushing agricultural trade reform as we ll as NAMA negotiations in the WTO. At the same 
time, as an important member of ASEAN and ma ny other regional mechanisms, Thailand remains a 
strong advocate for "open regionalism". In terms of trade liberalization, not only has Thailand 
engaged in negotiations of FTAs bilate rally with its major trading partne rs, it has also taken part in the 
negotiations through ASEAN. However, this overl apping involvement sometimes, as the Secretariat 
Report has pointed out, "can be baffling" for busin esses since they may face additional costs to find 
out which agreement is most suitable for a particular  transaction. "This may be one of the reasons why 
some of the agreements have been little used." We  would like to know how Thailand intends to ease 
such baffling effects for businesses.  WT/TPR/M/255 
 Page 23 
 
 
  130. Trade liberalization and FDI attraction have b een important aspects in Thailand's economic 
policy. In this regard, the general thrust of Thaila nd's trade and investment re gime remain liberal and 
the Government continues streamlining its custom s procedures and implementing various investment 
initiatives. We highly appreciate these efforts. Neve rtheless, the Secretariat Report pointed out that 
some concerns still exist. For instance, the complicat ed tariff structure and the system of excise duties 
remain unchanged; the widespread use of price c ontrols continues; and there still exist significant 
restrictions on foreign-ownership particularly in some services sectors. China's exporters also have 
expressed their concerns over the increased use of anti-dumping investigations. We encourage 
Thailand to take further measures to improve its business environment a nd investment regime. 
131. The period under review has witnessed a s ound development of trade and economic ties 
between China and Thailand. Our two countries ma intain very close and good cooperation under 
China-ASEAN partnership as well as other regional m echanisms.  By January 2010, the tariffs of over 
90% of products between China and ASEAN have  been reduced to zero, which brought China-
ASEAN FTA's role into full play. This has gr eatly boosted our bilateral trade and economic 
cooperation. China became the largest export des tination of Thailand in 2010. Our bilateral 
merchandise trade amounted to US$53 billion, an in crease of 39% year on year. China's import from 
Thailand also grew by 34% over the same period. The direct investment is also on the rise. In 2011, China becomes the 2
nd largest investor in Thailand. By the end of September this year, the aggregate 
total of direct investment of China in Thailand ro se to US$750 million. We are glad to see the two 
countries are deepening and enhancing our mutua lly beneficial trade and economic cooperation. 
EUROPEAN UNION 
132. This review takes place at a time when Thailand is struggling with floods, which, no doubt, 
will have an impact on the country's economy. In general, Thailand has been a development success 
story, with sustained strong growth and impressive  poverty reduction. In 2010, Thailand's economic 
growth slowed due to global economic conditions and political un certainty, but Thailand's economic 
activity in 2011 was predicted to retu rn close to pre-crisis levels.  
133. The European Union has important relations with  Thailand, both bilaterally and regionally 
under the ASEAN framework. Bilaterally, we are one  of Thailand's main partners in trade and 
investment - our two-way trade amounted to almost  € 27 billion in 2010. Tha iland is also benefitting 
from the EU's Generalized Scheme of Preferences (GSP). As regards FDI, the EU levels amounted to about € 1 billion in 2009 which ma kes us a premier investor. Despite these impressive statistics, the 
EU believes that current trade and investment relations are somewhat below their real potential; this is, in our view, partly due to the restrictive me asures in Thailand's trade policy, which negatively 
affect investment and trade opportunities. I will come back to some of these restrictions in a while, but 
as a general remark, let me express the hope that the new Government will pursue further trade and 
investment liberalisation and recognise the importanc e of an open trade regime for its businesses and 
consumers. 
134. More trade would certainly also contribute to the achievement of the country's development 
objectives. In particular, it would reap signi ficant economic and development gains from the 
conclusion of the Doha Round, which would resu lt in increased market access, but even more 
importantly, reinforce the multilate ral rulebook. We praise Thailand for the constructive stance it has 
taken in supporting a real and meaningful work  program for the Doha Development Agenda  
negotiations in 2012. Moreover, we encourage Thaila nd to continue participa ting in the negotiations 
in a positive and constructive manner so as to fa cilitate concrete progress on issues on the Doha 
Agenda. Outside of trade negotiations, we commend Thailand's efforts in re ducing poverty levels and 
its impressive record on meeting its Millennium Deve lopment Goal. In this context, let me mention 
our important development partne rship - today, Thailand and the EU have moved from a traditional 
donor-recipient relationship towards a true partnershi p for development. The focus of our cooperation WT/TPR/M/255 
Page 24  
 
  has shifted towards economic assistance in line with  Thailand's rapid growth and thus, the current 
cooperation facility 2007-13 relates especially to ec onomic development, such as reforms, trade and 
investment, customs and support for meeting ma ndatory and voluntary market requirements. 
135. Regionally, Thailand as an ASEAN member is party to the ASEAN free trade area and 
engaged in an active regional ec onomic integration agenda. The re ports describe ASEAN aims to 
become the ASEAN Economic Community by 2015 and to create an ASEAN single market and 
production base comprising free flow of goods, servi ces, investment and skilled labour and freer flow 
of capital. As a strong believer in regional integr ation, the EU supports and encourages full and timely 
implementation of these regional integration pro cesses, including the adoption of regional ASEAN 
policies to remove current obstacles and improve trade facilitation across the region. These sorts of 
comprehensive RTAs can represent building blocks to the multilateral trading system, an objective 
that Thailand should pursue in all its preferential initiatives. 
136. According to Reports presented for this Revi ew, there have been im portant trade-related 
developments taking place in Thailand since its last review in 2007.  While Thailand's overall 
economic performance and openness has been highlight ed, also important concerns remain. In our 
numerous written questions submitted in advance of the meeting we have indicated where we feel 
further improvements would be beneficial both fo r Thailand and its trading partners. I would thus 
concentrate my remarks on key areas, some of which ha ve been raised also during previous Reviews.  
137. Firstly, investment and services restrictions. Tha iland's investment policies, protecting certain 
domestic industries, still remain a concern to invest ors who are faced with many restrictions. Such 
restrictions include foreign ownership limitations, as we ll as sector specific regulations such as in the 
financial, telecom, logistics, and insurance sectors. We ar e also concerned about attempts to limit the 
development of foreign modern distribution services in Thailand. As also mentioned in the reports, 
these restrictions have caused a decline in FDI leve ls. The overall investment climate in Thailand is 
also hampered by a general lack of transparency  and predictability in decision-making and challenges 
in the areas of customs and transport. 
138. Foreign investment in services sectors is lim ited through the Foreign Business Act (FBA) of 
1999 and other sector-specific legislation. Currently, foreign investment in mo st services sectors is 
subject to a 49% equity cap (with exemptions only on a case-by-case basis). There are also concerns 
over the possible use of sector-specific legislation to impose foreign dominance criteria to restrict foreign participation in certain highly regulated in dustries such as telecoms, insurance and logistics.  
In our advance written questions, we have also que ried about the Thailand-U.S. Treaty of Amity and 
Economic relations of 1966, which exempts U.S. investment from the FBA restrictions. We urge 
Thailand to consider these concerns in its policy fo rmulations and ensure a more investor friendly 
environment, aligned with its WTO obligations. 
139. Secondly, complex tariff/tax system and burde nsome customs/import procedures. The EU has 
strong concerns about the tax system: we are notab ly concerned about the protection that remains 
through the high and complex tariffs on alcoholic beverages and also on automobiles. Thailand 
applies a system whereby imported spirits generally fall into a higher tax rate bracket than locally 
produced products. We call on Thailand - as also propo sed in the Secretariat's Report - to review and 
simplify the tax structure, especially on excise duties and tariffs, to ensure that the system is in 
compliance with WTO rules and to address the delays in tariff reform. 
140. Furthermore, despite some progress, burdensome and costly customs procedures remain a 
problem. Elements such as the lack of transparency  and arbitrary valuation continue to pose problems 
to operators. Finally, we still remain concerned a bout the customs reward system for officials for 
identifying false declarations, product cl assifications and customs valuations.    WT/TPR/M/255 
 Page 25 
 
 
  141. The third issue relates to protection of intellect ual property rights, where the EU continues to 
have serious concerns related to Thailand's ex isting legal framework and enforcement. While 
acknowledging Thailand's efforts and recently established EU-Thailand IPR Dialogue, IPR 
stakeholders in Thailand continue to suffer from wi despread counterfeiting and piracy while the lack 
of sustained, coordinated enforcement and prosecutio n remains a significant issue. We are interested 
to hear more about the recent developments in th is area and to learn Thailand's further plans for 
improvement. 
142. Fourthly, I would like to encourage Thaila nd as one of the founding Members of the 
International Standardisation Organi sation to adopt international standa rds as national standards, as its 
current system of competing and conflicting standa rds poses concerns; e.g. the approval of technical 
standards continues to hinder exports of elect rical products to Thailand, including unnecessary 
mandatory testing and inspecti on of production facilities (in Europe) as well as certification 
procedures. The latter also applies to some industr ial products that often need to undergo similarly 
burdensome procedures. There are similar concerns relating to imports of agricultural products, in 
particular with regard to SPS issues and import procedures. 
143. In conclusion, we encourage Thailand to con tinue its efforts towards facilitating trade, 
increasing investments, strengthening government procurement, strengthening administrative capacity and enhancing the overall economic  environment in a sustainable way. We sincerely hope that 
pursuing an open trade agenda will also help in overcoming the impact of the flooding.  
NORWAY 
144. First, let me take this  opportunity to deplore the loss of hum an life and destruction of property 
caused by the devastating flood that has inundated la rge parts of the country during the second half of 
2011 and to offer its sympathy with the many vic tims of the flooding.  While this natural disaster 
could result in a contraction of economic growth  in the short term, I would like to recognize 
Thailand's economic achievements in a somewhat l onger perspective.  In the past decade, gross 
national income per capita has almost doubled, while poverty has been significantly reduced.  Overall, 
Thailand has been prudent in macroeconomic mana gement with a strong fiscal stance and low public 
debts and inflation. 
145. While the Secretariat Report for understandable r easons has not been able to capture the most 
current developments in the global economy, it notes that export-driven growth following the 
recovery of the global financial crisis has continue d in Thailand, while political unrest and restrictions 
on foreign ownership in certain economic sector s have contributed to a decline in FDI. 
146. In a time when investor confidence in Thailand might be shaken due to natural disasters and 
other circumstances, Norway believes that it is even more important to stimulate FDI by providing a predictable framework for businesses with clear and transparent rules and regulations, and a "level 
playing field" for foreign and Thai companies.  The issue of corruption is referred to both in the Government and the Secretariat Reports and we take note of the fact that relevant legislation is in 
place and that new legislation has been introduced. 
147. Bilateral trade between Norway and Thailand has grown remarkably over the last ten years.  
Imports from Thailand have tripled and Norwegian exports have doubled.  Thailand has become our 
fifth largest source of imports in Asia.  In 2010,  two-way trade between Thailand and Norway totaled 
US$574 million. 
148. Beyond trade, our economic relations are strong and healthy, particularly within the sectors of 
telecommunications, pulp and paper and fertilizers,  and a number of Norwegian companies have WT/TPR/M/255 
Page 26  
 
  invested heavily in Thailand.  In addition to their investments they are providing new technology, 
innovative ideas and a culture of corporate social responsibility. 
149. Norway is following Thailand's efforts to liber alize the telecommunications sector with keen 
interest.  From our point of view, this developmen t has been slower than the potential, and we hope 
that the new Thai government can re-invigorate th is process by emphasizing free and fair competition 
in this sector. 
150. On 31 August 2011, a notification of the Na tional Broadcasting and Telecommunication 
Commission was published regarding the prescription of  prohibited acts which are deemed as foreign 
dominance.  Norway has on several occasions voiced concern about the restrictions this may place on foreign economic operators investing in Thailand. 
151. Norway is also concerned about the delays in the auctioning of 3G licences for private 
operators, but we understand that it is the Government's policy to restart this process now that the new 
regulatory body is in place. 
152. Maritime transport is an important facilitator of world trade.  Norway believes that better 
access to and supplies of maritime transport services on open and equal market conditions, is 
beneficial to all WTO Members and crucial to ec onomic development.  We believe improved offers 
and binding commitments in the WTO are important  for fair competition and economic growth.  In 
Thailand's maritime services industry, cargo reser vation requirements relate d to government cargoes, 
restrictions on foreign ownership and discriminatory harbor fees are in place.  A liberalization process 
in relation to these requirements would be welcome.   
SINGAPORE 
153. Thailand is close economic partner for Singapore. We are the fourth largest foreign investor, 
and bilateral trade last year amounted to US$23  billion. In this vein, Singapore has submitted 
questions which reflect the interest of our trad ers and investors from their experiences in doing 
business in Thailand.  We received positive fee dback from our industry on the more facilitative 
customs measures Thailand has in place, the more re laxed exchange control re gulations in Thailand's 
financial services sector, and Thailand's plans to remove restrictions in air transport services.  We 
appreciate the further information that Thailand has given in their written responses on these. 
154. One of the key messages we heard from other Members who have spoken today was on 
Thailand's potential to enhance its international competitiveness as an invest ment destination. We 
agree that this can be harnessed through the furthe r easing of restrictions. Another point made was on 
improving transparency in customs laws and practices , the merits of which we also agree with. There 
is already an integrated regional effort through ASEA N to improve these areas.  We are confident that 
the feedback Thailand hears from this TPR on these and other areas will be constructively considered 
in Bangkok, and will be positively factored into Th ailand's continued growth as an attractive global 
trade and investment venue. 
155. Our certainty of this stems from the eviden ce that Thailand takes their WTO obligations 
seriously and truly engages to extract the value of  the TPR process.  It is significant and commendable 
that Thailand proceeded with thei r TPR as scheduled, despite the government offices having suffered 
seriously from recent floods.  Besides experienci ng extensive damages to industrial properties and 
agricultural areas, the infrastructur e setbacks and resource constraints would have meant complexities 
in communication and coordination among agencies a nd challenges in resource allocation for this 
TPR. Singapore has always known Thailand to be a res ilient nation, and she is already moving fast in 
the recovery, and looking ahead to generating the greater economic growth now more acutely needed 
in the aftermath of the floods.   WT/TPR/M/255 
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  INDONESIA 
156. Indonesia and Thailand share the increasing of economic cooperation between the two 
countries. The progresses have made in the past few years and would continue to be increased.  In 
2010, the total bilateral trade volume between th e two countries amounted to around US$13 billion, 
up 34% of the total trade volume in 2009. 
157. Indonesia and Thailand agreed that there are ot her ways to expand our economic cooperation 
and trade, especially in the area of industry, energy , fisheries, and tourism between the two countries. 
Indonesia also hopes the cooperation in the agricultu ral, research and deve lopment will be improved 
in the near future so that Indonesia and Thailand co uld also contribute to the so-called regional food 
security. 
158. Today, there are many private-sector companies that are investing and operating in Indonesia 
from Thailand, especially in the energy sector. In  2010, total value of Thai's FDI into Indonesia 
accounted of US$185,78 million, compared to US$159 million in 2009. The significant growth in both markets and the moves towards a single mark et under the ASEAN Economic Community, would 
enhance the trade investment between the two economies in the near future. 
159. In the area of trade liberalization, both Indon esia and Thailand share beliefs in maintaining 
the multilateral trading system.  Both our count ries are fully committed to working towards the 
successful conclusion of the Doha Round.  As members of ASEAN, Indonesia and Thailand share 
similar outlooks towards the realization of the ASEAN Economic Community by 2015. 
160. Once again, Indonesia greatly appreciates the va rious efforts that Thailand has put into 
keeping its market open and competitive, including the removal of trade obstacles and great 
improvement in the area of trade facilitation.  
JAPAN 
161. I would like to start with Thailand's trade a nd investment policies.  Traditionally, Thailand 
and Japan have had very strong and deep ties, as yo u can see from the fact that  Japan is the largest 
trade partner of and the largest investor to Tha iland in 2010. Our economic partnership has been 
strengthened by our bilateral free trade agreement wh ich has been in effect for several years. Japan 
shares the view of the Secretariat's Report that Thailand has a generally open FDI framework in manufacturing. Japan also welcomes that Thailand h as eliminated or exempted import duties in the 
areas of raw materials and certain automotive parts for hybrid-electronic vehicles.  
162. Having said that, Japan has one potential concern in the area of TBT. We understand that 
Thailand is currently considering the possibility of introducing mandatory technical standard to 
Electric Galvanized (EG) steel products. Japan  agrees on the necessity of mandatory technical 
standards regarding final products designed to protect consumers. However, setting mandatory 
standards for intermediate products such as EG  products would be an  additional burden for 
manufacturers. Japan would like to know the current status of Thailand's consideration on this issue, 
with the hope that it will not constitute an unnecessary non-tariff barrier.  
163. With regard to service sector policies, Japan agrees with the observation by the Secretariat's 
Report that there still remain foreign capital restri ctions in some major services areas, such as 
financial services, telecommunications services and maritime services, despite some recent developments. These sectors have potential for furthe r expansion of trade and investment, and serve 
as the basis for the development of other sectors an d international trade. Japan therefore wishes to 
encourage Thailand to promote liberalization an d deregulation in order to allow for further 
development of its economy. WT/TPR/M/255 
Page 28  
 
  164. In conclusion, Japan would like to reiterate its  hope that Thailand will recover from the flood 
damage as soon as possible, continue to keep its trade and investment regime open in manufacturing 
sectors, and consider further liberalization in services.  
INDIA 
165. We are happy to note that the Thai economy has continued to do well through challenging 
times and is slated to grow by more than 4%  in 2011.  Its strong macroeconomic fundamentals, 
growth in investment, and robust domestic and extern al demand have contributed to this growth.  We 
welcome the steps taken by the Government for facilitating trade and strengthening the 
competitiveness of its domestic industry through a doption of the 8-digit commodity classification 
code of ASEAN Harmonized Tariff Nomenclatu re and implementation of the Electronic Data 
Interchange system and "e-customs". 
166. As noted in the Secretariat Report, Thailand has pursued a policy of export-led development 
for over 30 years which has successf ully turned the country into a major exporter of industrial goods 
and led to rapid economic growth particul arly in the 1990s.  It was the world's 19
th largest exporter 
and the 17th largest importer of goods in 2010.  In services, it ranked 16th in terms of exports and 14th 
in terms of imports.  Its positive balance of trad e in goods and services was backed by a strong 
manufacturing and processed goods sector on the goods  side and a vibrant tourism sector on the 
services side. 
167. Despite Thailand's strong performance in the trad e sector, there has been  a decline in FDI as 
highlighted in the Secretariat Report.  Restricti ons on foreign ownership, as well as complex and time-
consuming systems for paying taxes have been ci ted as important reasons for the drop in FDI.  
Political instability has also delayed reforms in se veral areas, including in intellectual property, 
privatization, and several services subsec tors leading to lower levels of FDI. 
168. Further, while Thailand has adopted the ASE AN Harmonized Tariff Code, the actual tariff 
rates on different products have not changed much since the last Review as observed by the 
Secretariat.  Also unchanged is the co mplicated tariff structure with different ad valorem , specific 
duty, and alternate duty rates.  Over a quarter of tariff lines are unbound.  Thailand also continues to use complicated systems for excise duties, personal income tax, and corporate income tax, with a 
broad range of tax incentives for investments in different parts of the country. 
169. Economic and commercial linkages are an important aspect of India's partnership with 
Thailand.  The past few years have seen a rapid in tensification of these linkages.  India's "Look East" 
policy (since 1993) and Thailand's "Look West" polic y (since 1996) have been complementary in 
consolidating bilateral re lations including economic and commerci al linkages.  India's partnership 
with Thailand also has a strong regional dimension in the context of India's engagement with ASEAN 
and membership of groupings such as BIMSTEC.      
170. Bilateral trade has multiplied six times sin ce 2000 to cross US$6 billion in 2008.  The 2009 
global financial crunch adversely affected trade be tween the two countries and bilateral trade fell to 
US$5 billion in 2009.  However, in 2010 trade recovered quickly, with total trade touching 
US$6.64 billion registering a growth of 34%.  This  included Indian exports of US$2.25 billion and 
Thai exports of US$4.39 billion.  Trade during Jan -Sep. 2011 was US$6.26 billion and bilateral trade 
is expected to touch US$10 billion mark by 2012. 
171. Investment by India and Thai companies in each other's countries has also been growing. 
Indian FDI into Thailand is estimated to be  around US$2.12 billion since 1970s.  Thailand has 
invested US$87 million in India during April 2000 -August 2011.  Major Indian companies have 
entered into joint ventures with Thailand in the ar ea of automobiles, steel, textiles, pharmaceuticals,  WT/TPR/M/255 
 Page 29 
 
 
  etc.  Similarly, leading Thai co mpanies in the fields of agro-p rocessing, construction, automotive, 
engineering and banking have an active and growing business presence in India. 
172. There is an active India-Thai Joint Commission,  headed by respective Foreign Ministers, as 
also a well-established India-Thai Chamber of Commerce and an active India-Thai Business 
Association, besides a Joint Business Council.  The ASEAN-India Agreement on Trade in Goods 
came into effect in January 2010.  Negotiati ons are also ongoing a BIMSTEC FTA and an India-
Thailand FTA.  An Early Harvest Scheme under the proposed India-Thailand FTA is already in place 
since 2004 covering 82 products.  This has also contributed to greater mutual awareness among the business community of the two sides. 
173. Air connectivity between India and Thailand is growing with over 140 flights per week 
reflecting a rapidly growing traffic of touris t and business persons between the two countries. 
174. We would like to highlight some of our concerns which are as follows.  Drugs and 
pharmaceuticals is an important sector with consider able potential for mutually beneficial trade.  
However, there are several concerns relating to data exclusivity, registration of generic drugs with the 
FDA, outright counterfeiting of me dicinal products and possible compulsory licensing of patented 
life-saving drugs by the Government Pharmaceuti cal Organization.  Major non-tariff barriers 
restricting access of Indian drugs include cumbersome and time-consuming registration procedures.  Thailand is the only country in the ASEAN market insisting on local bio-equivalence study.  There 
are few structures equipped to conduct this study lo cally, which can take approximately one year and 
is very costly.  The GPO is exempted from conducti ng these studies.  Further, all major hospitals have 
their own registration procedures.  Often these hospita ls ask for product specification that is different 
from the specification approved by the Thai FDA or the Ministry of Health.  In addition, Thai 
procurement regulations require gove rnment hospitals to give preference to the GPO in purchasing 
medicines.  We would urge Thailand to rationalize it s regulatory regime and remove restrictions with 
a view to enhancing productivity and competitiveness. 
175. We have noted with interest Thailand's effo rts to reform and progressively liberalize the 
services sector, including insurance and telecommunica tions.  However, restrictions still exist that are 
affecting trade.  Thai law bars access of foreign nationals to specific service sectors like banking, telecom and professional services like accountancy, archit ecture and nursing.  India has been facing a 
number of barriers particularly in Modes 3 and 4 services.  In Mode 3 for instance, there is a 
mandatory requirement to employ locals.  And in Mode 4, Thailand gives limited work permits to 
foreigners and has not issued residential permits since the last six years.  Professional services like 
engineering, accounting, legal and architectural ser vices are closed to foreigners and these have a 
nationality requirement. 
176. The banking and telecom sectors also impose rest rictions.  Foreign banks can only establish 
representative office and branch licenses are not issued .  While in telecom, private operators operate 
on a build-transfer-operate model where only concessi ons are granted and no licenses are issued.  The 
telecommunication sector has continued to grow but at a slower pace than in previous review periods.  
The 3G licensing process has been delayed due to lega l proceedings, with the result that private sector 
operators do not yet have licenses.  We would enc ourage Thailand to liberalize its services sector.  
UNITED STATES 
177. Thailand is an important trading partner and ally of the United States.  The Secretariat Report 
notes that there has been a treaty basis to our bilateral relationship since 1966; in fact, the 
underpinnings of our relationship date back to the establishment of diplomatic ties in 1833 through 
our original Treaty of Amity and Commerce.  More than a century and a half ago, the King of Thailand offered to send elephants to President Lincol n to help with the Civil War effort.  Our trade WT/TPR/M/255 
Page 30  
 
  has come a long way since then.  Last year, it reached $35 billion in two-way goods and services 
trade, with Thailand running a trade surplus with the United States of more than $10 billion annually 
during the time span of this review.  Thailand is cu rrently the biggest beneficiary country of the U.S. 
GSP program, with more than $3 billion of Thai goods entering the United States last year under the 
GSP program. 
178. Thailand is also a prominent destination of U.S. foreign direct investment, with many well-
known American companies – including Ford, GM, and Do w Chemical – at home in the Thai market.  
The U.S. Department of Commerce estimates that U.S. companies have invested more than $12 billion in Thailand, primarily in manufacturing, fi nancing, and insurance enterprises, making Thailand 
the second largest host of U.S. foreign direct investment in ASEAN. 
179. There is little doubt that Thailand continues to prosper from its participation in the 
multilateral trading system.  Real GDP growth was 7.8% last year, rebounding impressively from the contraction in 2009.  There is re newed investor and business confidence in Thailand, which the floods 
cannot extinguish.  The IMF projects Thailand's real GDP  growth to continue at a brisk pace - at least 
5% annually - until 2016.  Inflation has been low and unemployment is at an e nviable 1%.  Thailand's 
progress in transforming and developing its economy ov er the past thirty years reached an important 
benchmark in August, when the World Bank announced that it was moving Thailand into the category 
of upper middle income countries.  This is an important achievement. 
180. In the Government Report, Thailand conveys tw o important messages – first, it is committed 
to further opening of its markets through liberali zation, and second, it attaches a high priority to 
strengthening the competitiveness of its domestic ec onomy.  Thailand has taken some initial steps in 
these areas already, including in th e insurance sector, where a program of liberalization is underway, 
and in telecommunications, where the government has created a new body to promote regulatory oversight.  These efforts have the potential to grea tly benefit Thailand by attracting foreign direct 
investment for infrastructure development, including  flood reconstruction projects, and by fostering a 
business climate in which domestic demand – not just  exports – can be a strong engine of economic 
growth.  We wish the Thai government well with these initiatives, which will also benefit Thailand's 
trading partners. 
181. Looking ahead, we are particularly interested in  Thailand's plans for further customs reform.  
As the Secretariat Report notes, some progress h as been made in implementing the single window, 
which will facilitate trade within ASEAN and with third countries.  Yet Thailand has not completed 
the legal amendments necessary to comply w ith the revised Kyoto Convention on customs 
procedures, and a perception of corruption and unf airness about the decisions and activities of Thai 
customs continues to impede trade and damage Thailand's reputation as a trading partner.  In 
particular, serious problems remain with the penalties and reward system, which causes conflicts of interest and an environment that is punitive and de bilitating to trade.  While we were encouraged by 
Thailand's efforts last year to propose legislation to  address these issues, the legislation did not pass 
Parliament and has been returned to the Finance Ministry for reconsideration.  We hope Thailand will 
continue to make customs reform a high priority  and we would appreciate an update from the Thai 
delegation on the government's plans in this area. 
182. We also hope that Thailand will continue to make intellectual property rights protection and 
enforcement a top priority.  We want to recognize the various commitments made by Thai authorities 
to strengthen their legal framework for intellect ual property rights protection and enforcement, 
including by plans to advance legislation to impl ement the WIPO Internet Treaties, address landlord 
liability, prevent the unauthorized camcording of motion pictures in movie theaters, and provide customs officials and other la w enforcement officials with ex officio  authority to seize suspect goods 
absent a formal complaint by rights holders.  In addition, we welcome the government's efforts to 
foster innovation and promote public awareness of the benefits of intellectual property protection  WT/TPR/M/255 
 Page 31 
 
 
  through its Creative Economy initiative.  While the United States remains conc erned about Thailand's 
lack of sufficient copyright protection for digita l and ecommerce activities, th e pervasive availability 
of pirated and counterfeit hard goods, and the government's ineffective enforcement system,  we 
encourage Thailand to continue its important efforts to strengthen its IPR regime.  In particular, we 
are interested in learning about the government's  plans for resubmitting the legislation to the new 
Parliament for consideration. 
183. We would welcome an update from the government  of Thailand on its efforts to improve 
access to its telecommunications market, which lags  other countries in deploying advanced wireless 
technologies.  The Secretariat Report notes that the Ministry of Information and Communication Technology is the one responsible for reflecting the direction of further liberalization of Thailand's 
telecommunications services in Thailand's GATS sche dule.  We would like to know when Thailand 
will implement its 1997 commitments; specifically, wh en it will update its schedule to reflect the new 
foreign equity limits and attach to its schedul e the Reference Paper on regulatory principles 
(developed in the Negotiating Group on Basic Telecommunications) which reflects the regulatory changes Thailand has already implemented.  Thaila nd has failed to reflect these changes in its WTO 
schedule, as it committed to do in 1997, when it pl edged to introduce such changes into its GATS 
schedule no later than 2006.   
184. The government of Thailand reports that it has taken steps to eliminate foreign ownership 
restrictions on some telecommunications activities.  We are concerned, however, that a new regulation – issued in August – is a setback in Th ailand's efforts to foster  a more competitive and 
transparent business environment in this sector.  The proposed regulations prohibit foreign equity 
holdings of more than 49%, and they introduce imprecise new restrictions on foreign ownership, 
management, and shareholding structures that are not  well understood by foreign investors.  We urge 
Thailand's government to revise or suspend these regul ations, which will have a deleterious effect on 
Thailand's economy – especially at a time wh en Thailand needs the strongest possible 
communications network for its reconstruction efforts.   
185. Another major theme of our questions relates to market access concerns in several areas, 
including the use of import fees, import permits, the administration of tariff quotas, and the use of SPS and TBT measures and non-science based regulations  to restrict trade.  We look forward to 
reviewing Thailand's responses and hope that Thailand w ill continue to work with us to try to resolve 
the underlying issues, including problems affecting our pork trade, as soon as possible.  
186. In closing, we appreciate the opportunity to pa rticipate in this meeting and discuss Thailand's 
trade and investment policies.  We look forward to  working with Thailand and with other Members as 
we take steps together to strengthen th e rules-based multilateral trading system. 
ARGENTINA 
187. Important economic and trade relations between Argentina and Thailand over the 
past few years have led to, for example, the Th ird Bilateral Economic C onsultations, which were 
held in Bangkok on 24 and 25 November 2011.  The Argentine delegation was headed by the 
National Director of International Econo mic Negotiations, and consisted of the 
Vice-President of SENASA, as well as representativ es from the Ministry of Agriculture, Livestock 
and Fisheries, and INTA. 
188. With regards to trade, we should mention th at our imports from Thailand rose from almost 
US$411 million in 2009 to US$640 million in 2010, an increase of over 55%.  Our exports to 
Thailand rose by only 4.71%, exceeding US$440 million. WT/TPR/M/255 
Page 32  
 
  189. Thailand has some achievements worth mentioning, including 7.8% growth in 2010, poverty 
reduction, fulfilment of its Millennium Development Goal, and a 27% increase in the value of trade in 
goods from 2007-2010.  It is also one of the main exporters and importers of  goods and services in the 
world.  In terms of trade, we would like to highlight Thailand's efforts to streamline customs 
formalities and adopt the ASEAN Harmonized Tariff Nomenclature. 
CAMBODIA 
190. Cambodia appreciates Thailand for its enormous  contributions made to trade development 
under bilateral, regional and global framework given a big size of its economy.  Thailand's total trade 
in goods alone reached US$377.7 billion in 2010.  Cambodia and Thailand's bilateral trade reached 
2.55 billion in the same period.  This amount of trade has created numerous employments for both 
sides, in particular in the agriculture sector.  I hope  that our bilateral trade will continue to increase 
annually through our continued close cooperation. 
191. Cambodia notes with high appreciation of the significant progress of reform made by 
Thailand in many policy areas since the last Review , among others the customs matter.  Thailand has 
adhered to the implementation of transaction va lue for customs valuation as required by the 
Agreement on Customs Valuation.  Thailand has al so implemented e-customs paperless services, 
introduced advance tariff ruling system, taking necessary steps to implement authorized economic operators.  The reform in these areas has a po sitive impact on trade facilitation and benefits 
tremendously Thailand's trading partners including Cambodia in terms of cost and time consuming. 
192. Thailand's liberalized foreign ownership for telecommunication operators from 25% to 49% 
up to 100% is indeed welcome by the membership.  It  is expected that foreign ownership limitation in 
other sectors will also be gradually liberalized. 
193. Cambodia would like to commend Thailand for its efforts in managing its economy out of the 
crisis with a strong resilience.  As indicated by the Reports, the economy grew 7.8% in 2010.  
Thailand's good economic recovery will  benefit its trading partners a nd contribute to the recovery of 
the world's economy.  It is also very much appr eciated that Thailand has refrained itself from using 
protectionist measures amid the global financia l crisis.  This demonstrates Thailand's serious 
commitment as a big trading nation to the rules of the multilateral trading system. 
MALAYSIA 
194. Malaysia fully associates itself with the statem ent by ASEAN.  In addition allow us to add 
further to the discussion.  Malaysia and Thaila nd has always enjoyed a strong economic and trade 
relationship.  Between January and September 2011, the total trad e between Malaysia and Thailand 
amounted to US$17.7 billion.  Since 2000, the amount  of trade between Malaysia and Thailand has 
tripled, with an average annual growth of 13.48% .  Thailand is among the top five destinations for 
Malaysian exports, and also the top five sources of Malaysian imports. 
195. This TPR has come at a very challenging time  for Thailand, due to the recent flood suffered 
by Thailand.  Economic losses caused by prolonge d flooding is estimated to amount to 1.12 trillion 
baht of 10.5% of the GDP, with exports expected to drop 10% year-on-year in each of the last two 
months of the year.  Meanwhile, export damages ar e projected at 148 billion baht, with the household 
and agricultural sectors suffering losses of 80 and 50 billion baht respectively.  Indeed, these are 
challenging times for Thailand. 
196. However, we remained confident that Th ailand would see through these difficult times.  
Although, the floodwaters have caused untold losses to the Thai economy, it did not, and cannot, 
wash away the strengths of the Thai econom y, nor the resilience of the Thai people.  WT/TPR/M/255 
 Page 33 
 
 
  197. The business environment remains conducive.  A ccording to the World Bank's ease of Doing 
Business 2012 survey, Thailand ranks third in East Asia and 17th overall, one rung above Malaysia.  
Thailand still offers low operations costs, and the Thai workforce is skilled and relatively cheap.  It 
continues to have established supply-chain netw ork and good access to the domestic and regional 
markets.  The Thai government has started with  a three-pronged rehabilitation strategy, known as the 
3Rs - Rescue, Restore and Rebuild, to manage the crisis and safeguard Thailand's competitiveness.  
With these measures, we are conf ident that Thailand will see through these crises and emerge stronger 
and more competitive. 
NEW ZEALAND 
198. New Zealand and Thailand have a very positive trade and economic relationship, which is 
part of a broader bilateral relationship characterised  by close friendship and cooperation.  Thailand is 
one of New Zealand's most important trading partne rs in Asia.  Our bilateral merchandise trade, 
which stood at NZ$2 billion in the year to June 2011 , has doubled since the entry into force of our 
bilateral free trade agreement in 2005.  That ag reement, which New Zealand values greatly, has 
provided a solid platform for the development of our  bilateral trade and investment, and also provides 
an important building block for the promotion of wider regional trade and economic integration.  
Given the high value New Zealand places on our trad ing relationship with Th ailand, we accordingly 
take a close interest in Thailand's trade policy.  We appreciate the opportunity to provide comment 
through this review. 
199. New Zealand recognises that Thailand's trade po licy is a broadly open and market-orientated 
one.  However, we retain concerns about market  access restrictions for foreign service providers .  
New Zealand agrees with the Secretariat's report that increasing competition in Thailand's services 
sector would help enhance innova tion and productivity and increase the competitiveness of the Thai 
economy as a whole.  We accordingly encourage and welcome Thai efforts to liberalise market access 
in the services sector. 
200. New Zealand is pleased to note that administration of Thailand's tariff quota system has 
improved in recent years. New Zealand hopes that Thailand will continue to simplify its tariff quota 
administration and ensure that the negative trad e impacts from quota administration are minimised.  
For New Zealand, the timeliness of quota allocati on notifications is critical, and we encourage 
Thailand to look at further improvement s to its quota regime in that area. 
201. In the area of technical restrictions to trade,  New Zealand is hopeful th at Thailand will take on 
board Members' concerns in relation to its prop osed regulations on health warnings on alcoholic 
beverages and ensure that any new requirements ar e not unnecessarily trade restrictive.  New Zealand 
also welcomes Thailand's indication that duties on alcoholic beverages are currently under reform 
with the objective of promoting transparency a nd equity. We look forward to these reforms being 
implemented, particularly to the current exci se system for wine and local fermented spirits. 
202. As has been noted in previous reviews, Th ailand's regulations, particularly for food and 
beverage imports, are often wide-ranging and prescriptiv e.  In light of the importance to New Zealand 
of our agricultural exports to Thailand, we urge Th ailand to continue to take  into account the interests 
and WTO rights of its trading partners in admini stering existing regulations and introducing new 
regulations. 
PERU 
203. Thailand, an open economy with an export-orien ted development policy, has become a major 
exporter of manufactured goods and was the world's 19th largest exporter and 17th largest importer of 
goods in 2010.  We note the robust and continuous grow th of its economy, with a 7.8% growth rate in WT/TPR/M/255 
Page 34  
 
  2010, and how its sound macroeconom ic policies, current account surpluses and high levels of 
international reserves enabled it to cope well during th e world economic crisis of 2008.  In the social 
sphere, Thailand has managed to reduce poverty and meet its Millennium Development Goals, 
although it still faces significant challenges in terms of regional and income disparities.  Additional 
challenges are posed by political instability and th e natural disasters that periodically affect the 
country. 
204. Peru, like Thailand, attaches great importance to trade as a tool for development and to the 
key role that foreign investment can play in ec onomic growth.  We share various economic and trade 
interests, are both members of APEC, and at the WTO form part of the Cairns Group and the agricultural G-20, both agricultural negotiating gr oups.  With regard to intellectual property, 
last April, Peru and Thailand, together with a gr oup of other countries, presented a draft decision to 
enhance mutual supportiveness between the TRIPS Agreement and the Convention on Biological 
Diversity. 
205. Bilateral trade between Peru and Thailand h as increased in recent years and shows a good 
deal of potential;  in 2010, it amounted to a total of US$500 million.  The trade balance has been 
largely favourable to Thailand thanks to Peruvian  imports of commercial vehicles, washing machines 
and vans, products for which Thailand is Peru's leading supplier.  As for Peru, it exports zinc ores and 
concentrates, refined copper cathodes and sections thereof, hydrobiological products, zinc products, 
and fruit, and there is great export potential for other mining products. 
206. In order to develop this potential trade, and following the signing of the Framework 
Agreement on Closer Economic Partnership betw een Peru and Thailand in 2003, our countries 
negotiated, between 2004 and 2010, a Protocol to Accel erate the Liberalization of Trade in Goods and 
Trade Facilitation, and signed three additional protocols which will enter into force once the 
improvement process is complete. 
MYANMAR 
207. Myanmar fully aligns itself with the statement of ASEAN.  Myanmar is pleased to take note 
that Thailand is actively pursuing to fulfill th e goal of establishing the ASEAN Economic Community 
by 2015.  Thailand is also actively participating in the sub-regional economic frameworks, such as 
BIMSTEC, ACMECS and GMS together with her neighboring countries, including Myanmar, to 
promote trade and investment in the region. 
208. Finally, my delegation would like to commend Thailand's active participation in the WTO's 
DDA negotiations and its strong support for the multilateral trading system. 
COLOMBIA 
209. Thailand's economic performance is striking.  In the four-year period leading up to the 
2009 financial crisis, its average economic growth stood at 5.7%.  Although production fell by 1.5% 
in 2009, it recovered notably in 2010 with 7.8%  growth.  Forecasts for 2011 predict growth of 
between 4 and 5%. 
210. The Thai economy's strong recovery is the resu lt of a solid macroeconomic policy based on 
sound fiscal and monetary policies.  These policies have produced very satisfactory results, as 
evidenced by the positive current account balance, the increase in international reserves, the control of 
inflation, and the low unemployment rate.  Macroe conomic stability, together with the appropriate 
package of fiscal and monetary support measures implemented as of 2009, ensured Thailand's success 
in overcoming the effects of the recent financial crisis.  WT/TPR/M/255 
 Page 35 
 
 
  211. Maintaining such dynamic growth, however, faces certain limitations in the immediate future 
due to the reduction of the investment rate and pr oblems relating to infrastructure, areas in which 
greater openness and the simplification of the tax system would appear to be necessary. 
212. There have been no recent changes to tariff prot ection and the structure remains complex with 
a combination of ad valorem  tariffs, specific tariffs and so-called "alternate tariffs".  The latter are the 
higher of an ad valorem  rate and a specific tariff, which makes it impossible to estimate the level of 
border protection accurately. 
213. Thailand has bound only 74% of its tariff lines and the Ministry of Finance may 
autonomously modify the level of applied tariffs by up to 50%.  This generates a high level of 
uncertainty as regards current tariff protection.  The administration of several agricultural tariff quotas 
is restrictive.  The procedures involved are co mplex and limit particip ation to some private 
companies, associations and State entities.  On  a positive note however, it should be noted that 
Thailand has not adopted protective measures to tackle the difficulties stemming from the economic 
crisis. 
214. Also worthy of note is Thailand's progress rega rding customs procedures, in particular the 
elimination of paper-based procedures since 2008 and the implementation of the single window in the 
near future.  However, the legislative amendm ents needed to ensure compliance with the 
Kyoto Protocol have not yet been finalized. 
215. Progress has also been made in liberalizing th e services sector.  Restrictions are, however, 
maintained on foreign investment participation in va rious activities, and regulations remain complex.  
Rationalizing procedures and facilitating competiti on could boost not only productivity, but the 
competitiveness of the Thai economy. 
216. In spite of the efforts made , Thailand's domestic tax system remains complex, with many 
different forms of treatment and complex procedures.   Since this hinders the normal development of 
economic activity, it seems important to strengthen the tax simplification policy. 
217. In the bilateral sphere, trade between Colombia  and Thailand has continued to grow in recent 
years, rising from US$143 million in 2006 to US$386 million in 2010, and the preliminary figures for 
this year forecast an increase in trade flows;  we see space and opportunities to continue strengthening 
bilateral trade relations. 
218. Thailand has applied the wise principle that the government and the private sector should 
work closely to meet the country's economic and social objectives.  As King Bhumibhol Adulyadej 
said, "The important thing for the survival of the Th ai society is that the ma jority of those who work, 
both in the government and the private sector, still strive  to work in the same direction;  this is why 
the Thai nation still stands". 
PAKISTAN 
219. Thailand is a successful model of development w ithin open globally integrated free enterprise 
economy and having sound macroeconomic fundamentals.  The Oxford Business Group's 2011 
Report on Thailand states that "indeed, it is the be drock of manufacturing and industry that has kept 
Thailand's economy ahead of its peers in recent years,  and which has also helped to rapidly reestablish 
the country's economic prosperity".  The Report also  praised Thailand's agricultural industry for being 
one of the only five native exporters of food worldw ide, adding that through enhanced research and 
development food processing is seen as moving up the va lue chain.  In addition the tourism industry 
has rebounded.   WT/TPR/M/255 
Page 36  
 
  220. Although Thailand's experienced political unrest , external macroeconomic environment and 
the recent flooding, which led to an average expor t growth, it is remarkable that it achieved GDP 
growth rate of 7.8% in 2010 which is the f astest since 1995.  During the period under Review, 
Thailand has increased GDP per capita while also  meeting MDGs.  At the same time, it is 
experiencing problems such as a decline in FDI which is attributed to political unrest, restrictions on 
foreign ownership, and complexes for payment of different taxes. 
221. The Secretariat Report has noted that the recen t political instability also delayed reforms in 
several areas including IP, privatization and several  services subsectors.  Also a complicated tariff 
structure with different rates is continued by a quarter of their tariff lines are unbound.  The excise 
duties, personal income tax and corporate income tax also continue to be complicated and have 
adverse impact on competitiveness. 
222. Thailand is an important and active WTO Member .  At the same time, it is actively engaged 
in preferential, regional and bilateral agreements  based on regionalism.  The Secretariat Report, 
however, notes that beyond ASEAN the picture for FTAs is complicated, sometimes simultaneously 
involving bilateral and regional deals.    On the other hand, the Oxford Business Group Report 
underlines the point that "to boost the country's co mpetitiveness the governme nt was encouraged to 
increase investment in science a nd technology, education and infrastructure.  Such progress will 
strengthen Thailand's competitive position as the re gion most trade barrier s upon creation of the 
massive ASEAN economic community single market by 2015". 
223. To conclude I would like to say that Pakistan  and Thailand have an old trade and economic 
relationship.  Trade between the two countries grew  by 350% during the last decade, from 2000-10.  
Although there is a visible score for expansio n, several initiatives are underway to enhance 
information sharing, business delegations excha nge, and deepening the private sector interface.  WT/TPR/M/255 
 Page 37 
 
 
  V. REPLIES BY THE REPRESENTATIVE OF THAILAND AND ADDITIONAL 
COMMENTS 
224. We are of the view that the TPR has provided Th ailand a valuable opportunity to further build 
the confidence of the internationa l economic community with regard to our commitment to the goals 
and policies of economic reform, mo re balanced growth and people- centered development, as well as 
our pledge to strengthen the multilateral trading syst em based on fair and equitable trading rules. In 
this connection, I would like to assure you that a ll comments and constructive questions will be taken 
to heart for further improvements in our trade and economic regime.  
225. The TPR is a welcomed exercise as it is an im portant transparency mechanism that benefits 
all Members and the multilateral system.  Neverthe less, it has been hard work for us in our 
preparation for this meeting due to numerous f actors including the flooding situation; we must 
apologize for any missing clarifications, as a small por tion of questions  are currently left unanswered 
due to the complications faced by agencies that ha ve been directly affected by the recent flooding. 
However, we remain committed to answering all of the questions, and will ensure that the remaining 
answers be circulated to members within the required timeframe.  
226. This morning, we will respond to comments on promoting investors' confidence; customs 
issues; tax systems; complexities due to the num ber of existing FTAs; and Intellectual Property 
related issues. I would like to start with the Econom ic Environment, we are pleased to have received 
numerous encouraging comments regarding our econom ic performance and the significant role that 
Thailand plays in the international economic community. However, we also recognize the 
shortcomings, such as the decline of Foreign Direct  Investment due to political transition, increased 
strength of the Thai baht, and the global econom ic slowdown. Neverthe less, Thailand remains 
committed to promoting investors confidence, and will continue to work vigorously for more effective trade and investment facilitation and mo re favourable economic environment.  
227. We thank Members for recognizing the increased transparency, efficiency, and simplicity of 
our customs procedures, particularly the e-custom s system.  To further facilitate trade, we will 
continue to develop our customs procedures ac cording to the WCO instruments and guidelines. 
Moreover, Thailand intends to expedite and complete  its internal procedures in order to accede to the 
Revised Kyoto Convention.   
228. With regard to the complicated  systems for excise duties, personal income tax, and corporate 
income tax, Thailand is working on a "Tax Struct ure Reform Scheme", for the purpose of widening 
the tax base for sustainable economic growth, stre ngthening country's competitiveness and creating 
more equality of income distribution. The Thai government will ensure that the "Tax Structure 
Reform Scheme" will support the country's  sustainable economic development.  
229. On Intellectual Property, Thailand has undertaken  stpes to improve the enforcement of IP 
legislation through a four-pronged strategy, name ly, expedition of law amendments/enactments, 
enhancement of interage ncy cooperation, capacity building and effective awareness raising activities. 
Projects and Initiatives will continuous ly and gradually be introduced to improve the enforcement of 
IP legislation, including the incorporation of th e  Anti-Camcording provisions and Landlord Liability 
provisions into Thai IP laws. 
230. Regarding the complexity that may arise from a number of FTAs, or as some members call it 
"the Pad Thai effect", the government has orga nized outreach programs to increase the awareness of 
the private sector, as well as foreign investors on how to fully utilize the benefits accorded by 
preferential trade agreements.  Furthermore, ASEA N and our dialogue partners  are  considering the 
possibilities of esatablishing the ASEAN plus FTA.  WT/TPR/M/255 
Page 38  
 
  231. This TPR has brought to light Members' recogniti on of our efforts since our previous TPR to 
further liberalize and facilitate trade with our WT O friends.  This TPR has also shed light on 
challenges we face and improvements that could be made, and we will take a serious look at these 
aspects in further developing our trad e and economic development policies. 
232. Last but not least, Thailand would like to rea ffirm our strong support of international trade 
and the multilateral trading system. We will continue  to actively participate in the DDA negotiations, 
and stand ready to work constructively with other Members to make this Round a successful one. In 
spite of the high impacts of flooding, Thailand's eco nomy will remain open to foreign investors, and 
the Thai government will continue to pursue furthe r liberalization in trade and investment, and as we 
have always done, to continue to refra in from taking protectionist stance.  
DISCUSSANT 
233. During this Review process, we have heard from a number of speakers from a variety of 
regions that they perceive strong potential for growth  in their trade ties with Thailand.  The fact that 
countries are keen to engage in discussions in th is TPR demonstrates Members' assessments about the 
positive, longer-term prospects for Thailand's economy.  It also demonstrates Members' faith in the 
ability of the Thai government to continue im plementing policies which create an environment 
conducive for international businesses. 
234. As several speakers attested to , we have seen Thailand embrace economic reforms even in the 
face of the most challenging circumstances, incl uding the Asian financial crisis and the global 
financial crisis. Central to its success, has been an open economy and an orientation to liberal trade 
policies.  We also heard how through regional econo mic integration, Thailand is reaping the benefits 
with higher GDP levels and strong levels of employment.  Of course, growing interdependence can 
come with some challenges, particularly in times of  deep economic downturn.  This is where domestic 
policy settings can also play an important role. 
235. As part of its continued re gional economic integration, we  have heard Members mention 
"behind the border" issues which are causing concern.   Issues such as standard setting, both in a TBT 
and SPS context, have been identified as a concern.  Several countries in this Review raised questions 
with labeling and licensing procedures for various co mmodities.  There were also several delegations 
that raised the issue with the complexity of the tax structure.  In this regard, we note positively in the 
responses from Thailand that it is working on a "Tax Structure Reform Scheme".  We have also seen 
Thailand's initiative in establishing a national single-point e-starting business service – which will make business start-up procedures faster and more efficient. 
236. A number of countries raised the need for im provements in customs procedures and customs 
administration.  Again, this is an area where clearl y the Thai government has heard the concerns of its 
trading partners and is looking to respond.  We  also heard comments from a number of Members 
about the need to ensure that reforms continue in areas such as the services sector – providing greater 
prospects for foreign equity participation in  sectors such as telecommunications, banking and 
insurance. 
237. There was also a clear indication that Members were looking for copyright and intellectual 
property rights reforms to be afforded a higher pr iority, although no changes had been made during 
the period under Review.  As several Members indicated this would be a significant development which would provide greater surety to investors. 
238. We have heard also of Members experiences di fficulties with the complex web of bilateral 
and regional trade agreements to which Thailand is a member, trying to discern the benefits to 
business of such agreements.  The WTO's World Trade Report this year had a focus on FTAs and  WT/TPR/M/255 
 Page 39 
 
 
  RTAs and called for the need to move from co-exist ence to coherence.  We are pleased to see in some 
of Thailand's responses that it intends to explore the possibilities of convergen ce of trade agreements 
including through the ASEAN+3 and ASEAN+6.  Clearly Members are k een to ensure this 
convergence process is followed through. 
239. In concluding, we are very appreciative of th e extraordinary efforts that Thailand has gone 
through to be able to participate in this TPR in the circumstances.  Thailand has demonstrated 
transparency throughout this process and will no doubt continue to demonstrate this transparency as 
Members continue to question them in the regular co mmittee-work of this Organisation.  Thailand is a 
valued and important Member of this Body and we  look forward to our continuing engagement as it 
continues further along its path of trade libera lization, economic devel opment and growth.   
EUROPEAN UNION 
240. The EU would like to express appreciation to th e delegation of Thailand for its efforts in 
presenting replies to Members' advance written questi ons in a timely manner.  We are still in the 
process of studying replies and we note that a number of questions have not yet been replied, and we 
take note of your statement this morning and we ar e of course sympathetic to the capacity constraints 
in relation to the difficult situation in Thailand.  So  therefore we have included the questions we have 
not received answers notably in the areas of SPS, servi ces, standards, taxation, and IP in our today's 
submission. 
241. We also have presented some follow-up questi ons in order to full y understand some of 
Thailand's policies and practices.  In the interest of time, I will mention the areas where we would seek additional clarification, for example in Thaila nd's legislation, more specifically on its Public 
Private Partnership pack and Foreign Business Act.  We are also interested on the current status of 
Thailand's Treaty of Amity Exemption (MFN exemp tions) that has expired on January 2005.  We 
would also like to seek more information on regi onal integration development, on import licensing 
requirements, on labeling, taxation, government pr ocurement, and services.  We will submit you these 
follow-up questions through the Secretariat, and we hope to receive the answers in due time. 
242. In conclusion, we would like to encourage Tha iland to continue its very admirable efforts 
towards facilitating trade, increasing investment, st rengthening administrative capacity and enhancing 
the overall economic environment in a sustainable wa y.  And we sincerely hope that pursuing this 
kind of open trade agenda will also  help overcoming the impact of the flooding and the EU remains 
committed to provide assistance. 
SINGAPORE 
243. I would like to congratulate Thailand for what has been proven to be a successful TPR.  My 
thanks, admiration and appreciation to previous sp eakers for the efforts to participate despite the 
challenges.  We are fully aware that it has been  a challenging few years for Thailand and we very 
much admire the Thai civil service.  
244. Singapore like Thailand is at the core of ASEAN belief in economic integration both 
regionally and then as the region growth stronger in  our own integration to reach out externally 
beyond the region.  There is a center of focus to  this and that comes in ASEAN upholding of the 
WTO as the center of multilateral trade, that all th e FTAs, regional agreements that we work on are 
WTO consistent and uphold the rules made in this ho use. And in this, Thailand has to be given credit 
for being a key player in these efforts. WT/TPR/M/255 
Page 40  
 
  JAPAN 
245. Japan believes that this TPR contributes grea tly to a better understanding of trade and 
investment policy in Thailand.  Japan does not have  any follow-up questions, but we look forward to 
receiving the replies to our pe nding questions No. 4 and 10. 
UNITED STATES 
246. We do have some follow-up questions based on th e replies that we received, and there were 
also some questions to which Thailand did not respo nd.  We will resubmit those in writing as well as 
the follow-up questions, and we look forward to  receiving Thailand's responses to these questions 
within the appropriate time as provided in the TPRB rules.   
247. For the sake of time, I will not go through all the follow-up questions but I will highlight the 
issues area where we do have some follow-ups, partic ularly in the area of services and services related 
legislation that it is currently under review.  We have a number of follow-up questions related to the 
Customs Law and reform that it is taking place in Thailand, in the procedures.  We have one follow-
up question on non-tariff border measures and a questi on on the industrial zone, laws and regulations.  
In addition a couple of follow-up questions in the area of IP rights.  We have submitted these 
questions already to the Secretariat so we will look forward to the responses from Thailand in due 
course.  
PHILIPPINES 
248. I would like to congratulate Thailand and like many other who have expressed their 
acknowledgement for the permanent ro le of Thailand within ASEAN we concur with them.  We also 
recognize its economic resilience and openness even in the face of many daunting challenges.  
Thailand has put a lot of extraordinary efforts to fa ce them.  This Review shows that Thailand's policy 
direction remains open to trade and investment and we are confident that Thailand will continue to 
make progress in its support and commitment to international trade and development. 
CANADA 
249. Canada would like to take this opportunity to  congratulate Thailand for a successful TPR, and 
note their engagement in this process despite the current challenges posed by  the flooding in the 
country.  In this regard, we also thank Thailand for the responses provided to many of our advance 
written questions and we look forw ard to reviewing the full package of responses in the future. 
AUSTRALIA 
250. We just wanted to register our appreciation fo r the replies that Thailand has provided to the 
questions.  They were indeed comprehensive respon ses to the questions so far, noting of course that 
Members have registered that ther e are still some questions to be answered, and we will carefully 
review the responses provided.  As a partner of Tha iland, both bilaterally and a partner in the WTO in 
groups such as the Cairns Group, we definitively valu e Thailand's membership and relationship in that 
regard.  
THAILAND 
251. I would like to thank for the very kind support and the confidence in Thailand.  Of course we 
are in a very difficult time but the situation is ge tting better.  We intend to do our best, we welcome 
more written questions and we will answer them in  due course. We hope for continue support and also 
please inform your business private sector that Thailand will remain open and we welcome more 
businesses and investments in Thailand.   WT/TPR/M/255 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
252. The sixth review of Thailand's trade policies has taken place against the backdrop of recent 
severe flooding in the country that has led to th e deaths of hundreds of people and caused severe 
damage to the Kingdom's infrastructure and production valued at over 2.3% of GDP.  Indeed, the damage caused by the flooding was felt beyond Thailand's borders as it disrupted international supply 
chains for both industrial and agricultural goods.  I w ould also like to take this opportunity to add my 
appreciation to the Thai delegation for providing re plies to the questions despite the disruptions 
caused by the flooding. 
253. Thailand has a relatively open economy and trade and investment have played important roles 
in its development.  Economic growth over the past  decades, including over the past few years, has 
been impressive and the economy recovered strongl y from a recession in first half of 2009 caused by 
the global financial crisis to grow by nearly 8% in  2010.  In turn, strong economic growth has led to a 
decline in poverty and Thailand has been able to  meet its Millennium Development Goals ahead of 
time.  Members commended Thailand for its active participation in the DDA and its strong support for 
the multilateral trading system. 
254. This review of Thailand has been able to note th at it did not take any new measures to restrict 
trade since the 2008 global financial crisis.  I ndeed, it has made some important improvements to 
trading conditions in some areas, such as its a doption of paperless import procedures and its intention 
to move to a single window.  Furthermore, an a ppeals system has been in troduced by the Customs 
Department to cover many aspects of import proce dures.   As a member of ASEAN, Thailand has 
adopted the Association's harmonised tariff nomenclat ure which has also helped facilitate trade by 
standardising the customs codes used to identify products.   
255. Thailand, with its trade and current account su rpluses, continues to pursue a policy of export 
led growth.  But with low growth in its traditional export markets, a number of delegations asked if it 
would put greater emphasis on domest ic consumption.  Thailand is also a member of ASEAN and 
actively participates in its negotiations with other co untries.  It has also negotiated its own free trade 
agreements.  The result has been overlapping trad e agreements which can make it confusing for 
exporters as they face a variety of import charges or different rules of origin.  Members also noted that foreign direct investment has declined over the p ast few years and they pointed out several existing 
measures that obstruct investment, su ch as limits on foreign ownership. 
256. Furthermore, most of the delegations drew attention to areas of Thailand's import and 
domestic policies that they felt hampered trading opportunities and impeded its development.  Among 
the issues raised by delegations and referred to in the Secretariat Report were: 
 Agriculture:   Thailand is an important producer and exporter of several agriculture products, 
particularly rice.  Although the immediate concern for the country is recovery from recent flooding, a number of delegations also expressed  concern about current agricultural policy, 
such as domestic support and tariff quota administration, and their impact on trade; 
 Complex tariffs:   With ad valorem tariffs, specific duties and compound tariffs charged at 
various rates on different products, Thailand has a complicated tariff structure.  Furthermore, 
Members noted that Thailand continues to have a large number of unbound tariffs all of 
which creates uncertainty and distorts trade;   
 Technical Barriers to Trade and SPS Measures:   Thailand was encouraged to make greater 
use of international standards for both TBT a nd SPS measures and to improve transparency in 
developing standards and applying them.  There we re also concerns about health warnings on 
alcohol products; WT/TPR/M/255 
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   Complex income tax, corporation tax and excise duties:  In addition to a complicated tariff 
system, Thailand also has complex systems of income and corporation tax which makes compliance expensive and acts as a deterrent to investment.  Furthermore, some delegations 
stated that the different excise duties on similar products tended to favour domestically 
produced goods to the detriment of imports of, for example, alcoholic drinks; 
 Intellectual property:  Several Members noted the steps taken by Thailand to improve the 
protection of intellectual property and the Thai  delegation also emphasised the importance of 
a strong and efficient intellectual property sy stem, particularly since the launch of the 
Creative Economy Policy in 2009.  However, th e current system was still considered to be 
deficient and several problems, including counterfeiting and piracy, were pointed out by Members; 
 Trade in services :   Despite progress in the liberalization of trade in some services sectors, 
Members continued to be concerned by foreign ow nership and market access restrictions in 
some areas, such as financial services (particularly insurance), telecommunications, maritime 
and professional services.  It was also noted that Thailand has yet to modify its GATS schedule following the negotiations on telecommunications in 1997.  Also on services, concerns were raised about new regulations that  appear to impose criteria that could restrict 
foreign participation in telecommunications, insurance and logistics.  
 Regulation:  Several delegations mentioned the need  for enhanced regulation of several 
sectors, particularly financial and other serv ices and it was noted that Thailand has committed 
to liberalize the regulatory regime with legisl ation governing key sectors, such as transport, 
distribution, and telecommunications under review. 
257. In conclusion, Thailand, as a major exporter of  industrial and agricultural products as well as 
services, is an important player on the world market and its policy decisions have impacts well 
beyond its borders.  This, the sixth review of Th ailand's trade policies, has taken place at a very 
important time.  Following the global financial cris is that started in 2008 and the recent flooding in 
Thailand along with current uncertainty in the glob al economy, the policy direction that Thailand is 
going to take will be very important  for its future development.   
 
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