- within Antitrust/Competition Law topic(s)
Abstract
The WTO Secretariat concluded its ninth trade policy review of Thailand in early December. The report noted that Thailand's economy held a strong position in the global value chain. While the complicated tariff structure continued, the use of trade remedial measures was limited. The report postulated that liberalized regulations and expansion of infrastructure by Thailand would promote trade aided by the advancements in new sectors.
Introduction
The WTO Secretariat conducted the trade policy review of Thailand and published report on 1st and 3rd December 2025. The review covered the years 2020 to mid-2025. As per the report, this period was characterized by a 6.1% contraction in GDP and a slowed growth rate, primarily due to the Covid-19 pandemic. In 2024, Thailand's GDP stood at nearly USD 526 billion and a trade-to-GDP ratio of 136.8%. However, the country strives to achieve high-income status by 2037 by focusing on innovation-led growth.
The report noted that the economy had a strong position in global value chains for automotive products, and was among the largest exporters of rice, rubber, sugar and processed poultry products. However, service sector, in particular tourism, was the biggest contributor accounting for more than half of the GDP and total employment. The importance of the National Strategy (2018-2037) implemented by the Thirteenth National Economic and Social Development Plan (2023-2027) and several sector-specific action plans in encapsulating the country's development vision was also mentioned in the report.
Tariffs
According to the report, the tariff structure remained cumbersome. The customs duties contributed a meagre 4% to government tax revenue and thus, it was noted that such duties were likely a strategic tool. The current tariff structure is based on the HS22 nomenclature, harmonized with other ASEAN members at the 8-digit level. It consists of duty-free, mixed duty, specific duty, and ad-valorem duty which covers about 60% of the tariff lines. In 2025, the average bound tariff stood at 30%, while the average applied MFN tariff stood at nearly half of the bound tariff. Tariff rates ranged from 1% to 226%. However, tariff rates above 80% were out-of-quota tariffs.
The report also highlighted that agricultural and automotive goods were the most protected categories, with tariff quotas and tariffs upto 226% on out-of quota imports of raw silk; and 80% on motor vehicles. At the same time, Thailand granted tariff preferences to imports from 18 economies under the 15 Regional Trade Agreements (RTAs). During this period, Thailand received unilateral trade preferences under the GSP schemes of the USA, Switzerland, Norway and the Commonwealth of Independent States.
Trade Remedial Measures
The report highlighted Thailand's reliance on anti-dumping duties. During the review period, Thailand initiated its first anti-circumvention proceeding. Anti-dumping measures primarily focused on steel products, with 74% measures being taken against Asian economies particularly China, South Korea, Taiwan, and Vietnam. However, Thailand is yet to conduct an anti-subsidy investigation.
Trade Agreements
The report also commended Thailand for its active participation, and contribution to various agreements and initiatives at the WTO. Thailand was a co-sponsor of the Investment Facilitation for Development Agreement, Dialogue on Plastic Pollution, and participates in the Joint Statement Initiative (JSI) on Electronic Commerce. However, it was noted that Thailand has not yet ratified the Fisheries Agreement, nor is it a party to the Multi-Party Interim Appeal Arbitration Arrangement.
Some of the developments during the period of review underscored by the report were the conclusion of the Second Protocol to the ASEAN-Australia-New Zealand RTA; entry into force of Regional Comprehensive Economic Partnership, ASEAN Trade in Services Agreement, and the amendments to the ASEAN-Japan Comprehensive Economic Partnership Agreement. Bilateral RTAs were signed with Sri Lanka, the European Free Trade Association, and Bhutan, while revisions were made to the ASEAN-China RTA and to the ASEAN Trade in Goods Agreement. These agreements and developments are yet to enter into force.
The report also observed that most of Thailand's trade agreements were with partners in the Asia-Pacific region and accounted for more than half of its imports and exports. In fact, most of these agreements overlapped to a considerable extent.
Policy Reform
During the review period, Thailand liberalized foreign exchange regulations and expanded its transportation and communications infrastructure which in return enhanced trade reforms and the investment climate. Several policy instruments which were adopted to promote the development and deployment of low-carbon technologies including a clean energy trading pilot scheme, development of its electric vehicles industry, carbon taxes, renewable energy incentives, and bans on imports of electronic waste, plastic waste, and used motorcycles were also highlighted by the report. Additionally, amendments to government procurement regulations to promote the purchase of environmentally friendly products were considered. The newly established Department of Climate Change and Environment which is likely to introduce carbon credits, carbon credit trading, and a carbon border adjustment mechanism, was also taken note of.
Conclusion
The report concluded on a positive note. Although economic growth rates have slowed down, considering the Thai economy's highly diversified economic structure, low trade costs, location and comparative advantage in numerous sectors, it has high potential for higher growth rates. By leveraging its strengths in sectors such as tourism, agricultural exports, and global value chain and expanding into sectors like services, renewable energy, and the digital economy, Thailand can further its goals of growth. Further, by simplifying the tariff schedule and reviewing non-tariff barriers, Thailand can propel its growth.
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