Thailand Law Journal 2009 Fall Issue 2 Volume 12

Australian Assistance for Thailand

Australia development?s cooperation with Thailand has been continued from 1952 until now.²⁹ The corporation is typically in form of grant aid. Table 1 below will presents the expenditure of the programs since 1991/1992.

Total program activities FY1991/92 to 1994/95

 
Source : Joint Standing Committee on Foreign Affairs, Defence and trade, Australia Relations with Thailand ,the parliament of the Commonwealths of Australia, Canberra, (1995),91.

From the table above, it seems that Australia has assisted Thailand in various approaches. In 1991/92 budget was granted mainly to agricultural and rural development but this budget decreased to only 12% in 1994/95. In contrast with the education and training sector, its program was increasingly granted from 24% in 1991/92 to 39% in 1994/95. The Education and Training Cooperation has been focused as main grants in Australian Assistant programs.  Although Thailand had   the significant economic growth until 1997(Thai?s GDP growth of over 8% per year) that contributed to the result that Australian-development aid would decline and phase out by 2001, the Thai economy was in crisis during 1997-1998.³⁰ Australian government rapidly respond to the suffering from Thai economic crisis. It grants $A1billion to IMF $US 17.2 billion rescue package to Thailand.³¹ In addition Australia provided some project aiming to specific sectors, such as Thailand-Australia Science and Engineering Assistance Project $A18.5 million from1996-2001, Public Sector Reform $A770,000 from 1998-2001, Land Titling Project $A8.5 million from 1995-2000, and Aid Ambulatory Care project $A 4.1 million.³²  In 2003, Thai government expressed it desire to phase out from the being an aid recipient. Australia?s development cooperation, therefore, has been considerably decreased to only $A10.6 million in 2004-2005.³³  

The development of bilateral agreement between Thailand and Australia

Australia government presented the view of the shift in expanding of bilateral and trade in the Government?s White Paper 1997 on Foreign and Trade Policy, In International Interest.³⁴ In July 2001, Thailand?s Foreign Minister confirmed that Australia and Thailand would undertake a joint scoping study on the possibility of an FTA.³⁵ On 14 November 2001 Australia?s Trade Minister, Mark Vaile, and Thailand?s Minister for Commerce, Dr Adisai Bodharamik, announced that Bilateral Free Trade Agreement was under track of joint focusing study.³⁶ Both government commenced the study and consultation that would be complete and could be the step of both governments to decide whether to proceed formal negotiation and more detail consultation to business that mirror the desire of both governments for any FTA to be comprehensive in scope and to establish Australia and Thailand? commitment to the WTO multicultural system.³⁷ On 30 May 2002, there were an announcement of formal negotiation would be raised next day.³⁸  On 19 October 2003, successful conclusion of negotiations for an FTA was announced by Australia Prime minister Howard and the text of the Agreement was released on 12 May 2004.³⁹ On 5 July 2004, Thai Prime minister Taksin and Australian Priminister Haward, in Canberra, signed The Thailand- Australia Free Trade Agreement.⁴⁰

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.