Vol. 5: No. 1, January 2010

AFTA effective today

(NNT, National News Bureau of Thailand, 01.01.2010)

The ASEAN Free Trade Area (AFTA) is effective from today January 2010. The international trade agreement requires 0% reduction of tax on products traded among the old ASEAN members.

Thai Commerce Minister Porthiva Nakasai said a total of 8,300 goods would enjoy 0% tariff in the six founding members of the association, including Thailand, Malaysia, Indonesia, the Philippines, Singapore, and Brunei.

According to Ms Pontiva, the Commerce Ministry has prepared measures to deal with the 23 products which pose threats to the Thai agricultural industry, including rice, soy beans, fresh and flavored milk, palm oil, and corn feed. Nine of the 23 goods are under the supervision of Ministry of Agriculture and Cooperatives. They are soy beans, desiccated coconut meat, coconut, coconut oil, tea, coffee beans, instant coffee, fresh milk/flavored milk, and low fat milk.

The measures require foreign exporters to ask for permission before bringing their products into the Kingdom and set quality standards for them. The products must also have a certification showing that they contain legal amounts of contamination, a certification on Sanitary and Phytosanitary Standard, and a certification of being GMO-free. The regulations will be enforced this month.