Reviewed by Wichuda Atthamethakon, LL.M., Thai Bar Licence 3149/2556, for ThaiLawOnline, a Thai law firm acting for foreigners since 2006.
Update log
- 3 November 2026: Added the statute box with Thai, English and French text and checked the page against the official text
The Thailand Australia Free Trade Agreement (TAFTA) was signed on July 5, 2004 and started on January 1, 2005. The Agreement aims to make trade easier between the two countries by reducing barriers like tariffs and regulations. It also encourages cooperation to solve problems that make trade difficult, like strict health and safety rules and unfair pricing practices.
The cooperation extends also to facilitation of trade in certain categories, such as customs procedures, electronic commerce, intellectual property, government procurement and competition policy. It is anticipated that this agreement will expand two-way trade in goods and services and increase investment on both sides, as well as strengthen the relationship between the two countries. For Australian investors its main practical value in Thailand is a larger foreign share in certain listed activities than the Foreign Business Act would otherwise allow without a licence; it does not give them anything a Thai company lacks. Here is what the agreement covers.
Table of Contents
1. Trade in Goods related to Thailand Australia Free Trade Agreement
The TAFTA Agreement eliminated tariffs on 83% of goods from Thailand in Australia. These goods include fruits, vegetables, vehicles, and jewelry. Tariffs on the remaining 17% of imports, such as plastic, rubber and textiles, were phased out by 2015. TAFTA is now fully implemented, so effectively all qualifying goods trade between the two countries is tariff free.
On 1 January 2005 Thailand eliminated its tariffs on some 2,934 tariff items, around 53% of all items and 78% of its imports from Australia at the time, much of it raw materials such as mineral ore, fuel, chemicals and hides. A further 41% of Thai tariffs reached zero in 2010. The rest, including tariff-rate quotas on sensitive products such as beef, pork, dairy, tea and coffee, reached zero in 2015 or 2020, and the last quotas, on skim milk powder and on liquid milk and cream, were eliminated in 2025, according to the Australian Department of Foreign Affairs and Trade.
At the same time, Thailand removed tariff quotas committed under WTO obligations on 15 of 23 categories of agricultural goods, and offered specific quotas of 10% more than the volume obligated in 2004 under WTO commitments for 6 of the remaining 8 products, including potatoes, coffee, tea, maize, and sugar. In addition, Thailand has also agreed to increase quotas each year by 5% to 10%.
To ensure that domestic industries will have time to adjust to the impacts of the Agreement, Australia and Thailand have agreed to apply Safeguard Measures (SG) in accordance with WTO regulations. Furthermore, in dealing with sensitive agricultural products such as beef, pork, and animal offals, as well as milk and dairy products, the special safeguard measure may be applied.
If the volume of imports of such products exceeds the specified trigger volume level for that year, by increasing the rate of customs duty applicable for that product to the level equal to the current customs duty or to the current ‘Most Favored Nation’ (MFN) rate, whichever is lower. Thailand will be able to apply this special safeguard measure for specific products through 2015 and 2020.”
2. Rules of Origin
This agreement says that only goods meeting certain conditions can get special treatment. The conditions are: 1) goods made only from materials from one country, like minerals, food, or products from animals in that country; or 2) goods that have been changed a lot through processing, with a big part of the cost coming from materials from Thailand and Australia. This means at least 40%-45% of the cost of the product must be from these countries. It is important to know all the benefits of the Thailand Australia Free Trade Agreement and foreigners from Australia can benefits of it.
The law behind this page
English
Section 10 Foreign Business Act B.E. 2542
Full text
Sections 5, 8, 15, 17 and 18 do not apply to an alien who carries on a business listed in the annexes to this Act with special temporary permission from the Government of the Kingdom of Thailand. An alien who carries on a business listed in the annexes to this Act under a treaty to which Thailand is a party or has an obligation shall be exempt from the application of the sections specified in the first paragraph, and shall be subject to the provisions and conditions of that treaty, which may include granting Thai persons and Thai enterprises reciprocal rights to carry on business in the alien's country of nationality.
ThaiLawOnline translation
Section 11 Foreign Business Act B.E. 2542
Full text
An alien under section 10 who wishes to carry on a business listed in the annexes to this Act shall notify the Director-General in accordance with the rules and procedures prescribed by ministerial regulation to request a certificate. The Director-General shall issue the certificate to the alien promptly, and in any case within not more than 30 days from the date of receipt of the alien's notification. If, however, the Director-General considers that the notification does not comply with the rules and procedures prescribed by ministerial regulation, or that the case does not fall under section 10, the Director-General shall inform the alien promptly, and in any case within not more than 30 days from the date of receipt of the alien's notification. The certificate shall also state the conditions set by the Government or prescribed in the treaty.
ThaiLawOnline translation
Section 8 Foreign Business Act B.E. 2542
Full text
Subject to sections 6, 7, 10 and 12: (1) An alien shall not operate a business that aliens are not permitted to carry on for special reasons, as specified in List One. (2) An alien shall not operate a business relating to the safety or security of the country, a business affecting art and culture, customs and folk handicrafts, or a business affecting natural resources or the environment, as specified in List Two, unless permitted by the Minister with the approval of the Council of Ministers. (3) An alien shall not operate a business in which Thai nationals are not yet ready to compete with aliens, as specified in List Three, unless permitted by the Director-General with the consent of the Committee.
ThaiLawOnline translation
ไทย
มาตรา 10 พระราชบัญญัติการประกอบธุรกิจของคนต่างด้าว พ.ศ. 2542
ข้อความเต็ม
บทบัญญัติมาตรา ๕ มาตรา ๘ มาตรา ๑๕ มาตรา ๑๗ และมาตรา ๑๘ ไม่ใช้บังคับแก่คนต่างด้าวที่ประกอบธุรกิจตามบัญชีท้ายพระราชบัญญัตินี้โดยได้รับอนุญาตจากรัฐบาลแห่งราชอาณาจักรไทยเป็นการเฉพาะกาล คนต่างด้าวที่ประกอบธุรกิจตามบัญชีท้ายพระราชบัญญัตินี้โดยสนธิสัญญาที่ประเทศไทยเป็นภาคีหรือมีความผูกพันตามพันธกรณี ให้ได้รับยกเว้นจากการบังคับใช้บทบัญญัติแห่งมาตราต่าง ๆ ตามที่กำหนดไว้ในวรรคหนึ่ง และให้เป็นไปตามบทบัญญัติและเงื่อนไขของสนธิสัญญานั้น ซึ่งอาจรวมถึงการให้สิทธิคนไทยและวิสาหกิจของคนไทยเข้าไปประกอบธุรกิจในประเทศสัญชาติของคนต่างด้าวนั้นเป็นการต่างตอบแทนด้วย
ตรงตามข้อความในราชกิจจานุเบกษา / สำนักงานคณะกรรมการกฤษฎีกา (Verbatim from the Royal Gazette / Office of the Council of State)
มาตรา 11 พระราชบัญญัติการประกอบธุรกิจของคนต่างด้าว พ.ศ. 2542
ข้อความเต็ม
คนต่างด้าวตามมาตรา ๑๐ หากประสงค์จะประกอบธุรกิจตามบัญชีท้ายพระราชบัญญัตินี้ ให้แจ้งต่ออธิบดีตามหลักเกณฑ์และวิธีการที่กำหนดในกฎกระทรวงเพื่อขอหนังสือรับรองและให้อธิบดีออกหนังสือรับรองให้คนต่างด้าวนั้นโดยเร็ว แต่ต้องไม่เกินสามสิบวันนับแต่วันที่ได้รับหนังสือแจ้งจากคนต่างด้าว เว้นแต่อธิบดีเห็นว่าการแจ้งมิได้เป็นไปตามหลักเกณฑ์และวิธีการที่กำหนดในกฎกระทรวง หรือกรณีไม่เป็นไปตามมาตรา ๑๐ ให้อธิบดีแจ้งแก่คนต่างด้าวนั้นทราบโดยเร็ว แต่ต้องไม่เกินสามสิบวันนับแต่วันที่ได้รับหนังสือแจ้งจากคนต่างด้าว หนังสือรับรองต้องระบุเงื่อนไขตามที่รัฐบาลกำหนดหรือตามที่กำหนดในสนธิสัญญาด้วย
ตรงตามข้อความในราชกิจจานุเบกษา / สำนักงานคณะกรรมการกฤษฎีกา (Verbatim from the Royal Gazette / Office of the Council of State)
มาตรา 8 พระราชบัญญัติการประกอบธุรกิจของคนต่างด้าว พ.ศ. 2542
ข้อความเต็ม
ภายใต้บังคับมาตรา ๖ มาตรา ๗ มาตรา ๑๐ และมาตรา ๑๒ (๑) ห้ามมิให้คนต่างด้าวประกอบธุรกิจที่ไม่อนุญาตให้คนต่างด้าวประกอบกิจการด้วยเหตุผลพิเศษตามที่กำหนดไว้ในบัญชีหนึ่ง (๒) ห้ามมิให้คนต่างด้าวประกอบธุรกิจที่เกี่ยวกับความปลอดภัยหรือความมั่นคงของประเทศ ธุรกิจที่มีผลกระทบต่อศิลปวัฒนธรรม จารีตประเพณี และหัตถกรรมพื้นบ้าน หรือธุรกิจที่มีผลกระทบต่อทรัพยากรธรรมชาติหรือสิ่งแวดล้อม ตามที่กำหนดไว้ในบัญชีสอง เว้นแต่จะได้รับอนุญาตจากรัฐมนตรีโดยการอนุมัติของคณะรัฐมนตรี (๓) ห้ามมิให้คนต่างด้าวประกอบธุรกิจที่คนไทยยังไม่มีความพร้อมที่จะแข่งขันในการประกอบกิจการกับคนต่างด้าว ตามที่กำหนดไว้ในบัญชีสาม เว้นแต่จะได้รับอนุญาตจากอธิบดีโดยความเห็นชอบของคณะกรรมการ
ตรงตามข้อความในราชกิจจานุเบกษา / สำนักงานคณะกรรมการกฤษฎีกา (Verbatim from the Royal Gazette / Office of the Council of State)
Français
Article 10 Foreign Business Act B.E. 2542
Les articles 5, 8, 15, 17 et 18 ne s'appliquent pas à l'étranger autorisé spécialement à titre temporaire par le gouvernement, ni à celui opérant sous un traité auquel la Thaïlande est liée, lequel s'applique alors et peut prévoir la réciprocité.
résumé non officiel
Article 11 Foreign Business Act B.E. 2542
L'étranger visé à l'article 10 notifie le Directeur général, qui délivre un certificat, mentionnant les conditions du gouvernement ou du traité, ou l'informe de tout défaut, sous 30 jours au plus.
résumé non officiel
Article 8 Foreign Business Act B.E. 2542
Sous réserve des articles 6, 7, 10 et 12, l'étranger ne peut exercer les activités de la liste un; celles de la liste deux exigent l'autorisation du ministre avec l'approbation du Conseil des ministres; celles de la liste trois, l'autorisation du directeur général avec l'accord du Comité.
résumé non officiel
Sources
- Foreign Business Act B.E. 2542, retrieved 2 November 2026
3. Free Trade in Services and Investment from the Thailand Australia Free Trade Agreement (TAFTA)
Australia has completely opened its borders to Thai investment in all areas except for newspapers, broadcast media, air travel, and airports, and at signing, investments above A$10 million needed prior approval from the Foreign Investment Review Board. Australia’s screening thresholds have changed many times since, so check the Board’s current guidance rather than relying on that figure. Under the agreement, Thai executives, managers, specialists and their families could remain in-country for periods of up to 4 years with extensions of up to 10 years.
Thai chefs certified by the Department of Skills Development at the Ministry of Labor who have been employed by an Australian concern may work in-country for up to 4 years, and are no longer required to meet the conditions of the economic needs test, whereby an employer must first, for a period of 4 weeks, seek applications from Australian nationals to fill the position before hiring a foreign national.
Thai commitments in this area will enable Australia to make large-scale investments in Thailand, holding up to 60% interest in projects where area, size, and minimum investment amounts are conditions of approval. Such projects include international exhibition centers, conference halls, institutions of higher education focusing on science and technology outside Bangkok, large hotels, aquatic parks, marinas, and mines. Public utility and transport construction that needs special equipment, machinery, technology or expertise, with paid-up capital of at least 1,000 million baht, may be up to 100% Australian owned. Australian executives, managers, and specialists will be allowed to stay in-country for periods of up to 1 year, with extensions up to 5 years.
Australian businessmen will now be able to use the ‘one-stop service’ for various permits and required documentation, a convenience previously limited to businesses with assets valued at more than Bht. 30 million. Also, businessmen holding APEC Business Travel Cards will be allowed to remain in-country for meetings and other business-related activities for up to 90 days without having to request work permits.
Cooperation in Trade
Thailand and Australia have agreed to work closely together to make sure that trade between them is fair and effective. They have set up a group to talk about food standards and other agricultural issues to help trade between them. They will review progress on market access within two years.
Other matters under consideration are customs procedures, anti-dumping measures, electronic commerce, intellectual property, and competition policy. Efforts being made to resolve these and other issues among the two countries include the exchange of information and the sharing of knowledge through training and seminars.
The Thailand Australia Free Trade Agreement Joint Commission (TAFTA Joint Commission: TAFTA JC) has been established to oversee the implementation of TAFTA and to review the economic relationship and partnership between the Parties. TAFTA JC will meet annually or as mutually determined by both sides. The link with the Treaty of Amity for Americans is the mechanism, not the scope. Section 10 of the Foreign Business Act exempts an alien doing business under a treaty Thailand is bound by from the licence provisions, on that treaty’s terms, and section 11 provides the certificate. The Treaty of Amity gives Americans national treatment across most sectors; TAFTA gives Australians only the specific activities and ownership caps in Thailand’s schedule, such as the 60% share described above.
, Read more about AUSTRADE and how they can help Australians wishing to do business in Thailand
, Thai Tariff Schedule (Zip File, It might not be up to date, From August 2024)
Last reviewed: 30 September 2026. Read in Thai: Foreign Business Act B.E. 2542 sections 10 and 11 (the treaty exemption and certificate). The tariff figures follow the Australian Department of Foreign Affairs and Trade’s published summary of the agreement; the rules-of-origin percentages, safeguard years, the 60% equity cap, stay periods, the chef rule and the one-stop-service figure are taken from government summaries of the agreement as signed, not re-read in its text.
Frequently asked questions
When did the Thailand Australia Free Trade Agreement come into force?
TAFTA was signed on 5 July 2004 and came into force on 1 January 2005.
Is trade in goods between Thailand and Australia now tariff free?
TAFTA is now fully implemented, so effectively all qualifying goods trade between the two countries is tariff free. According to the Australian Department of Foreign Affairs and Trade, Thailand’s last quotas, on skim milk powder and on liquid milk and cream, were eliminated in 2025.
Which goods qualify for TAFTA treatment?
Only goods that meet the rules of origin: goods made wholly from materials of one of the two countries, or goods substantially changed by processing where at least 40% to 45% of the cost comes from Thailand and Australia.
How does TAFTA differ from the US Treaty of Amity for doing business in Thailand?
The mechanism is the same: section 10 of the Foreign Business Act exempts an alien doing business under a treaty from the licence provisions, and section 11 provides the certificate. The Treaty of Amity gives Americans national treatment across most sectors; TAFTA gives Australians only the activities and ownership caps in Thailand’s schedule, such as 60%.
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