Thailand and Australia Free Trade Agreement

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Thailand Law Journal 2009 Fall Issue 2 Volume 12

Furthermore, goods which are not preference by the phrase ?wholly obtain? can be satisfied as originating good if;

The materials of product that is not passed the requirement of TAFTA originated classification does not 10 per cent of Free on Board value of goods⁵³
The goods meet another criteria or standard of the ROO of TAFTA⁵⁴

It seem that there are various criteria using for qualifying preferential goods as depicted above about the process of manufacturing that satisfy the requirements.

Regional Value Content (RVC) also has been set out as the indicator of good classification. RVC is a formula⁵⁵ for calculating specific good in Annex 4I and other Article. There is another rule for exporters more than the qualification of goods. The exporter must obtain the certificates of origin⁵⁶ for each shipment of good from an authorized body.⁵⁷ The certificates must be in possession of importer when claiming preference unless the requirement has been waive from importing country.

SANITARY AND PHYTOSANITARY MEASURES AND FOOD STANDARDS

In the chapter 6 of the agreement, Thailand and Australia reaffirm their existing rights and obligations in the agreement of the Sanitary and Phytosanitary Measures (SPS Agreement) and the Technical Barriers to Trade (TBT Agreement). Thailand and Australia can retain its laws to implement sanitary and phytosanitary measures and other standards, including with the authority to take appropriate goods that do not conform to that Party?s SPS measures and such other standards.⁵⁸ The Agreement also set out that each party should

?give consideration to accepting the relevant control, inspection and approval procedures of the other Party.
review its inspection, testing, certification and other relevant import and export approval systems or procedures.
cooperate on a product trace back system for the notification of
non-compliance of imported consignments for commodities subject to SPS measures?⁵⁹

Trade in service.

In Chapter 8 of TAFTA, it sets out the liberalization of trade in service between Thailand and Australia and enhances the cooperation in trade in service of both countries.⁶⁰ Then in part II of this chapter, there are obligations and disciplines of trade in service for both countries. In subject to Article 1605⁶¹, Article 805 stases that both countries must not imply restricted rule on international transfer and payment for current transaction that is defined by International Monetary Fund. Thailand and Australia hold the same right under relevant GATS⁶² provisions such as VI (1), (2), (3), (5) and (6); VIII (1),(2), (5); the Annex on Financial Services; the Annex on Air Transport Services, paragraphs (1), (2), (3), (4), (6); and the Annex on Telecommunications, paragraphs (1) ? (5).⁶³

TAFTA also contains some points of cooperation to strengthen exiting collaboration that effort trade in service and to enhance the development in trade in service. At part III of Chapter 8, Article 808 indicates the area of cooperation of service sector that are not covered by existing cooperation arrangements, through inter alia:

research and development;
human resource and professional development and apprenticeship;- trade in services
data management; and
small and medium enterprises capacity enhancement.

The countries have to support the development of cooperation in educational, healthcare, and tourism. Moreover, Thailand and Australia have to collaborate to promote the facilitation of temporary entry of business people in particular, by developing the capacity to grant applications offshore for business entry.⁶⁴

53. The Article 402(3)(a) 0f TAFTA
54. The Article 402(3)(b) 0f TAFTA
55.
where:
(a) ?RVC? is the regional value content between the Parties, expressed as a percentage;
(b) ?FOB? is the FOB value of the goods; and
(c) ?VNM? is the CIF (Cost, Insurance and Freight) value of all non-originating materials that:
(i) in the form in which they were first supplied to the producer of the goods, were imported into Australia or Thailand; or
(ii) in the form in which they were first supplied to a producer in the
territory of a Party of non-originating materials that are supplied to the producer of the goods, were imported into Australia or Thailand.
56. Ibid above n 44 3 and Article 408 of TAFTA
57. Annex 4.2 of TAFTA
58. Article 604 of TAFTA
59. Article 607(2),(3),(4) of TAFTA
60. Article 801 of TAFTA.
61. In the event of serious balance of payments and external financial difficulties or threat thereof, a Party may adopt or maintain restrictions on payments and transfers of funds of any investor of the other Party.
62. The General Agreement on Trade and Service
63. Article 807 of TAFTA
64. Article 808(3) of TAFTA

This article is published with the kind permission of Pornchai Wisuttisak, current PhD candidate, School of Business Law and Taxation, ASB, University of New South Wales, Master of Commercial Law, Macquarie University, BA, Political Science, Thammasat University, Thailand. This article originally appeared in the Thailand and Australia Free trade agreement (TAFTA): The advantage pace of foreign investment of both countries.