27-12-2023 (BANGKOK) Commerce Minister Phumtham Wechayachai has called for an expansion of bilateral trade and investment between Thailand and Australia, emphasizing the need for fresh avenues of economic collaboration between the two nations.
Following a recent meeting with Australian Ambassador Angela Macdonald, Mr Phumtham underscored Australia’s significance as a key partner in the Pacific region and a close ally in jointly developing economic strategies to bolster trade, investment, and economic cooperation in mutually beneficial sectors.
Highlighting the robust economic ties, he noted that the two countries operate under three free trade agreements (FTAs): the Thailand-Australia FTA, the ASEAN-Australia-New Zealand FTA, and the Regional Comprehensive Economic Partnership. These FTAs, Mr Phumtham stressed, serve as crucial tools for expanding trade and investment opportunities.
Moreover, Thailand and Australia have established a Strategic Economic Cooperation Arrangement (SECA) covering eight key areas: agriculture, sustainable food systems and technology; tourism; healthcare services; education; digital trade and digital economy; creative economy; two-way investment promotion; and energy, green economy, and decarbonisation.
Plans and activities related to the SECA are currently in the final stages, with an official announcement anticipated during the ASEAN-Australia Special Summit scheduled for March 4-6, 2024, in Melbourne, Australia.
During the meeting with Ambassador Macdonald, discussions focused on economic strategies for Southeast Asia up to 2040, with a particular emphasis on promoting trade and investment for Australian businesses in the region, including Thailand. Sectors with high potential, such as agriculture and food, were highlighted, with a specific aim to exchange best practices on food innovation and various production technologies.
The collaboration also seeks to advance green initiatives and the transition to green energy. Thai authorities extended an invitation to Australian investors to engage in green technology projects, especially in the Eastern Economic Corridor, including electric vehicles and battery production.
Education and skills development cooperation were emphasized, with a focus on alternative education certification systems, fostering creativity and innovation, particularly in film production, gaming, animation, arts, fashion, and culture.
Health services were identified as another key focus area, with an emphasis on medical technology, pharmaceuticals, and training for elderly care, according to Mr Phumtham.
Australia stands as Thailand’s eighth-largest trading partner, with bilateral trade reaching US$18.3 billion last year, marking a 6.27% increase from the previous year. Of this total, exports accounted for $11.2 billion, encompassing automobiles, air conditioners and parts, as well as gems and jewellery, while imports were valued at $7.12 billion, including natural gas, crude oil, metallic minerals, scrap metal, and related products.
