Thailand - Australia FTA
Overview
Key outcomes for agri-food and forest products
Special Agricultural Safeguards (SSG products)
Sanitary and Phytosanitary Measures and Food Standards
If you would like to be notified of changes and updates on Thailand - SSG Products please Subscribe to Thailand - SSG Products
Overview
The Thailand-Australia Free Trade Agreement (TAFTA) 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 were either eliminated immediately, have since been phased out, or are being phased out over an agreed timeframe (by 2015 or 2020). Tariff rate quotas for skim milk powder and liquid milk and cream, will be eliminated in 2025.
For sensitive agricultural products subject to the special agricultural safeguards arrangement, Australian exporters are able to benefit from a margin of preference over their non-FTA competitors.
For agricultural products currently subject to tariff rate quotas, Thailand either eliminated the tariff and quota restrictions immediately or, for some sensitive products, expanded access for Australia over a transition period.
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 the impact of any import surges.
When TAFTA commenced in 2005, Australian tariffs on all agri-food and forest products were at 5 per cent or below. Australia eliminated these tariffs for goods of Thai origin when the Agreement entered into force, with the exception of canned tuna, which was reduced 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:
- reduced the 32 per cent tariff for sheep meat to zero from 2010 onward
- reduced 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
- is phasing the current 33 per cent tariff for pork to zero in 2020 (note: Thai veterinary authorities have suspended imports of pork from Australia).
Dairy
Thailand:
- eliminated tariffs on infant formula (previously 5 per cent), lactose (up to 20 per cent), casein and milk albumen (10 per cent), and phased the tariffs on butter fat, milkfood, yoghurt, dairy spreads and ice cream to zero from 2010
- provided 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
- is phasing the tariffs for butter and cheese, other milk powders and concentrates to zero in 2020.
Grains and related products
Thailand:
- eliminated the tariffs on unroasted malt (according to the value, equivalent of 28 per cent) and wheat gluten (31 per cent), and
- phased the tariffs on wheat flour (previously 32.6 per cent) and starch (31 per cent) to zero from 2010.
Fruit and Vegetables
Thailand:
- phased tariffs on most fresh fruit and vegetables (previous base rates 33 per cent or 42 per cent) to zero from 2010. Tariffs on mandarins (42 per cent) and grapes (33 per cent) were immediately reduced to 30 per cent, and are being phased to zero in 2015
- eliminated tariffs on most tropical fruit
- provided additional quota for fresh potatoes, expanding yearly until 2020, when all tariffs and quotas will be eliminated. The 30 per cent tariffs for processed potatoes is being phased to zero in 2015, and
- reduced tariffs on fruit juices and canned fruit to zero from 2010. The previous 30 per cent tariffs on canned mixed fruit and canned pineapple were eliminated from 2005.
Sugar
Thailand:
- provided additional quota for sugar, expanding annually by 10 per cent, with tariff and quota free access from 2020.
Wine, Beer and Spirits
Thailand:
- reduced 54 per cent tariffs on wine to 40 per cent, and is phasing the tariff to zero in 2015, and
- for beer and spirits, reduced 60 per cent tariffs to 30 per cent, before phasing to zero from 2010.
Other Processed Foods
Thailand:
- eliminated 10 per cent tariffs on chocolate confectionery, and phased the 30 per cent tariff on sugar confectionery to zero from 2010
- for bakery products, immediately eliminated tariffs on crisp bread and some cereals, and phased tariffs of 25-30 per cent to zero from 2010.
Other
Thailand:
- eliminated tariffs of up to 10 per cent on hides and skins
- eliminated the 1 per cent tariff on wool and bound the tariff on cotton at zero, and
- either eliminated, or phased to zero from 2010, 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 remainder 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 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.
- Thailand is required to advise the Australian Department of Agriculture, Fisheries and Forestry that the trigger level was reached, and the date it was reached, within ten days of 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.
Stakeholders should 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]
Thailand: Adjusted trigger levels for selected products
The following table lists the 2010 trigger levels and the quantities of products in-transit that entered Thailand in 2009 at the time the safeguard provisions were triggered, and which will be counted as part of the 2010 safeguards trigger levels.
Note: This table has been reformatted, and the unit of measurement changed from kilograms to tons.
|
Tariff Reference (HTISC Code) |
Product Description |
2010 Trigger levels (tons) |
2009 In-transit quantity (tons) |
Quantity eligible to enter at preferential tariff rates in 2010 (tons) |
|---|---|---|---|---|
|
02011000 02021000 |
Meat of bovine animals, fresh or chilled. - Carcasses and half-carcasses |
990.39 |
Nil |
990.39 |
|
02061000 02062100 02062200 02062900 |
Edible offal of bovine animals, fresh, chilled or frozen |
178.68 |
|
168.88 |
|
04022120 04022190
|
Milk and cream, concentrated in powder, granules or other solid form |
12 125.00 |
Nil |
12 125.00 |
|
04061010 |
Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream |
3 829.00 |
Nil |
3 829.00 |
|
04061010 04061090
04062010 04062090 |
Cheese and curd - fresh cheese including whey cheese, and curd: unripened, uncured, and other cheese Grated or powdered cheese, of all kinds |
63.81 |
13.90 |
49.91 |
|
04063000 |
Processed cheese, not grated or powdered |
701.95 |
Nil |
701.95 |
|
04069000 |
Other cheese, including cream cheese, not processed |
459.46 |
9.05 |
450.41 |
|
04090000 |
Natural honey |
242.49 |
Nil |
242.49 |
|
08061000 |
Fresh grapes |
1 276.28 |
13.56 |
1 262.72 |
|
20052090 |
Potatoes, prepared or preserved, not frozen |
1 276.28 |
Nil |
1 276.28 |
Australia: Administration of TAFTA safeguards
Australia’s TAFTA safeguard measures, which operated from 2005 as part of the implementation of TAFTA, concluded on 31 December 2008.Sanitary and Phytosanitary Measures and Food Standards (Chapter 6 of the Agreement)
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 meets annually 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
- 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 does not:
- affect Australia’s approach to import risk analysis
- pre-empt or compromise any specific import risk assessments
- 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.