RESTRICTED WT/TPR/S/400 29 September 2020
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RESTRICTED WT/TPR/S/400 29 September 2020 (20-6578) Page: 1/163 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT THAILAND This report, prepared for the eighth Trade Policy Review of Thailand, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Thailand on its trade policies and practices. Any technical questions arising from this report may be addressed to Martha Lara Fernández (tel: 022 739 6033), Zheng Wang (tel: 022 739 5288), and Xinyi Li (tel: 022 739 5579). Document WT/TPR/G/400 contains the policy statement submitted by Thailand. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on Thailand. This report was drafted in English. WT/TPR/S/400 • Thailand - 2 - CONTENTS SUMMARY ........................................................................................................................ 8 1 ECONOMIC ENVIRONMENT ........................................................................................ 12 1.1 Main Features of the Economy .................................................................................... 12 1.2 Recent Economic Developments.................................................................................. 14 1.2.1 The COVID-19 pandemic ......................................................................................... 14 1.2.2 Growth, income and employment ............................................................................. 16 1.2.3 Fiscal policy and debt ............................................................................................. 19 1.2.3.1 Tax reforms ....................................................................................................... 21 1.2.4 Monetary and exchange rate policies ........................................................................ 22 1.2.5 Balance of payments .............................................................................................. 25 1.3 Developments in Trade and Investment ....................................................................... 26 1.3.1 Trends and patterns in merchandise and services trade ............................................... 26 1.3.1.1 Merchandise trade ............................................................................................... 26 1.3.1.2 Services trade .................................................................................................... 28 1.3.2 Trends and patterns in Foreign direct investment (FDI) ............................................... 29 2 TRADE AND INVESTMENT REGIMES ........................................................................... 33 2.1 General Framework .................................................................................................. 33 2.2 Trade Policy Formulation and Objectives ...................................................................... 35 2.3 Trade Agreements and Arrangements .......................................................................... 36 2.3.1 WTO .................................................................................................................... 36 2.3.2 Regional and preferential agreements ....................................................................... 38 2.3.2.1 Overview ........................................................................................................... 38 2.3.2.2 ASEAN ............................................................................................................... 39 2.3.3 Other agreements and arrangements ........................................................................ 41 2.3.3.1 Preferential trade agreements ............................................................................... 41 2.3.3.2 Asia-Pacific Economic Cooperation (APEC) .............................................................. 42 2.3.3.3 Asia-Europe Meetings (ASEM) ............................................................................... 43 2.3.3.4 Other cooperation arrangements ........................................................................... 43 2.4 Investment Regime .................................................................................................. 44 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 48 3.1 Measures Directly Affecting Imports ............................................................................ 48 3.1.1 Customs procedures, valuation, and requirements ...................................................... 48 3.1.1.1 Registration and documentation ............................................................................ 48 3.1.1.2 Customs valuation procedures .............................................................................. 50 3.1.1.3 Rules of origin .................................................................................................... 51 3.1.2 Tariffs .................................................................................................................. 51 3.1.2.1 Tariff structure ................................................................................................... 51 3.1.2.2 Tariff bindings .................................................................................................... 52 3.1.2.3 Applied tariff ...................................................................................................... 52 WT/TPR/S/400 • Thailand - 3 - 3.1.2.4 Tariff quotas ....................................................................................................... 55 3.1.2.5 Tariff exemption ................................................................................................. 55 3.1.2.6 Preferential tariffs ............................................................................................... 56 3.1.3 Other charges affecting imports ............................................................................... 56 3.1.4 Import prohibitions, restrictions, and licensing ........................................................... 56 3.1.4.1 Import prohibitions ............................................................................................. 57 3.1.4.2 Import licensing .................................................................................................. 58 3.1.5 Anti-dumping, countervailing, and safeguard measures ............................................... 61 3.1.5.1 Anti-dumping and countervailing measures ............................................................. 61 3.1.5.2 Safeguards ........................................................................................................ 62 3.2 Measures Directly Affecting Exports ............................................................................. 62 3.2.1 Customs procedures and requirements ..................................................................... 62 3.2.2 Taxes, charges, and levies ...................................................................................... 63 3.2.3 Export prohibitions, restrictions, and licensing ............................................................ 64 3.2.3.1 Export prohibitions .............................................................................................. 64 3.2.3.2 Export licensing .................................................................................................. 64 3.2.4 Export support and promotion ................................................................................. 66 3.2.4.1 Bonded warehouses ............................................................................................ 66 3.2.4.2 Duty drawback ................................................................................................... 66 3.2.4.3 Tax and duty compensation .................................................................................. 67 3.2.4.4 Customs free zones ............................................................................................. 67 3.2.4.5 Free zones under the Industrial Estate Authority of Thailand ..................................... 67 3.2.4.6 Export promotion ................................................................................................ 68 3.2.5 Export finance, insurance, and guarantees ................................................................ 69 3.3 Measures Affecting Production and Trade ..................................................................... 71 3.3.1 Incentives ............................................................................................................ 71 3.3.1.1 Taxation ............................................................................................................ 71 3.3.1.2 Tax and non-tax incentives ................................................................................... 75 3.3.1.2.1 Overview ........................................................................................................ 75 3.3.1.2.2 Activity- and merit-based incentives .................................................................... 76 3.3.1.2.3 Other incentives offered by the BOI: SEZs and others ............................................ 77 3.3.1.2.3.1 Measures to promote investment in SEZs .........................................................