In 1997, the Thai’s government faced with financial crash resulting the severe recession. In order to improve the economic the World Trade Organization (WTO) step over to promote free trade by minimizing trade barriers as follow the objectives below.
- To assure greater trade liberalization of Thailand’s trading partners with the aim to reduce or eliminate tariff and non tariff measures;
- To improve the effectiveness of the rules governing international trade to bring about fairness and transparency in the world market’
- To prevent any new trade barrier that could obstruct Thailand’s international trade.
The main obligations of Thailand under the WTO which have affected Thai legislation can be as follow:
Market Access
Thailand has obligated to reduce the tariff rates for all 740 items by equal rate reduction each year within ten years. Beginning from 1995, the domestic subsidy for the agricultural sector has been subject to decrease equally each year from Baht 22,126.18 million to no more than Baht 19,028.48 million by the year of 2004. This would attract foreigner investor come to invest in Thailand. In contrast, Thai’s government will lose income from tariff but if we look deep to the economic after we open the market, the price of the product that they import will lead to price competition to the local market. However, the consumer will get benefit of this competition, because consumers have more choices and the price will decrease.
In my opinion, the WTO step over to assist Thailand to overcome problems of trade against more powerful trading partners is effective and I would like to support Thai’s government to continue WTO policies.
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