Thailand-Australia Free Trade Agreement

Thailand-Thailand-Australia Australia Free Trade Free Trade AgreementAgreement

Fiscal Policy Office, Ministry of Fiscal Policy Office, Ministry of FinanceFinance

Dr. Somchai Sujjapongse, Deputy Director General

June 21, 2004

Exports, Imports Exports, Imports and Trade Balanceand Trade Balance

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2001 2002 2003

Total Exports Total Imports

Million Baht

0

15,000

30,000

45,000

60,000

75,000

90,000

2001 2002 2003

Exports to Australia Imports from Australia

Million Baht

Year 2003

Total Exports = 3,334 Billion Baht

Total Imports = 3,138 Billion Baht

Trade Balance = 196 Billion Baht

Trade with Australia

Exports = 89.7 Billion Baht (2.7%)

Imports = 65.6 Billion Baht (2.1%)

Trade Balance = 24.1 Billion Baht

Industrial Industrial Products: Products: ExportsExports

HS Cod

e

Exports to Australia

(2003)Million Baht %

87 Vehicles, parts and accessories

25,422.5 28.3

84Machinery, mechanical appliances and parts

12,556.4 14.0

39 Plastics and articles thereof 6,893.2 7.7

85Electrical machinery, equipment and parts

5,463.4 6.1

01-97 Total

89,744.1 100.0

Industrial Industrial Products: Products: ImportsImports

HSCod

e

Imports from Australia

(2003)Million

Baht %

71Precious stones, precious metals and articles thereof 12,415.8 18.9

76 Aluminum and articles thereof 10,367.1 15.8

72 Iron and steel 5,043.1 7.7

27Mineral fuels, mineral oils and products of their distillation 3,657.6 5.6

52 Cotton 3,412.6 5.2

01-97 Total 65,578.0 100.0

Vehicles, Parts and Vehicles, Parts and AccessoriesAccessories(Chapter 87)(Chapter 87)

Exports

Imports

0.2%

47.8%

ASEAN EU

AUSTRALIA BAHRAIN

BANGLADESH CANADA

CHILE CHINA

INDIA JAPAN

KOREA,REPUBLIC OF MEXICO

NEW ZEALAND RUSSIAN FEDERATION

SOUTH AFRICA SRI LANKA

UNITED STATES OTHERS

14.8% 23.0%

25.9%

13.0% 10.1%

Year 2003

World = 171.9 Billion BahtAustralia = 25.4 Billion Baht


Vehicles, Parts Vehicles, Parts and Accessoriesand Accessories

(Chapter 87)(Chapter 87)

0

5000

10000

15000

20000

25000

2001 2002 2003

Exports Imports

Million Baht

8% 15%

77%8704: Motor vehicles for the transport of goods

8708: Parts and accessories

8703: Motor vehicles for the transport of persons (<10 persons)

Exports

Tariff StructureTariff Structure8701 Tractors 5%, 20%

8702 Motor vehicles for the transport of persons (>10 persons) 40%

8703 Motor vehicles for the transport of persons (<10 persons) 80%

8704 Motor vehicles for the transport of goods 40%

8705 Special purpose motor vehicles 10%, 40%

8706 Chassis fitted with engines, for 87.01 to 87.05. 30%

8707 Bodies (including cabs), for 87.01 to 87.05. 40%, 80%

8708Parts and accessories of the motor vehicles of 87.01 to 87.05.

10%, 30%

8709Works trucks; tractors used on railway station platforms; parts

10%, 20%

8710 Motorized tanks; parts 0%

8711 Motorcycles and cycles; side-cars. 60%

8712 Bicycles and other cycles, not motorized. 30%

8713 Carriages for disabled persons 0%

8714 Parts and accessories of vehicles of 87.11 to 87.13. 25%, 30%

8715 Baby carriages and parts thereof 30%

8716 Trailers ; other vehicles, not mechanically propelled; parts 10%, 25%, 40%

Tariff Rate

Avg. 33%

Thailand’s Tariff Thailand’s Tariff Reduction ScheduleReduction Schedule

• On January 1, 2005, On January 1, 2005, 38% of products in 38% of products in chapter 87 will have chapter 87 will have their tariff rates reduced their tariff rates reduced to 0%.to 0%.

• All of the tariff rates on All of the tariff rates on vehicles and parts invehicles and parts in chapter 87 will be chapter 87 will be reduced to 0% by 2010.reduced to 0% by 2010.


8703: Motor vehicles for the transport of persons (<10 persons) - Of a cylinder capacity not exceeding 3,000 cc

Base Base RateRate

20052005 20062006 20072007 20082008 20092009 20102010

8080 3030 2424 1818 1212 66 00

8703: Motor vehicles for the transport of persons (<10 persons) - Of a cylinder capacity exceeding 3,000 cc8704: Motor vehicles for the transport of goods

Base Base RateRate

20052005 20062006 20072007 20082008 20092009 20102010

40, 60, 40, 60, 8080

00 00 00 00 00 00

8708: Parts and accessories

Base Base RateRate

20052005 20062006 20072007 20082008 20092009 20102010

>20>20 2020 1616 1212 88 55 00

Australia’s Tariff Australia’s Tariff Reduction ScheduleReduction Schedule• Australia will reduce its Australia will reduce its tariff rates on vehiclestariff rates on vehicles from 5-15% to 0% on from 5-15% to 0% on January 1, 2005.January 1, 2005.

• For some parts and For some parts and accessories in chapter 87, accessories in chapter 87, in particular 8708, tariff in particular 8708, tariff rates will be reduced torates will be reduced to 5% in 2005-2009 and 5% in 2005-2009 and reduced to 0% by 2010.reduced to 0% by 2010.

Rules of OriginRules of Origin• For vehicles: Substantial For vehicles: Substantial Transformation (Change Transformation (Change to Heading) with a Regional to Heading) with a Regional Value Content of not lessValue Content of not less than 40 percent than 40 percent

• For parts and accessories For parts and accessories (8708): Substantial (8708): Substantial Transformation (Change to Transformation (Change to Sub-Heading) with a Sub-Heading) with a Regional Value Content of Regional Value Content of not less than 40 percent not less than 40 percent

• For parts and accessories For parts and accessories (8714): Substantial (8714): Substantial Transformation (Change to Transformation (Change to Sub-Heading from any Sub-Heading from any other Heading)other Heading)

Textiles and Textiles and Textile ArticlesTextile Articles(Chapter 50-63)(Chapter 50-63)

4% 8%

15%

33%

29%

Imports

Exports World: Year 2003

Exports = 229.5 Billion Baht

Imports = 100.6 Billion Baht

11%

10%16%

35%

Silk WoolCotton Paper yarnMan-made fi laments Man-made staple fibersWadding, felt and nonwovens Carpets Special woven fabrics Textile articles for industrial useKnitted or crocheted fabrics Apparels (knitted or crocheted)Apparels (not knitted or crocheted) Others made up textile articles

Textiles and Textiles and Textile ArticlesTextile Articles(Chapter 50-63)(Chapter 50-63)

2%

39%

57%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2001 2002 2003

Exports Imports

Imports: 60. Billion Baht (6.0%)

Exports: 2.6 Billion Baht (1.2% of Total Textile Exports)

Australia

Silk Wool CottonPaper yarn Man-made filaments Man-made staple f ibersWadding, felt and nonw ovens Carpets Special w oven fabricsTextile articles for industrial use Knitted or crocheted fabrics Apparels (knitted or crocheted)Apparels (not knitted or crocheted) Others made up textile articles

Tariff Tariff StructureStructure

50 Silk 0, 15 1, 5, 10, 17.5

51 Wool 0, 5, 15 1, 5, 7.5

52 Cotton 0, 5, 15 0, 5, 12.5

53 Other vegetable textile fibers, Paper yarn 0, 5 5, 12.5

54 Man-made filaments 0, 5, 15 5, 12.5

55 Man-made staple fibers 0, 5, 10, 15 5, 12.5

56 Wadding, felt and non-wovens 0, 5, 10 5 - 20

57 Carpets 0, 5, 15 30

58 Special woven fabrics 0, 5, 10, 15, 25 12.5, 15

59 Textile articles for industrial use 0, 4, 5, 10, 15 1 - 30

60 Knitted or crocheted fabrics 10, 15, 25 12.5

61 Apparels (knitted or crocheted) 0, 10, 25 30

62 Apparels (not knitted or crocheted) 0, 10, 25 10, 30, 60

63 Others made up textile articles 0, 5, 10, 15, 25 1, 10, 30

Tariff Rate (%)

Australia Thailand


• On January 1, 2005, 15% On January 1, 2005, 15% of textile productof textile product categories will have their categories will have their tariff rates reduced to 0%.tariff rates reduced to 0%.• 58% of the textile product 58% of the textile product categories will categories will have their tariff rates have their tariff rates reduced to 0% by 2010, reduced to 0% by 2010, and the tariff rates of the and the tariff rates of the other 27% will beother 27% will be reduced to 0% in 2015.reduced to 0% in 2015.

Base Base RateRate

20052005 20062006 20072007 20082008 20092009 20102010

>20>20 2020 1616 1212 88 55 00

Base Base RateRate

20052005 20062006 20072007 20082008 20092009 20102010 20112011 20122012 20132013 20142014 20152015

>20>20 2020 1616 12.512.5 12.512.5 12.512.5 55 55 55 55 55 00

Australia’s Tariff Australia’s Tariff Reduction ScheduleReduction Schedule• For apparel items and For apparel items and

some finished textiles some finished textiles with current tariffs of with current tariffs of 25%, Australia will reduce 25%, Australia will reduce the tariffs to 12.5% on the tariffs to 12.5% on January 1, 2005. Tariffs will January 1, 2005. Tariffs will be further reduced to 5% be further reduced to 5% in 2010, and eliminatedin 2010, and eliminated in 2015.in 2015.

Base Base RateRate

20052005 20062006 20072007 20082008 20092009 20102010 20112011 20122012 20132013 20142014 20152015

2525 12.512.5 12.512.5 12.512.5 12.512.5 12.512.5 55 55 55 55 55 00

Australia’s Tariff Australia’s Tariff Reduction ScheduleReduction Schedule• For textiles with For textiles with tariffs at 10% and 15%, tariffs at 10% and 15%, Australia will reduce Australia will reduce the tariffs to 5% on the tariffs to 5% on January 1, 2005, and January 1, 2005, and eliminate the tariffs eliminate the tariffs in 2010.in 2010.

Base Base RateRate

20052005 20062006 20072007 20082008 20092009 20102010

10, 1510, 15 55 55 55 55 55 00

Rules of OriginRules of Origin

• Substantial Substantial Transformation Transformation and and Regional Value Regional Value Content of not less Content of not less than than 55 percent55 percent

At least 30 percent of value of a textile product is from Thailand. The other 25 percent of value of the product can come from developing countries.

Plastic and Articles Plastic and Articles thereof thereof


5%

ASEAN EU AUSTRALIA BAHRAINBANGLADESH CANADA CHILE CHINAINDIA JAPAN KOREA,REPUBLIC OF MEXICONEW ZEALAND RUSSIAN FEDERATION SOUTH AFRICA SRI LANKAUNITED STATES OTHERS

5%

7%

11%

10%

11% 19%

36%

Exports



Imports

Year 2003

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Million Baht

2001 2002 2003Exports Imports

Plastic and Articles Plastic and Articles thereof thereof


56%

12%

3923: Plastic articles for packing of goods, lids, caps, and other closures

3901: Polymers of ethylene

Exports


3901 Polymers of ethylene, in primary forms 5 10, 20

3902Polymers of propylene or of other olefins, in primary forms

0, 5 5, 10, 20

3906 Acrylic polymers, in primary forms 5 20

3907Polyacetals, other polyethers, in primary forms

5 20

3909Amino-resins, phenolic resins and polyurethanes

5 5, 20

3919

Self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes of plastics

5 10, 20, 30

3920

Other plastic plates, sheets, film, foil, non-cellular, and not combined with other materials

0, 5 5, 10, 30

3921Other plates, sheets , film, foil, strip of plastics

0, 5 5, 10, 20,30

3923Plastic articles for packing of goods, lids, caps, and other closures

5 5, 15, 30

3926 Other articles of plastics 0, 5, 10, 25 10, 30

Tariff Rate (%)

Australia Thailand


• Approximately 10% of Approximately 10% of plastic products plastic products will have their tariff will have their tariff rates reduced to 0% rates reduced to 0% on January 1, 2005, and on January 1, 2005, and the other 90% willthe other 90% will have their tariff rates have their tariff rates reduced to 0% by 2010.reduced to 0% by 2010.

Base RateBase Rate 20052005 20062006 20072007 20082008 20092009 20102010

1010 88 88 55 55 00 00

2020 1616 1212 88 55 55 00

>20>20 2020 1616 1212 88 55 00

Australia’s Tariff Australia’s Tariff Reduction ScheduleReduction Schedule• For plastic and chemical For plastic and chemical

items with currentitems with current tariffs of 5%, Australia tariffs of 5%, Australia will eliminate the tariffswill eliminate the tariffs in 2008.in 2008.Base Base

RateRate

20052005 20062006 20072007 20082008 20092009 20102010

55 55 55 55 00 00 00

1010 55 55 55 55 55 00


• Product of a Product of a chemical reaction chemical reaction oror• Substantial Substantial TransformationTransformation• Substantial Substantial Transformation and Transformation and RegionalRegional Value Content (40% by weight)

Iron and Steel Iron and Steel (Chapter 72-73)(Chapter 72-73)

Year 2003

5%11%

18%

11%

32%

ASEAN EU AUSTRALIABAHRAIN BANGLADESH CANADACHILE CHINA INDIAJAPAN KOREA,REPUBLIC OF MEXICONEW ZEALAND RUSSIAN FEDERATION SOUTH AFRICASRI LANKA UNITED STATES OTHERS

15% 9%2%

42%

Exports

Imports



Iron and Steel Iron and Steel (Chapter 72-73)(Chapter 72-73)

-

1,000

2,000

3,000

4,000

5,000

6,000

Million Baht

2001 2002 2003

Exports Imports

HSHS DescriptionDescription TradeTrade72072077

Semi-finished products of Semi-finished products of iron or non-alloy steeliron or non-alloy steel

Net Net ImporterImporter

72172166

Angles, shapes and Angles, shapes and sections ofsections of

Iron or non-alloy steelIron or non-alloy steel

Net Net ExporterExporter

72072088

Flat-rolled products of iron Flat-rolled products of iron or non-alloy steel, hot or non-alloy steel, hot rolledrolled


72072044

Waste and scrap; re-Waste and scrap; re-melting scrap ingots of iron melting scrap ingots of iron or steelor steel


72172199

Flat-rolled products of Flat-rolled products of stainless steelstainless steel


73073066

Other tubes, pipes and Other tubes, pipes and hollowhollow

profiles of iron or steelprofiles of iron or steel


73273266

Other articles of iron or Other articles of iron or steel (ex. grinding balls, steel (ex. grinding balls, baskets)baskets)



72077207Semi-finished products of iron or Semi-finished products of iron or non-alloy steelnon-alloy steel

0 1

72167216

Angles, shapes and sections ofAngles, shapes and sections of

Iron or non-alloy steelIron or non-alloy steel0 10, 11

72087208Flat-rolled products of iron or non-Flat-rolled products of iron or non-alloy steel, hot rolledalloy steel, hot rolled

0, 4 1, 7.5

72047204Waste and scrap; re-melting scrap Waste and scrap; re-melting scrap ingots of iron or steelingots of iron or steel

0, 4 1

72197219Flat-rolled products of stainless Flat-rolled products of stainless steelsteel

0, 4 1, 5

73067306

Other tubes, pipes and hollowOther tubes, pipes and hollow

profiles of iron or steelprofiles of iron or steel4 1, 12

73267326Other articles of iron or steel (ex. Other articles of iron or steel (ex. grinding balls, baskets)grinding balls, baskets)

4, 5, 10 15, 20

Tariff Rate (%)

Australia Thailand


Base Base RateRate

20052005 20062006 20072007 20082008 20092009 20102010 20112011 20122012 20132013 20142014 20152015

1010 55 55 55 55 55 55 55 55 55 55 00

> 10> 10 1010 1010 1010 1010 1010 1010 1010 1010 1010 1010 00

72167216 Angles, shapes and sections of iron or non-alloy steelAngles, shapes and sections of iron or non-alloy steel

• For semi-finished For semi-finished products (7207), waste and products (7207), waste and scrap (7204), and flat scrap (7204), and flat rolled products of stainlessrolled products of stainless steel (7219), tariff rates steel (7219), tariff rates will be reduced to 0% on will be reduced to 0% on January 1, 2005January 1, 2005

• For angles, shapes and For angles, shapes and sections of iron or non-sections of iron or non- alloy steel (7216):alloy steel (7216):


Base Base RateRate

20052005 20062006 20072007 20082008 20092009 20102010 20112011 20122012 20132013 20142014 20152015

11 11 11 11 11 11 11 11 11 11 11 00

1010 1010 1010 1010 1010 1010 55 55 55 55 55 00

1010 55 55 55 55 55 55 55 55 55 55 00

72087208 Flat-rolled products of iron or non-alloy steel, hot rolledFlat-rolled products of iron or non-alloy steel, hot rolled

• For flat-rolled products For flat-rolled products of iron or non-alloy steel,of iron or non-alloy steel, hot rolled (7216):hot rolled (7216):

• For other tubes, pipes and hollow profiles of iron or steel (7306):(7306):

Base Base RateRate

20052005 20062006 20072007 20082008 20092009 20102010 20112011 20122012 20132013 20142014 20152015

1212 66 66 66 66 66 66 66 66 66 66 00

73067306 Other tubes, pipes and hollow profiles of iron or steelOther tubes, pipes and hollow profiles of iron or steel


• For other articles of iron or steel (7326):(7326):

Base Base RateRate

20052005 20062006 20072007 20082008 20092009 20102010

2020 1616 1212 88 55 55 00

73267326 Other articles of iron or steelOther articles of iron or steel

Australia’s Tariff Australia’s Tariff Reduction ScheduleReduction Schedule• Nearly all of iron and Nearly all of iron and

steel products will have steel products will have their tariffs reduced to their tariffs reduced to 0% on January 1, 2005.0% on January 1, 2005.

• For wire of iron or steel For wire of iron or steel

(7217), some of tubes and (7217), some of tubes and pipes (7306), Australia pipes (7306), Australia will bind its current 4% will bind its current 4% tariffs through 2009, tariffs through 2009, before elimination in 2010.before elimination in 2010.• For springs and their For springs and their leaves (7320), tariff ratesleaves (7320), tariff rates will be reduced from 10% will be reduced from 10% to 5% on January 1,to 5% on January 1, 2005 and further reduced 2005 and further reduced to 0% in 2010to 0% in 2010


• Substantial Substantial TransformationTransformation - Change to subheading from any other heading - Change to heading from any other heading - Change to subheading from any other subheading

Thailand-Australia Free Trade Agreement

Documents

baht trade

trade balance132

australia exports

bahttotal imports

bahttrade balance

total imports2

deputy director generaljune

ministry of financedr