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Thailand - Australia FTA
Overview
Key outcomes for agri-food and forest products
Special Agricultural Safeguards (SSG products)
Sanitary and Phytosanitary Measures and Food Standards
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Overview
The Thailand-Australia Free Trade Agreement was signed in Canberra on 5 July 2004 and commenced on 1 January 2005. The agreement covers trade in all goods, services and investment and commits to tariff elimination over agreed timeframes.
The Agreement creates new and improved opportunities for the Australian agri-food sector, including for:
- meat
- dairy
- grains and related products
- Fruit and vegetables
- sugar
- wine, beer and spirits
- other processed foods
- other
Thailand’s high tariff barriers will be eliminated immediately or phased out over an agreed timeframe (2010, 2015 or 2020). The exception will be tariff rate quotas for skim milk powder and liquid milk and cream, which will be eliminated in 2025.
For some sensitive agricultural products subject to the special agricultural safeguards arrangement, Australian exporters will have an immediate upfront and ongoing margin of preference over their non-FTA competitors.
For agricultural products currently subject to tariff rate quotas, Thailand will either eliminate the tariff and quota restrictions immediately or for some sensitive products, expand access for Australia over a transition period. This will vary according to the product, before final elimination of the tariff rate quota.
The following PDF documents are available from DFAT's website:
- Tariff Quotas for Products under Category TQ
PDF [48kb] - Tariff Quotas for Certain Agricultural Sensitive Products Thailand PDF [55kb]
The Agreement contains transitional safeguard arrangements to protect industries in both countries against injury caused by any import surges.
Current Australian tariffs on all agri-food and forest products are at 5 per cent or below. Australia will eliminate these for goods of Thai origin when the Agreement begins, with the exception of canned tuna, which will reduce to 2.5 per cent , before being eliminated in 2007.The Final text of the agreement is available from the Australian Government's online guide to Free Trade Agreements
Agri-food and forest products exports
Key outcomes for agri-food and forest products exports (base rate as at 30 June 2003) of Australian origin (see also Rules of Origin, chapter 4 and annex 4.1 of the agreement) include:
Meat
Thailand will:
- phase the current 32 per cent tariff for sheep meat to zero in 2010
- immediately reduce the 51 per cent tariff on beef to 40 per cent and the 33 per cent tariff on beef offal to 30 per cent, phasing these rates to zero in 2020, and
- phase the current 33 per cent tariff for pork to zero in 2020.
Dairy
Thailand will:
- immediately eliminate the current tariffs on infant formula (5 per cent), lactose (up to 20 per cent), casein and milk albumen (10 per cent), and phase the tariffs on butter fat, milkfood, yoghurt, dairy spreads and ice cream to zero in 2010
- provide immediate additional quota for Australia of 2,200 tonnes for skim milk powder and 120 tonnes for liquid milk and cream, expanding by 17 per cent at five-yearly intervals until 2025, when all tariffs and quotas will be eliminated, and
- phase the tariffs for butter and cheese, other milk powders and concentrates to zero in 2020.
Grains and related products
Thailand will:
- immediately eliminate the tariffs on unroasted malt (according to the value, equivalent of 28 per cent) and wheat gluten (31 per cent), and
- phase the tariffs on wheat flour (32.6 per cent) and starch (31 per cent) to zero in 2010.
Fruit and Vegetables
Thailand will:
- phase tariffs on most fresh fruit and vegetables (current rates, mostly 33 per cent or 42 per cent) to zero in 2010. Tariffs on mandarins (42 per cent) and grapes (33 per cent) will be immediately reduced to 30 per cent, and then phased to zero in 2015
- immediately eliminate tariffs on most tropical fruit
- provide immediate additional quota for fresh potatoes, expanding yearly until 2020, when all tariffs and quotas will be eliminated. The current 30 per cent tariffs for processed potatoes will be phased to zero in 2015, and
- immediately reduce to 24 per cent the current tariffs of 30 per cent on fruit juices and canned fruit, and phase the tariff to zero in 2010. The current 30 per cent tariffs on canned mixed fruit and canned pineapple will be eliminated immediately.
Sugar
Thailand will:
- provide immediate additional quota for sugar, expanding annually by 10per cent, with tariff and quota free access in 2020.
Wine, Beer and Spirits
Thailand will:
- immediately reduce 54 per cent tariffs on wine to 40 per cent, and then phase the tariff to zero in 2015, and
- For beer and spirits, immediately reduce 60 per cent tariffs to 30 per cent, before phasing to zero in 2010.
Other Processed Foods
Thailand will:
- immediately eliminate 10 per cent tariffs on chocolate confectionery, and phase 30 per cent tariff on sugar confectionery to zero in 2010, and
- For bakery products, phase current tariffs of 25-30 per cent to zero in 2010, with immediate elimination of tariffs on crisp bread and some cereals.
Other
Thailand will:
- immediately eliminate current tariffs of up to 10 per cent on hides and skins
- immediately eliminate current 1 per cent tariff on wool and bind tariff on cotton at zero, and
- either immediately eliminate, or phase down by 2010, current tariffs of up to 30 per cent for forests products.
The following PDF document is available on the DFAT website: Thai tariff commitments PDF [55kb]
Special Agricultural Safeguards (Chapter 5 of the Agreement)
A special safeguard provision (SSG) applies to some sensitive agricultural products under TAFTA. When imports of the product exceed the agreed trigger volume during a calendar year a decision may be made to activate the SSG without the need to demonstrate injury to local industry.If the SSG is activated, imports above the trigger volume will attract the general tariff rate applying to all other trading partners instead of the TAFTA preferential rate, for the rest of the calendar year.
Thailand nominated 41 tariff items to be eligible for SSG provisions covering certain meat and dairy products, fresh grapes, mandarins, and processed potatoes for which tariffs will phase to zero by 2015 or 2020.
Administration of SSGs in Thailand
- The Thai Customs Department monitors imports of specified products coming from Australia on a calendar year basis. (A running tally of imports is publicly available from the Thai Customs Department website).
- Additional duties will automatically apply when import volumes reach the specified trigger levels, unless the Thai Cabinet decides not to apply them.
- The Thai Ministry of Commerce is required to advise the Australian Department of Agriculture, Fisheries and Forestry that the trigger level was reached, and the date it was reached, at least 10 working days prior to the application of the SSG.
- Goods in-transit prior to the date of application of additional duties will continue to enter at the preferential rate but will be counted toward the next calendar year’s SSG trigger volume.
We recommend that stakeholders view the TAFTA section on the Thai Customs website regularly for updates on the volume of imports subject to SSG provisions.
Annex on products subject to Special Agricultural Safeguards of Thailand PDF [59kb]
The following table provides information on products in-transit that entered Thailand in 2007 at the time the safeguard provisions were triggered, and which count as part of the 2008 safeguards trigger levels.
Thailand: Adjusted 2008 trigger levels for selected products
Update: The trigger level for fresh grapes was reached on 3 April 2008. As a result, the general (most favoured nation) tariff rate of 30 per cent applies to consignments of fresh grapes entering Thailand until 31 December 2008.
| Tariff Reference (HTISC Code) | Product Description | 2008 Trigger levels (kilograms) | 2007 In-transit quantity (kilograms) |
Quantity eligible to enter at preferential tariff rates in 2008 (kilograms) |
|---|---|---|---|---|
| 080610 |
Fresh grapes |
1 157 630 | 7 859 | 1 149 771 |
|
020110
020130 020210 020220 020230 |
Meat of bovine carcasses and half-carcasses, fresh or chilled Bovine meat cut with bone in, fresh or chilled Boneless meat of bovine animals, fresh or chilled Meat of bovine carcasses and half carcasses frozen Boneless meat of bovine animals, frozen |
898 320 |
35 034 |
863 286 |
|
040610
040620 |
Fresh cheese, including whey cheese and curd Grated or powdered cheese, of all kinds |
57 880 |
240 |
57 640 |
| 040690 |
Other cheese including cream cheese, not processed |
416 750 |
12 044 |
404 706 |
Administration of SSGs in Australia
Australia nominated prepared or preserved tuna and canned or uncanned pineapple and pineapple juice for the special safeguard arrangement which may be applied through to the end of 2008. The Minister for Agriculture, Fisheries and Forestry is responsible for deciding whether to apply the SSG.
To help the Minister make an informed decision, we invite stakeholders to register so that you have an opportunity to comment on the application of the SSG. If you would like to be involved in the process or notified of changes and updates on Thailand - SSG Products please subscribe to Thailand - SSG Products.
Based on the advice the Minister may then decide to apply the SSG. If the Minister decides to apply it, the decision will be published in the Government Notices Gazette (Special Gazette) as well as on this site.
The general duty rate would then apply to safeguard goods imported on the day after the gazettal day until the end of the calendar year. The TAFTA preferential duty rate will, however, continue to apply to goods that are en route on the basis of a contract settled on or before the gazettal day.
The following table provides information on imports of Thai products subject to SSG under arrangements in the Thailand-Australia Free Trade Agreement. The trigger levels increase by 5% annually.
TAFTA Special Safeguard Monitoring – 2008 (as at 24 July)
Update: The Minister for Agriculture, Fisheries and Forestry has decided to apply a safeguard measure (tariff increase) to imports of canned pineapple from Thailand with effect from 17 July 2008 until 31 December 2008. The effect of the measure is to apply a tariff of five percent to all canned pineapple imported from Thailand for the remainder of 2008. ‘In-transit’ provisions apply to goods in transit when the measure was introduced. To qualify for ‘in-transit’ provisions, the goods must meet the requirements of being Thai originating, have a valid Thai Certificate of Origin at the time of importation, and be exported from Thailand on or before 16 July 2008, under a contract entered into on or before 16 July 2008.
Note: 2007 In-transit quantities for tuna and canned pineapple have been revised following updated advice from Customs.
| Tariff Reference (HTISC Code) | Product Description | 2008 Trigger levels | 2007 In-transit quantity |
2008 Imports |
Total YTD |
% of 2008 Threshold Reached |
|---|---|---|---|---|---|---|
| 1604.14.00 | Prepared or preserved tunas, skipjack and bonito (Sarda spp.) | 24 734 136 kilograms | 1 514 242 kilograms |
21 398 569 kilograms |
22 912 811 kilograms |
92.64 |
| ex 2008.20.00 | Pineapples, otherwise prepared or preserved, canned. | 7 042 061 litres |
273 791 litres |
6 860 159 litres |
7 133 950 | 101.30 |
| ex 2008.20.00 | Pineapples, otherwise prepared or preserved, uncanned. | 2 474 063 kilograms |
Nil |
200 649 |
200 649 kilograms |
8.11 |
| 2009.41.00 & 2009.49.00 | Pineapple juice, unfermented and not containing added spirit. | 2 407 994 litres |
Nil |
1 619 104 litres |
1 619 104 litres |
67.24 |
Source: Australian Customs Service and Department of Foreign Trade, Thailand
TAFTA includes commitments on sanitary and phytosanitary (SPS) measures, operational quarantine matters and food standards consistent with the World Trade Organisation (WTO) SPS Agreement.
Specifically the Agreement provides for enhanced consultative arrangements in these areas through the establishment of an Expert Group on Sanitary and Phytosanitary and Food Standards.
The Expert Group will implement an initial work program over a two-year period to:
- enhance mutual understanding of each other’s SPS, agricultural and food standards
- consult on matters related to the development or application of SPS measures and other agricultural and food standards that affect or may affect trade between the parties
- review and assess progress of both countries’ priority market access interests
- consult on requests for recognition of equivalence of SPS measures or other agricultural and food standards
- consult on matters relating to the harmonisation of standards
- coordinate capacity-building and technical cooperation programs, and
- strengthen cooperation in the WTO, Codex Alimentarius Commission, the Office Internationale des Epizooties, and the International Plant Protection Convention.
This commitment for enhanced bilateral consultations on technical issues will not:
- affect Australia’s approach to import risk analysis
- pre-empt or compromise any specific import risk assessments, or
- compromise the integrity of our quarantine system.
Nothing in the chapter undermines either country’s right to determine the level of protection it considers appropriate.
