Thailand and Australia are working towards fostering a more sustainable and stable regional trade relationship. One of the key focuses is to increase the value of automotive exports while ensuring Thailand maintains its position as the leading exporter of pickup trucks to Australia, said Thailand’s Commerce Minister, Pichai Naripthaphan.
Key Focus on Emission Standards
A significant topic during the discussion was Australia’s New Vehicle Efficiency Standard (NVES), which encourages the adoption of low- and zero-emission vehicles. The standard, which took effect on January 1, 2025, will be enforced starting July 1, 2025.
Former Prime Minister Srettha Thavisin had previously raised concerns, suggesting that Thailand-based car producers were not yet fully prepared to meet the stricter emissions standards.
Minister Pichai supported this viewpoint and called for a gradual implementation of these standards to avoid any negative effects on the thriving trade relations between the two countries.
Trade and Economic Cooperation
Thailand remains the dominant supplier of pickup trucks to Australia, with exports valued at approximately AUD 7 billion (153 billion baht) in 2024. In addition to automotive exports, the two countries share 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 working within the Thailand-Australia Strategic Economic Cooperation Arrangement and the upgraded AANZFTA, which is currently undergoing ratification.
Minister Pichai emphasised that both nations should capitalise on these agreements, especially in sectors like data centre infrastructure. Thailand’s energy security was highlighted as a competitive edge for foreign investors looking to benefit from the country’s stable energy resources.
Bilateral Trade
In 2024, total trade between Thailand and Australia reached around AUD 11.8 billion, though it saw a 6.4 per cent decrease from the previous year. Thailand maintained a trade surplus of AUD 10.2 billion, with major exports including automobiles, auto parts, air conditioners, and computer-related equipment. Imports from Australia were valued at AUD 8.3 billion, with key products such as natural gas, crude oil, and precious metals.
Both nations remain committed to improving trade and cooperation, particularly amidst global economic uncertainties, and are focusing on sustainable solutions to ensure mutual growth.
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