Thailand and Australia have formula to beat global protectionism
The trade relationship between Australia and Thailand is strong, but there is huge potential for growth. In the face of growing protectionism in some international markets, it is vital that we continue to nurture the links that have contributed to our shared economic prosperity.
It is in both Thailand’s and Australia’s interests to promote and expand trade and investment with each other, and with our region. Jobs, growth, and better living standards are all enhanced by the opportunity to sell our goods and services to the world.
A sound framework for bilateral and regional trade and investment will help assure Australia’s and Thailand’s future prosperity.
Economic growth in both our countries over the past 30 years has been based on sound policies, careful economic management a strong focus on developing international competitive export industries, and a commitment to open markets.
The Thai government has continued this tradition by articulating a dynamic economic vision in Thailand 4.0, a blueprint to transform the economy to one that is innovation-driven. Developments beyond Thai borders will be important to the realisation of that vision.
Rising protectionist sentiment around the world is a major threat to even the best-crafted growth strategy. For an export-oriented Thai economy, protectionism is an urgent challenge.
Australia understands this because, like Thailand, our economy is dependent on access to global opportunities.
Through agreements such as the Thailand-Australia Free Trade Agreement (TAFTA) signed over a decade ago, we have been able to maximise the economic benefits arising from these opportunities.
TAFTA, Thailand’s first comprehensive free trade agreement and its first with a developed country, reflects the importance that both Thailand and Australia attach to free trade.
Since TAFTA entered into force in 2005, two-way trade between Thailand and Australia has more than doubled, to the benefit of both countries.
The conclusion of the Asean-Australia-New Zealand Free Trade Area (AANZFTA) in 2010, which includes Thailand, provided a framework for further growth in the region.
There is great potential for Thailand and Australia to strengthen further our economic relationship.
For example, Australia’s knowledge sector, particularly its world-class education sector, is a resource that can help Thailand improve the skills of its workforce.
Australian capabilities in agriculture, health services and tourism can help Thailand transform its own competitive strengths in these sectors.
The Regional Comprehensive Economic Partnership (RCEP), which is currently under negotiation, presents another opportunity for Thailand, Australia and the region.
RCEP will enable the further development of regional value chains and allow Thailand to position itself as a regional hub.
It will create jobs and growth in Thailand, and improve quality of life for Thai people.
Australia is committed to strengthening its economic relationship with Thailand, for the benefit of both nations. We must work together to combat protectionism and promote free trade in the region.
Mark Coulton is the Australian assistant minister for Trade, Tourism and Investment.