Free trade agreement with Thailand

The Agree­ment, “signed”:http://www.dfat.gov.au/trade/negotiations/aust-thai/index.html today, is a sig­nif­i­cant for the Aus­tralia-Thai­land bilat­er­al rela­tion­ship but the mea­sured impacts are rel­a­tive­ly small: about $A2.4bn addi­tion­al buy­ing-pow­er for Aus­tralian con­sumers over the next 20 years and about $6.8bn for Thai con­sumers. For Aus­tralia, most of the gains are in non-durable man­u­fac­tures (processed food, met­als) and durable man­u­fac­tures (big pas­sen­ger cars, light trucks). For Thai­land the biggest gains are in ser­vices (although most­ly because of their own ser­vices trade lib­er­al­iza­tion). Gains from free trade


Imports fromShare of GDPCuts in tar­iff bar­ri­ers
Aus­traliaThai­landAus­traliaThai­landAus­traliaThai­land
US$ mil­lionUS$ mil­lionPer­centPer­centPer­centPer­cent
Ener­gy789213140.03.8
Min­ing30968110.42.6
Agri­cul­ture16162560.221.1
Durable man­u­fac­tur­ing585986893.117.3
Non-durable man­u­fac­tur­ing263449773.321.5
Ser­vices*22834467620.00.2

*_for services_ the cuts are mea­sured as the cut in prices due to import lib­er­al­iza­tion. (“CIE”:http://www.dfat.gov.au/trade/negotiations/aust-thai/tafta_eco_effects_cie.pdf) These esti­mates are based on incom­plete data. They do not include esti­mates of the gains from elim­i­na­tion of the quo­tas, quar­an­tine mea­sures, licens­ing and oth­er bar­ri­ers (espe­cial­ly on the Thai side) that are also to be elim­i­nat­ed, most­ly over the next 10 years.

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