Thailand Law Journal 2009 Fall Issue 2 Volume 12

Political and Diplomatic relation

In December 1945, Australia constructed a mission in Bangkok which become the consulate-general in 1946 and contributed the establishment of Australian Embassy on 6 December 1955.¹⁷ Thailand raised the legation in 1952 which established the status of Embassy on 7 December 1955.¹⁸ In 1980s, cold war period, Australia and Thailand have dominated bilateral relationship because of the Cold War security issue. Both countries were the member of South East Asia Treaty Organisation (SEATO); Australia provided Thailand considerable support both through organisation and bilateral basis such as joint military technical training project, official vehicle maintenance project and Tribunal Support Centre.¹⁹

There were many bilateral Agreements that can be implied as the future step of relation such as a 1979 Cultural Trade Agreement, a 1989 Development Cooperation Agreement, and a 1990 Economic Cooperation Agreement.²⁰ Moreover, it has a number of Memoranda of Understanding, Covering Air Service(1982), Science and Technology (1987), Energy( 1989), Research and Education(1991), Defence Logistic(1993), Health(1993) and Surveying Mapping(1994).²¹

Economic relation

Australia did contact with Thai in trade mission from the late 1950 and held large trade fair in Bangkok in 1966 but the trade between both countries was just A$25 million in 1967-1968.²² In the late 1980, industrial development in Thailand moved rapidly forwards, Thailand was becoming the significant economy in Indochina and Southeast Asia region.²³ Thai economy was climbing faster than other in the world from 1984 to 1990.²⁴ The trade relations between Australia and Thailand remain sound; Thailand would like to export more and Australia would like to raise investment in Thailand despite the fact that Australia? investment and trade with Thailand felt behind those with Indonesia, Malaysia and Singapore.²⁵

Bilateral Trade between Australi and Thailand  Figures ($A million)

Source: ABS presented by DFAT

However, as seen in the table above, the merchandise between countries rarely increased during 2000-2004. The trend of bilateral volume is seen to be stable. For example, the in 2000 the value of bilateral imports and exports are $A 1,958 and $A 2,815 millions. In 2002, the value of import is $A 2,513 and of export is $A 3,140 millions. Australia is ranked as the eleventh exporter of Thailand. When compared to other countries, the volume of export from Thailand to Australia is at 2.5 percent. For the

import from Australia to Thailand, Australia is presented as twelfth importer of Thailand, the import volume is at 2.3 percent  when compared with other countries. It can be implied that although Thailand and Australia have the merchandise between them, the figure in their trading did not considerably increase. 

Security relation

As stated above both countries are the members of SEATO. Australia focused Thailand as the strategic area; the strategic review and Defending Australia 94 pointed Thailand as a significant country in region.²⁶ Both countries have regular military exchange programs such as CHAPEL GOLD, which involves the Australian rifle company, AUSTHAI ? the joint air forces exercise in Gulf of Thailand, and THAI BOOMERANG ? a joint air forces exercise at Nakorn Rachasrima.²⁷ The budget of Australia spent for defence cooperation with Thailand is $A4.2 million in 1996-97 and the Australian Defence Forces School of Language continue to train five to seven personel in the Thai language each year.²⁸

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.