Thailand and Australia boost trade ties amid new vehicle standards
Stronger bilateral ties pave the way for next-gen automotive market access
Thailand and Australia are working to enhance sustainable and stable regional trade, aiming to boost the value of automotive exports and maintain Thailand’s status as Australia’s leading exporter of pickup trucks.
Commerce Minister Pichai Naripthaphan discussed these objectives after meeting with Australian Ambassador Angela Macdonald at her Bangkok residence on May 7.
A significant topic addressed was Australia’s New Vehicle Efficiency Standard (NVES), a framework promoting low- and zero-emission vehicles, effective from January 1, with enforcement beginning on July 1. Last year, Former Prime Minister Srettha Thavisin urged Australia to delay the plan, as some Thai car manufacturers were not prepared for stricter emissions standards.
Pichai proposed a gradual application of these regulations to mitigate potential negative impacts on trade relations. Thailand continues to lead as the primary supplier of pickup trucks to Australia, with imports valued at 153 billion baht (US$4.66 billion) projected for 2024.
The two nations are partners in three key free trade agreements: the Thailand-Australia Free Trade Agreement, the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), and the Regional Comprehensive Economic Partnership (RCEP). They are also engaged in the Thailand-Australia Strategic Economic Cooperation Arrangement and the upgraded AANZFTA, which is currently under ratification.
In light of global economic challenges, both countries should leverage these agreements to boost trade and investment, particularly in data centre infrastructure, according to Pichai, who emphasised Thailand’s energy security as a significant draw for foreign investors.
In 2024, the total trade between Thailand and Australia reached US$17.84 billion, showing a 6.4% decline compared to the previous year, with Thailand achieving a trade surplus of US$6.82 billion.
Key exports included automobiles, auto parts and accessories, air conditioners, and computer-related equipment. Imports from Australia amounted to US$5.51 billion, primarily comprising natural gas, crude oil, and precious stones and metals, reported Bangkok Post.
In similar news, Thailand and Bhutan have officially inked a groundbreaking Free Trade Agreement (FTA), marking a significant step toward deeper economic collaboration.
Latest Thailand News
Follow The Thaiger on Google News:
