How Does Tafta Affect Australia
On October 19, 2003, negotiation between Thai and Australian Government had finally completed, giving birth to Thailand-Australia Free Trade Agreement (TAFTA), the first comprehensive free trade agreement between Thailand and a developed country and the third free trade agreement for Australia. Since entering into force during January 2005, TAFTA has greatly affected on investment flows between Thailand and Australia. Like most Free Trade agreements, the main objective of TAFTA are to facilitate trades, open up business opportunities to bring about mutual Benefits for the two partners.
To begin with, the reductions and eliminations of trade barriers such as certain tariff rates is one of the results from TAFTA. Before, Thailand's average tariff rate was around 15% which had considered to be much higher comparing to Australia’s which was only 3.9%, However, after TAFTA has come into …show more content…
So far, many Thai producers have failed to pass Australia’s quality inspection and thus resulting in banning of some Thai products such as Thai shrimps. As a result, the opportunities for many Thai exporters have been limited due to these factors.
In conclusion, despite all the benefits TAFTA has brought, Thailand might not be the big winner from this agreement after all. However, Thailand could not afford to pass out this FTA opportunity with Australia since it needs to keep some advantages from this deal. Otherwise, Thailand or even Australia may not be able to guarantee its power in the future due to more economic interactions and globalization since nowadays, like many countries, Australia is also in the process of negotiations of with China, Japan, Malaysia, the Republic of Korea, the Gulf Cooperation Council, as well as the Trans Pacific Partnership.
References
To begin with, the reductions and eliminations of trade barriers such as certain tariff rates is one of the results from TAFTA. Before, Thailand's average tariff rate was around 15% which had considered to be much higher comparing to Australia’s which was only 3.9%, However, after TAFTA has come into …show more content…
So far, many Thai producers have failed to pass Australia’s quality inspection and thus resulting in banning of some Thai products such as Thai shrimps. As a result, the opportunities for many Thai exporters have been limited due to these factors.
In conclusion, despite all the benefits TAFTA has brought, Thailand might not be the big winner from this agreement after all. However, Thailand could not afford to pass out this FTA opportunity with Australia since it needs to keep some advantages from this deal. Otherwise, Thailand or even Australia may not be able to guarantee its power in the future due to more economic interactions and globalization since nowadays, like many countries, Australia is also in the process of negotiations of with China, Japan, Malaysia, the Republic of Korea, the Gulf Cooperation Council, as well as the Trans Pacific Partnership.
References