Australia signs FTA with Thailand

The World Today - Monday, 5 July , 2004 12:14:00

Reporter: Stephanie Kennedy

ELEANOR HALL: Staying in Canberra, Prime Minister John Howard and Thai leader Thaksin Shinawatra have just presided over a ceremony in Canberra of the historic Free Trade Agreement between the two counties.

It's the first time Australia has signed a Free Trade Agreement with a developing country and Thailand's first deal with a developed country. Mr Howard says it marks a turning point for Australia's relationship in the region, and the Government says the deal is worth billions of dollars to both countries.

Stephanie Kennedy reports from Canberra.

STEPHANIE KENNEDY: A 19-gun salute kicked off the ceremonial welcome for Thaksin Shinawatra, as Prime Minister John Howard officially greeted the Thai leader. But the pomp and ceremony heralds much more than another official visit by a foreign leader.

SPEAKER: Ladies and Gentleman, I invite His Excellency Mr Watana Muangsook, Minister for Commerce and the Honourable Mark Vaile, Minister for Trade, to take their places at the table for the sighing of the Thailand-Australia Free Trade Agreement.

STEPHANIE KENNEDY: Today the two countries signed an historic Free Trade Agreement. It's the second such deal Australia has signed with an ASEAN state. The first was with Singapore last year.

Thailand is the fastest growing economy in South-East Asia and the deal will be worth a billion dollars in export dollars for Thailand. In return the FTA will boost the Australian economy by two-and-a-half billion dollars over the next two decades.

The agreement comes into force next January and by 2010, 98 per cent of trade between Australia and Thailand will be tariff free.

At a joint press conference, John Howard espoused the advantages of the deal.

JOHN HOWARD: The Free Trade Agreement is a good outcome for both countries. It is good for Australia and it's good for Thailand. Thailand's economy is strong; it's an economy that we were very ready to assist in the time of the Asian economic downturn. We continue to enjoy growing and improving relations between our two nations.

STEPHANIE KENNEDY: And Dr Thaksin believes the agreement is historic for both countries.

THAKSIN SHINAWATRA: I see Australia as a strategic part of our neighbourhood. The Australian side respond with equal enthusiasm. The signal here is equally obvious. In short, our bilateral relations have never been better; our cooperation has never been more broad based and strategic in nature.

STEPHANIE KENNEDY: The level of importance of this deal is evident by the fact that the Thai Prime Minister brought the largest ministerial delegation, including nine ministers, ever to come to Australia from another nation.

The visit is a significant step forward for Australia's trade relationship with the region and Dr Thaksin hopes this Free Trade Agreement will lead the way for Australia to sign similar deals with other ASEAN countries. For the first time, Australia has been invited to the ASEAN in Laos later this year.

THAKSIN SHINAWATRA: And also looking forward to meet you during the ASEAN, Australia New Zealand summit in November. Thank you.

JOHN HOWARD: I hope to be in a position to accept that invitation. I hope!

So soon we will be able to buy some good Aussie wines at reasonable prices?

I wont hold my breath...