Australian–Thai Trade: Has the Free Trade Agreement Made a Difference?

11 Pages Posted: 3 Dec 2011  

Prema-chandra Athukorala

Crawford School of Public Policy, Australian National University; Australian National University (ANU)

Archanun Kohpaiboon

Thammasat University

Date Written: December 2011

Abstract

This article examines the impact of the Thailand–Australia Free Trade Agreement (TAFTA) on bilateral trade between the two countries, paying attention to the implications of rules of origin and the utilisation of tariff preferences. It is found that trade has expanded faster since TAFTA came into effect, but the impact has heavily concentrated in a few product lines in Australian imports from Thailand, reflecting the influence of commodity‐specific, supply‐side factors which have a bearing on the rate of preference utilisation. The findings, inter alia, suggest that the use of officially announced preference rates in trade flow modelling is likely to exaggerate trade flow effects of free trade agreements.

Suggested Citation

Athukorala, Prema-chandra and Kohpaiboon, Archanun, Australian–Thai Trade: Has the Free Trade Agreement Made a Difference? (December 2011). Australian Economic Review, Vol. 44, Issue 4, pp. 457-467, 2011. Available at SSRN: https://ssrn.com/abstract=1967335 or http://dx.doi.org/10.1111/j.1467-8462.2011.00658.x

Prema-chandra Athukorala (Contact Author)

Crawford School of Public Policy, Australian National University ( email )

Coombs Building (Blgd 9)
Australian National University
Canberra, Australian Capital Territory 0200
Australia
+61 26125 8529 (Phone)
+61 26125 3700 (Fax)

HOME PAGE: http://rspas.anu.edu.au/economics/staff/athu/athu.htm

Australian National University (ANU)

Archanun Kohpaiboon

Thammasat University ( email )

Faculty of Political Science, Prachan Road
Bangkok, 10200
Thailand

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