RESTRICTED WT/TPR/S/326 20 October 2015 (15-5518) Page: 1/151 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT THAILAND This report, prepared for the seventh 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 Mr Sergios Stamnas (tel: 022/739 5382) and Ms Katie Waters (tel: 022/739 5067). Document WT/TPR/G/326 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/326 • Thailand - 2 - CONTENTS SUMMARY ........................................................................................................................ 8 1 ECONOMIC ENVIRONMENT ........................................................................................ 12 1.1 Overview ................................................................................................................. 12 1.2 Recent Economic Developments.................................................................................. 14 1.2.1 Growth, income, and employment ............................................................................ 14 1.2.2 Prices ................................................................................................................... 16 1.3 Main Macroeconomic Policy Developments .................................................................... 16 1.3.1 Monetary and exchange rate policy .......................................................................... 16 1.3.2 Fiscal policy .......................................................................................................... 17 1.4 Main Structural Policy Developments and Challenges ..................................................... 18 1.4.1 Tax and fiscal processes reform ............................................................................... 18 1.4.2 Subsidies reform ................................................................................................... 18 1.4.3 State-owned enterprises (SOEs) .............................................................................. 18 1.4.4 Transparency and anti-corruption ............................................................................. 19 1.4.5 Labour market reform ............................................................................................ 19 1.5 Balance-of-Payments Developments ............................................................................ 19 1.6 Developments in Merchandise Trade ............................................................................ 21 1.7 Trends and Patterns in Foreign Direct Investment ......................................................... 23 2 TRADE AND INVESTMENT REGIME ............................................................................ 26 2.1 Overview ................................................................................................................. 26 2.2 General Framework .................................................................................................. 26 2.3 Trade Policy Formulation and Objectives ...................................................................... 27 2.4 Trade Agreements and Arrangements .......................................................................... 29 2.4.1 WTO .................................................................................................................... 29 2.4.2 Regional trade agreements...................................................................................... 31 2.4.2.1 ASEAN ............................................................................................................... 32 2.4.3 Preferential trade agreements.................................................................................. 33 2.4.4 Other agreements and arrangements ........................................................................ 34 2.4.4.1 Asia-Pacific Economic Cooperation (APEC) .............................................................. 34 2.4.4.2 Asia-Europe Meetings (ASEM) ............................................................................... 34 2.4.4.3 Other ................................................................................................................ 34 2.5 Foreign Investment Regime ....................................................................................... 35 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 38 3.1 Introduction ............................................................................................................. 38 3.2 Measures Directly Affecting Imports ............................................................................ 40 3.2.1 Customs clearance ................................................................................................. 40 3.2.1.1 Registration and documentation ............................................................................ 40 3.2.1.2 Customs valuation procedures .............................................................................. 42 3.2.1.3 Rules of origin .................................................................................................... 42 WT/TPR/S/326 • Thailand - 3 - 3.2.2 Tariffs .................................................................................................................. 42 3.2.2.1 Features ............................................................................................................ 42 3.2.2.2 Applied MFN tariffs .............................................................................................. 43 3.2.2.3 Structure ........................................................................................................... 43 3.2.2.4 Tariff dispersion and escalation ............................................................................. 45 3.2.2.5 Bound tariffs ...................................................................................................... 45 3.2.2.6 Tariff-rate quotas ................................................................................................ 46 3.2.2.7 Special duties (or import surcharges) ..................................................................... 47 3.2.2.8 Tariff reduction and exemptions ............................................................................ 47 3.2.2.9 Preferential tariffs ............................................................................................... 47 3.2.3 Other charges affecting imports ............................................................................... 48 3.2.4 Import prohibitions and licensing ............................................................................. 48 3.2.4.1 Import prohibitions ............................................................................................. 51 3.2.4.2 Import licensing .................................................................................................. 52 3.2.4.3 Import quotas .................................................................................................... 53 3.2.5 Contingency measures ........................................................................................... 53 3.2.5.1 Anti-dumping and countervailing measures ............................................................. 53 3.2.5.2 Safeguards ........................................................................................................ 53 3.2.6 Standards and other technical requirements .............................................................. 54 3.2.6.1 Standards, testing, and certification ....................................................................... 54 3.2.6.1.1 Voluntary, compulsory, national, and aligned standards ......................................... 55 3.2.6.1.2 Accreditation and quality management standards .................................................. 55 3.2.6.1.3 International cooperation .................................................................................. 55 3.2.6.1.4 Transparency ................................................................................................... 56 3.2.6.2 Sanitary and phytosanitary measures .................................................................... 56 3.2.6.2.1 Food standards-setting framework ...................................................................... 56 3.2.6.2.2 Quarantine requirements ................................................................................... 57 3.2.6.2.3 Transparency ................................................................................................... 58 3.2.6.3 Labelling requirements ......................................................................................... 59 3.2.7 Government procurement ....................................................................................... 60 3.2.8 Countertrade ......................................................................................................... 63 3.3 Measures Directly Affecting Exports ............................................................................